Ulferts International Limited (1711) AI Stock Analysis

• Market Cap: HK$50.40M
• Dividend Yield: N/A
• Average Volume (3M): 214.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -13.99%
• EPS Growth: 12.24%
• Country: HK
• Employees: 122
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Specialty Retail
• EPS (TTM): -0.04
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 48,000
• 30 Day Avg. Volume: 214,000
• PEG Ratio: 0.25
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.43
• 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

• Rating: 52 Neutral
• Price Target: ―

Ulferts International Ltd faces significant financial challenges with declining revenue and negative profitability impacting its financial performance score. Technical analysis suggests a neutral to slightly positive trend in the short term but with caution due to longer-term bearish indicators. Valuation metrics highlight significant concerns, primarily due to negative earnings and lack of dividends. Overall, the stock is rated at 52, reflecting considerable risk and the need for strategic improvements to enhance financial health and market perception.

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 primarily through the retail sale of furniture products in its stores and online platform. The company's key revenue streams include direct sales to consumers, as well as potential commercial contracts with businesses and interior designers. Ulferts benefits from strategic partnerships with renowned European furniture brands, allowing them to offer exclusive products that appeal to a wide customer base. Additionally, the company may engage in promotional activities and seasonal sales to drive foot traffic and increase sales volume, contributing to its overall earnings.

Ulferts International Limited Financial Statement Overview

Summary

Ulferts International Ltd is facing significant financial challenges, with declining revenue and profitability. The company struggles with negative net income and worsening profitability margins. The balance sheet shows some improvement in leverage, but declining returns on equity and asset base are concerning. Cash flow generation remains a relative strength, albeit under pressure. The overall financial health reflects a need for strategic adjustments to improve growth and profitability.

Income Statement

The income statement reveals a concerning trend with declining revenue and profitability over the years. The gross profit margin has decreased from 64.9% in 2023 to 58.1% in 2024, indicating pressure on margins. Net income has been negative for the past two years, with a net profit margin of -14.6% in 2024. Revenue has decreased by 20.6% from 2023 to 2024, highlighting significant challenges in maintaining sales levels. EBIT and EBITDA margins have also deteriorated, showing operational inefficiencies.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio has improved slightly from 0.75 in 2023 to 0.61 in 2024, suggesting better leverage management. However, the return on equity has turned negative at -38.6% in 2024 due to continuing net losses, indicating poor returns for shareholders. The equity ratio stands at 44.6%, reflecting moderate financial stability but a decreasing asset base over time.

Cash Flow

Cash flow analysis shows resilience in generating operating cash flows, with a positive operating cash flow to net income ratio of -1.12 in 2024, despite net losses. Free cash flow remains positive, although it has decreased by 27.6% from 2023 to 2024, putting pressure on future sustainability. The ability to generate cash amidst declining profitability is a positive aspect but raises concerns about long-term feasibility.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	161.39M	171.64M	216.15M	225.46M	234.50M	218.85M
Gross Profit	94.56M	99.66M	133.18M	142.64M	152.89M	134.37M
EBITDA	-20.67M	12.02M	29.65M	54.12M	77.37M	56.12M
Net Income	-26.96M	-25.01M	-21.02M	4.14M	16.83M	-11.63M
Balance Sheet
Total Assets	111.38M	145.18M	196.30M	250.49M	214.26M	199.48M
Cash, Cash Equivalents and Short-Term Investments	39.82M	43.36M	62.06M	76.80M	93.69M	63.67M
Total Debt	0.00	39.19M	66.89M	76.40M	36.97M	52.45M
Total Liabilities	36.48M	80.47M	106.58M	135.75M	98.63M	100.68M
Stockholders Equity	74.90M	64.71M	89.72M	114.73M	115.63M	98.81M
Cash Flow
Free Cash Flow	22.08M	25.44M	35.13M	28.56M	75.84M	64.82M
Operating Cash Flow	24.73M	28.08M	36.44M	36.99M	77.08M	68.11M
Investing Cash Flow	-4.00M	-2.64M	-1.30M	-8.43M	-1.23M	-3.29M
Financing Cash Flow	-42.91M	-44.14M	-49.89M	-45.44M	-45.83M	-60.62M

Ulferts International Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 19.77 is Positive, neither overbought nor oversold. The STOCH value of -6.67 is Positive, 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
1373	70 Outperform	HK$658.11M	7.92	9.47%	4.35%	-4.58%	-31.73%
Sector *	62 Neutral	$16.85B	11.50	-7.38%	2.96%	1.59%	-23.36%
1711	52 Neutral	HK$50.40M	―	-92.80%	―	-13.99%	12.24%
1232	46 Neutral	HK$142.12M	―	-252.43%	―	-66.81%	21.94%
1173	46 Neutral	HK$60.43M	―	-88.30%	18.52%	1.54%	-1761.90%
1993	45 Neutral	HK$315.58M	―		―	-34.67%	-99.72%
1198	42 Neutral	HK$870.52M	―		3.85%	―	―

Ulferts International Limited Corporate Events

Ulferts International Limited Announces Board Composition and Roles

Ulferts International Limited has announced the composition of its board of directors and the roles within its various board committees. This organizational update is crucial for stakeholders as it outlines the leadership structure, which can influence the company’s strategic direction and governance practices.