Town Ray Holdings Limited (1692) AI Stock Analysis

• Market Cap: HK$689.28M
• Dividend Yield: 14.11%
• Average Volume (3M): 84.20K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.28
• Revenue Growth: -0.12%
• EPS Growth: -11.93%
• Country: HK
• Employees: 1,075
• Sector: Technology
• Sector Strength: 94
• Industry: Consumer Electronics
• EPS (TTM): 0.17
• Shares Outstanding: 359,000,000
• 10 Day Avg. Volume: 179,600
• 30 Day Avg. Volume: 84,200
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$2.50
• Price Target Upside: 30.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: HK$2.00 ▲(4.17% Upside)

Overall, the stock is moderately attractive. The strong valuation metrics with a low P/E ratio and high dividend yield provide a solid base. However, technical indicators suggest bearish momentum, and financial performance indicates challenges with revenue and cash flow. Monitoring these elements will be crucial for assessing future performance.

Town Ray Holdings Limited Business Overview & Revenue Model

Company Description

Town Ray Holdings Limited (1692) is a company primarily engaged in the design, manufacture, and sale of electrical household appliances. The company specializes in a range of products, including coffee makers, steam irons, and steam stations, catering to both domestic and international markets. Town Ray Holdings Limited is known for its commitment to quality and innovation, frequently updating its product offerings to meet changing consumer demands and technological advancements.

How the Company Makes Money

Town Ray Holdings Limited generates revenue through the production and sale of its electrical household appliances. The company's primary revenue streams include direct sales to retailers, distributors, and wholesalers, as well as partnerships with various brands that require OEM (Original Equipment Manufacturer) services. By leveraging its manufacturing capabilities and industry expertise, Town Ray Holdings Limited is able to maintain competitive pricing and establish long-term relationships with key clients. Additionally, the company may benefit from strategic partnerships and licensing agreements that expand its market reach and enhance its product portfolio.

Town Ray Holdings Limited Financial Statement Overview

Summary

Overall, Town Ray Holdings Limited presents a mixed financial picture. While profitability metrics are strong, indicating good cost control and operational efficiency, there are concerns with revenue decline and cash flow conversion. The balance sheet remains stable, though careful monitoring of debt levels and equity is advisable. Future growth will depend significantly on reversing the negative revenue trend and improving cash flow metrics.

Income Statement

The income statement reveals mixed performance. The gross profit margin is healthy, indicating efficient production processes. However, revenue has shown a decrease from 2022 to 2024, which could be a concern. Despite this, net profit margins are robust, suggesting good cost management. EBITDA and EBIT margins are solid, reflecting strong operational efficiency.

Balance Sheet

The balance sheet is relatively strong with a moderate debt-to-equity ratio, indicating a balanced approach to leveraging debt. The return on equity is adequate, showcasing decent returns for shareholders. However, the equity ratio has slightly declined over the years, which could suggest increasing liabilities or lower equity levels.

Cash Flow

Cash flow performance is varied. The free cash flow has fluctuated, showing growth in some years but not consistently. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. However, the company has managed to maintain positive free cash flow, which is a positive sign.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	703.59M	704.42M	823.66M	763.09M	541.70M
Gross Profit	231.75M	245.38M	256.07M	217.16M	180.55M
EBITDA	163.77M	163.63M	182.47M	148.03M	132.33M
Net Income	107.61M	122.21M	134.31M	106.50M	104.19M
Balance Sheet
Total Assets	554.46M	477.35M	581.85M	608.48M	474.89M
Cash, Cash Equivalents and Short-Term Investments	75.89M	187.97M	149.01M	145.01M	225.05M
Total Debt	87.73M	33.89M	60.44M	115.32M	52.17M
Total Liabilities	199.41M	132.67M	231.92M	276.29M	165.91M
Stockholders Equity	355.04M	344.68M	349.93M	332.19M	308.98M
Cash Flow
Free Cash Flow	-22.14M	183.13M	145.16M	-22.34M	97.57M
Operating Cash Flow	25.54M	196.70M	254.50M	17.27M	117.35M
Investing Cash Flow	-47.43M	-5.41M	-95.06M	-39.61M	-19.77M
Financing Cash Flow	-88.89M	-152.00M	-153.12M	-59.06M	-122.56M

Town Ray Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1692, the sentiment is Negative. The current price of 1.92 is below the 20-day moving average (MA) of 2.14, below the 50-day MA of 2.26, and below the 200-day MA of 2.43, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 25.03 is Positive, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1692.

Town Ray Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0927	65 Neutral	€306.60M	16.80	-6.99%	9.72%	-6.75%	-310.42%
1692	63 Neutral	HK$689.28M	6.40	30.76%	14.11%	-0.12%	-11.93%
1747	59 Neutral	HK$2.28B	116.84	10.51%	0.42%	6.02%	―
1401	55 Neutral	HK$1.49B	73.88	4.55%	―	2.36%	-50.00%
Sector *	50 Neutral	C$3.26B	5.38	-49.37%	9.08%	2.09%	-13.61%
0099	44 Neutral	HK$665.09M	―	-20.96%	4.20%	-16.35%	-648.31%
0167	40 Neutral	HK$615.33M	―		―	―	―

Town Ray Holdings Limited Corporate Events

Town Ray Holdings Issues Profit Warning Amid Strategic Product Adjustments

Town Ray Holdings Limited has issued a profit warning, indicating an expected decrease in net profit by approximately 38% for the first half of 2025 compared to the same period in 2024. This decline is attributed to the company’s strategic decision to adjust its product offerings to align with consumer demand, which involved selling products at lower gross profit margins.

Town Ray Holdings Limited Forms Nomination Committee to Strengthen Governance

Town Ray Holdings Limited has established a Nomination Committee in compliance with the Hong Kong Stock Exchange’s Listing Rules. The committee, consisting of at least three members with a majority being independent non-executive directors, aims to ensure diverse representation, including gender diversity. This move is expected to enhance the governance structure of the company, potentially improving its industry positioning and stakeholder confidence.

Town Ray Holdings Limited Successfully Concludes AGM with All Resolutions Passed

Town Ray Holdings Limited announced the successful conclusion of its Annual General Meeting held on May 26, 2025, where all proposed resolutions were passed. These resolutions included the adoption of financial statements, approval of a final dividend, re-appointment of auditors, re-election of directors, and granting of mandates for share issuance and repurchase, indicating strong shareholder support and strategic direction for the company.