Hingtex Holdings Ltd. (1968) AI Stock Analysis

• Market Cap: HK$82.56M
• Dividend Yield: N/A
• Average Volume (3M): 143.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: 17.91%
• EPS Growth: 20.40%
• Country: HK
• Employees: 346
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.02
• Shares Outstanding: 640,000,000
• 10 Day Avg. Volume: 80,400
• 30 Day Avg. Volume: 143,466
• PEG Ratio: 0.26
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -6.49
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$0.17 ▼(-1.76% Downside)

Hingtex Holdings Ltd. faces significant financial challenges, with declining revenues and persistent losses being the most impactful factors. Technical analysis shows some positive trends, but valuation concerns due to a negative P/E ratio and lack of dividend yield weigh heavily on the stock's attractiveness.

Positive Factors

Sustainability Commitment

The company's focus on sustainability can enhance brand reputation and appeal to environmentally conscious consumers, supporting long-term growth.

Strategic Partnerships

Partnerships with designers and fashion labels can drive revenue growth by expanding market access and increasing product demand.

Innovative Product Development

Investment in R&D for textile innovations positions the company to command premium pricing and stay competitive in the market.

Negative Factors

Declining Revenue

Continued revenue decline suggests weakening market position and challenges in maintaining customer demand, impacting long-term viability.

Operational Inefficiencies

Ongoing operational inefficiencies can erode profitability and hinder the company's ability to compete effectively in the market.

Cash Flow Issues

Inability to generate positive cash flow consistently poses liquidity risks and limits the company's capacity to invest in growth opportunities.

Hingtex Holdings Ltd. Business Overview & Revenue Model

Company Description

Hingtex Holdings Limited designs, manufactures, and sells woven denim fabrics in Hong Kong and the People's Republic of China. The company offers non-stretchable, stretchable cotton, and stretchable blended denim fabrics. It also provides sizing, dyeing, and finishing services on denim fabrics. The company was founded in 1981 and is headquartered in Zhongshan, the People's Republic of China. Hingtex Holdings Limited is a subsidiary of Manford Investment Holdings Limited.

How the Company Makes Money

Hingtex Holdings Ltd. generates revenue primarily through the sale of textiles and apparel products, with key revenue streams coming from wholesale and retail channels. The company partners with both large retailers and boutique brands, allowing it to supply a wide array of fabrics and finished goods. Additionally, Hingtex invests in research and development to create unique textile innovations, which can command premium pricing in the market. The company also benefits from strategic alliances with designers and fashion labels, enhancing its market reach and brand visibility. These partnerships, combined with an efficient supply chain and production capabilities, contribute significantly to Hingtex's earnings.

Hingtex Holdings Ltd. Financial Statement Overview

Summary

Hingtex Holdings Ltd. faces significant financial challenges with declining revenues and persistent losses. The company has a strong equity base relative to debt, but ongoing struggles with profitability and cash generation raise concerns about its long-term financial health.

Income Statement

Hingtex Holdings Ltd. has experienced a decline in revenue over recent years, with a significant drop from 2019 to 2024. Gross profit margins have decreased, and the company has faced consistent net losses. The negative EBIT and EBITDA margins indicate operational challenges.

Balance Sheet

The company maintains a relatively strong equity position compared to its total assets, with a decrease in total assets over time. The Debt-to-Equity ratio remains low, suggesting manageable leverage. However, declining equity due to continued losses is a concern.

Cash Flow

Hingtex Holdings Ltd. has shown inconsistent operating cash flows and negative free cash flows in several years, indicating cash generation issues. The inability to generate positive free cash flow consistently poses a liquidity risk. The lack of free cash flow growth further exacerbates this issue.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	212.79M	214.67M	162.88M	245.18M	363.00M	255.44M
Gross Profit	37.52M	33.42M	21.70M	18.89M	65.36M	23.80M
EBITDA	-20.39M	-23.56M	-25.00M	-33.38M	8.26M	-29.27M
Net Income	-28.22M	-34.95M	-37.80M	-49.96M	-11.91M	-41.03M
Balance Sheet
Total Assets	317.07M	331.70M	343.18M	394.42M	504.01M	518.67M
Cash, Cash Equivalents and Short-Term Investments	43.01M	46.19M	60.74M	84.69M	119.87M	160.88M
Total Debt	41.56M	38.40M	32.43M	40.39M	52.94M	74.24M
Total Liabilities	86.76M	90.98M	67.51M	80.94M	140.58M	143.33M
Stockholders Equity	230.31M	240.72M	275.67M	313.47M	363.43M	375.34M
Cash Flow
Free Cash Flow	-16.74M	-10.65M	-17.95M	5.08M	-14.07M	7.15M
Operating Cash Flow	-15.63M	-9.72M	-14.45M	8.17M	-5.98M	15.21M
Investing Cash Flow	177.00K	688.00K	444.00K	-18.99M	-7.78M	1.59M
Financing Cash Flow	339.00K	-5.52M	-9.95M	-24.35M	-27.26M	-14.42M

Hingtex Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1968, the sentiment is Positive. The current price of 0.17 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.15, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.59 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1968.

Hingtex Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1425	75 Outperform	HK$812.50M	5.15	21.11%	8.89%	-8.00%	-11.37%
1749	65 Neutral	HK$109.39M	3.16	11.95%	10.91%	-7.88%	-4.49%
1433	64 Neutral	HK$182.00M	3.31	23.94%	8.15%	14.30%	125.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1968	49 Neutral	HK$82.56M	-2.93	-11.54%	―	17.91%	20.40%
3778	46 Neutral	HK$375.71M	-18.52	-2.76%	4.63%	-1.24%	5.98%
1906	46 Neutral	HK$809.12M	-30.90	-6.24%	―	5.88%	16.82%

Hingtex Holdings Ltd. Corporate Events

Hingtex Holdings Reports Improved Financial Performance Despite Revenue Dip

Hingtex Holdings Limited announced its interim results for the six months ended June 30, 2025, reporting a slight decrease in total revenue by approximately 1.70% to HK$108.3 million compared to the same period in 2024. Despite the revenue drop, the company reduced its net loss to HK$10.4 million from HK$17.1 million in the previous year, indicating improved financial management. The basic loss per share also decreased from 2.68 HK cents to 1.63 HK cents, reflecting a positive trend for stakeholders.

Hingtex Holdings Schedules Board Meeting to Review Financial Results

Hingtex Holdings Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the unaudited consolidated financial results for the first half of 2025 and consider declaring an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for shareholders, which could impact the company’s market positioning and stakeholder interests.