Town Ray Holdings Limited (1692) AI Stock Analysis

• Market Cap: HK$646.20M
• Dividend Yield: 12.83%
• Average Volume (3M): 33.20K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.27
• Revenue Growth: 19.54%
• EPS Growth: 6.89%
• Country: HK
• Employees: 1,075
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 0.08
• Shares Outstanding: 359,000,000
• 10 Day Avg. Volume: 23,400
• 30 Day Avg. Volume: 33,200
• PEG Ratio: -0.77
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 1.39
• P/FCF Ratio: -44.28
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: HK$2.00 ▲(11.11% Upside)

The stock's overall score is driven by strong valuation metrics, with a low P/E ratio and high dividend yield indicating potential undervaluation. However, technical analysis shows bearish trends, and financial performance is mixed with declining revenue and cash flow concerns. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Product Innovation

Town Ray Holdings' focus on innovation and updating product offerings to meet consumer demands positions it well for long-term growth in the competitive consumer electronics market.

Governance Enhancement

The formation of a Nomination Committee strengthens corporate governance, potentially boosting investor confidence and supporting sustainable business practices.

Profitability

Strong profitability and efficient cost management indicate robust operational efficiency, providing a solid foundation for long-term financial health.

Negative Factors

Revenue Decline

Declining revenue over recent years could signal challenges in market demand or competitive pressures, potentially impacting future growth prospects.

Profit Warning

The profit warning due to strategic product adjustments suggests potential short-term financial strain, impacting investor sentiment and financial stability.

Cash Flow Challenges

Inconsistent cash flow conversion can hinder the company's ability to reinvest in growth initiatives and manage financial obligations effectively.

Town Ray Holdings Limited Business Overview & Revenue Model

Company Description

Town Ray Holdings Limited (1692) is a diversified investment holding company based in Hong Kong, primarily engaged in the manufacturing, trading, and retailing of a range of consumer products. The company operates in various sectors, including electronics, home appliances, and lifestyle products, focusing on delivering innovative solutions and quality services to its customers. With a strong presence in both local and international markets, Town Ray Holdings aims to enhance its product offerings and expand its market reach through strategic partnerships and investments.

How the Company Makes Money

Town Ray Holdings Limited generates revenue through multiple streams, primarily from the sale of consumer products such as electronics and home appliances. The company profits from both direct retail sales and wholesale distribution to various retailers and distributors. Additionally, Town Ray engages in strategic partnerships with other manufacturers and suppliers to enhance its product portfolio, allowing for cost efficiencies and improved margins. E-commerce sales also contribute to the company's earnings, reflecting the growing trend of online shopping. Furthermore, the company may explore joint ventures or collaborations that enable access to new markets and customer bases, further driving revenue growth.

Town Ray Holdings Limited Financial Statement Overview

Summary

The company shows strong profitability metrics with healthy gross and net profit margins, indicating efficient cost management. However, declining revenue and inconsistent cash flow conversion are concerns. The balance sheet is stable but requires monitoring of debt and equity levels.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	565.31M	703.59M	704.42M	823.66M	763.09M	541.70M
Gross Profit	171.47M	231.75M	245.38M	256.07M	217.16M	180.55M
EBITDA	90.66M	163.77M	163.63M	192.92M	148.03M	145.50M
Net Income	74.11M	107.61M	122.21M	134.31M	106.50M	104.19M
Balance Sheet
Total Assets	557.57M	554.46M	477.35M	581.85M	608.48M	474.89M
Cash, Cash Equivalents and Short-Term Investments	79.11M	75.89M	187.97M	149.01M	145.01M	225.05M
Total Debt	66.27M	87.73M	33.89M	60.44M	115.32M	52.17M
Total Liabilities	227.44M	199.41M	132.67M	231.92M	276.29M	165.91M
Stockholders Equity	330.12M	355.04M	344.68M	349.93M	332.19M	308.98M
Cash Flow
Free Cash Flow	77.51M	-22.14M	183.13M	145.16M	-22.34M	97.57M
Operating Cash Flow	97.74M	23.11M	196.70M	254.50M	17.27M	117.35M
Investing Cash Flow	-16.36M	-43.43M	-5.41M	-94.19M	-37.34M	-18.63M
Financing Cash Flow	-161.12M	-91.20M	-152.00M	-157.15M	-59.85M	-124.22M

Town Ray Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1692, the sentiment is Neutral. The current price of 1.8 is above the 20-day moving average (MA) of 1.79, above the 50-day MA of 1.77, and below the 200-day MA of 2.07, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 56.83 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1692	63 Neutral	HK$646.20M	7.25	26.70%	12.83%	19.54%	6.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0927	54 Neutral	HK$293.83M	-5.26	-11.41%	8.70%	-16.95%	-461.16%
1401	54 Neutral	HK$870.00M	39.58	4.74%	―	-0.54%	-46.27%
1747	54 Neutral	HK$2.16B	60.57	15.73%	0.48%	11.29%	40.42%
0099	45 Neutral	HK$598.10M	-0.99	-16.40%	4.61%	0.48%	-86.42%
0167	40 Neutral	HK$1.45B	―	―	―	―	―

Town Ray Holdings Limited Corporate Events

Town Ray Holdings Declares Interim Dividend

Town Ray Holdings Limited has announced an interim ordinary dividend of HKD 0.07 per share for the six months ending 30 June 2025. The ex-dividend date is set for 10 September 2025, with the payment date scheduled for 26 September 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (HK:1692) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Town Ray Holdings Limited stock, see the HK:1692 Stock Forecast page.

Town Ray Holdings Reports Revenue Growth Amidst Profit Decline

Town Ray Holdings Limited reported its interim financial results for the six months ending June 30, 2025, showing a revenue increase of 8.4% to HK$327.3 million compared to the same period in 2024. Despite this, the company experienced a decline in gross profit by 19.8% and a decrease in net profit margin from 16.1% to 9.2%. The board declared an interim dividend of HK7.0 cents per share, reflecting a cautious approach amidst decreased profitability.

The most recent analyst rating on (HK:1692) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Town Ray Holdings Limited stock, see the HK:1692 Stock Forecast page.

Town Ray Holdings Schedules Board Meeting for Interim Results

Town Ray Holdings Limited has announced that a board meeting will be held on August 28, 2025, to consider and approve the company’s unaudited interim results for the first half of the year, ending June 30, 2025. The meeting will also discuss the potential payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

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.