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Hingtex Holdings Ltd. (HK:1968)
:1968
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Hingtex Holdings Ltd.
(1968)
Select Model
Select Model
Rating:49Neutral
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. (1968) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$100.48M
Dividend YieldN/A
Average Volume (3M)143.47K
Price to Earnings (P/E)―
Beta (1Y)0.26
Revenue Growth17.91%
EPS Growth20.40%
CountryHK
Employees346
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-0.02
Shares Outstanding640,000,000
10 Day Avg. Volume80,400
30 Day Avg. Volume143,466
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)0.29
Price to Sales (P/S)0.32
P/FCF Ratio-6.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Hingtex Holdings Ltd. Business Overview & Revenue Model
Company DescriptionHingtex 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 MoneyHingtex 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
Negative
0.17
Price Trends
0.16
Negative
0.15
Positive
0.13
Positive
Market Momentum
>-0.01
Positive
42.47
Neutral
57.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1968, the sentiment is Negative. The current price of 0.17 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.47 is Neutral, neither overbought nor oversold. The STOCH value of 57.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1968.
Hingtex Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$800.00M | 5.07 | 21.11% | 8.89% | -8.00% | -11.37% | |
70 Outperform | HK$192.00M | 3.49 | 23.94% | 7.89% | 14.30% | 125.41% | |
70 Outperform | HK$104.05M | 3.01 | 11.95% | 12.12% | -7.88% | -4.49% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | HK$351.91M | -19.77 | -2.76% | 4.55% | -1.24% | 5.98% | |
49 Neutral | HK$100.48M | -3.74 | -11.54% | ― | 17.91% | 20.40% | |
46 Neutral | HK$647.29M | -24.16 | -6.24% | ― | 5.88% | 16.82% |
* Consumer Cyclical Sector Average
HK:1968
Hingtex Holdings Ltd.
0.17
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.