Ulferts International Limited (1711) AI Stock Analysis

• Market Cap: HK$102.40M
• Dividend Yield: N/A
• Average Volume (3M): 338.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: -12.97%
• EPS Growth: -20.77%
• Country: HK
• Employees: 122
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): >-0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 72,000
• 30 Day Avg. Volume: 338,333
• PEG Ratio: -0.02
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 2.63
• 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: 46 Neutral
• Price Target: HK$0.13 ▲(13.64% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held down primarily by weak financial performance (declining revenue and persistent losses, plus extremely negative ROE). Technicals provide a meaningful offset with strong trend/momentum, but RSI indicates the stock may be overextended. Valuation remains a concern because losses make the negative P/E an unreliable support signal, and no dividend data is available.

Positive Factors

High Gross Margin

A 57.7% gross margin is a durable structural strength for a specialty retail business: it indicates solid product-level pricing power and markup. This margin provides a buffer to absorb operating costs and supports a realistic path to profitability if revenue stabilizes or operating expenses are controlled over the next 2-6 months.

Free Cash Flow Generation

Generating nearly one-to-one FCF relative to reported net losses shows the business converts sales into cash, offering runway to fund operations, inventory and modest investments without immediate external financing. This cash conversion supports operational continuity while management works on stabilizing profits.

Moderate Leverage

A D/E around 0.78 implies the company is not excessively leveraged, leaving structural financial flexibility to refinance, draw on credit or invest in working capital. That balance limits immediate solvency pressure and helps preserve options for operational fixes or strategic moves over coming months.

Negative Factors

Declining Revenue

Sustained revenue decline erodes scale economics in specialty retail: it reduces bargaining power with suppliers, spreads fixed costs over fewer sales, and makes margin recovery harder. Over a multi-month horizon declining top-line undermines cash generation and raises execution risk for any turnaround plans.

Persistent Losses & Very Negative ROE

Chronic unprofitability and an extremely negative ROE signal structural inability to generate returns on shareholder capital. This indicates equity erosion and raises the risk of capital constraints or dilution if financing is needed, hampering strategic investment and long-term recovery prospects.

Declining Free Cash Flow Growth

A meaningful decline in FCF growth weakens the company's capacity to self-fund operations, capex or debt service over time. Even with positive FCF today, falling growth reduces financial resilience, limits reinvestment and increases dependence on external financing during a multimonth recovery period.

Ulferts International Limited Business Overview & Revenue Model

Company Description

Ulferts International Limited, an investment holding company, engages in the retail and wholesale of furniture in Hong Kong. Its products include mattresses, pillows, sofas, sofa beds, beds, cabinets, dining tables, chairs, wardrobes, coffee tables, and sideboards, as well as other ancillary items under the Ulfenbo brand name through its Dormire specialty stores; a network of dealers; and Ulfenbo department store counters, pop-up stores, and roadshows. The company also provides compact furniture through its at home stores; and services, including planning, design, procuring, and installation of custom-made furniture for corporate customers, as well as group tenancy agency and liaison services with project customers. As of March 31, 2022, it operated 28 points-of-sale under the Ulferts Signature, Ulferts, at.home, Ulfenbo, Dormire, and Slumberland names. The company was founded in 1975 and is based in Wanchai, Hong Kong. Ulferts International Limited is a subsidiary of Ulferts International Group Holdings Limited.

How the Company Makes Money

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Ulferts International Limited Financial Statement Overview

Summary

Weak fundamentals dominate: declining revenue (-5.18%) and ongoing profitability pressure (negative net/EBIT/EBITDA margins). Balance sheet signals strain with very poor shareholder returns (ROE -173.12%) despite only moderate leverage (D/E 0.78). Cash flow is a partial offset (FCF to net income 0.96), but falling FCF growth (-18.77%) raises sustainability concerns.

Income Statement

Ulferts International Limited has faced declining revenue over the past few years, with a negative revenue growth rate of -5.18% in the most recent year. The company has struggled with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin remains relatively stable at 57.71%, but the negative EBITDA margin indicates operational challenges.

Balance Sheet

The company's debt-to-equity ratio of 0.78 suggests moderate leverage, but the negative return on equity of -173.12% indicates significant challenges in generating returns for shareholders. The equity ratio is not provided, but the overall financial health appears strained due to declining equity and high debt levels.

Cash Flow

Cash flow metrics show some resilience, with a free cash flow to net income ratio of 0.96, indicating that the company is generating cash despite net losses. However, the free cash flow growth rate is negative at -18.77%, reflecting potential issues in sustaining cash flow levels. The operating cash flow to net income ratio of 0.36 suggests limited cash generation relative to net income.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	153.02M	171.64M	216.15M	225.46M	234.50M
Gross Profit	88.30M	99.66M	133.18M	142.64M	152.89M
EBITDA	-7.89M	12.02M	29.65M	51.36M	77.37M
Net Income	-41.02M	-25.01M	-21.02M	4.14M	16.83M
Balance Sheet
Total Assets	78.72M	145.18M	196.30M	250.49M	214.26M
Cash, Cash Equivalents and Short-Term Investments	27.27M	43.36M	62.06M	76.80M	93.69M
Total Debt	18.47M	39.19M	66.89M	76.40M	36.97M
Total Liabilities	55.03M	80.47M	106.58M	135.75M	98.63M
Stockholders Equity	23.69M	64.71M	89.72M	114.73M	115.63M
Cash Flow
Free Cash Flow	17.94M	25.44M	35.13M	28.56M	75.84M
Operating Cash Flow	18.78M	28.08M	36.44M	36.99M	77.08M
Investing Cash Flow	-838.00K	-2.64M	-1.30M	-8.43M	-1.23M
Financing Cash Flow	-34.03M	-44.14M	-49.89M	-45.44M	-45.83M

Ulferts International Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 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:1711, the sentiment is Positive. The current price of 0.11 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.73 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1711.

Ulferts International Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8395	62 Neutral	HK$334.22M	2,796.00	33.09%	―	125.71%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1711	46 Neutral	HK$102.40M	-6.70	-145.60%	―	-12.97%	-20.77%
1545	46 Neutral	HK$224.00M	-2.46	-4.46%	3.69%	-27.20%	-195.83%
2122	45 Neutral	HK$292.88M	-0.22	229.92%	―	-15.54%	16.04%

Ulferts International Limited Corporate Events

Ulferts International Shifts Registered Office to Emperor Group Centre in Wan Chai

Ulferts International Limited has announced that, effective 20 March 2026, its registered office address will move to the 28th Floor of Emperor Group Centre on Hennessy Road in Wan Chai, Hong Kong. The change, authorised by chairman Yeung Ching Loong, Alexander and the board, signals an administrative shift that may streamline corporate governance and align the company more closely with the Emperor Group’s central operations hub.

The updated registered office location could enhance coordination between Ulferts International and its affiliated entities while providing stakeholders with a clearer point of contact for official corporate matters. The announcement also reaffirms the current composition of the board, highlighting continuity in leadership and oversight as the company implements this operational adjustment.

The most recent analyst rating on (HK:1711) stock is a Hold with a HK$0.13 price target. To see the full list of analyst forecasts on Ulferts International Limited stock, see the HK:1711 Stock Forecast page.