Folangsi Co., Limited Class H (2499) AI Stock Analysis

• Market Cap: HK$2.08B
• Dividend Yield: 0.53%
• Average Volume (3M): 77.44K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.09
• Revenue Growth: 19.37%
• EPS Growth: 75.13%
• Country: HK
• Employees: 2,013
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.15
• Shares Outstanding: 249,651,700
• 10 Day Avg. Volume: 48,100
• 30 Day Avg. Volume: 77,440
• PEG Ratio: 0.11
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 4.93
• 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): 4.35
• Revenue Forecast (FY): HK$16.47B

• Rating: 67 Neutral
• Price Target: HK$6.00 ▲(4.17% Upside)

The overall stock score of 66.5 reflects strong financial performance driven by revenue growth and improved profitability. However, high leverage and cash flow management issues pose risks. Technical indicators suggest potential for a reversal, but current momentum is bearish. The valuation is moderate, with limited dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for the company's products and services, enhancing its market position and supporting long-term business expansion.

Profitability Improvement

Improved profitability through higher net profit margins suggests effective cost management and operational efficiency, contributing to sustainable financial health.

Diversified Revenue Model

A diversified revenue model reduces dependency on a single income stream, providing resilience against market fluctuations and supporting steady cash flow.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns.

Cash Flow Challenges

Unclear cash flow data and variability in cash flow generation may hinder liquidity management, affecting the company's operational stability and growth capacity.

Moderate Operational Efficiency

Moderate operational efficiency indicates potential for cost reduction and productivity enhancements, which could improve profitability and competitive positioning.

Folangsi Co., Limited Class H Business Overview & Revenue Model

Company Description

Folangsi Co., Ltd., provides on-site logistics equipment solutions in China. It offers intralogistics equipment subscription; maintenance and repair services; sales of intralogistics equipment and parts; and an intelligent asset and operation management platform. The company's intralogistics equipment includes counterbalanced, reach, and warehouse forklifts. Folangsi Co., Ltd. was incorporated in 2007 and is headquartered in Guangzhou, China.

How the Company Makes Money

Folangsi Co., Limited generates revenue primarily through the sale of its consumer electronic products, including smartphones, tablets, and smart home devices. The company operates on a direct-to-consumer sales model, utilizing both online platforms and physical retail partnerships to reach a broader audience. Key revenue streams also include licensing agreements for its proprietary technologies and software solutions, which are integrated into its products. Additionally, Folangsi has established strategic alliances with major retailers and distribution channels, enhancing its market reach and driving sales growth. Seasonal promotions and product launches further contribute to revenue spikes, while ongoing customer support and service contracts provide a continuous income stream.

Folangsi Co., Limited Class H Financial Statement Overview

Summary

Folangsi Co., Limited Class H demonstrates strong revenue growth and improved profitability, with a solid equity position. However, the company faces challenges with high leverage and cash flow management, which require attention to ensure sustainable growth and financial stability.

Income Statement

The company shows a strong revenue growth trajectory with a notable increase in total revenue from the previous year by approximately 17.4%. Gross profit margin is healthy at 28.8%, indicating effective cost management. Net profit margin improved significantly to 6.3%, driven by increased net income, highlighting improved profitability. However, the EBIT margin is a moderate 10.3%, suggesting potential room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 1.71, indicating moderate leverage. Return on equity stands at 8.6%, showing satisfactory use of equity to generate profits. The equity ratio is 31.2%, suggesting a balanced asset financing approach. However, the relatively high debt level poses potential financial risk.

Cash Flow

Cash flow analysis indicates challenges, with the absence of reported operating and free cash flow data for the latest period impacting clarity. Historical data shows variability in cash flow generation, which could indicate potential liquidity management issues. The company needs to improve cash flow visibility and stability to better support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.74B	1.61B	1.37B	1.19B	1.17B	980.64M
Gross Profit	507.90M	463.73M	417.40M	361.66M	374.17M	330.18M
EBITDA	411.09M	375.24M	363.53M	325.71M	522.51M	444.26M
Net Income	110.05M	101.96M	31.22M	35.40M	55.18M	54.21M
Balance Sheet
Total Assets	3.96B	3.78B	3.15B	2.66B	2.56B	2.18B
Cash, Cash Equivalents and Short-Term Investments	180.94M	154.90M	210.19M	151.49M	232.92M	115.07M
Total Debt	2.17B	2.01B	1.58B	1.37B	1.33B	1.17B
Total Liabilities	2.74B	2.60B	2.07B	1.76B	1.70B	1.49B
Stockholders Equity	1.22B	1.18B	1.08B	899.46M	864.06M	683.56M
Cash Flow
Free Cash Flow	500.80M	489.52M	252.63M	300.12M	242.39M	293.68M
Operating Cash Flow	641.81M	626.67M	506.98M	522.19M	527.63M	451.58M
Investing Cash Flow	-162.81M	-172.47M	-253.68M	-226.17M	-285.36M	-157.64M
Financing Cash Flow	-482.56M	-452.01M	-175.20M	-363.55M	-137.72M	-328.38M

Folangsi Co., Limited Class H Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2499, the sentiment is Neutral. The current price of 5.76 is below the 20-day moving average (MA) of 6.02, below the 50-day MA of 5.92, and above the 200-day MA of 5.71, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 45.11 is Neutral, neither overbought nor oversold. The STOCH value of 30.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2499.

Folangsi Co., Limited Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2102	76 Outperform	HK$275.00M	9.40	6.36%	12.96%	18.37%	297.18%
2499	67 Neutral	HK$2.08B	17.48	9.37%	0.53%	19.37%	75.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3626	55 Neutral	HK$605.36M	225.69	8.45%	―	35.88%	―
1596	49 Neutral	HK$619.51M	14.49	1.64%	2.62%	―	―
0658	45 Neutral	HK$3.09B	-0.47	-69.18%	―	-4.88%	-860.80%
2153	44 Neutral	HK$1.07B	-7.26	-10.88%	―	-10.78%	-25.12%