Forward Fashion (International) Holdings Company Limited (2528) AI Stock Analysis

• Market Cap: HK$128.00M
• Dividend Yield: N/A
• Average Volume (3M): 341.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -5.89%
• EPS Growth: 71.06%
• Country: HK
• Employees: 1,138
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.02
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 711,200
• 30 Day Avg. Volume: 341,666
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 1.07
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$0.50 ▲(51.52% Upside)

The overall stock score is primarily impacted by weak financial performance and concerning valuation metrics. While technical analysis shows positive momentum, the overbought signals and financial challenges weigh heavily on the stock's attractiveness.

Positive Factors

Strategic Partnerships

Strategic partnerships with international brands enhance product offerings and expand market reach, supporting long-term revenue growth.

Diverse Revenue Streams

A diverse range of revenue streams provides resilience against market fluctuations and supports sustainable growth over time.

Targeting Younger Demographics

Focusing on younger demographics positions the company to capture a growing market segment, ensuring long-term customer base expansion.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, which could impact long-term growth prospects.

Increased Leverage

Higher leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow suggests difficulties in generating sufficient cash, which could constrain operations and strategic initiatives.

Forward Fashion (International) Holdings Company Limited Business Overview & Revenue Model

Company Description

Forward Fashion (International) Holdings Company Limited engages in the retail of fashion apparel in Macau, Mainland China, Hong Kong, Taiwan, and internationally. It operates own brand stores under the UM, UM Junior, UM.IXOX, IXOX, and WF Fashion brand names. It also sells footwear, cosmetic and skincare, designer home accessories, artistic ornaments, and other lifestyle products through its retail stores and online. As of December 31, 2021, the company operated 216 self-operated retail stores, including 190 mono-brand stores and 26 multi-brand stores. Forward Fashion (International) Holdings Company Limited was founded in 2005 and is headquartered in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

The company generates revenue through multiple streams, primarily from the sale of apparel and accessories under its proprietary brands and through partnerships with other fashion labels. Key revenue streams include direct retail sales, wholesale distribution to third-party retailers, and e-commerce sales through its online platforms. Forward Fashion also benefits from strategic partnerships with international brands, enhancing its product offerings and expanding its market reach. Seasonal collections and promotional events further drive sales, contributing significantly to the company's earnings. Additionally, effective supply chain management and cost control measures help maintain profitability.

Forward Fashion (International) Holdings Company Limited Financial Statement Overview

Summary

The company's financial performance is under significant pressure. Declining revenue and profitability, increased leverage, and weak cash flow generation highlight financial headwinds. While there is some stability in equity, the overall financial health is concerning.

Income Statement

The company's income statement shows declining revenue and profitability. Revenue decreased by 6.4% from 2023 to 2024, and net profit margin fell from -1.67% to -8.19%. EBIT and EBITDA margins have also deteriorated, indicating operational challenges.

Balance Sheet

The balance sheet indicates a moderate financial position. The debt-to-equity ratio increased from 1.16 in 2023 to 2.09 in 2024, reflecting higher leverage. However, the equity ratio remained stable, suggesting some degree of balance.

Cash Flow

Cash flow analysis reveals significant challenges. Operating cash flow dropped to zero in 2024 from positive levels in 2023, and free cash flow turned negative, suggesting cash generation issues that could impact financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	913.60M	938.32M	1.01B	959.90M	1.23B	884.46M
Gross Profit	440.31M	420.77M	467.81M	454.24M	651.12M	396.29M
EBITDA	39.64M	-27.82M	165.94M	170.40M	303.72M	187.82M
Net Income	-17.75M	-76.89M	-16.85M	-33.14M	32.16M	-131.14M
Balance Sheet
Total Assets	719.13M	822.45M	912.17M	910.46M	1.13B	1.28B
Cash, Cash Equivalents and Short-Term Investments	103.81M	82.53M	119.60M	137.93M	212.11M	299.67M
Total Debt	365.21M	311.49M	265.64M	252.25M	555.58M	630.95M
Total Liabilities	582.57M	691.20M	693.52M	668.88M	829.74M	1.02B
Stockholders Equity	155.70M	149.15M	228.81M	248.98M	304.48M	267.99M
Cash Flow
Free Cash Flow	125.44M	82.15M	162.25M	162.28M	171.71M	349.39M
Operating Cash Flow	164.05M	120.17M	220.05M	230.22M	213.99M	382.43M
Investing Cash Flow	-37.80M	-14.84M	-41.65M	-40.92M	-30.45M	-125.68M
Financing Cash Flow	-106.21M	-132.69M	-175.40M	-237.85M	-275.62M	-116.00M

Forward Fashion (International) Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2528, the sentiment is Positive. The current price of 0.33 is above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.26, and above the 200-day MA of 0.25, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 75.77 is Negative, neither overbought nor oversold. The STOCH value of 89.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2528.

Forward Fashion (International) Holdings Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0483	70 Outperform	HK$102.87M	13.86	4.49%	―	-1.14%	―
0709	67 Neutral	HK$2.39B	11.02	10.57%	9.12%	3.78%	-21.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0375	55 Neutral	HK$154.25M	-6.86	-5.35%	10.75%	-23.76%	-9785.71%
1817	54 Neutral	HK$285.00M	8.16	4.51%	―	-7.95%	98.95%
2528	49 Neutral	HK$128.00M	-7.43	-10.66%	―	-5.89%	71.06%
0330	37 Underperform	$339.70M	-0.20	―	―	―	―

Forward Fashion (International) Holdings Company Limited Corporate Events

Forward Fashion Expands Neil Barrett Distribution Agreement

Forward Fashion (International) Holdings Company Limited announced additional information regarding its Cooperation Agreement with Twelve S.A. and White S.R.L. for the distribution of Neil Barrett products in Macau and the PRC. The agreement involves NB China Limited purchasing products from White S.R.L., with terms negotiated based on market practices. The company has renewed the annual caps for these transactions for 2024 and 2025, indicating its commitment to continue operations under this agreement.

Forward Fashion Announces Property Disposal in Macau

Forward Fashion (International) Holdings Company Limited announced the disposal of an industrial property in Macau for HK$15.0 million. The transaction, classified as a discloseable transaction under the Listing Rules, was not announced in a timely manner due to inadvertent oversight. The company has since implemented remedial actions to prevent future non-compliance.