Furniweb Holdings Limited (8480) AI Stock Analysis

• Market Cap: HK$136.65M
• Dividend Yield: 6.67%
• Average Volume (3M): 240.67K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.99
• Revenue Growth: 18.97%
• EPS Growth: -4.28%
• Country: HK
• Employees: 695
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 923,321,600
• 10 Day Avg. Volume: 56,400
• 30 Day Avg. Volume: 240,666
• PEG Ratio: -0.14
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 1.47
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$0.16 ▼(-6.47% Downside)

The score is driven primarily by solid underlying fundamentals (strong balance sheet and improved profitability), supported by very attractive valuation (low P/E and high dividend yield). Offsetting these positives are weaker technicals and the noted volatility/absence of operating cash flow in 2024, which raises execution and cash-generation risk.

Positive Factors

Strong balance sheet / low leverage

A strong equity ratio and low debt reduce refinancing and liquidity risk, enabling the firm to withstand industry cyclicality in furniture manufacturing. Persistent cash buffers support working capital, supplier terms and selective capex or restructuring without needing urgent external financing.

Improved profitability and margins

Sustained margin improvement and a return to net profitability point to better cost control, pricing or product mix. Higher and steadier margins enhance cash generation capacity and reinvestment potential, strengthening long-term competitiveness in upholstery materials.

Historic revenue growth trend

A multi-year revenue growth trend (notably 2020-2022) indicates underlying demand for the company’s upholstery inputs and potential customer retention. Durable revenue expansion supports scale benefits, fixed-cost absorption and opportunities to deepen customer relationships over months to years.

Negative Factors

Revenue decline in 2024

A revenue pullback in 2024 weakens near-term top-line momentum and may reflect pressure on end-market demand or customer order patterns. If sustained, lower sales can reduce economies of scale, strain margins and limit the company's ability to fund investments or absorb cost shocks.

No operating cash flow in 2024

An absence of operating cash flow in 2024 is a structural red flag: earnings may not be translating to cash, which impairs the company’s ability to self-fund working capital, capex or distributions. This raises execution risk and increases reliance on balance sheet reserves.

Erratic cash generation / conversion

Inconsistent cash conversion undermines predictability of free cash flow and capital allocation. For a manufacturing supplier with working-capital intensity, volatile OCF-to-income ratios can force stop-start investment cycles, elevate refinancing risk and complicate long-term planning.

Furniweb Holdings Limited Business Overview & Revenue Model

Company Description

Furniweb Holdings Limited (8480) is a Hong Kong-based company primarily engaged in the manufacturing and distribution of high-quality furniture components and materials. The company operates within the furniture and home decor sectors, focusing on innovative solutions that enhance the functionality and aesthetics of furniture products. Furniweb specializes in producing webbing, elastic bands, and other upholstery materials, catering to both local and international markets.

How the Company Makes Money

Furniweb Holdings Limited generates revenue through the sales of its furniture components and materials to a diverse clientele, including furniture manufacturers, wholesalers, and retailers. The company’s key revenue streams include the sale of webbing, elastic bands, and other related products that are integral to furniture production. Additionally, Furniweb may engage in partnerships with furniture manufacturers and design firms to develop custom solutions, providing another avenue for revenue generation. The company's ability to innovate and adapt to market trends, alongside its strategic partnerships, significantly contributes to its financial performance.

Furniweb Holdings Limited Financial Statement Overview

Summary

Financial performance is solid overall: strong balance sheet with low leverage and healthy cash relative to debt supports stability, and profitability improved versus earlier loss periods. However, revenue declined in 2024 and operating cash flow was absent in 2024, which tempers the score due to cash-generation volatility.

Income Statement

The company has shown a consistent improvement in revenue and profitability over the years, with a noticeable revenue growth rate from 2020 to 2022. The gross profit margin improved significantly, and the net profit margin turned positive after a period of losses. The EBIT and EBITDA margins demonstrate the company's operational efficiency. However, there was a decline in revenue in 2024, leading to a slight dip in profitability metrics.

Balance Sheet

The company maintains a strong equity position with a solid equity ratio, indicating financial stability. The debt-to-equity ratio is relatively low, suggesting low leverage. The return on equity has improved, reflecting better profitability and asset utilization. The balance sheet shows a healthy cash position relative to debt, reducing financial risk.

Cash Flow

The company's cash flow from operations has been erratic, with a significant increase in free cash flow growth in recent years. However, the operating cash flow to net income ratio has been inconsistent, indicating potential volatility in cash generation. While the company has managed to generate positive free cash flow recently, the lack of operating cash flow in 2024 poses a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	218.79M	191.09M	216.83M	162.16M	132.90M	99.26M
Gross Profit	59.57M	52.67M	57.28M	41.40M	46.23M	29.25M
EBITDA	32.19M	22.19M	25.38M	16.64M	13.81M	2.86M
Net Income	16.37M	9.03M	12.46M	18.17M	-770.00K	-32.21M
Balance Sheet
Total Assets	270.09M	206.04M	199.88M	217.64M	134.79M	173.07M
Cash, Cash Equivalents and Short-Term Investments	56.15M	61.40M	57.95M	59.79M	34.36M	32.73M
Total Debt	18.68M	19.95M	19.01M	36.74M	12.52M	27.86M
Total Liabilities	66.11M	63.28M	61.48M	92.91M	35.53M	77.42M
Stockholders Equity	203.98M	142.76M	138.40M	124.72M	99.25M	95.65M
Cash Flow
Free Cash Flow	39.60M	23.24M	26.70M	-1.17M	3.60M	14.97M
Operating Cash Flow	46.88M	30.51M	35.57M	1.72M	6.77M	16.69M
Investing Cash Flow	-29.22M	-19.55M	-21.03M	12.44M	-984.00K	-7.61M
Financing Cash Flow	-8.45M	-2.00M	-21.39M	5.50M	2.22M	-3.79M

Furniweb Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8480, the sentiment is Negative. The current price of 0.17 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.15, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.18 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8480.

Furniweb Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8480	71 Outperform	HK$136.65M	3.89	9.42%	6.67%	18.97%	-4.28%
1433	70 Outperform	HK$188.00M	3.42	23.94%	7.89%	14.30%	125.41%
1749	70 Outperform	HK$133.40M	3.85	11.95%	12.12%	-7.88%	-4.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0294	52 Neutral	HK$171.60M	-2.11	-8.49%	2.08%	-6.96%	-32.24%
1388	45 Neutral	HK$166.85M	-0.47	-18.57%	―	-6.47%	-118.56%
3398	43 Neutral	HK$165.89M	-0.39	-25.27%	―	4.98%	-3.47%