Helens International Holdings Company Limited (9869) AI Stock Analysis

• Market Cap: HK$1.75B
• Dividend Yield: 31.65%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 21.5
• Beta (1Y): 2.56
• Revenue Growth: -39.22%
• EPS Growth: -142.05%
• Country: HK
• Employees: 678
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Restaurants
• EPS (TTM): -0.12
• Shares Outstanding: 1,265,477,500
• 10 Day Avg. Volume: 1,062,149
• 30 Day Avg. Volume: 1,112,833
• PEG Ratio: -0.02
• Price to Book (P/B): 9.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -72.93
• 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: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: HK$1.50 ▲(8.70%Upside)

The overall score is primarily impacted by poor financial performance and bearish technical indicators. Despite an improved leverage ratio and high dividend yield, these positives are overshadowed by operational challenges and technical weakness, leading to a cautious outlook.

Helens International Holdings Company Limited Business Overview & Revenue Model

Company Description

Helens International Holdings Company Limited (9869) operates primarily in the hospitality sector, focusing on the management and operation of a chain of bars and pubs. The company is known for creating a lively and welcoming atmosphere at its establishments, which are targeted at young urban consumers looking for social and entertainment venues. Helens International has established a strong brand presence with its distinct thematic settings and competitive pricing, appealing to a broad demographic across various regions.

How the Company Makes Money

Helens International Holdings Company Limited generates revenue through the operation of its bars and pubs, primarily by selling beverages and food. The company's revenue model is centered on high customer footfall and turnover, driven by its strategic locations and attractive pricing. A significant portion of its earnings comes from the sale of alcoholic beverages, which are complemented by a range of snack and meal offerings that enhance the overall customer experience. Additionally, Helens International may engage in partnerships with beverage suppliers and sponsors, which can provide additional revenue streams or cost advantages. The company's ability to maintain a consistent brand experience across its locations helps in building customer loyalty and repeat business, further contributing to its financial performance.

Helens International Holdings Company Limited Financial Statement Overview

Summary

Helens International Holdings is facing significant financial challenges, with declining revenues, profitability, and equity. The improvement in leverage ratios is a positive factor, but cash flow volatility and the lack of profitability highlight operational challenges. Strategic actions are needed to stabilize and improve financial performance.

Income Statement

The company has experienced a significant decline in revenue and profitability over the years. Gross profit margin declined from 45.7% in 2019 to 30.2% in 2024. The net profit margin also turned negative in recent years, with a net loss being reported in 2024. Revenue growth has been negative, with a significant drop from 2022 to 2024. These factors indicate financial stress and operational inefficiencies.

Balance Sheet

The balance sheet shows a decreasing equity base, with stockholders' equity declining from 2019 to 2024. However, the debt-to-equity ratio improved significantly from 4.4 in 2019 to 0.13 in 2024, thanks to reduced debt levels. Despite this positive leverage trend, the overall financial stability remains pressured by declining equity and asset base.

Cash Flow

Cash flow performance has been weak, with no free cash flow reported in 2024. The operating cash flow has been volatile, and free cash flow turned negative between 2020 and 2023. While the cash position was strengthened in 2023, the lack of positive free cash flow in 2024 raises concerns about liquidity management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	752.21M	1.21B	1.56B	1.84B	817.95M
Gross Profit	274.29M	489.91M	525.37M	801.46M	367.63M
EBITDA	75.53M	379.35M	-1.06B	198.40M	262.94M
Net Income	-77.98M	180.50M	-1.60B	-230.00M	70.07M
Balance Sheet
Total Assets	1.38B	2.16B	2.68B	4.29B	859.94M
Cash, Cash Equivalents and Short-Term Investments	803.63M	1.28B	1.30B	1.63B	24.25M
Total Debt	145.43M	255.67M	741.00M	1.25B	552.24M
Total Liabilities	257.18M	343.58M	853.90M	1.41B	699.70M
Stockholders Equity	1.12B	1.82B	1.82B	2.88B	160.24M
Cash Flow
Free Cash Flow	157.32M	229.46M	-228.28M	-626.93M	139.68M
Operating Cash Flow	165.53M	275.02M	142.89M	366.59M	245.85M
Investing Cash Flow	33.96M	-437.16M	-356.00M	-994.09M	-109.87M
Financing Cash Flow	-696.90M	-323.15M	-220.21M	2.24B	-134.00M

Helens International Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9869, the sentiment is Negative. The current price of 1.38 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.46, and below the 200-day MA of 1.91, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.68 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9869.

Helens International Holdings Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2217	74 Outperform	HK$2.12B	26.55	5.40%	4.59%	1.63%	-47.80%
6811	64 Neutral	HK$932.56M	15.38	6.54%	5.66%	2.49%	-33.12%
0538	60 Neutral	HK$982.38M	19.75	-0.69%	9.36%	-7.18%	-110.84%
Sector *	57 Neutral	HK$26.04B	4.09	-2.03%	5.50%	-0.23%	-68.02%
9869	49 Neutral	HK$1.75B	21.54	-5.30%	31.65%	-39.22%	-142.05%
2150	47 Neutral	HK$2.53B	―	-20.95%	―	-6.61%	-5748.54%
1488	44 Neutral	HK$1.53B	―	-439.69%	―	-23.85%	-59.56%

Helens International Holdings Company Limited Corporate Events

Helens International Announces Board Changes with New Director Appointment

Helens International Holdings Company Limited announced a change in its board of directors, with Mr. Wong Heung Ming Henry resigning as an independent non-executive director and audit committee member, effective July 11, 2025, to focus on other business endeavors. Mr. Ler Soon Hock Leonard has been appointed as his replacement, bringing over 18 years of experience in business development, consulting, and management. This change is expected to bring fresh perspectives and expertise to the company’s board, potentially impacting its strategic direction and stakeholder relations.

Helens International Announces Board Composition and Committee Roles

Helens International Holdings Company Limited has announced the composition of its board of directors and their respective roles and functions. The board consists of both executive and independent non-executive directors, with Mr. Xu Bingzhong serving as Chairman and CEO. The company has also detailed the membership of its three board committees: Audit, Remuneration, and Nomination. This announcement provides clarity on the governance structure of the company, which may impact its strategic decision-making and stakeholder confidence.

Helens International Announces Change in Share Registrar

Helens International Holdings Company Limited, listed on both the Hong Kong and Singapore stock exchanges, has announced a change in its Hong Kong Branch Share Registrar and Transfer Office. Effective July 28, 2025, the company will transition its registrar services to Tricor Investor Services Limited. This change is significant for shareholders as it affects the registration and transfer of shares, with all related activities to be conducted through Tricor from the effective date.

Helens International Approves Key Resolutions at AGM

Helens International Holdings Company Limited held its Annual General Meeting on May 14, 2025, where all proposed resolutions were passed by poll. Key decisions included the re-election of directors, the re-appointment of PricewaterhouseCoopers as auditors, and the approval of a final dividend payment. Additionally, the company granted mandates to its directors to repurchase shares and issue additional shares, reflecting a strategic focus on enhancing shareholder value.

Helens International Announces Final Dividend for 2024

Helens International Holdings Company Limited has announced a final cash dividend for the year ended 31 December 2024, with a declared amount of RMB 0.1146 per share. The dividend will be paid in Hong Kong dollars at a rate of HKD 0.12418 per share, with the exchange rate set at RMB 1 to HKD 1.08359. The payment date is scheduled for 28 May 2025, following shareholder approval on 14 May 2025. This announcement updates previous information regarding the default currency and exchange rate for the dividend payment, providing clarity for shareholders and stakeholders involved.