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

• Market Cap: HK$183.12M
• Dividend Yield: 2.92%
• Average Volume (3M): 27.63K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.09
• Revenue Growth: -31.70%
• EPS Growth: -19.86%
• Country: HK
• Employees: 241
• Sector: Industrials
• Sector Strength: 84
• Industry: Construction
• EPS (TTM): <0.01
• Shares Outstanding: 406,927,640
• 10 Day Avg. Volume: 29,982
• 30 Day Avg. Volume: 27,626
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ―

Million Hope Industries Holdings Ltd. exhibits strong financial stability with a robust balance sheet and solid cash flows, though revenue growth poses a challenge. Technical indicators suggest weak market momentum, which could impact short-term performance. Valuation metrics are reasonable, though current market conditions may affect investor sentiment.

Million Hope Industries Holdings Ltd. Business Overview & Revenue Model

Company Description

Million Hope Industries Holdings Ltd. (1897) is a diversified conglomerate based in Hong Kong, engaged primarily in the manufacturing and trading of various consumer products, including textiles, garments, and other related goods. The company operates across multiple sectors, leveraging its extensive supply chain capabilities and market presence to deliver quality products to both local and international markets. With a focus on innovation and sustainability, Million Hope Industries aims to enhance its product offerings and expand its market reach.

How the Company Makes Money

Million Hope Industries Holdings Ltd. generates revenue through multiple streams, including the sale of its manufactured goods, which encompass textiles and garments. The company capitalizes on its established relationships with wholesalers and retailers, facilitating bulk sales that contribute significantly to its earnings. Additionally, it engages in exporting products to overseas markets, which provides another robust revenue stream. Strategic partnerships with suppliers and distributors further enhance its market penetration and operational efficiency, allowing the company to maintain competitive pricing and attract a diverse customer base. The company's focus on continuous improvement in production processes and product quality also plays a vital role in driving sales and profitability.

Million Hope Industries Holdings Ltd. Financial Statement Overview

Summary

The company 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	550.14M	412.21M	603.55M	607.20M	717.65M	536.01M
Gross Profit	44.16M	29.67M	55.46M	37.85M	54.56M	74.81M
EBITDA	33.96M	18.11M	30.07M	20.79M	39.05M	55.06M
Net Income	13.70M	9.11M	11.46M	12.11M	24.63M	38.94M
Balance Sheet
Total Assets	657.51M	628.21M	648.01M	659.21M	669.13M	672.64M
Cash, Cash Equivalents and Short-Term Investments	194.00M	218.60M	193.33M	77.56M	86.56M	236.02M
Total Debt	1.02M	873.00K	206.00K	351.00K	100.00K	331.00K
Total Liabilities	129.85M	103.99M	121.53M	127.16M	129.79M	126.78M
Stockholders Equity	527.66M	524.22M	526.48M	532.04M	539.33M	545.87M
Cash Flow
Free Cash Flow	91.53M	31.02M	132.94M	14.47M	-44.50M	-48.60M
Operating Cash Flow	92.31M	31.83M	133.40M	14.94M	-43.10M	-47.83M
Investing Cash Flow	-6.03M	5.13M	-4.24M	-5.85M	-72.55M	2.19M
Financing Cash Flow	-11.74M	-11.58M	-12.79M	-13.35M	-34.03M	-17.79M

Million Hope Industries Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.45
• 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:1897, the sentiment is Positive. The current price of 0.45 is below the 20-day moving average (MA) of 0.45, above the 50-day MA of 0.44, and above the 200-day MA of 0.43, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.17 is Neutral, neither overbought nor oversold. The STOCH value of 48.48 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	73 Outperform	HK$180.79M	5.51	6.42%	―	10.06%	-45.88%
1937	62 Neutral	HK$265.00M	20.93	3.75%	―	8.10%	98.46%
Sector *	58 Neutral	HK$13.20B	4.34	-2.94%	5.82%	2.95%	-48.20%
1897	55 Neutral	HK$183.12M	20.27	1.73%	2.92%	-31.70%	-19.86%
3313	46 Neutral	HK$190.80M	―	-44.82%	―	-9.02%	73.23%
1592	43 Neutral	HK$77.21M	―	-102.44%	―	-24.20%	-97.97%
0713	39 Underperform	HK$380.22M	―	-25.09%	―	-16.38%	-86.30%

Million Hope Industries Holdings Ltd. Corporate Events

Million Hope Industries Announces 2025 AGM Details

Million Hope Industries Holdings Limited has announced the details of its upcoming Annual General Meeting (AGM), scheduled to be held on August 19, 2025, in Hong Kong. The AGM will address several key business matters, including the adoption of financial statements, re-election of directors, and the re-appointment of Deloitte Touche Tohmatsu as the independent auditor. Additionally, the meeting will consider authorizing the board to manage the company’s share capital and remuneration of directors.

Million Hope Industries Faces Compliance Challenge After Director Resignation

Million Hope Industries Holdings Limited has announced a non-compliance issue following the resignation of Mr. Yip Kai Yung as an independent non-executive Director. The company currently lacks a director with the necessary professional qualifications in accounting or financial management expertise as required by the Hong Kong Stock Exchange’s Listing Rules. The company is actively seeking a suitable candidate to fill this role within three months to meet compliance requirements.

Million Hope Industries Announces Board Composition and Roles

Million Hope Industries Holdings Limited, a company incorporated in the Cayman Islands, announced the composition of its board of directors and their roles within the organization. The board includes a mix of non-executive, executive, and independent non-executive directors, with specific members assigned to various board committees such as Audit, Investment, Nomination, and Remuneration. This announcement provides clarity on the governance structure, potentially impacting strategic decision-making and stakeholder confidence.

Million Hope Industries Announces Board Restructuring

Million Hope Industries Holdings Limited announced significant changes in its board of directors and committee compositions. Effective from July 2025, Mr. Yip Kai Yung and Mr. Chung Sam Tin Abraham will resign from their positions to focus on personal affairs. Professor Ho Richard Yan Ki will take over as chairman of the Audit Committee, and Professor Hao Gang will become the chairlady of the Nomination Committee. These changes reflect a strategic realignment within the company’s governance structure.

Million Hope Industries Reports Decline in Revenue and Profit Amid Market Challenges

Million Hope Industries Holdings Ltd. reported a significant decrease in revenue and profit for the year ending March 31, 2025, due to project delays and a downturn in the property and construction markets. The company’s gross profit margin also declined due to intense industry competition. Despite these challenges, the company managed to partially offset the profit drop through reversals of impairment losses and decreased losses from joint ventures. The net asset value slightly decreased due to dividends and share repurchases, and the total dividend per share for the year was reduced compared to the previous year.

Million Hope Industries Announces Second Interim Dividend

Million Hope Industries Holdings Limited announced a second interim dividend of HKD 0.008 per share for the financial year ending 31 March 2025. This decision, in lieu of a final dividend, reflects the company’s financial strategy and impacts stakeholders by providing a return on investment. The ex-dividend date is set for 14 July 2025, with payment to be made on 01 August 2025.

Million Hope Industries Proposes Amendments to Articles of Association

Million Hope Industries Holdings Limited, a company incorporated in the Cayman Islands, has announced proposed amendments to its Articles of Association. These changes aim to align with the updated Listing Rules of the Hong Kong Stock Exchange, focusing on a paperless listing regime, including provisions for electronic and hybrid meetings and the dissemination of corporate communications electronically. The proposed amendments will be subject to shareholder approval at the upcoming annual general meeting.

Million Hope Industries Schedules Board Meeting for Final Results and Dividend Consideration

Million Hope Industries Holdings Ltd. has scheduled a board meeting on June 27, 2025, to approve the final results for the year ending March 31, 2025, and to consider the payment of a dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting its financial strategy and stakeholder relations.