Hop Fung Group Holdings Limited (2320) AI Stock Analysis

• Market Cap: HK$67.86M
• Dividend Yield: N/A
• Average Volume (3M): 11.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• 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: 28,400
• 30 Day Avg. Volume: 11,200
• 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: 41 Neutral
• Price Target: HK$0.07 ▼(-16.25% Downside)

The overall stock score is heavily impacted by the company's poor financial performance, characterized by declining revenues and persistent losses. Technical analysis also indicates bearish momentum, with the stock in oversold territory and trading below key moving averages. Valuation metrics are unfavorable due to a negative P/E ratio and lack of dividend yield, further contributing to the low score.

Positive Factors

Sustainable Practices

The focus on sustainability aligns with growing consumer demand for eco-friendly products, potentially enhancing market position and attracting environmentally conscious clients.

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to navigate economic downturns more effectively and invest in growth opportunities.

Positive Free Cash Flow Growth

Positive free cash flow growth indicates improving cash generation efficiency, which can support reinvestment in the business and provide a buffer against financial challenges.

Negative Factors

Declining Revenue

Declining revenue suggests weakening demand or competitive pressures, which could undermine long-term growth prospects and market share.

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and challenges in cost management, threatening the company's ability to sustain operations without restructuring.

Negative Return on Equity

A negative return on equity reflects poor financial performance and inefficiency in using shareholder funds, potentially deterring investment and limiting growth opportunities.

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

Hop Fung Group Holdings Limited is facing significant financial challenges, with declining revenues and persistent losses impacting profitability. While leverage is low, the negative return on equity and cash flow issues highlight ongoing operational difficulties. The company needs to address these challenges to improve its financial health and performance.

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: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 54.36 is Neutral, neither overbought nor oversold. The STOCH value of 58.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$670.27M	42.01	13.20%	0.58%	-2.08%	-23.18%
1239	49 Neutral	HK$116.40M	-1.30	―	―	-44.23%	41.20%
1629	46 Neutral	HK$83.55M	-7.54	-4.08%	―	―	―
1820	46 Neutral	HK$748.57M	―	-5.51%	3.20%	3.51%	-950.83%
8291	45 Neutral	HK$13.60M	3.08	―	―	-44.08%	―
2320	41 Neutral	HK$67.86M	―	-12.11%	―	-23.51%	-5.26%

Hop Fung Group Holdings Limited Corporate Events

Hop Fung Group Reports Revenue Decline Amidst Industry Challenges

Hop Fung Group Holdings Limited reported a significant decline in revenue for the first half of 2025, with a 35.9% decrease compared to the same period in 2024. Despite the reduction in losses and a slight increase in gearing ratios, the company continues to face financial challenges, reflecting broader market pressures in the packaging industry. The announcement indicates ongoing efforts to manage costs and improve financial stability, which are crucial for maintaining stakeholder confidence.

Hop Fung Group Holdings Limited Announces Details of 2023 Share Option Scheme

Hop Fung Group Holdings Limited has announced additional details regarding its 2023 share option scheme, as disclosed in its 2024 Annual Report. The scheme outlines the maximum entitlement for eligible participants, stipulating that the total number of shares issued under the scheme should not exceed 1% of the company’s issued share capital within a 12-month period. Grants to directors or substantial shareholders exceeding 0.1% of shares must be approved by shareholders. The scheme also includes provisions for vesting and exercise periods, as well as the basis for determining the subscription price for shares. This announcement is significant as it provides clarity on the company’s approach to incentivizing its stakeholders, potentially impacting its market positioning and shareholder relations.