Hope Life International Holdings Ltd. (1683) AI Stock Analysis

• Market Cap: HK$1.32B
• Dividend Yield: N/A
• Average Volume (3M): 9.95M
• Price to Earnings (P/E): 106.7
• Beta (1Y): -1.00
• Revenue Growth: -35.62%
• EPS Growth: -377.27%
• Country: HK
• Employees: 55
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): -0.03
• Shares Outstanding: 1,555,200,000
• 10 Day Avg. Volume: 7,359,900
• 30 Day Avg. Volume: 9,945,300
• PEG Ratio: 0.16
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ―

The overall stock score reflects a company facing significant financial challenges, particularly with profitability and cash flow, despite a stable balance sheet. Technical analysis indicates strong momentum but warns of potential overbought conditions. Valuation is unattractive due to negative earnings and lack of dividends. These factors collectively suggest cautious optimism, with potential risks overshadowing the current technical strength.

Hope Life International Holdings Ltd. Business Overview & Revenue Model

Company Description

Hope Life International Holdings Limited, an investment holding company, provides construction and ancillary services in Hong Kong and the People's Republic of China. It operates through three segments: Construction and Ancillary Services, Financial Business, and Consumer Goods Business. The Construction and Ancillary Services segment offers design, fitting out, decoration, alteration and addition, construction, and other related services. The Financial Business segment is involved in the money lending business that provides loan facilities to enterprises and individuals. The Consumer Goods Business segment produces and sells wine products. The company was formerly known as Royal China International Holdings Limited and changed its name to Hope Life International Holdings Limited in September 2019. Hope Life International Holdings Limited was founded in 1996 and is headquartered in Hong Kong.

How the Company Makes Money

Hope Life International Holdings Ltd. generates revenue through the sale and distribution of construction materials and hardware products. The company sources these materials from a variety of manufacturers and suppliers, then markets and sells them to construction companies, contractors, and other entities involved in building and infrastructure development. Key revenue streams include direct sales of construction materials, partnerships with suppliers and manufacturers, and potentially value-added services such as logistics and supply chain management. The company's earnings are significantly influenced by the construction and real estate market's demand, as well as its ability to maintain strong relationships with suppliers and customers.

Hope Life International Holdings Ltd. Financial Statement Overview

Summary

Hope Life International Holdings Ltd. faces challenges with profitability and cash flow, despite a stable balance sheet. The company needs to improve operational efficiency and cash flow management to enhance financial health. Continued revenue volatility and negative profit margins indicate risk, though the balance sheet provides some stability.

Income Statement

The company has experienced volatility in revenue, with a recent drop from 2023 to 2024. The gross profit margin decreased from 20.8% to 19.1%, and the net profit margin is negative, indicating ongoing profitability challenges. EBIT and EBITDA margins have also declined, reflecting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio remains low at 0.22, suggesting manageable leverage levels. However, the return on equity has been negative due to losses, impacting shareholder value. The equity ratio is strong at 72.7%, indicating a solid capital structure.

Cash Flow

The company has struggled with cash flow, showing negative operating and free cash flow in recent years. The absence of free cash flow growth and the inability to cover net income with operating cash flow are concerning.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
188.74M	293.15M	190.99M	247.17M	113.18M
	Gross Profit
36.03M	60.82M	34.87M	47.15M	23.46M
	EBIT
-13.57M	12.60M	9.79M	12.73M	-8.29M
	EBITDA
-9.88M	17.59M	13.14M	16.07M	-2.71M
	Net Income Common Stockholders
-32.65M	-5.63M	-1.38M	6.87M	-8.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
230.85M	40.43M	52.49M	21.92M	49.23M
	Total Assets
468.83M	480.90M	340.20M	317.93M	263.55M
	Total Debt
75.64M	74.54M	43.99M	41.54M	3.81M
	Net Debt
13.48M	34.10M	-8.50M	19.62M	-45.43M
	Total Liabilities
117.23M	117.43M	91.79M	73.97M	40.98M
	Stockholders Equity
340.87M	354.42M	243.96M	242.06M	222.58M
Cash Flow		Free Cash Flow
0.00	-154.31M	11.31M	-75.48M	-76.24M
	Operating Cash Flow
0.00	-154.31M	11.61M	-75.48M	-40.53M
	Investing Cash Flow
0.00	-64.00K	-302.00K	4.00K	-32.14M
	Financing Cash Flow
0.00	144.66M	19.72M	48.17M	88.74M

Hope Life International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1683, the sentiment is Positive. The current price of 0.81 is above the 20-day moving average (MA) of 0.80, above the 50-day MA of 0.56, and above the 200-day MA of 0.24, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 66.00 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1683.

Hope Life International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1627	80 Outperform	HK$1.26B	5.19	15.68%	7.81%	5.06%	30.15%
0240	74 Outperform	HK$1.37B	3.15	17.23%	10.91%	14.88%	-8.34%
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
2236	56 Neutral	HK$1.55B	9.68	5.53%	―	44.19%	―
1683	51 Neutral	HK$1.32B	106.67	-9.39%	―	-35.62%	-377.27%
1726	46 Neutral	HK$2.02B	―	-62.57%	―	37.20%	5.04%
2262	44 Neutral	HK$1.52B	831.25	0.59%	―	3.34%	―

Hope Life International Holdings Ltd. Corporate Events

Hope Life International Holdings Announces 2025 AGM and Key Resolutions

Hope Life International Holdings Limited has announced its upcoming Annual General Meeting (AGM) to be held on May 22, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the company’s audited financial statements for 2024, the re-election of independent non-executive directors, and the authorization of director and auditor remuneration. Additionally, the AGM will consider granting the board the authority to issue and manage additional shares, subject to certain conditions, which could impact the company’s capital structure and shareholder value.

Hope Life International Holdings Reports Financial Downturn for FY2024

Hope Life International Holdings Ltd. reported its final results for the fiscal year ended December 31, 2024, revealing a significant decline in revenue from HK$293,151,000 in 2023 to HK$188,737,000 in 2024. The company faced a comprehensive loss of HK$38,702,000, attributed to reduced gross profit, increased impairment losses, and higher finance costs. This financial downturn may impact the company’s market positioning and stakeholder confidence.

Hope Life International Holdings Ltd. Relocates Hong Kong Office

Hope Life International Holdings Ltd. has announced a change in its principal place of business in Hong Kong. The new location is No. 1012 on the 10th Floor of Harbour Crystal Centre, Kowloon, effective from March 31, 2025. This move may reflect strategic adjustments in their operations or positioning within the market.

Hope Life International Issues Profit Warning for FY2024

Hope Life International Holdings Limited has issued a profit warning, indicating a significant increase in net loss for the fiscal year ending December 31, 2024. The expected net loss of not less than HKD24.4 million is attributed primarily to increased finance costs and impairment losses. The company’s financial results are still being finalized and are subject to further adjustments, with the final announcement expected by March 31, 2025. Stakeholders are advised to exercise caution in evaluating the company’s financial condition and in dealing with its shares.