Furniweb Holdings Limited (8480) AI Stock Analysis

• Market Cap: HK$160.66M
• Dividend Yield: 5.75%
• Average Volume (3M): 45.07K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.83
• Revenue Growth: 18.97%
• EPS Growth: -4.28%
• Country: HK
• Employees: 695
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.02
• Shares Outstanding: 923,321,600
• 10 Day Avg. Volume: 72,000
• 30 Day Avg. Volume: 45,066
• 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

• Rating: 67 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by the company's strong financial performance and attractive valuation, which are offset by bearish technical indicators. The low P/E ratio and high dividend yield suggest potential value, but the current technical weakness indicates caution in the short term. Stabilizing cash flow generation remains a key area for improvement.

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

Furniweb Holdings Limited has shown resilience with improving revenue and profitability trends, backed by a strong balance sheet and low leverage. While cash flow has been positive in recent years, erratic patterns in operating cash flow suggest a need for careful cash management. Overall, the company is well-positioned in the apparel manufacturing industry, but should focus on stabilizing cash flow generation.

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: Positive
• RSI: Positive
• 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 below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.19, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 26.06 is Positive, neither overbought nor oversold. The STOCH value of <0.01 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	67 Neutral	HK$160.66M	4.58	9.42%	5.75%	18.97%	-4.28%
1749	66 Neutral	HK$114.72M	3.31	11.95%	10.15%	-7.88%	-4.49%
1433	64 Neutral	HK$178.00M	3.24	23.94%	8.33%	14.30%	125.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0294	45 Neutral	HK$177.80M	―	-6.04%	2.33%	-20.43%	-24.29%
1388	44 Neutral	HK$164.74M	―	-18.57%	―	-6.47%	-118.56%
3398	40 Underperform	HK$184.78M	―	-25.27%	―	4.98%	-3.47%