Fulu Holdings Limited (2101) AI Stock Analysis

• Market Cap: HK$612.96M
• Dividend Yield: N/A
• Average Volume (3M): 123.25K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.34
• Revenue Growth: -36.89%
• EPS Growth: -78.29%
• Country: HK
• Employees: 976
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Specialty Retail
• EPS (TTM): -0.04
• Shares Outstanding: 408,640,900
• 10 Day Avg. Volume: 52,000
• 30 Day Avg. Volume: 123,250
• PEG Ratio: N/A
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.64
• 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$1.50
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: HK$1.50 ▲(0.00%Upside)

The overall stock score for Fulu Holdings Limited is driven primarily by its strong cash flow management and solid balance sheet, which are offset by challenges in profitability and a high P/E ratio indicating potential overvaluation. Technical analysis shows neutral momentum, without a clear upward trend.

Fulu Holdings Limited Business Overview & Revenue Model

Company Description

Fulu Holdings Limited, an investment holding company, operates a third-party digital goods and services platform in the People's Republic of China. It operates through four segments: Leisure and Entertainment, Games, Telecommunications, and Lifestyle. The company's platform connects digital goods vendors and digital goods sales channels. It engages in the provision of services to facilitate digital goods transactions and online stores operating services to leisure and entertainment content providers, game producers, telecom providers, and lifestyle service providers. The company also operates online stores for digital goods vendors. Fulu Holdings Limited was founded in 2009 and is headquartered in Wuhan, the People's Republic of China.

How the Company Makes Money

Fulu Holdings Limited generates revenue by offering digital payment solutions and electronic voucher distribution services. The company earns money through transaction fees charged on its platform, where it acts as an intermediary between digital content providers and consumers. By partnering with various digital content providers, Fulu Holdings facilitates the purchase and distribution of digital goods such as game credits, mobile data top-ups, and gift cards. The company benefits from a diverse revenue stream by leveraging its extensive network of partnerships with leading digital platforms and content providers, allowing it to earn a commission on each transaction processed through its platform.

Fulu Holdings Limited Financial Statement Overview

Summary

Fulu Holdings Limited demonstrates strong cash flow management and a solid balance sheet with low leverage, but it faces challenges in revenue growth and profitability. While the cash flow score is high due to significant free cash flow, the income statement score reflects weaker net profitability, and the balance sheet indicates a need for improved returns on equity.

Income Statement

Fulu Holdings Limited has experienced fluctuations in its revenue, with a significant decline from 2023 to 2024. The gross profit margin for 2024 was healthy at 70.65%, and the net profit margin was 5.60%, which is below industry standards. The company's EBIT margin was 4.51%, and the EBITDA margin was 5.29%, indicating moderate operational efficiency. Overall, the company shows a stable gross profit margin but needs to improve its net profitability.

Balance Sheet

The company maintains a strong equity position, with an equity ratio of 73.58% in 2024. The debt-to-equity ratio is low at 0.14, indicating conservative leverage. Return on equity (ROE) was 1.55% in 2024, suggesting limited returns on shareholders' equity. The balance sheet is stable with low financial risk, but improvement in ROE is needed for better shareholder value.

Cash Flow

Fulu Holdings Limited demonstrates strong cash flow management with a significant turnaround, reporting a high free cash flow in 2024 compared to negative values in the previous years. The operating cash flow to net income ratio is strong, indicating good conversion of earnings to cash. The company has enhanced its liquidity and is generating substantial free cash flow, which is positive for future investments and debt management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	359.79M	560.41M	479.86M	399.28M	328.21M
Gross Profit	254.22M	416.18M	359.24M	295.24M	260.36M
EBITDA	19.05M	66.94M	104.44M	83.92M	132.59M
Net Income	20.16M	91.61M	97.88M	68.22M	120.90M
Balance Sheet
Total Assets	1.76B	1.76B	1.58B	1.38B	1.39B
Cash, Cash Equivalents and Short-Term Investments	402.28M	159.90M	176.45M	226.45M	461.88M
Total Debt	176.55M	151.46M	54.21M	18.70M	142.82M
Total Liabilities	482.52M	505.28M	365.10M	213.38M	287.74M
Stockholders Equity	1.30B	1.27B	1.22B	1.16B	1.11B
Cash Flow
Free Cash Flow	203.92M	-65.11M	6.42M	-136.88M	-187.43M
Operating Cash Flow	205.00M	-49.90M	22.48M	-123.86M	-185.86M
Investing Cash Flow	-80.79M	1.52M	-22.41M	-19.59M	-2.98M
Financing Cash Flow	38.49M	45.66M	-59.87M	-101.32M	647.00M

Fulu Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2101, the sentiment is Negative. The current price of 1.5 is below the 20-day moving average (MA) of 1.51, below the 50-day MA of 1.51, and below the 200-day MA of 1.76, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.53 is Neutral, neither overbought nor oversold. The STOCH value of 17.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2101.

Fulu Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2101	68 Neutral	HK$612.96M	26.72	1.57%	―	-36.89%	-78.29%
Sector *	57 Neutral	HK$24.67B	3.97	-2.03%	6.16%	-0.31%	-67.70%
GMELF	―	$112.81M	―		―	―	―
1D2	―	€16.63M	―	-293.07%	―	―	―
6033	67 Neutral	HK$270.51M	11.96	4.61%	8.96%	-15.17%	-75.87%
1939	43 Neutral	HK$2.29B	―	-8.52%	―	-3.32%	-107.34%
1020	39 Underperform	HK$248.97M	―	-108.05%	―	-17.29%	-114.00%

Fulu Holdings Limited Corporate Events

Fulu Holdings Announces Board Composition and Roles

Fulu Holdings Limited has announced the composition of its board of directors and their respective roles within the company’s committees. This announcement clarifies the leadership structure and committee responsibilities, which may impact the company’s governance and strategic decision-making processes.

Fulu Holdings Limited Announces Changes to Nomination Committee

Fulu Holdings Limited, a company listed on the Hong Kong Stock Exchange, has announced a change in the composition of its Nomination Committee. Mr. Wong Sincere has stepped down, and Ms. Wang Yuyun has been appointed as a member, effective June 27, 2025. This change aligns with the upcoming amendments to the Listing Rules and Corporate Governance Code, effective July 1, 2025. The Board believes these changes will enhance the Board’s effectiveness, diversity, and corporate governance practices.

Fulu Holdings Updates Nomination Committee Terms to Enhance Governance

Fulu Holdings Limited has updated the terms of reference for its Nomination Committee, which was initially established by the Board in January 2020. The committee is responsible for nominating directors and ensuring a diverse and independent board composition. The changes emphasize the importance of independent non-executive directors and gender diversity, with meetings to be held at least once a year. This update is expected to enhance the governance and decision-making processes within the company, potentially impacting its industry positioning and stakeholder relations positively.

Fulu Holdings Limited Announces Unanimous Approval of AGM Resolutions

Fulu Holdings Limited announced the results of its annual general meeting held on May 23, 2025. All resolutions, including the re-election of directors, appointment of auditors, and granting of mandates for share issuance and buybacks, were unanimously approved by shareholders. This outcome reflects strong shareholder support and positions the company for continued strategic flexibility in its operations.

Fulu Holdings Schedules AGM to Discuss Key Resolutions

Fulu Holdings Limited has announced its upcoming annual general meeting (AGM) scheduled for May 23, 2025, in Wuhan, China. The meeting will address several key resolutions, including the adoption of the company’s audited financial statements for 2024, the re-election of independent non-executive directors, and the re-appointment of Ernst & Young as the company’s auditor. Additionally, the board seeks approval to exercise powers related to the issuance of shares and convertible securities. These resolutions are crucial for the company’s governance and operational strategies moving forward.