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Town Ray Holdings Limited (HK:1692)
:1692
Hong Kong Market
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Town Ray Holdings Limited (1692) AI Stock Analysis

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HK

Town Ray Holdings Limited

(1692)

Rating:67Neutral
Price Target:
HK$2.50
▲(7.30%Upside)
The company's stock score is primarily supported by its attractive valuation, featuring a low P/E ratio and high dividend yield. However, mixed financial performance, particularly concerns about revenue decline and cash flow conversion, weigh down the score. Technical indicators suggest a lack of strong momentum, contributing to an overall balanced but cautious outlook.

Town Ray Holdings Limited (1692) vs. iShares MSCI Hong Kong ETF (EWH)

Town Ray Holdings Limited Business Overview & Revenue Model

Company DescriptionTown Ray Holdings Limited, together with its subsidiaries, manufactures and sells electrothermic household appliances in Europe, Asia, the United States, and internationally. It offers garment care appliances, such as steam generator irons, garment steamers, and steam irons; and cooking appliances, including coffee machines, steam cooking appliances, and other cooking appliances, as well as consumer electronics products, cleaning products, and air purifiers. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong. Town Ray Holdings Limited operates as a subsidiary of Modern Expression Limited.
How the Company Makes MoneyTown Ray Holdings Limited generates revenue through the sale of its electrical household appliances. The company designs and manufactures a variety of small kitchen and household appliances, which it sells to retailers, distributors, and directly to consumers. Revenue is primarily derived from product sales, with a focus on expanding its market presence through continuous product innovation and leveraging its established distribution channels. The company's earnings are influenced by factors such as consumer demand, product pricing, manufacturing costs, and distribution efficiency. Significant partnerships with retailers and distributors also play a crucial role in ensuring the company's products reach a wide customer base, contributing to its overall revenue.

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
72
Positive
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
68
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue703.59M704.42M823.66M763.09M541.70M
Gross Profit231.75M245.38M256.07M217.16M180.55M
EBITDA163.77M163.63M182.47M148.03M132.33M
Net Income107.61M122.21M134.31M106.50M104.19M
Balance Sheet
Total Assets554.46M477.35M581.85M608.48M474.89M
Cash, Cash Equivalents and Short-Term Investments75.89M187.97M149.01M145.01M225.05M
Total Debt87.73M33.89M60.44M115.32M52.17M
Total Liabilities199.41M132.67M231.92M276.29M165.91M
Stockholders Equity355.04M344.68M349.93M332.19M308.98M
Cash Flow
Free Cash Flow-22.14M183.13M145.16M-22.34M97.57M
Operating Cash Flow25.54M196.70M254.50M17.27M117.35M
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 Price2.33
Price Trends
50DMA
2.35
Negative
100DMA
2.41
Negative
200DMA
2.46
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
47.93
Neutral
STOCH
28.89
Neutral
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 2.33 is above the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.35, and below the 200-day MA of 2.46, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 28.89 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$836.47M7.7730.76%13.82%-0.12%-11.93%
63
Neutral
HK$1.34B67.3610.51%0.73%6.02%
57
Neutral
HK$14.14B5.06-5.75%5.40%9.34%-42.23%
44
Neutral
HK$602.89M-20.96%4.76%-16.35%-648.31%
40
Neutral
HK$628.33M
DEFUK
€33.60M13.84-6.99%11.11%
50
Neutral
HK$1.01B57.064.55%2.36%-50.14%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1692
Town Ray Holdings Limited
2.33
0.05
2.19%
HK:0099
Wong's International Holdings
1.28
-0.20
-13.51%
HK:0167
IDT International Limited
1.44
0.36
33.33%
DE:FUK
Fujikon Industrial Holdings Limited
0.07
0.00
0.00%
HK:1401
Sprocomm Intelligence Limited
1.01
-1.92
-65.53%
HK:1747
Home Control International Limited
2.50
2.18
681.25%

Town Ray Holdings Limited Corporate Events

Town Ray Holdings Limited Forms Nomination Committee to Strengthen Governance
Jun 30, 2025

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
May 26, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025