Ulferts International Limited (1711) AI Stock Analysis

• Market Cap: HK$96.80M
• Dividend Yield: N/A
• Average Volume (3M): 338.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• 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: 48 Neutral
• Price Target: HK$0.12 ▲(9.09% Upside)

Ulferts International Limited's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability issues. While technical analysis shows some positive price trends, the negative MACD and approaching overbought Stochastic suggest caution. The valuation metrics indicate potential overvaluation due to the negative P/E ratio and lack of dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Gross margin stability

High gross margin (57.71%) reflects strong product-level economics and pricing power from design and craftsmanship. Over 2–6 months this margin buffer helps absorb SG&A and competitive pricing pressures, supporting reinvestment in product and sustaining cash generation despite weak top-line trends.

Cash conversion resilience

A free cash flow to net income ratio near 1.0 shows the company converts reported losses into operating cash, providing a durable liquidity cushion. This strengthens near-term funding flexibility for working capital, targeted capex or deleveraging, reducing the need for immediate external financing over coming months.

Diversified channels and supplier partnerships

An omnichannel sales model plus B2B relationships and supplier partnerships diversify revenue and reduce concentration risk. Structurally, this supports resilient distribution, competitive pricing and broad product assortments that help maintain market presence and adaptability across market cycles over the medium term.

Negative Factors

Declining revenue trend

Sustained top-line contraction (-5.18% most recent year) undermines scale economics and erodes operating leverage. Over 2–6 months this reduces margin recovery options, limits reinvestment capacity for product and distribution, and heightens execution risk needed to regain market share.

Negative returns and leverage

A severely negative ROE (-173%) demonstrates equity value erosion while 0.78 debt/equity shows moderate leverage. Together they constrain strategic flexibility, increase financing risk and limit the company's ability to fund growth, acquisitions or absorb shocks without further capital actions in the medium term.

Weakening free cash flow momentum

Declining FCF growth (-18.77%) and low operating cash relative to net income (0.36) indicate weakening cash generation momentum. Over the coming months this raises risks to funding capex, servicing debt and supporting working capital without external financing, limiting strategic options.

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

Ulferts International Limited generates revenue through multiple streams, primarily from the sale of its furniture products across various channels, including brick-and-mortar retail stores and online platforms. The company's revenue model is centered around direct sales to consumers, as well as business-to-business sales to corporate clients and interior designers. Ulferts also benefits from strategic partnerships with suppliers and manufacturers, enabling it to maintain competitive pricing and a diverse product range. Seasonal promotions, exclusive collections, and collaborations with renowned designers further enhance its sales performance. Additionally, the company may leverage after-sales services, such as delivery and assembly, which contribute to its overall profitability.

Ulferts International Limited Financial Statement Overview

Summary

Ulferts International Limited is facing financial challenges across all verticals. The income statement reveals declining revenue and profitability issues, while the balance sheet shows moderate leverage but poor returns on equity. Cash flow generation is a relative strength, but declining free cash flow growth raises concerns about future liquidity. The company needs to address its operational inefficiencies and improve profitability to enhance its financial standing.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.02M	153.02M	171.64M	216.15M	225.46M	234.50M
Gross Profit	88.30M	88.30M	99.66M	133.18M	142.64M	152.89M
EBITDA	-26.24M	-7.89M	12.02M	29.65M	51.36M	77.37M
Net Income	-41.02M	-41.02M	-25.01M	-21.02M	4.14M	16.83M
Balance Sheet
Total Assets	78.72M	78.72M	145.18M	196.30M	250.49M	214.26M
Cash, Cash Equivalents and Short-Term Investments	27.27M	27.27M	43.36M	62.06M	76.80M	93.69M
Total Debt	18.47M	18.47M	39.19M	66.89M	76.40M	36.97M
Total Liabilities	55.03M	55.03M	80.47M	106.58M	135.75M	98.63M
Stockholders Equity	23.69M	23.69M	64.71M	89.72M	114.73M	115.63M
Cash Flow
Free Cash Flow	17.94M	17.94M	25.44M	35.13M	28.56M	75.84M
Operating Cash Flow	18.78M	18.78M	28.08M	36.44M	36.99M	77.08M
Investing Cash Flow	-838.00K	-838.00K	-2.64M	-1.30M	-8.43M	-1.23M
Financing Cash Flow	-34.03M	-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: Negative
• 200DMA: Positive
• MACD: Negative
• 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 0.12, below the 50-day MA of 0.12, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.16 is Neutral, neither overbought nor oversold. The STOCH value of 37.46 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$310.46M	24.81	35.74%	―	125.71%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1711	48 Neutral	HK$96.80M	-2.97	-87.26%	―	-12.97%	-20.77%
1545	46 Neutral	HK$200.00M	-14.49	-4.46%	3.69%	-27.20%	-195.83%
2122	45 Neutral	HK$352.54M	-1.10	―	―	-15.54%	16.04%

Ulferts International Limited Corporate Events

Ulferts International Limited Announces Change of Auditor

Ulferts International Limited, a company listed on the Hong Kong Stock Exchange, has announced a change in its auditing firm. Ernst & Young has resigned as the company’s auditor due to a disagreement over the audit fee for the financial year ending March 31, 2026. The Board has appointed Cheng & Cheng Limited as the new auditor, citing cost control measures and Cheng & Cheng’s competence and independence as key factors in the decision. The change is expected to maintain audit quality and support the company’s future business development.

The most recent analyst rating on (HK:1711) stock is a Hold with a HK$0.10 price target. To see the full list of analyst forecasts on Ulferts International Limited stock, see the HK:1711 Stock Forecast page.

Ulferts International Reports Narrowed Loss Amid Revenue Decline

Ulferts International Limited reported a decrease in total revenue to HK$66.8 million for the six months ending September 2025, down from HK$79.4 million the previous year, due to challenging market conditions. Despite the revenue drop, the company successfully narrowed its net loss to HK$2.7 million from HK$11.1 million, thanks to effective cost-saving measures. The retail segment, which constitutes the majority of the company’s revenue, saw a decline, but the company continues to focus on market segmentation and online platforms to maximize market coverage.

Ulferts International Schedules Board Meeting for Interim Results and Dividend Consideration

Ulferts International Limited has announced that its board of directors will convene on November 21, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This announcement indicates a routine financial review and potential dividend declaration, which could impact shareholder returns and reflect the company’s financial health.