Hengdeli Holdings (3389) AI Stock Analysis

• Market Cap: $550.50M
• Dividend Yield: N/A
• Average Volume (3M): 575.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: -41.44%
• EPS Growth: -209.76%
• Country: HK
• Employees: 1,289
• Sector: Industrials
• Sector Strength: 72
• Industry: Luxury Goods
• EPS (TTM): <0.01
• Shares Outstanding: 4,404,019,000
• 10 Day Avg. Volume: 652,960
• 30 Day Avg. Volume: 575,707
• PEG Ratio: 0.03
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -4.28
• Enterprise Value/Market Cap: -1.42
• Enterprise Value/Revenue: -1.01
• Enterprise Value/Gross Profit: -6.63
• Enterprise Value/Ebitda: 9.28
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$0.14 ▲(1.43% Upside)

The overall stock score of 55 reflects a mixed outlook. The financial performance is the most significant factor, highlighting operational challenges and profitability issues. Technical analysis shows bullish momentum, but the overbought RSI suggests caution. Valuation concerns due to negative earnings further impact the score.

Positive Factors

Strong Equity Levels

Strong equity levels provide a buffer against financial distress, enhancing the company's ability to endure economic fluctuations and invest in growth opportunities.

Strategic Partnerships

Strategic partnerships with luxury watch manufacturers enable Hengdeli to offer exclusive products, strengthening its competitive position and potentially driving long-term revenue growth.

Retail and E-commerce Operations

Diverse retail channels, including e-commerce, enhance market reach and customer engagement, supporting sustained revenue streams and adaptability to consumer trends.

Negative Factors

Declining Revenue Growth

Inconsistent and declining revenue growth reflects challenges in market demand or competitive pressures, potentially affecting long-term profitability and market share.

Increased Leverage

Rising leverage can strain financial resources, limit strategic flexibility, and increase vulnerability to economic downturns, impacting long-term financial health.

Volatile Cash Flow

Volatile cash flow undermines financial predictability, complicating investment planning and potentially hindering the company's ability to meet obligations or fund growth initiatives.

Hengdeli Holdings Business Overview & Revenue Model

Company Description

Hengdeli Holdings Limited (stock code: 3389) is a leading retailer of luxury watches and accessories based in Hong Kong. The company operates primarily in the luxury goods sector, focusing on the distribution and retail of high-end timepieces from renowned global brands. Hengdeli also engages in the wholesale of watch accessories and operates a network of retail stores that cater to affluent customers seeking premium watch products and exceptional service.

How the Company Makes Money

Hengdeli 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	777.51M	1.04B	1.42B	1.04B	877.99M	1.22B
Gross Profit	117.91M	148.76M	215.26M	123.59M	137.91M	-148.22M
EBITDA	-84.17M	-43.44M	90.27M	-22.05M	95.08M	-277.42M
Net Income	-36.35M	-65.16M	33.88M	-80.02M	26.28M	-383.08M
Balance Sheet
Total Assets	3.41B	3.53B	3.60B	3.53B	3.53B	3.63B
Cash, Cash Equivalents and Short-Term Investments	1.32B	1.28B	1.32B	1.33B	946.40M	1.27B
Total Debt	71.67M	82.86M	123.76M	99.06M	97.73M	63.58M
Total Liabilities	201.55M	254.64M	353.52M	305.96M	258.93M	188.65M
Stockholders Equity	3.14B	3.21B	3.19B	3.16B	3.20B	3.37B
Cash Flow
Free Cash Flow	78.13M	-125.73M	-132.62M	177.63M	-156.52M	37.41M
Operating Cash Flow	85.72M	-85.70M	83.29M	237.39M	-77.63M	89.68M
Investing Cash Flow	159.60M	21.75M	-164.12M	68.59M	-227.05M	119.67M
Financing Cash Flow	-62.11M	-44.79M	-3.41M	-24.46M	-17.58M	-276.31M

Hengdeli Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 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:3389, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 74.95 is Negative, neither overbought nor oversold. The STOCH value of 81.90 is Negative, 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	77 Outperform	$13.50B	12.28	9.54%	4.51%	10.89%	2.02%
0398	70 Outperform	$1.69B	9.27	10.00%	10.26%	-9.00%	-21.55%
0887	69 Neutral	$1.96B	7.16	5.10%	3.92%	6.82%	42.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0116	61 Neutral	HK$8.44B	7.15	9.13%	4.65%	-10.41%	67.25%
3389	55 Neutral	$550.50M	―	-1.15%	―	-41.44%	-209.76%
0256	48 Neutral	$792.04M	-2.64	-7.92%	―	-18.07%	-1041.89%

Hengdeli Holdings Corporate Events

Hengdeli Holdings Sees Profit Surge Despite Revenue Decline in H1 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

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

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

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

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

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

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.