Man Wah Holdings (1999) AI Stock Analysis

• Market Cap: HK$17.10B
• Dividend Yield: 6.75%
• Average Volume (3M): 10.32M
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.35
• Revenue Growth: 4.58%
• EPS Growth: 18.73%
• Country: HK
• Employees: 27,246
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.59
• Shares Outstanding: 3,878,083,300
• 10 Day Avg. Volume: 6,856,169
• 30 Day Avg. Volume: 10,318,995
• PEG Ratio: 0.40
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: HK$4.59
• Price Target Upside: 4.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Man Wah Holdings' overall score reflects its strong financial performance and attractive valuation, providing a solid investment case. However, technical indicators suggest caution due to bearish momentum and oversold conditions, which could pose short-term risks.

Man Wah Holdings Business Overview & Revenue Model

Company Description

Man Wah Holdings, established in 1992, is a leading manufacturer and retailer within the home furnishing sector, specializing in the production of upholstered furniture, particularly recliners and sofas. The company operates globally, with a strong presence in markets including the United States, Europe, and Asia. Its core products are known for their quality craftsmanship and comfort, catering to a wide array of consumer preferences.

How the Company Makes Money

Man Wah Holdings generates revenue primarily through the manufacturing and sale of its furniture products. The company's key revenue streams include direct sales to retailers, wholesalers, and distributors, along with its own retail operations. Man Wah leverages a vertically integrated business model, controlling various stages of production from design to delivery, which helps in maintaining quality and cost efficiency. Additionally, the company engages in strategic partnerships and collaborations with other brands and retailers to expand its market reach. Factors contributing to its earnings include its extensive global distribution network, continuous product innovation, and a focus on customer demand trends.

Man Wah Holdings Financial Statement Overview

Summary

Man Wah Holdings demonstrates strong financial health with solid revenue growth, profitability, and a stable balance sheet. Despite a notable decline in free cash flow growth, the company's operational efficiency and moderate leverage provide a sound financial footing.

Income Statement

Man Wah Holdings shows a robust revenue growth rate of 6.1% from 2023 to 2024. The company maintains strong profitability with a gross profit margin of 39.4% and a net profit margin of 12.5%. The EBIT and EBITDA margins are also solid at 16.6% and 19.8%, respectively. These figures indicate effective cost management and operational efficiency.

Balance Sheet

The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.36, suggesting moderate leverage. The return on equity (ROE) is impressive at 19.0%, reflecting strong shareholder value creation. An equity ratio of 61.0% indicates a well-capitalized structure with considerable equity backing.

Cash Flow

The free cash flow growth rate declined significantly by 60.6% from 2023 to 2024, which may raise concerns. However, the operating cash flow to net income ratio is robust at 1.11, indicating good cash conversion. The free cash flow to net income ratio stands at 0.43, reflecting some room for improvement in cash generation.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
18.41B	17.35B	21.50B	16.43B	12.14B
	Gross Profit
7.25B	6.68B	7.89B	5.93B	4.42B
	EBIT
3.06B	2.31B	2.64B	2.19B	1.91B
	EBITDA
3.64B	3.00B	3.57B	2.68B	2.31B
	Net Income Common Stockholders
2.30B	1.91B	2.25B	1.92B	1.64B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.52B	4.09B	3.22B	3.68B	2.25B
	Total Assets
19.81B	19.64B	20.52B	17.44B	13.21B
	Total Debt
4.33B	4.40B	4.61B	3.64B	4.04B
	Net Debt
1.05B	772.65M	1.78B	1.22B	1.99B
	Total Liabilities
6.73B	7.11B	7.77B	6.03B	5.98B
	Stockholders Equity
12.08B	11.56B	11.71B	10.74B	6.70B
Cash Flow		Free Cash Flow
985.45M	2.50B	363.28M	655.85M	1.84B
	Operating Cash Flow
2.55B	4.06B	2.32B	1.92B	2.68B
	Investing Cash Flow
-1.54B	-1.59B	-995.57M	-2.73B	-795.78M
	Financing Cash Flow
-1.28B	-1.41B	-956.19M	1.11B	-1.28B

Man Wah Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.41
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1999, the sentiment is Neutral. The current price of 4.41 is above the 20-day moving average (MA) of 3.98, above the 50-day MA of 4.38, and below the 200-day MA of 4.67, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.15 is Neutral, neither overbought nor oversold. The STOCH value of 90.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1999.

Man Wah Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1999	70 Outperform	HK$17.10B	7.42	18.95%	6.75%	4.58%	18.73%
1199	63 Neutral	$15.84B	6.03	5.64%	5.89%	5.93%	-3.64%
Sector *	61 Neutral	$6.69B	11.69	3.01%	3.94%	2.60%	-21.51%
1518	59 Neutral	HK$551.55M	10.63	8.82%	3.15%	-10.82%	-43.85%
1198	42 Neutral	HK$701.61M	―		3.85%	―	―
1918	33 Underperform	$15.23B	―	-49.73%	―	-52.23%	-42.48%
1232	27 Underperform	HK$77.36M	―	-252.43%	―	-66.81%	21.93%

Man Wah Holdings Corporate Events

Man Wah Holdings Schedules Board Meeting to Review Financial Results

Man Wah Holdings Limited has announced a board meeting scheduled for May 15, 2025, to review and approve the audited financial results for the year ending March 31, 2025. The board will also consider the declaration of a final dividend, which could impact shareholder returns and reflect the company’s financial health.

Chairman of Man Wah Holdings Increases Shareholding, Signaling Confidence

Man Wah Holdings Limited announced that its controlling shareholder, Mr. Wong Man Li, who is also the Chairman and CEO, has increased his shareholding by purchasing 3,000,000 ordinary shares through Man Wah Investments Limited. This move, which signifies confidence in the company’s prospects, resulted in a total acquisition of 8,000,000 shares within two days, potentially impacting the market perception and investor relations.

Man Wah Holdings’ Chairman Increases Stake

Man Wah Holdings Limited, a company incorporated in Bermuda, announced an increase in shareholding by its controlling shareholder, Mr. Wong Man Li. He has purchased 5,000,000 ordinary shares of the company from the open market through Man Wah Investments Limited, highlighting a notable move by the company’s leadership. This development may have implications for the company’s market position and signals confidence from its key leadership.