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Hengdeli Holdings Limited (HK:3389)
:3389
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Hengdeli Holdings (3389) AI Stock Analysis

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HK:3389

Hengdeli Holdings

(3389)

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Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
HK$0.00
▼(-100.00% Downside)
Hengdeli Holdings' overall stock score reflects significant financial challenges, particularly in profitability and cash flow stability. The technical analysis suggests a neutral to slightly bearish trend, while valuation metrics highlight concerns with a negative P/E ratio. The company's financial health needs improvement to enhance investor confidence.

Hengdeli Holdings (3389) vs. iShares MSCI Hong Kong ETF (EWH)

Hengdeli Holdings Business Overview & Revenue Model

Company DescriptionHengdeli Holdings Limited, together with its subsidiaries, retails and trades in watches and jewelry. It is also involved in the design, production, and decoration of commercial spaces. In addition, the company engages in the manufacture and sale of watch accessories and packaging products. The company was founded in 1957 and is headquartered in Tsim Sha Tsui, Hong Kong.
How the Company Makes MoneyHengdeli Holdings generates revenue through multiple key streams, primarily from the retail and wholesale of luxury watches. The company's retail operations include both direct sales through its branded stores and e-commerce platforms, where it offers a curated selection of high-end watches. Additionally, Hengdeli has established strategic partnerships with leading luxury watch manufacturers, allowing it to sell exclusive and sought-after timepieces. The company's wholesale segment supplies these luxury watches to other retailers, further diversifying its income. Significant revenue is also derived from after-sales services, including watch repair and maintenance, which enhance customer loyalty and repeat business.

Hengdeli Holdings Financial Statement Overview

Summary
Hengdeli Holdings shows a mixed financial picture. The income statement reveals significant challenges with declining revenue and profitability, including a negative net income. The balance sheet is relatively strong with high equity levels, but increased leverage is a concern. Cash flow is volatile, with a significant decline in free cash flow in 2024, indicating instability in cash generation.
Income Statement
42
Neutral
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
65
Positive
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue777.51M1.04B1.42B1.04B877.99M1.22B
Gross Profit117.91M148.76M215.26M123.59M137.91M-148.22M
EBITDA-84.17M-43.44M90.27M-22.05M95.08M-277.42M
Net Income-36.35M-65.16M33.88M-80.02M26.28M-383.08M
Balance Sheet
Total Assets3.41B3.53B3.60B3.53B3.53B3.63B
Cash, Cash Equivalents and Short-Term Investments1.32B1.28B1.32B1.33B946.40M1.27B
Total Debt71.67M82.86M123.76M99.06M97.73M63.58M
Total Liabilities201.55M254.64M353.52M305.96M258.93M188.65M
Stockholders Equity3.14B3.21B3.19B3.16B3.20B3.37B
Cash Flow
Free Cash Flow78.13M-125.73M-132.62M177.63M-156.52M37.41M
Operating Cash Flow85.72M-85.70M83.29M237.39M-77.63M89.68M
Investing Cash Flow159.60M21.75M-164.12M68.59M-227.05M119.67M
Financing Cash Flow-62.11M-44.79M-3.41M-24.46M-17.58M-276.31M

Hengdeli Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.12
Price Trends
50DMA
0.13
Negative
100DMA
0.12
Negative
200DMA
0.12
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
45.06
Neutral
STOCH
56.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3389, the sentiment is Negative. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.06 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3389.

Hengdeli Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$14.70B13.718.44%4.42%-12.95%-37.76%
HK$9.36B7.939.13%4.09%-10.41%67.25%
HK$2.03B7.435.10%3.57%6.82%42.74%
HK$1.66B8.2611.32%10.35%-5.19%-19.96%
$10.79B15.437.44%2.01%2.89%-14.66%
$550.50M-13.89-1.15%-41.44%-209.76%
$748.52M62.16-7.92%-18.07%-1041.89%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3389
Hengdeli Holdings
0.12
-0.01
-8.46%
HK:0256
Citychamp Watch & Jewellery Group
0.18
-0.76
-80.53%
HK:0116
Chow Sang Sang Holdings International
13.93
7.80
127.39%
HK:0887
Emperor Watch & Jewellery
0.28
0.11
65.68%
HK:0590
Luk Fook Holdings (International)
24.88
10.75
76.13%
HK:0398
Oriental Watch Holdings
3.40
0.32
10.46%

Hengdeli Holdings Corporate Events

Hengdeli Holdings Sees Profit Surge Despite Revenue Decline in H1 2025
Aug 20, 2025

Hengdeli Holdings Limited reported a significant decline in revenue for the first half of 2025, with a 45.8% decrease compared to the same period in 2024. Despite the drop in revenue, the company achieved a substantial increase in profit, with a profit for the period of RMB 26,033,000, up from RMB 499,000 in the previous year, attributed to improved gross profit margins and other net gains.

Hengdeli Holdings Announces Board Changes Post-EGM
Aug 19, 2025

Hengdeli Holdings Limited announced the results of its Extraordinary General Meeting held on August 18, 2025, where a resolution to remove Mr. Huang Yonghua from his position as a director was passed with a significant majority. Consequently, Mr. Huang also ceased to be the authorised representative of the company. In his place, Mr. Lee Shu Chung, Stan, an executive director, has been appointed as the new authorised representative. These changes are part of the company’s ongoing governance adjustments, potentially impacting its strategic direction and stakeholder relations.

Hengdeli Holdings Announces Board and Representative Changes
Aug 18, 2025

Hengdeli Holdings Limited announced the results of its Extraordinary General Meeting held on August 18, 2025, where shareholders voted to remove Mr. Huang Yonghua from his position as a director. Consequently, Mr. Huang also ceased to be the company’s authorized representative. Mr. Lee Shu Chung, Stan, an executive director, has been appointed as the new authorized representative. This change in the board and authorized representative could impact the company’s governance and strategic direction.

Hengdeli Holdings Announces Board Composition and Committee Structure
Aug 18, 2025

Hengdeli Holdings Limited has announced the composition of its board of directors, which includes executive directors, a non-executive director, and independent non-executive directors. The company has also established three committees: Audit, Remuneration, and Nomination, each chaired by a different board member. This announcement provides clarity on the governance structure of Hengdeli Holdings, potentially impacting its strategic decision-making and operational oversight.

Hengdeli Holdings Announces Positive Profit Alert for H1 2025
Aug 8, 2025

Hengdeli Holdings Limited, a company incorporated in the Cayman Islands, has announced a positive profit alert for the first half of 2025. The company expects a profit of approximately RMB26.3 million, compared to a loss of RMB2.5 million in the same period of 2024, primarily due to foreign exchange gains. The interim results are still being finalized and will be released in August 2025. Shareholders and potential investors are advised to exercise caution when dealing with the company’s securities.

Hengdeli Holdings to Review Interim Results and Dividend
Aug 6, 2025

Hengdeli Holdings Limited has announced that its board of directors will meet on August 20, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting could have implications for the company’s financial strategy and shareholder returns, potentially impacting its market positioning and investor relations.

Hengdeli Holdings Calls Extraordinary General Meeting for Director Removal
Jul 31, 2025

Hengdeli Holdings Limited has announced an extraordinary general meeting to be held on August 18, 2025, in Hong Kong. The primary agenda of the meeting is to consider and potentially pass a resolution to remove Mr. Huang Yonghua as a director of the company, effective immediately upon the resolution’s approval.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 31, 2025