Million Hope Industries Holdings Ltd. (1897) AI Stock Analysis

• Market Cap: HK$190.79M
• Dividend Yield: 2.34%
• Average Volume (3M): 20.05K
• Price to Earnings (P/E): 58.8
• Beta (1Y): -0.04
• Revenue Growth: -48.30%
• EPS Growth: -75.98%
• Country: HK
• Employees: 241
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): <0.01
• Shares Outstanding: 405,939,640
• 10 Day Avg. Volume: 29,824
• 30 Day Avg. Volume: 20,049
• PEG Ratio: -1.02
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 5.94
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: HK$0.50 ▲(6.38% Upside)

The overall stock score of 53 reflects significant challenges in financial performance, particularly with declining revenue and weakened cash flow generation. Technical analysis indicates a bearish trend, with the stock trading below key moving averages and nearing oversold conditions. Valuation is mixed, with a high P/E ratio but a reasonable dividend yield. The absence of earnings call insights and corporate events leaves these areas unaddressed.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and reduces risk, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Market Presence

Diverse operations and strong market presence across sectors enhance resilience and provide multiple revenue streams, reducing dependency on any single market.

Strategic Partnerships

Partnerships improve supply chain efficiency and market reach, supporting competitive pricing and customer base expansion, which are crucial for long-term growth.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share or demand, which can affect profitability and long-term growth prospects if not addressed.

Weak Cash Flow Generation

Weak cash flow generation limits the company's ability to invest in growth, pay down debt, or return capital to shareholders, impacting financial flexibility.

Decreased Profitability

Reduced profitability margins suggest inefficiencies or increased costs, which can strain financial performance and limit reinvestment in the business.

Million Hope Industries Holdings Ltd. Business Overview & Revenue Model

Company Description

Million Hope Industries Holdings Limited, an investment holding company, engages in the design, supply, and installation of facade and curtain wall systems primarily in Hong Kong and Mainland China. The company offers curtain walls, aluminum windows and doors, claddings, louvres, balustrade, window wall, canopy, and grille to contractors and property developers. It also invests in properties. Million Hope Industries Holdings Limited was founded in 1990 and is headquartered in Sha Tin, Hong Kong.

How the Company Makes Money

Million Hope Industries Holdings Ltd. generates revenue through several key streams. The primary source is the manufacturing and trading of textiles and apparel, where the company capitalizes on its established supply chains and distribution networks to deliver products to retailers and wholesalers. Additionally, the company earns income from its real estate investments, including rental income from properties it owns and develops. Strategic partnerships with suppliers and retailers enhance its market position and facilitate bulk sales, ensuring steady cash flow. Furthermore, the company's diversified portfolio allows it to mitigate risks associated with fluctuations in any single market, contributing positively to its overall financial performance.

Million Hope Industries Holdings Ltd. Financial Statement Overview

Summary

Million Hope Industries Holdings Ltd. faces challenges with declining revenue and profitability, impacting its income statement. The balance sheet remains strong with low leverage, providing financial stability. However, cash flow generation has weakened, posing potential liquidity concerns. Overall, the company needs to address revenue growth and improve cash flow management to enhance its financial health.

Income Statement

The company has experienced a significant decline in revenue over the past year, with a revenue growth rate of -25.07%. Gross profit margin and net profit margin have also decreased, indicating reduced profitability. While EBIT and EBITDA margins are positive, they are relatively low, suggesting limited operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.0017, indicating minimal leverage and financial risk. However, the return on equity has decreased to 1.74%, reflecting lower profitability relative to equity. The equity ratio remains healthy, suggesting a stable financial position.

Cash Flow

Free cash flow has significantly decreased by 66.11%, raising concerns about cash generation. The operating cash flow to net income ratio is below 1, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio is close to 1, suggesting that most net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	412.21M	412.21M	603.55M	607.20M	717.65M	536.01M
Gross Profit	29.67M	29.67M	55.46M	37.85M	54.56M	74.81M
EBITDA	12.78M	18.11M	31.80M	20.79M	39.05M	55.06M
Net Income	9.11M	9.11M	11.46M	12.11M	24.63M	38.94M
Balance Sheet
Total Assets	628.21M	628.21M	648.01M	659.21M	669.13M	672.64M
Cash, Cash Equivalents and Short-Term Investments	218.60M	218.60M	193.33M	77.56M	86.56M	236.02M
Total Debt	873.00K	873.00K	206.00K	351.00K	100.00K	331.00K
Total Liabilities	103.99M	103.99M	121.53M	127.16M	129.79M	126.78M
Stockholders Equity	524.22M	524.22M	526.48M	532.04M	539.33M	545.87M
Cash Flow
Free Cash Flow	35.03M	31.02M	132.94M	14.47M	-44.50M	-48.60M
Operating Cash Flow	35.84M	31.83M	133.40M	14.94M	-43.10M	-47.83M
Investing Cash Flow	-2.31M	5.13M	-4.24M	-5.85M	-72.55M	2.19M
Financing Cash Flow	-11.58M	-11.58M	-12.79M	-13.35M	-34.03M	-17.79M

Million Hope Industries Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.47
• 50DMA: Positive
• 100DMA: Positive
• 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:1897, the sentiment is Positive. The current price of 0.47 is above the 20-day moving average (MA) of 0.46, above the 50-day MA of 0.45, and above the 200-day MA of 0.44, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 69.87 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1897.

Million Hope Industries Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8646	65 Neutral	HK$161.65M	2.29	11.61%	―	5.34%	43.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1897	53 Neutral	HK$190.79M	58.75	0.62%	2.34%	-48.30%	-75.98%
1937	52 Neutral	HK$185.00M	92.00	0.58%	―	-10.27%	-84.38%
3313	45 Neutral	HK$174.21M	-0.50	-46.79%	―	0.26%	69.65%
0713	40 Neutral	HK$328.73M	-1.30	-21.28%	―	-23.38%	-35.88%
1592	38 Underperform	HK$49.22M	-0.39	―	―	1.43%	-83.97%

Million Hope Industries Holdings Ltd. Corporate Events

Million Hope Industries Reports Revenue Decline Amid Market Challenges

Million Hope Industries Holdings Ltd. reported a significant decline in revenue for the six months ended September 30, 2025, with a 47% drop compared to the previous year. The downturn in the property and construction markets, along with project delays, contributed to this decrease. Despite the revenue fall, the company saw a rise in gross profit margin due to the completion of a previous project, though overall profit attributable to owners decreased by 86.8%. The company declared a reduced interim dividend, reflecting the challenging market conditions.

Million Hope Industries Declares Interim Dividend

Million Hope Industries Holdings Ltd. has announced a first interim cash dividend of HKD 0.003 per share for the six months ending September 30, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, with the dividend payment scheduled for December 12, 2025. The decision to declare this dividend may enhance shareholder confidence and potentially strengthen the company’s market position.

Million Hope Industries Issues Profit Warning Amid Market Downturn

Million Hope Industries Holdings Ltd. has issued a profit warning, indicating an expected decrease in net profit by approximately 80% to 95% for the six months ending September 30, 2025, compared to the same period in 2024. This significant decline is attributed to delays or suspensions in key projects and a downturn in the property and construction markets, impacting the company’s financial performance and advising caution for shareholders and potential investors.

Million Hope Industries to Announce Interim Results and Consider Dividend

Million Hope Industries Holdings Limited has announced that its board of directors will convene on November 11, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting could potentially impact the company’s financial strategy and shareholder returns, reflecting its ongoing commitment to transparency and shareholder engagement.

Million Hope Industries Appoints New Independent Director

Million Hope Industries Holdings Limited has announced the appointment of Mr. Cheung Kwong Tat as an independent non-executive director and a member of its audit, nomination, and remuneration committees, effective from September 30, 2025. Mr. Cheung brings extensive experience in corporate governance and business development strategies, particularly in the Hong Kong initial public offering market, which is expected to strengthen the company’s governance and strategic positioning.

Million Hope Industries Announces Board Composition and Committee Roles

Million Hope Industries Holdings Ltd. has announced the composition of its board of directors and the roles of its members. The board includes a mix of non-executive, executive, and independent non-executive directors, with specific individuals assigned to four key committees: Audit, Investment, Nomination, and Remuneration. This structured governance is likely to enhance the company’s strategic decision-making and oversight, potentially impacting its operational efficiency and stakeholder confidence.