Hengdeli Holdings (3389) AI Stock Analysis

• Market Cap: HK$563.71M
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.20
• Revenue Growth: -27.93%
• EPS Growth: -293.98%
• Country: HK
• Employees: 1,289
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Luxury Goods
• EPS (TTM): -0.02
• Shares Outstanding: 4,404,019,000
• 10 Day Avg. Volume: 1,716,297
• 30 Day Avg. Volume: 1,766,324
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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

• Rating: 54 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score reflects a mixed outlook for Hengdeli Holdings. The company's financial performance highlights profitability and cash flow concerns, which weigh heavily on the score. However, technical analysis shows positive momentum, offering some optimism. Valuation remains a concern, with a negative P/E ratio and no dividend yield. Investors should be cautious and consider the potential risks alongside any technical uptrends.

Hengdeli Holdings Business Overview & Revenue Model

Company Description

Hengdeli Holdings Limited, listed on the Hong Kong Stock Exchange under the ticker 3389, is a leading retailer and distributor of luxury watches and timepieces. With a strong presence in Mainland China, Hong Kong, and Taiwan, Hengdeli operates both self-operated retail stores and authorized dealerships. The company is renowned for offering an extensive range of high-end watch brands and providing after-sales services, including maintenance and repair.

How the Company Makes Money

Hengdeli Holdings primarily generates revenue through its retail and distribution operations of luxury watches. The company sells watches directly to consumers through its network of retail stores and online platforms, as well as through wholesale distribution to other retailers. Hengdeli represents a variety of prestigious international watch brands, which allows it to cater to different consumer segments. The company's revenue streams are bolstered by its after-sales services, which include repairs and maintenance, ensuring continued customer engagement and revenue opportunities beyond initial sales. Strategic partnerships with renowned watchmakers and exclusive distribution rights for certain brands further enhance Hengdeli's market position and revenue potential.

Hengdeli Holdings Financial Statement Overview

Summary

Hengdeli Holdings exhibits a mixed financial picture. The balance sheet is relatively strong, but income and cash flow statements show performance instability. The company faces challenges in profitability and cash flow generation, with negative net income and fluctuating cash flows indicating operational inefficiencies.

Income Statement

The income statement shows significant fluctuations in revenue and profitability. The gross profit margin has decreased over recent years, and the company recorded a negative net income in the latest period, indicating challenges in maintaining profitability. The revenue growth rate has been inconsistent, with a notable decline in 2024. Negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The balance sheet exhibits strong equity levels, with a high equity ratio indicating financial stability. However, the debt-to-equity ratio has shown an upward trend, suggesting increased leverage. The return on equity is negative due to recent losses, which is a concern for investors. Overall, the company's financial position is stable, but profitability issues need attention.

Cash Flow

Cash flow analysis indicates volatility, with operating cash flow fluctuating across periods. The free cash flow has also varied, with a significant decline in 2024. The operating cash flow to net income ratio is not meaningful due to zero operating cash flow, and free cash flow growth has been negative. The company needs to stabilize its cash generation capabilities.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Hengdeli Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 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:3389, the sentiment is Positive. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 56.22 is Neutral, neither overbought nor oversold. The STOCH value of 39.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3389.

Hengdeli Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0590	78 Outperform	HK$12.27B	11.16	8.44%	5.69%	-4.33%	-19.79%
0116	75 Outperform	$5.74B	7.18	6.25%	10.64%	-15.34%	-20.36%
0887	74 Outperform	$3.08B	11.21	4.99%	2.59%	8.44%	-14.06%
0398	72 Outperform	$1.67B	8.31	11.32%	36.95%	-7.42%	-17.86%
Sector *	57 Neutral	HK$25.34B	4.18	-2.03%	5.87%	-0.23%	-68.02%
3389	54 Neutral	HK$563.71M	13.54	-2.04%	―	-27.93%	-293.98%
0256	43 Neutral	$1.78B	62.16	-6.53%	―	-8.30%	-661.54%

Hengdeli Holdings Corporate Events

Hengdeli Holdings Faces Shareholder Requisition for Director’s Removal

Hengdeli Holdings Limited has received a requisition from Empire Charm Limited, a shareholder owning at least one-tenth of the company’s issued share capital, to convene an extraordinary general meeting (EGM). The purpose of the EGM is to consider a resolution for the removal of Mr. Huang Yonghua as a director. The board is obligated to organize this meeting within two months of the requisition and will distribute a circular with details to shareholders. This development may impact the company’s governance structure and could have implications for its strategic direction.

Hengdeli Holdings Announces Major Share Transfer

Hengdeli Holdings Limited announced a significant transfer of shares, with Best Growth International Limited, controlled by Mr. Zhang Yu Ping, transferring approximately 17% of the company’s issued share capital to Ms. Fung Ka Kiu Ann. This transfer could potentially impact the company’s shareholder structure and influence its strategic direction.

Hengdeli Holdings Successfully Passes All AGM Resolutions

Hengdeli Holdings Limited announced that all resolutions at their Annual General Meeting on May 9, 2025, were passed by shareholders via poll. Key resolutions included the re-election of several directors, the re-appointment of auditors, and the adoption of amended articles of association. This successful meeting reflects strong shareholder support and could positively impact the company’s governance and strategic direction.