Ulferts International Limited (1711) AI Stock Analysis

• Market Cap: HK$88.80M
• Dividend Yield: N/A
• Average Volume (3M): 338.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• 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$0.14 ▲(27.27% 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

Cash Flow Resilience

Despite net losses, Ulferts International Limited's ability to generate cash indicates operational resilience, which is crucial for sustaining business operations and funding strategic initiatives.

Stable Gross Profit Margin

A stable gross profit margin suggests that Ulferts can maintain pricing power and cost management, which is essential for long-term profitability and competitiveness in the furniture industry.

Diverse Revenue Streams

Ulferts' diverse revenue streams across retail and online platforms help mitigate risks associated with market fluctuations, supporting sustainable growth and market presence.

Negative Factors

Declining Revenue

Declining revenue indicates potential challenges in market demand or competitive pressures, which could impact Ulferts' ability to sustain growth and profitability over the long term.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests potential difficulties in maintaining liquidity, which could hinder Ulferts' ability to invest in growth opportunities and manage financial obligations.

High Leverage and Poor Returns

High leverage combined with poor returns on equity highlights financial strain, limiting Ulferts' flexibility to navigate economic challenges and invest in strategic initiatives.

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: Negative
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. 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 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.86 is Neutral, neither overbought nor oversold. The STOCH value of 39.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	67 Neutral	HK$324.72M	25.95	35.74%	―	125.71%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1711	48 Neutral	HK$88.80M	-2.73	-87.26%	―	-12.97%	-20.77%
1545	46 Neutral	HK$194.00M	-14.49	-4.46%	3.69%	-27.20%	-195.83%
2122	45 Neutral	HK$293.07M	-1.16	―	―	-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.

Ulferts International Limited Reports Narrowed Net Loss for 2025

Ulferts International Limited has announced a significant reduction in its net loss for the six months ending September 2025, expecting it to narrow to not more than HK$3 million compared to HK$11 million in the previous year. This improvement is attributed to effective cost-saving measures implemented by the company, although the interim results are yet to be finalized and will be published in late November 2025.

Ulferts International Enters New Leasing Agreement

Ulferts International Limited has entered into a 2025 Master Leasing Agreement (MLA) with Emperor International and AY Holdings to manage tenancy transactions from October 2025 to March 2027. This agreement allows the company to conduct tenancy transactions in the ordinary course of business, ensuring they are on normal commercial terms and compliant with relevant listing rules. The transactions are structured to be in the interests of shareholders, with the option to consider third-party landlords.