Fameglow Holdings Limited (8603) AI Stock Analysis

• Market Cap: HK$1.30B
• Dividend Yield: N/A
• Average Volume (3M): 296.67K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.55
• Revenue Growth: 45.40%
• EPS Growth: 12.38%
• Country: HK
• Employees: 218
• Sector: Consumer Cyclical
• Sector Strength: 78
• Industry: Personal Products & Services
• EPS (TTM): 0.04
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 209,000
• 30 Day Avg. Volume: 296,666
• 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: -7.98% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: HK$1.50 ▼(-7.98% 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 (8603) is a Hong Kong-based company engaged primarily in the distribution and retail of a wide range of beauty and personal care products. Operating within the consumer goods sector, the company focuses on providing high-quality cosmetics and skincare items, catering to diverse consumer needs. Fameglow Holdings has established a robust presence in both online and offline retail channels, aiming to enhance customer accessibility to its extensive product line.

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 is showing a positive trajectory with strong revenue and profit growth, improved margins, and reduced leverage. While there are some pressures on gross margins and free cash flow, the overall financial health is strengthening, supported by improved operational efficiency and reduced reliance on debt.

Income Statement

Fameglow Holdings Limited shows a strong revenue growth of 31.55% year-over-year, driven by robust performance in personal products and services. The company has improved its net profit margin to 13.62%, reflecting enhanced cost management and operational efficiency. However, the gross profit margin decreased to 40.81% from the previous year's 87.72%, indicating potential cost pressures. The EBIT margin improved significantly to 14.84% from 7.68%, showing better operational control.

Balance Sheet

The company's balance sheet shows a reduction in the debt-to-equity ratio to 0.76, indicating reduced leverage. With a ROE of 67.65%, the company demonstrates strong profitability relative to shareholder equity. However, the equity ratio stands at 30.98%, suggesting moderate reliance on debt financing. Improvements in equity and reduced liabilities illustrate a trend toward financial stability.

Cash Flow

Fameglow Holdings Limited's free cash flow has decreased by 56.36%, reflecting less cash available after capital expenditures. The operating cash flow to net income ratio is 0.78, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.45, demonstrating reasonable cash conversion from earnings, although lower than the previous year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	352.18M	435.27M	299.36M	227.58M	179.63M	82.06M
Gross Profit	187.06M	388.81M	260.89M	199.60M	154.77M	69.20M
EBITDA	128.81M	118.79M	93.66M	67.63M	40.39M	5.86M
Net Income	55.68M	45.73M	40.75M	16.37M	-8.78M	-26.96M
Balance Sheet
Total Assets	235.12M	329.81M	194.48M	208.14M	219.66M	246.94M
Cash, Cash Equivalents and Short-Term Investments	27.79M	40.62M	19.31M	19.22M	1.64M	39.38M
Total Debt	65.20M	92.39M	45.55M	66.38M	94.44M	111.97M
Total Liabilities	158.44M	223.72M	134.23M	188.64M	216.53M	235.03M
Stockholders Equity	76.68M	106.09M	60.25M	19.50M	3.13M	11.91M
Cash Flow
Free Cash Flow	64.05M	30.14M	18.28M	41.87M	-9.71M	6.82M
Operating Cash Flow	73.11M	83.53M	31.74M	74.07M	24.73M	23.91M
Investing Cash Flow	-65.21M	-35.31M	-6.91M	-32.18M	-34.45M	-9.54M
Financing Cash Flow	-18.42M	-26.91M	-24.71M	-24.31M	-28.02M	-14.21M

Fameglow Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.63
• 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 1.63 is above the 20-day moving average (MA) of 1.61, above the 50-day MA of 1.44, and above the 200-day MA of 1.03, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 54.06 is Neutral, neither overbought nor oversold. The STOCH value of 45.37 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
8603	72 Outperform	HK$1.30B	28.50	54.98%	―	45.40%	12.38%
Sector *	61 Neutral	$17.60B	14.14	-5.40%	3.04%	1.40%	-15.06%
WOSSF	―	$75.93M	7.63	25.63%	8.02%	―	―
M3L	―	€8.93M	25.00	-2.50%	―	―	―
8483	59 Neutral	HK$101.60M	14.89	-6.35%	7.38%	-23.23%	-136.17%
1827	55 Neutral	HK$432.00M	40.75	7.45%	―	-18.43%	―
8296	47 Neutral	HK$39.22M	―	-3.96%	―	15.60%	62.35%