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

• Market Cap: HK$54.00M
• Dividend Yield: N/A
• Average Volume (3M): 82.00K
• Price to Earnings (P/E): 55.0
• Beta (1Y): 0.14
• Revenue Growth: -12.99%
• EPS Growth: N/A
• Country: HK
• Employees: 54
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Luxury Goods
• EPS (TTM): 0.00
• Shares Outstanding: 300,000,000
• 10 Day Avg. Volume: 33,500
• 30 Day Avg. Volume: 82,000
• PEG Ratio: 0.27
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.29
• 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: 55 Neutral
• Price Target: ―

Chong Fai Jewellery Group Holdings has shown stable financial performance with improvements in revenue and cash flow, though profitability remains a concern. The technical indicators reflect an oversold stock with weak momentum, suggesting short-term challenges. Valuation is reasonable, but the absence of a dividend may deter income-seeking investors. Overall, the stock presents moderate potential with room for improvement in profitability and market momentum.

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 primarily engaged in the design, manufacture, and retail of fine jewelry. The company offers a wide range of jewelry products including rings, necklaces, earrings, and bracelets, catering to a diverse clientele. Chong Fai Jewellery is known for its exquisite craftsmanship and high-quality materials, establishing itself as a reputable brand in the luxury jewelry sector.

How the Company Makes Money

Chong Fai Jewellery Group Holdings Company Limited generates revenue through the sale of its jewelry products. The company's primary revenue stream comes from its retail operations, where it sells directly to consumers through its stores and online platforms. Additionally, Chong Fai Jewellery may engage in wholesale distribution, supplying its products to other retailers and distributors. The company leverages its brand reputation and design expertise to maintain a strong market presence, attracting both local and international customers. Strategic partnerships and collaborations with designers, as well as participation in jewelry exhibitions and trade shows, also contribute to its revenue generation by enhancing brand visibility and expanding its customer base.

Chong Fai Jewellery Group Holdings Company Limited Financial Statement Overview

Summary

Chong Fai Jewellery Group Holdings Company Limited exhibits a stable financial trajectory with notable improvements in revenue growth and operating cash flows. The income statement shows moderate profitability growth, while the balance sheet reflects strong equity with controlled debt. Cash flows indicate strong operational performance but highlight significant financing activities. The company is positioned well within its industry, but enhancing profitability and return on equity could further strengthen its financial standing.

Income Statement

The company's revenue has shown moderate growth, increasing from HK$101.7 million in 2021 to HK$142.3 million in 2024, which is a positive indicator. Gross profit margin has improved over the years, reaching 27.5% in 2024, up from 27.3% in 2021. EBIT and EBITDA margins have also improved, with EBIT margin turning positive in 2024 at 2.1%. However, net profit margin remains low at 1.1% in 2024, indicating challenges in controlling costs or generating higher profitability.

Balance Sheet

The debt-to-equity ratio has improved over the years, decreasing to 0.48 in 2024 from 0.52 in 2023, reflecting better leverage management. The equity ratio is stable at 60%, indicating a strong capital position. Return on equity is low at 2.2% in 2024, which could be a concern for investors seeking high returns. Overall, the balance sheet shows stability, but with room for improvement in profitability.

Cash Flow

Operating cash flow has consistently improved, with a significant increase from HK$6.4 million in 2021 to HK$10.7 million in 2024. Free cash flow growth is strong, and the free cash flow to net income ratio indicates good conversion of income into cash. The company has a healthy cash position, but the financing cash flow shows large outflows, which might be due to debt repayments.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	126.20M	142.27M	136.82M	107.34M	101.70M	119.87M
Gross Profit	35.50M	39.18M	32.10M	29.15M	27.77M	40.86M
EBITDA	2.26M	12.63M	7.84M	3.35M	11.40M	2.51M
Net Income	701.00K	1.59M	-1.89M	-7.68M	-280.00K	-5.48M
Balance Sheet
Total Assets	136.74M	118.13M	128.26M	129.17M	136.23M	137.34M
Cash, Cash Equivalents and Short-Term Investments	35.54M	13.00M	23.72M	29.60M	37.86M	43.43M
Total Debt	26.69M	34.00M	41.04M	45.29M	42.13M	40.78M
Total Liabilities	40.25M	47.20M	57.90M	56.22M	55.29M	55.73M
Stockholders Equity	96.50M	70.92M	70.36M	72.95M	80.94M	81.61M
Cash Flow
Free Cash Flow	7.32M	10.67M	7.38M	2.62M	5.98M	-4.75M
Operating Cash Flow	7.32M	10.69M	8.54M	6.88M	6.41M	-3.73M
Investing Cash Flow	397.00K	174.00K	513.00K	-3.41M	-13.51M	-2.93M
Financing Cash Flow	10.97M	-20.30M	-8.92M	-14.93M	-4.30M	-25.89M

Chong Fai Jewellery Group Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8537, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.14, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 74.07 is Negative, neither overbought nor oversold. The STOCH value of 74.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1168	71 Outperform	$1.83B	0.46	49.31%	―	-3.99%	―
Sector *	56 Neutral	$3.37B	4.05	-1.30%	6.64%	0.16%	-63.79%
8537	55 Neutral	HK$54.00M	55.00	0.59%	―	-12.99%	―
8489	51 Neutral	HK$44.10M	―	-2.80%	―	28.15%	-144.00%
1788	48 Neutral	€32.87B	95.05	2.31%	1.04%	37.06%	72.51%
1163	44 Neutral	HK$115.88M	―	-2.14%	―	0.82%	54.74%
1198	42 Neutral	HK$870.52M	―		3.85%	―	―