Chong Fai Jewellery Group Holdings Company Limited (8537) AI Stock Analysis

• Market Cap: HK$71.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 58.2
• Beta (1Y): 0.18
• Revenue Growth: -5.34%
• EPS Growth: -78.88%
• Country: HK
• Employees: 54
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Luxury Goods
• EPS (TTM): 0.00
• Shares Outstanding: 360,000,000
• 10 Day Avg. Volume: 1,599,004
• 30 Day Avg. Volume: 1,245,434
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 150.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 57 reflects a company with solid financial performance, particularly in cash flow and balance sheet strength, but facing challenges in profitability and valuation. Technical indicators suggest neutral momentum, while a high P/E ratio indicates potential overvaluation. The absence of a dividend yield further impacts the valuation score.

Chong Fai Jewellery Group Holdings Company Limited Business Overview & Revenue Model

Company Description

Chong Fai Jewellery Group Holdings Company Limited (8537) is a Hong Kong-based company engaged in the design, manufacture, and retail of fine jewelry products. The company operates primarily in the jewelry sector, offering a diverse range of products including gold, diamond, and gemstone jewelry. With a focus on quality craftsmanship and innovative design, Chong Fai Jewellery aims to cater to both local and international markets, enhancing its brand presence and product offerings.

How the Company Makes Money

Chong Fai Jewellery generates revenue primarily through the sale of its jewelry products, which include rings, necklaces, bracelets, and earrings. The company operates through various sales channels, including wholesale distribution to retailers and direct sales to consumers through its own retail outlets. Key revenue streams are derived from both the local Hong Kong market and international exports. Additionally, the company may benefit from partnerships with other retailers and distributors, enhancing its market reach. Seasonal promotions, participation in trade shows, and marketing efforts also contribute to its earnings by attracting new customers and retaining existing ones.

Chong Fai Jewellery Group Holdings Company Limited Financial Statement Overview

Summary

Chong Fai Jewellery Group Holdings shows a positive growth trajectory with improving revenue and cash flow metrics. While profitability margins remain low, the company has strengthened its balance sheet by reducing leverage. Continued focus on operational efficiency and profitability will be crucial for sustaining growth in the competitive luxury goods industry.

Income Statement

The company has shown a consistent revenue growth trend, with a 6.72% increase in the latest year. Gross profit margins are stable around 27%, indicating efficient cost management. However, net profit margins are low at 0.37%, suggesting challenges in converting revenue into profit. The EBIT and EBITDA margins are modest, reflecting limited operational efficiency improvements.

Balance Sheet

The debt-to-equity ratio has improved to 0.31, indicating a stronger equity position and reduced leverage risk. Return on equity is low at 0.51%, suggesting limited returns for shareholders. The equity ratio is healthy, reflecting a solid asset base supported by equity.

Cash Flow

The company has achieved a significant 29.10% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.27, showing a reasonable conversion of income to cash. The free cash flow to net income ratio is 1.0, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	126.20M	134.68M	142.27M	136.82M	107.34M	101.70M
Gross Profit	35.50M	36.62M	39.18M	32.10M	29.15M	27.77M
EBITDA	2.26M	11.60M	12.63M	7.84M	3.35M	11.40M
Net Income	701.00K	500.00K	1.59M	-1.89M	-7.68M	-280.00K
Balance Sheet
Total Assets	136.74M	140.10M	118.13M	128.26M	129.17M	136.23M
Cash, Cash Equivalents and Short-Term Investments	35.54M	32.84M	13.00M	23.72M	29.60M	37.86M
Total Debt	26.69M	30.16M	34.00M	41.04M	45.29M	42.13M
Total Liabilities	40.25M	42.91M	47.20M	57.90M	56.22M	55.29M
Stockholders Equity	96.50M	97.20M	70.92M	70.36M	72.95M	80.94M
Cash Flow
Free Cash Flow	7.32M	9.45M	10.67M	7.38M	2.62M	5.98M
Operating Cash Flow	7.32M	9.45M	10.69M	8.54M	6.88M	6.41M
Investing Cash Flow	397.00K	438.00K	174.00K	513.00K	-3.41M	-13.51M
Financing Cash Flow	10.97M	10.26M	-20.30M	-8.92M	-14.93M	-4.30M

Chong Fai Jewellery Group Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8537, the sentiment is Neutral. The current price of 0.2 is below the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.20, and above the 200-day MA of 0.16, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.67 is Neutral, neither overbought nor oversold. The STOCH value of 40.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8537.

Chong Fai Jewellery Group Holdings Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.02B	12.77	-0.74%	3.01%	1.30%	-13.03%
8537	57 Neutral	HK$71.64M	58.24	0.59%	―	-5.34%	-78.88%
CHOWF	―	$1.24B	5.32	9.13%	7.82%	―	―
CJEWF	―	$20.47B	27.30	22.73%	3.28%	―	―
EPRJF	―	$270.23M	8.83	5.10%	3.02%	―	―
0280	80 Outperform	HK$450.11M	5.10	11.22%	11.20%	14.24%	3.63%
0417	54 Neutral	HK$408.66M	―	-43.57%	―	-35.50%	47.15%