Fameglow Holdings Limited (8603) AI Stock Analysis

• Market Cap: HK$1.78B
• Dividend Yield: N/A
• Average Volume (3M): 160.67K
• Price to Earnings (P/E): 38.8
• Beta (1Y): 0.55
• Revenue Growth: 45.40%
• EPS Growth: 12.38%
• Country: HK
• Employees: 218
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.04
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 165,000
• 30 Day Avg. Volume: 160,666
• PEG Ratio: 1.78
• Price to Book (P/B): 9.50
• Price to Sales (P/S): 2.32
• P/FCF Ratio: 33.44
• 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$1.50
• Price Target Upside: -32.43% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: HK$1.50 ▼(-32.43% Downside)

Fameglow Holdings Limited's stock score is primarily driven by strong financial performance and positive technical indicators. The company's robust revenue growth and profitability are significant strengths, although cash flow challenges present some risks. Technical analysis supports a bullish outlook, with the stock showing positive momentum. Valuation is a moderate concern due to a high P/E ratio and lack of dividend yield, but growth prospects remain strong.

Fameglow Holdings Limited Business Overview & Revenue Model

Company Description

Fameglow Holdings Limited, an investment holding company, provides non-surgical medical aesthetic services in Hong Kong. The company offers energy-based procedures, including procedures that use various energy-based devices that emit a variety of energy on skin surface; and minimally invasive procedures, such as injection treatments, which are non-surgical treatment procedures with minimal penetration to body tissue and no surgical incisions. It also provides traditional beauty services comprising non-medical and non-invasive beauty treatment services. In addition, the company sells skincare products through retail outlets and sales counters; and invests in properties. It operates medical aesthetic centers under the per Face brand located in Causeway Bay, Mong Kok, Tsim Sha Tsui, and Central. The company was founded in 2008 and is headquartered in Cheung Sha Wan, Hong Kong. Fameglow Holdings Limited is a subsidiary of Equal Joy Holdings Limited.

How the Company Makes Money

Fameglow Holdings Limited generates revenue primarily through the sale of beauty and personal care products, which includes cosmetics, skincare, and related accessories. The company's revenue model is based on both wholesale and retail sales, leveraging e-commerce platforms and physical stores to reach a broad customer base. Key revenue streams include direct sales to consumers through their own branded online storefronts, partnerships with third-party e-commerce websites, and distribution agreements with retailers. Additionally, Fameglow Holdings may benefit from collaborations with beauty influencers and strategic marketing campaigns that enhance brand visibility and drive sales. The diversification of product offerings and effective supply chain management also contribute significantly to its earnings.

Fameglow Holdings Limited Financial Statement Overview

Summary

Fameglow Holdings Limited shows robust revenue growth and profitability, with strong margins and improved leverage. However, cash flow challenges, particularly in free cash flow generation, pose potential risks to liquidity and future growth investments. The company should focus on enhancing operational efficiency and cash flow management to sustain its growth trajectory.

Income Statement

Fameglow Holdings Limited has demonstrated strong revenue growth with a 23.59% increase in the latest year, supported by a high gross profit margin of 89.32%. The net profit margin is solid at 10.51%, indicating effective cost management. However, the EBIT and EBITDA margins have slightly decreased compared to the previous year, suggesting some pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.87, reflecting better leverage management compared to previous years. Return on equity is strong at 43.10%, indicating efficient use of equity to generate profits. However, the equity ratio remains moderate at 32.16%, suggesting a balanced but cautious approach to asset financing.

Cash Flow

The free cash flow growth rate has declined significantly by 52.94%, which is a concern for future liquidity. The operating cash flow to net income ratio is 0.47, indicating that cash generation is not fully aligned with reported profits. The free cash flow to net income ratio is 0.36, suggesting limited cash available for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	568.18M	435.27M	299.36M	227.58M	179.63M	82.06M
Gross Profit	242.21M	388.81M	260.89M	199.60M	154.77M	69.20M
EBITDA	135.63M	118.79M	93.66M	67.63M	40.39M	5.86M
Net Income	60.38M	45.73M	40.75M	16.37M	-8.78M	-26.96M
Balance Sheet
Total Assets	329.81M	329.81M	194.48M	208.14M	219.66M	246.94M
Cash, Cash Equivalents and Short-Term Investments	40.62M	40.62M	19.31M	19.22M	1.64M	39.38M
Total Debt	92.39M	92.39M	45.55M	66.38M	94.44M	111.97M
Total Liabilities	223.72M	223.72M	134.23M	188.64M	216.53M	235.03M
Stockholders Equity	106.09M	106.09M	60.25M	19.50M	3.13M	11.91M
Cash Flow
Free Cash Flow	30.14M	30.14M	18.28M	41.87M	-9.71M	6.82M
Operating Cash Flow	83.53M	83.53M	31.74M	74.07M	24.73M	23.91M
Investing Cash Flow	-35.31M	-35.31M	-6.91M	-32.18M	-34.45M	-9.54M
Financing Cash Flow	-26.91M	-26.91M	-27.80M	-24.31M	-28.02M	-14.21M

Fameglow Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.22
• 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:8603, the sentiment is Positive. The current price of 2.22 is above the 20-day moving average (MA) of 2.07, above the 50-day MA of 1.77, and above the 200-day MA of 1.18, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 64.92 is Neutral, neither overbought nor oversold. The STOCH value of 57.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8603.

Fameglow Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1161	74 Outperform	HK$626.11M	7.47	21.96%	5.98%	-1.62%	-10.07%
8603	72 Outperform	HK$1.78B	38.81	54.98%	―	45.40%	12.38%
8483	59 Neutral	HK$78.40M	-57.65	-1.66%	9.57%	-23.23%	-136.17%
1827	59 Neutral	HK$400.00M	37.74	7.18%	―	-18.43%	―
0919	46 Neutral	HK$67.84M	-13.39	-2.73%	―	-0.31%	47.17%
8296	44 Neutral	HK$35.91M	-6.91	-7.05%	―	15.60%	62.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%