Bonny International Holding Ltd. (1906) AI Stock Analysis

• Market Cap: HK$647.29M
• Dividend Yield: N/A
• Average Volume (3M): 6.34M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.29
• Revenue Growth: 5.88%
• EPS Growth: 16.82%
• Country: HK
• Employees: 777
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): <0.01
• Shares Outstanding: 1,471,123,700
• 10 Day Avg. Volume: 7,071,000
• 30 Day Avg. Volume: 6,344,750
• PEG Ratio: 0.31
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -5.98
• 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: 46 Neutral
• Price Target: HK$0.50 ▲(4.17% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and persistent losses. The technical analysis provides a slightly positive outlook, but the poor valuation due to negative earnings significantly lowers the score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Diversified Revenue Streams

The company's diversified revenue streams across manufacturing, trading, and investments provide resilience against sector-specific downturns, supporting long-term stability.

Moderate Leverage

Moderate leverage with a stable capital structure provides financial flexibility, enabling the company to invest in growth opportunities without excessive risk.

Improvement in EBIT Margin

The improvement in EBIT margin indicates progress in operational efficiency, which could lead to better profitability if the trend continues.

Negative Factors

Declining Revenue and Profitability

A declining trend in revenue and profitability suggests challenges in market competitiveness and operational execution, impacting long-term growth potential.

Negative Cash Flow

Consistently negative cash flow highlights difficulties in generating sufficient cash from operations, limiting the ability to fund growth and meet financial obligations.

Eroded Equity

Eroded equity due to continuous losses weakens the financial foundation, potentially affecting the company's ability to raise capital and invest in future growth.

Bonny International Holding Ltd. Business Overview & Revenue Model

Company Description

Bonny International Holding Limited, an investment holding company, manufactures and sells intimate wear products. It operates in two segments, Original Design Manufacture (ODM) Products and Brand Products. The ODM Products segment manufactures and sells underwear or other ODM products to overseas customers or their agents. The Brand Products segment manufactures and sells ladies brassieres, panties, thermal underwear, and functional sportswear under the Bonny brand name. As of December 31, 2021, it operated 133 self-operated retail outlets comprising 124 self-operated concession counters and 9 self-operated standalone stores; and 32 franchised retail outlets covering 18 provinces, municipalities, and autonomous regions in the People's Republic of China. The company operates in Mainland China, the United States, Germany, the Netherlands, Japan, Canada, and internationally. Bonny International Holding Limited was incorporated in 2017 and is based in Kowloon, Hong Kong.

How the Company Makes Money

Bonny International generates revenue through multiple streams, including the sale of manufactured goods, trading activities, and investment returns. The company's primary revenue source comes from the production and sale of textiles and consumer products, which are marketed through its established distribution channels. Additionally, Bonny engages in trading operations, importing and exporting goods to capitalize on global market demands. The company also invests in strategic partnerships and joint ventures that enhance its market reach and operational efficiency, contributing to its overall earnings. By diversifying its product offerings and expanding its international presence, Bonny International aims to sustain and grow its revenue base.

Bonny International Holding Ltd. Financial Statement Overview

Summary

Bonny International Holding Ltd. faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows indicating operational inefficiencies. While the company's leverage is moderate, the negative trends in profitability and cash flow highlight underlying financial instability.

Income Statement

The company shows a declining trend in revenue and profitability. Gross profit margin decreased from 40.9% in 2020 to 29.6% in 2024, and net income turned negative in recent years, indicating profitability challenges. Despite an improvement in EBIT margin from -29.8% in 2023 to -4.8% in 2024, the overall margins remain negative.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.49 in 2024. The equity ratio stands at 55%, indicating a stable capital structure. However, continuous losses have eroded equity over time, posing a potential risk.

Cash Flow

Free cash flow has been consistently negative, indicating operational and investment challenges. Operating cash flow to net income ratio is not calculable due to negative net income, reflecting cash flow difficulties stemming from weak operational performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	239.00M	266.74M	177.67M	160.91M	248.78M	287.81M
Gross Profit	75.19M	78.86M	41.67M	31.64M	65.66M	117.72M
EBITDA	11.74M	17.43M	-17.93M	-48.84M	-29.05M	4.30M
Net Income	-20.90M	-16.73M	-45.27M	-70.94M	-6.55M	48.28M
Balance Sheet
Total Assets	668.53M	644.80M	588.08M	571.50M	593.73M	658.54M
Cash, Cash Equivalents and Short-Term Investments	8.22M	14.15M	3.65M	10.73M	12.76M	54.13M
Total Debt	213.55M	172.71M	133.59M	144.24M	144.79M	124.52M
Total Liabilities	314.32M	289.27M	275.40M	281.56M	248.00M	312.82M
Stockholders Equity	353.08M	354.41M	311.55M	288.88M	344.66M	344.65M
Cash Flow
Free Cash Flow	-42.70M	-56.57M	-6.73M	-7.32M	-52.63M	-41.15M
Operating Cash Flow	18.64M	5.21M	9.56M	28.89M	27.27M	53.03M
Investing Cash Flow	-61.33M	-57.63M	-10.10M	-36.37M	-71.88M	57.43M
Financing Cash Flow	44.78M	56.42M	-2.29M	5.11M	5.06M	-121.24M

Bonny International Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.48
• 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:1906, the sentiment is Negative. The current price of 0.48 is above the 20-day moving average (MA) of 0.48, below the 50-day MA of 0.51, and above the 200-day MA of 0.42, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.69 is Neutral, neither overbought nor oversold. The STOCH value of 24.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1906.

Bonny International Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1433	70 Outperform	HK$192.00M	3.49	23.94%	7.89%	14.30%	125.41%
0608	63 Neutral	HK$473.70M	5.91	2.55%	2.33%	-4.07%	-26.53%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2298	60 Neutral	HK$800.60M	7.26	4.94%	6.04%	0.72%	2.24%
3778	51 Neutral	HK$351.91M	-19.77	-2.76%	4.55%	-1.24%	5.98%
1247	49 Neutral	HK$604.55M	-14.62	-19.32%	―	193.78%	-110.36%
1906	46 Neutral	HK$647.29M	-24.16	-6.24%	―	5.88%	16.82%