Hop Fung Group Holdings Limited (2320) AI Stock Analysis

• Market Cap: HK$58.87M
• Dividend Yield: N/A
• Average Volume (3M): 11.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: -23.51%
• EPS Growth: -5.26%
• Country: HK
• Employees: 229
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): -0.05
• Shares Outstanding: 817,644,040
• 10 Day Avg. Volume: 2,800
• 30 Day Avg. Volume: 11,000
• PEG Ratio: 0.00
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -2.22
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.07 ▼(-16.25% Downside)
• Action: Reiterated Date: 01/07/26
• Date: Action: Reiterated 01/07/26

The score is held down primarily by weak financial performance (declining revenue, large losses, and negative cash flow). Technicals offer some support (price above major moving averages and positive MACD), but overbought momentum signals temper that benefit. Valuation remains unattractive due to a negative P/E driven by losses.

Positive Factors

Low leverage

A debt-to-equity of 0.13 indicates low financial leverage, giving the company durable flexibility to absorb operational losses, fund necessary restructuring or modest capex, and avoid immediate refinancing pressure while it works to restore profitability.

Improving FCF metrics

A positive FCF-to-net-income ratio and 29.2% FCF growth signal improving cash conversion efficiency. Over months, stronger FCF trends can provide internal funding for operations or deleveraging and support a durable recovery if sustained alongside margin improvements.

Low market volatility

A very low beta suggests the company's equity has historically moved less with market swings, which can reflect steadier cash flow or limited cyclical exposure. That stability can aid long-term planning, refinancing timing, and execution of turnaround actions.

Negative Factors

Declining revenue

Sustained revenue decline reduces scale and worsens fixed-cost absorption, pressuring margins and cash generation. Without durable improvements in top-line demand or market share, recovery requires structural changes to products, pricing, or distribution to restore growth.

Deep negative margins

Extremely negative EBIT and net margins indicate core operations are loss-making at current cost and pricing levels. Such structural unprofitability erodes equity and requires sustained operational restructuring, cost reduction, or pricing power gains to achieve long-term viability.

Negative operating cash flow

Negative operating cash flow means core business activities do not generate sufficient cash, forcing reliance on financing or asset sales. Over several months this undermines liquidity and limits the company's ability to fund working capital, capital expenditures, or a recovery plan.

Hop Fung Group Holdings Limited Business Overview & Revenue Model

Company Description

Hop Fung Group Holdings Limited, an investment holding company, manufactures and sells corrugated paper ware products in the People's Republic of China. It operates through Containerboard and Corrugated Packaging segments. The Containerboard segment offers corrugating medium and linerboards. The Corrugated Packaging segment provides corrugated paper boards and carton boxes. The company also offers management and accounting services. Hop Fung Group Holdings Limited was founded in 1983 and is based in Tsuen Wan, Hong Kong.

How the Company Makes Money

Hop Fung Group generates revenue primarily through the sale of its corrugated paper and packaging products. The company operates on a business-to-business (B2B) model, supplying its products to manufacturers and retailers across various sectors. Key revenue streams include custom packaging solutions tailored to specific client needs, standard packaging products, and related services such as design and logistics support. Significant partnerships with large retailers and manufacturers enhance its market presence and drive sales. Additionally, the company's focus on sustainability and innovation in product development helps attract environmentally conscious clients, contributing to its revenue growth.

Hop Fung Group Holdings Limited Financial Statement Overview

Summary

Financials are weak: revenue declined (-6.39%) and profitability is deeply negative (net margin -45.02%, EBIT margin -42.68%). Leverage is low (debt-to-equity 0.13), but negative ROE (-13.08%) plus negative operating and free cash flow indicate ongoing operational strain.

Income Statement

The company has been experiencing declining revenue with a negative growth rate of -6.39% in the latest year. Profitability metrics are concerning, with a negative net profit margin of -45.02% and a negative EBIT margin of -42.68%. These figures indicate significant challenges in generating profits from operations.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.13, suggesting manageable leverage. However, the return on equity is negative at -13.08%, indicating that the company is not generating positive returns on shareholders' equity. The equity ratio is not explicitly calculated, but the overall financial stability appears weak due to ongoing losses.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow, although the free cash flow to net income ratio is positive at 1.12, indicating some efficiency in cash generation relative to net income. The free cash flow growth rate is positive at 29.2%, but the overall cash flow situation remains challenging with negative operating cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	172.83M	211.52M	224.36M	424.41M	755.60M	1.04B
Gross Profit	13.57M	17.77M	13.93M	7.40M	-371.51M	127.87M
EBITDA	-65.89M	-38.27M	-41.44M	-114.17M	-375.47M	107.06M
Net Income	-89.96M	-95.23M	-100.80M	-192.72M	-422.79M	1.36M
Balance Sheet
Total Assets	870.23M	908.38M	1.02B	1.19B	1.64B	2.20B
Cash, Cash Equivalents and Short-Term Investments	24.58M	34.14M	47.27M	110.80M	246.68M	291.56M
Total Debt	91.98M	92.51M	73.77M	98.41M	236.94M	290.58M
Total Liabilities	160.82M	180.42M	177.53M	229.19M	393.87M	581.90M
Stockholders Equity	709.41M	727.96M	842.89M	961.91M	1.25B	1.62B
Cash Flow
Free Cash Flow	-29.29M	-29.50M	-40.87M	-3.64M	28.56M	-28.06M
Operating Cash Flow	-26.98M	-26.33M	-32.14M	374.00K	65.01M	105.63M
Investing Cash Flow	-1.91M	-3.11M	-5.20M	-1.58M	-32.51M	-131.56M
Financing Cash Flow	482.00K	16.06M	-26.33M	-132.24M	-81.26M	40.94M

Hop Fung Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2320, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 37.45 is Neutral, neither overbought nor oversold. The STOCH value of 26.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2320.

Hop Fung Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6898	58 Neutral	HK$698.59M	13.13	6.19%	0.59%	-2.08%	-23.18%
1629	46 Neutral	HK$84.10M	-3.77	-4.08%	―	―	―
1820	46 Neutral	HK$754.59M	-11.21	-5.51%	3.20%	3.51%	-950.83%
8291	45 Neutral	HK$16.80M	-44.19	-4.29%	―	-44.08%	―
2320	45 Neutral	HK$58.87M	-0.51	-12.11%	―	-23.51%	-5.26%
1239	43 Neutral	HK$154.08M	-0.69	―	―	-44.23%	41.20%