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

• Market Cap: HK$80.80M
• Dividend Yield: N/A
• Average Volume (3M): 375.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• 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: 805,400
• 30 Day Avg. Volume: 375,266
• 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: 1

• Rating: 41 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily driven by weak financial performance and bearish technical indicators. The company's declining revenue, profitability, and cash flow issues are significant concerns. Additionally, the stock's negative P/E ratio and lack of dividend yield further weigh on its attractiveness.

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 pressure, with declining revenue and profitability, increased leverage, and weak cash flow generation. These factors indicate significant financial headwinds.

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	130.46M	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: Negative
• Last Price: 0.22
• 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:2528, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.26, and below the 200-day MA of 0.24, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
0709	69 Neutral	$2.41B	11.09	10.57%	9.00%	3.78%	-21.19%
0483	69 Neutral	HK$106.54M	8.65	6.87%	―	0.78%	863.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1817	59 Neutral	HK$375.25M	10.00	4.51%	―	-7.95%	98.95%
0375	56 Neutral	HK$213.96M	685.71	-5.47%	7.19%	-25.41%	-361.49%
0330	46 Neutral	$382.16M	―	-90.66%	―	―	―
2528	41 Neutral	HK$80.80M	―	-10.66%	―	-5.89%	71.06%

Forward Fashion (International) Holdings Company Limited Corporate Events

Forward Fashion Announces 2025 AGM with Key Resolutions

Forward Fashion (International) Holdings Company Limited has announced its 2025 Annual General Meeting (AGM) scheduled for June 6, 2025, in Hong Kong. The AGM will address several key resolutions, including the adoption of the 2024 financial statements, re-election of directors, and the re-appointment of auditors. Additionally, the meeting will consider authorizing the board to allot and issue new shares, which could impact the company’s capital structure and market positioning.

Forward Fashion Reports Increased Losses in 2024 Annual Results

Forward Fashion (International) Holdings Company Limited reported its annual financial results for the year ended 31 December 2024, showing a decrease in revenue to HK$938,315,000 from HK$1,007,801,000 in 2023. The company experienced a significant loss for the year, with a net loss of HK$85,077,000 compared to a loss of HK$19,794,000 in the previous year, indicating potential challenges in managing costs and maintaining profitability.

Forward Fashion Announces Board Meeting for Annual Results and Dividend Consideration

Forward Fashion (International) Holdings Company Limited has announced an upcoming board meeting scheduled for March 31, 2025. The meeting will address the approval of the company’s annual results for the year ending December 31, 2024, and the consideration of a final dividend payment. This announcement is significant as it could impact the company’s financial strategy and shareholder returns.

Forward Fashion Issues Profit Warning Amid Challenging Retail Environment

Forward Fashion (International) Holdings Company Limited has issued a profit warning, anticipating a significant increase in net loss to no less than HK$90 million for the year ending December 2024, compared to a HK$19.8 million loss the previous year. This expected loss is attributed to poor sales performance in its retail stores amid a challenging retail environment, highlighting potential operational and financial challenges for the company and its stakeholders.