Fameglow Holdings Limited (8603) AI Stock Analysis

• Market Cap: HK$2.67B
• Dividend Yield: N/A
• Average Volume (3M): 238.30K
• Price to Earnings (P/E): 58.4
• Beta (1Y): 0.49
• Revenue Growth: 56.28%
• EPS Growth: -9.91%
• Country: HK
• Employees: 218
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.03
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 318,900
• 30 Day Avg. Volume: 238,300
• 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: 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: 69 Neutral
• Price Target: HK$3.50 ▲(6.38% Upside)

Fameglow Holdings Limited's strong technical momentum and robust financial performance are key strengths, driving the overall score. However, high valuation metrics and cash flow challenges present significant risks. The absence of earnings call insights or corporate events leaves some uncertainty in future outlook.

Positive Factors

Revenue Growth

The company has demonstrated strong revenue growth with a 23.59% increase in the latest year, indicating a successful market strategy and strong demand for its products, which supports long-term business expansion.

Profit Margins

A high gross profit margin reflects effective cost management and pricing power, which can sustain profitability and provide a buffer against market fluctuations.

Leverage Management

Improved leverage management suggests better financial health and reduced risk, allowing the company more flexibility to invest in growth opportunities.

Negative Factors

Cash Flow Challenges

Significant decline in free cash flow growth poses risks to liquidity and limits the company's ability to reinvest in business expansion or reduce debt, potentially impacting future growth.

Operational Efficiency

Decreased EBIT and EBITDA margins suggest pressure on operational efficiency, which could affect profitability if not addressed, highlighting the need for improved cost management.

Cash Generation Alignment

The low ratio indicates that cash generation is not fully aligned with reported profits, which could lead to liquidity issues and challenges in funding operations or growth initiatives.

Fameglow Holdings Limited Business Overview & Revenue Model

Company Description

Fameglow Holdings Limited (8603) is a company primarily engaged in the development and provision of beauty and personal care products. Operating within the health and wellness sector, Fameglow focuses on innovative skincare solutions, cosmetic items, and wellness supplements. The company's core offerings include a range of skincare products that cater to diverse consumer needs, emphasizing quality ingredients and effective results.

How the Company Makes Money

Fameglow Holdings Limited generates revenue through the sale of its beauty and personal care products, primarily through retail and e-commerce channels. The company benefits from a diversified revenue model, which includes direct sales to consumers, partnerships with retail distributors, and collaborations with beauty influencers and brands for co-marketing initiatives. Additionally, Fameglow may explore subscription services or loyalty programs to enhance customer retention and generate recurring income. Factors contributing to its earnings include brand reputation, product innovation, market demand for skincare solutions, and strategic marketing campaigns that enhance visibility and attract a broader customer base.

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: 3.29
• 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 3.29 is above the 20-day moving average (MA) of 3.11, above the 50-day MA of 2.55, and above the 200-day MA of 1.60, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 60.08 is Neutral, neither overbought nor oversold. The STOCH value of 61.63 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	$639.72M	7.63	25.63%	5.85%	-1.62%	-10.07%
8603	69 Neutral	HK$2.67B	58.39	49.25%	―	56.28%	-9.91%
8483	68 Neutral	HK$110.40M	―	-6.35%	7.32%	-23.23%	-136.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1827	55 Neutral	HK$368.00M	34.72	7.67%	―	-20.59%	―
8296	48 Neutral	HK$34.49M	―	-3.96%	―	15.60%	62.35%
0919	46 Neutral	€68.74M	―	10.10%	―	-3.40%	512.50%