Fameglow Holdings Limited (8603) AI Stock Analysis

• Market Cap: HK$1.03B
• Dividend Yield: N/A
• Average Volume (3M): 265.00K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.62
• Revenue Growth: 42.14%
• EPS Growth: 251.52%
• Country: HK
• Employees: 218
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Personal Products & Services
• EPS (TTM): 0.07
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 254,000
• 30 Day Avg. Volume: 265,000
• PEG Ratio: -0.11
• Price to Book (P/B): 25.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.85
• 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: 74 Outperform
• Price Target: ―

The overall score of 74 reflects Fameglow Holdings Limited's strong financial performance and robust technical indicators. The company's solid revenue growth and reduced leverage are key strengths, though pressures on gross margins and free cash flow are noted. The stock's valuation is reasonable, making it appealing to growth-oriented investors, despite the absence of dividend yield.

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 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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
352.18M	299.36M	227.58M	179.63M	82.06M	90.42M
	Gross Profit
187.06M	260.89M	199.60M	154.77M	69.20M	79.86M
	EBIT
124.12M	44.42M	17.48M	-8.36M	-35.93M	-30.64M
	EBITDA
128.81M	93.66M	67.63M	40.39M	5.86M	-4.14M
	Net Income Common Stockholders
55.68M	40.75M	16.37M	-8.78M	-26.96M	-31.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.79M	19.31M	19.22M	1.64M	39.38M	39.22M
	Total Assets
235.12M	194.48M	208.14M	219.66M	246.94M	199.18M
	Total Debt
65.20M	45.55M	66.38M	94.44M	111.97M	56.72M
	Net Debt
53.50M	26.24M	47.16M	92.79M	72.59M	17.50M
	Total Liabilities
158.44M	134.23M	188.64M	216.53M	235.03M	160.31M
	Stockholders Equity
76.68M	60.25M	19.50M	3.13M	11.91M	38.87M
Cash Flow		Free Cash Flow
64.05M	18.28M	41.87M	-9.71M	6.82M	-8.39M
	Operating Cash Flow
73.11M	31.74M	74.07M	24.73M	23.91M	15.69M
	Investing Cash Flow
-65.21M	-6.91M	-32.18M	-34.45M	-9.54M	-23.61M
	Financing Cash Flow
-18.42M	-24.71M	-24.31M	-28.02M	-14.21M	-17.23M

Fameglow Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.29
• 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 1.29 is above the 20-day moving average (MA) of 1.25, above the 50-day MA of 1.22, and above the 200-day MA of 0.83, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.53 is Neutral, neither overbought nor oversold. The STOCH value of 64.10 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	74 Outperform	HK$1.03B	18.53	114.01%	―	42.14%	251.52%
Sector *	62 Neutral	$6.80B	11.08	2.79%	5.80%	2.68%	-24.86%
8481	62 Neutral	HK$149.58M	2.85	17.83%	―	6.62%	72.58%
8160	52 Neutral	HK$39.22M	―	-16.58%	―	-6.40%	-333.90%
8331	49 Neutral	HK$21.00M	―	-4.41%	―	―	―
8213	45 Neutral	HK$194.27M	―		―	-56.57%	-49.64%
8118	32 Underperform	HK$31.00M	―	-39.40%	―	-36.11%	55.34%