Town Ray Holdings Limited (1692) AI Stock Analysis

• Market Cap: HK$617.48M
• Dividend Yield: 12.91%
• Average Volume (3M): 33.20K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.29
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: HK$2.00 ▲(12.99% 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, 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 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: Negative
• Last Price: 1.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 1.77 is below the 20-day moving average (MA) of 1.79, below the 50-day MA of 1.78, and below the 200-day MA of 2.02, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 17.53 is Positive, neither overbought nor oversold. The STOCH value of 22.81 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1692	63 Neutral	HK$617.48M	6.93	26.70%	12.91%	19.54%	6.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0167	58 Neutral	HK$1.51B	―	―	―	―	―
0927	54 Neutral	HK$272.54M	-4.88	-11.41%	8.70%	-16.95%	-461.16%
1401	54 Neutral	HK$1.01B	46.53	4.74%	―	-0.54%	-46.27%
1747	54 Neutral	HK$2.24B	62.82	15.73%	0.50%	11.29%	40.42%
0099	45 Neutral	HK$598.10M	-0.99	-16.40%	4.61%	0.48%	-86.42%