Man Wah Holdings (1999) AI Stock Analysis

• Market Cap: HK$17.10B
• Dividend Yield: 5.96%
• Average Volume (3M): 5.49M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.30
• Revenue Growth: -6.39%
• EPS Growth: -10.18%
• Country: HK
• Employees: 27,246
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.29
• Shares Outstanding: 3,878,083,300
• 10 Day Avg. Volume: 5,835,650
• 30 Day Avg. Volume: 5,486,657
• PEG Ratio: -0.83
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 7.63
• 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$5.76
• Price Target Upside: 30.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: HK$5.50 ▲(24.72% Upside)

Man Wah Holdings receives a solid overall score due to its stable financial performance, positive technical indicators, and attractive valuation. The company's strong profitability margins and conservative leverage approach are key strengths, while the low P/E ratio and high dividend yield enhance its appeal. However, the recent decline in revenue and potential overbought condition are areas to monitor.

Positive Factors

Conservative Leverage

A conservative leverage approach with a low debt-to-equity ratio enhances financial flexibility and reduces risk, supporting sustainable growth.

Efficient Cash Generation

Strong cash generation from operations ensures liquidity and supports reinvestment in growth opportunities, bolstering long-term resilience.

Strong Profitability Margins

Healthy profit margins indicate effective cost management and operational efficiency, contributing to long-term financial stability.

Negative Factors

Decline in Revenue

A decline in revenue can impact growth prospects and market position, necessitating strategic initiatives to reverse the trend and sustain competitiveness.

Decreased Net Profit Margin

A decrease in net profit margin may signal rising costs or pricing pressures, potentially affecting profitability if not addressed.

Fluctuating Free Cash Flow

Fluctuating free cash flow can hinder strategic planning and investment, highlighting the need for stable capital expenditure management.

Man Wah Holdings Business Overview & Revenue Model

Company Description

Man Wah Holdings (1999) is a leading manufacturer and retailer of upholstered furniture, specializing primarily in sofa production. Headquartered in Hong Kong, the company operates in the home furnishings sector, providing a wide range of products including fabric and leather sofas, recliners, and sofa beds. Man Wah Holdings is known for its innovative designs and commitment to quality, catering to both domestic and international markets.

How the Company Makes Money

Man Wah Holdings generates revenue through the production and sale of upholstered furniture, with its primary revenue streams coming from the wholesale distribution of its products to retailers and direct sales through its own retail outlets. The company benefits from economies of scale due to its large manufacturing capabilities, allowing it to produce furniture at competitive prices. Additionally, Man Wah has established partnerships with various international retailers, expanding its market reach and enhancing brand visibility. The company's consistent focus on product development and design innovation also plays a crucial role in attracting consumers and maintaining a competitive edge in the furniture market.

Man Wah Holdings Financial Statement Overview

Summary

Man Wah Holdings demonstrates a stable financial position with strong profitability margins and a conservative approach to leverage. While the recent decline in revenue is a concern, the company maintains efficiency in its operations and a robust balance sheet. Continued focus on revenue growth and maintaining profitability will be crucial for future performance.

Income Statement

Man Wah Holdings has shown fluctuating revenue trends with a recent decline in total revenue for the year ending March 2025. The gross profit margin remains healthy at approximately 40.5%, indicating effective cost management. However, the net profit margin decreased slightly from previous years, and revenue growth has been negative, which could be concerning. Overall, the company maintains solid profitability with room for improvement in revenue growth.

Balance Sheet

The company's balance sheet is strong, with a debt-to-equity ratio of approximately 0.35, indicating a conservative approach to leverage. The equity ratio is robust at around 63.5%, suggesting financial stability. Return on equity, while positive, has seen a slight decline, reflecting the decrease in net income. Overall, Man Wah Holdings maintains a solid balance sheet with a good equity base and manageable debt levels.

Cash Flow

The cash flow position is stable, with a significant increase in free cash flow due to reduced capital expenditures. The operating cash flow to net income ratio remains strong, indicating efficient cash generation from operations. However, there has been variability in free cash flow growth, reflecting fluctuations in capital expenditures. Overall, the cash flow situation is positive, with a strong focus on operational efficiency.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.41B	16.90B	18.41B	17.35B	21.50B	16.43B
Gross Profit	7.25B	6.84B	7.25B	6.68B	7.89B	5.93B
EBITDA	3.63B	3.36B	3.64B	3.00B	3.57B	2.68B
Net Income	1.96B	2.06B	2.30B	1.91B	2.25B	1.92B
Balance Sheet
Total Assets	19.81B	20.02B	19.81B	19.64B	20.52B	17.44B
Cash, Cash Equivalents and Short-Term Investments	3.52B	4.08B	3.52B	4.09B	3.22B	3.68B
Total Debt	4.33B	4.39B	4.33B	4.40B	4.61B	3.64B
Total Liabilities	6.73B	6.37B	6.73B	7.11B	7.77B	6.03B
Stockholders Equity	12.08B	12.71B	12.08B	11.56B	11.71B	10.74B
Cash Flow
Free Cash Flow	1.32B	2.28B	985.45M	2.50B	363.28M	655.85M
Operating Cash Flow	2.55B	3.32B	2.55B	4.06B	2.32B	1.92B
Investing Cash Flow	-1.54B	-1.55B	-1.54B	-1.59B	-995.57M	-2.73B
Financing Cash Flow	-1.29B	-1.50B	-1.28B	-1.41B	-956.19M	1.11B

Man Wah Holdings Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1999, the sentiment is Negative. The current price of 4.41 is below the 20-day moving average (MA) of 4.61, below the 50-day MA of 4.60, and above the 200-day MA of 4.30, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 35.90 is Neutral, neither overbought nor oversold. The STOCH value of 17.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	75 Outperform	HK$17.10B	8.26	15.62%	5.96%	-6.39%	-10.18%
1418	73 Outperform	HK$406.00M	3.95	10.72%	7.76%	-1.05%	-2.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0396	53 Neutral	HK$90.51M	5.36	20.69%	8.93%	-13.44%	―
1575	44 Neutral	HK$157.99M	-5.76	―	―	-50.43%	79.67%
2127	41 Neutral	HK$76.58M	-0.04	―	―	-72.73%	-764.81%
1198	39 Underperform	HK$343.01M	-0.67	-36.67%	―	―	―

Man Wah Holdings Corporate Events

Man Wah Holdings Strengthens Governance with New Nomination Committee Terms

Man Wah Holdings Limited has outlined the terms of reference for its Nomination Committee, which will be composed of at least three members, primarily independent non-executive directors. The committee’s responsibilities include overseeing the nomination process for board appointments, ensuring diversity, and maintaining governance standards. This move is expected to enhance the company’s governance structure and align with best practices, potentially strengthening its market position and stakeholder confidence.

Man Wah Holdings Enhances Nomination Committee with New Appointments

Man Wah Holdings Limited has announced the appointment of Ms. Wong Ying Ying and Mr. Yang Siu Shun to its Nomination Committee, effective from November 14, 2025. This move ensures gender diversity within the committee and maintains a majority of independent non-executive directors, potentially strengthening the company’s governance and decision-making processes.

Man Wah Holdings Announces Board Composition and Roles

Man Wah Holdings Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The board includes both executive and independent non-executive directors, with specific members serving on the Audit, Nomination, and Remuneration Committees. This announcement underscores the company’s governance structure and may impact its strategic decision-making and stakeholder confidence.

Man Wah Holdings Declares Interim Dividend for 2025

Man Wah Holdings Limited has announced an interim ordinary cash dividend of HKD 0.15 per share for the six months ending 30 September 2025. This announcement reflects the company’s ongoing financial health and commitment to returning value to shareholders, with the dividend payment scheduled for 17 December 2025.

Man Wah Holdings Reports Stable Interim Results Amid Revenue Dip

Man Wah Holdings Limited reported its unaudited condensed consolidated interim results for the six months ended 30 September 2025, showing a slight decrease in revenue from the previous year. Despite this, the company achieved a marginal increase in profit before income tax, indicating effective cost management and operational efficiency. The profit attributable to owners of the company also saw a modest rise, reflecting stable financial performance during the review period.

Man Wah Holdings Proposes NEEQ Quotation for Subsidiary RMT

Man Wah Holdings Limited has announced that its subsidiary, Remacro Technology Co., Ltd. (RMT), has submitted an application for a separate quotation on the National Equities Exchange and Quotations (NEEQ). This move is expected to benefit the company by allowing RMT to remain a subsidiary, enhancing strategic execution, raising market profiles, and establishing separate fund-raising platforms for both entities. The NEEQ Quotation is pending approval and aims to support the growth and expansion of their respective businesses.

Man Wah Holdings to Review Interim Results and Dividend Declaration

Man Wah Holdings Limited has announced a board meeting scheduled for November 14, 2025, to review and approve the unaudited interim results for the half year ending September 30, 2025. The meeting will also consider the declaration of an interim dividend and address other business matters, potentially impacting the company’s financial strategies and shareholder returns.