Polyfair Holdings Ltd. (8532) AI Stock Analysis

• Market Cap: HK$17.82M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -75.80%
• EPS Growth: -6540.74%
• Country: HK
• Employees: 102
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 848,744,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.54
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 1.37
• 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: 61 Neutral
• Price Target: ―

Polyfair Holdings Ltd. shows strong revenue growth and improving cash flows, indicating potential for operational resilience. However, high leverage and modest profitability margins present financial risks. The technical indicators are bearish, suggesting caution in the short term. Valuation appears attractive due to a low P/E ratio, but the lack of dividend yield is a drawback. Investors should monitor profitability margins and leverage levels closely.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and demand for services, supporting long-term business expansion and stability.

Cash Flow Recovery

Improved cash flow enhances financial flexibility, enabling investment in growth opportunities and reducing reliance on external financing.

Operational Resilience

Operational resilience through improved cash flows ensures the company can withstand economic fluctuations and maintain service delivery.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth and manage economic downturns effectively.

Modest Profitability Margins

Low profitability margins suggest challenges in cost management and pricing power, which could hinder long-term financial performance.

Low Return on Equity

Low ROE indicates inefficient use of equity capital, potentially impacting shareholder value and attractiveness to investors.

Polyfair Holdings Ltd. Business Overview & Revenue Model

Company Description

Polyfair Holdings Ltd. (8532) is a Hong Kong-based investment holding company primarily engaged in building construction and related services. The company offers a range of services including construction, renovation, and maintenance of residential and commercial properties. With a focus on delivering high-quality projects, Polyfair Holdings serves a diverse clientele, encompassing private developers, governmental bodies, and institutional investors.

How the Company Makes Money

Polyfair Holdings Ltd. generates revenue through its comprehensive suite of construction-related services. The company's primary revenue streams include fees from building construction contracts, income from renovation and maintenance projects, and project management services. By leveraging its expertise in the construction industry, Polyfair Holdings secures contracts with private developers and government agencies, ensuring a steady flow of income. Additionally, the company may engage in strategic partnerships with other construction firms and stakeholders to expand its project portfolio and enhance its service offerings, further contributing to its revenue growth.

Polyfair Holdings Ltd. Financial Statement Overview

Summary

Polyfair Holdings Ltd. exhibits robust revenue growth and improving cash flows, reflecting operational resilience. However, the company faces challenges with profitability margins and high leverage, suggesting potential financial risk. Continued focus on enhancing margins and managing debt levels will be crucial for sustainable growth.

Income Statement

Polyfair Holdings Ltd. has shown a solid revenue growth rate of approximately 29.2% over the last year, indicating strong sales performance. The gross profit margin is 5.6%, and the net profit margin is 0.3%, reflecting modest profitability. The EBIT margin at 3.0% and EBITDA margin at 3.4% suggest reasonable operating efficiency, though there is room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio stands at 2.06, indicating a high level of leverage, which could pose financial risks. The return on equity (ROE) is 1.7%, which is relatively low, pointing to modest returns for shareholders. However, the equity ratio is 19.4%, suggesting a stable capital structure but with significant reliance on debt financing.

Cash Flow

Polyfair Holdings Ltd. has demonstrated a strong recovery in free cash flow, with significant growth to HKD 29.8 million from a negative position in the previous year. The operating cash flow to net income ratio of 24.2 indicates effective cash conversion, while the free cash flow to net income ratio is 24.1, reaffirming cash flow strength despite past volatility.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	426.53M	427.34M	330.71M	362.09M	300.00M	229.81M
Gross Profit	23.43M	24.13M	16.94M	16.48M	15.16M	17.52M
EBITDA	16.83M	14.34M	12.27M	9.28M	9.24M	8.56M
Net Income	2.54M	1.24M	3.02M	2.66M	1.94M	3.07M
Balance Sheet
Total Assets	351.00M	376.61M	323.04M	253.77M	209.89M	190.44M
Cash, Cash Equivalents and Short-Term Investments	10.39M	12.70M	14.53M	12.50M	10.62M	8.10M
Total Debt	130.36M	151.03M	172.38M	119.39M	101.36M	97.70M
Total Liabilities	275.70M	303.35M	251.01M	184.74M	143.55M	126.04M
Stockholders Equity	75.30M	73.26M	72.03M	69.03M	66.34M	64.40M
Cash Flow
Free Cash Flow	30.45M	29.84M	-30.46M	-12.23M	1.52M	1.88M
Operating Cash Flow	30.46M	29.94M	-30.41M	-12.12M	1.60M	1.94M
Investing Cash Flow	-377.50K	83.00K	-10.49M	-110.00K	4.97M	-53.00K
Financing Cash Flow	-32.67M	-31.42M	43.01M	14.05M	-4.08M	-8.52M

Polyfair Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 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:8532, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 24.04 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:8532.

Polyfair Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8422	68 Neutral	HK$12.12M	―	-16.34%	―	11.29%	-262.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8532	61 Neutral	HK$17.82M	-0.13	-3118.37%	―	-75.80%	-6540.74%
8516	47 Neutral	HK$50.64M	-0.99	-126.14%	―	-15.62%	-11.50%
8431	45 Neutral	HK$12.51M	-0.51	-114.36%	―	156.20%	-101.84%
8445	38 Underperform	HK$46.98M	-4.96	-11.29%	―	-41.79%	19.85%