Fairwood Holdings (0052) AI Stock Analysis

• Market Cap: HK$690.52M
• Dividend Yield: 4.19%
• Average Volume (3M): 53.14K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.32
• Revenue Growth: -1.18%
• EPS Growth: -29.85%
• Country: HK
• Employees: 5,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.15
• Shares Outstanding: 129,552,780
• 10 Day Avg. Volume: 35,950
• 30 Day Avg. Volume: 53,142
• PEG Ratio: -0.66
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 1.75
• 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$5.50
• Price Target Upside: 3.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: HK$5.50 ▲(3.19% Upside)

Fairwood Holdings' strong cash flow generation and attractive dividend yield are positive factors. However, challenges with declining revenue and high leverage weigh on the overall score. Technical indicators suggest neutral momentum, supporting a moderate outlook.

Fairwood Holdings Business Overview & Revenue Model

Company Description

Fairwood Holdings (0052) is a Hong Kong-based company primarily engaged in the food and beverage industry, particularly known for its fast-casual dining restaurants. The company operates a chain of restaurants that offer a variety of Asian and Western cuisine, focusing on quality and affordability. Fairwood Holdings has established a solid brand presence in the Hong Kong market and continues to expand its offerings to cater to the evolving tastes of consumers.

How the Company Makes Money

Fairwood Holdings generates revenue primarily through its restaurant operations, which include dine-in, takeaway, and delivery services. The company earns money by selling food and beverages directly to customers at its various locations. Additionally, Fairwood Holdings benefits from economies of scale, allowing it to manage costs effectively while maintaining competitive pricing. The company may also engage in promotional activities, collaborations, and partnerships with suppliers that enhance its product offerings and drive customer traffic. Furthermore, Fairwood Holdings may explore expansion opportunities, such as franchising or new store openings, to diversify its revenue streams and increase market share.

Fairwood Holdings Financial Statement Overview

Summary

Fairwood Holdings is facing challenges with declining revenue and profitability margins. The balance sheet shows high leverage, posing potential risks. However, strong cash flow generation provides some financial stability.

Income Statement

Fairwood Holdings has faced challenges in maintaining revenue growth, with a recent decline of 1.03% in revenue. The gross profit margin and net profit margin have also decreased over the years, indicating pressure on profitability. However, the company has managed to maintain a stable EBITDA margin, which suggests some operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.45, indicating significant leverage. Return on equity has decreased, reflecting challenges in generating returns for shareholders. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Fairwood Holdings has experienced a decline in free cash flow growth, but the operating cash flow remains strong relative to net income. The free cash flow to net income ratio is healthy, indicating good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.13B	3.10B	3.14B	3.02B	2.88B	2.65B
Gross Profit	240.59M	237.21M	270.59M	256.76M	222.56M	327.60M
EBITDA	369.24M	595.29M	598.94M	565.98M	554.33M	721.66M
Net Income	29.86M	35.54M	50.66M	44.88M	42.64M	153.62M
Balance Sheet
Total Assets	2.25B	2.11B	2.25B	2.30B	2.34B	2.45B
Cash, Cash Equivalents and Short-Term Investments	595.79M	545.65M	640.98M	646.76M	557.10M	638.89M
Total Debt	977.05M	943.55M	1.04B	1.13B	1.19B	1.22B
Total Liabilities	1.61B	1.45B	1.59B	1.62B	1.62B	1.67B
Stockholders Equity	637.30M	652.03M	660.40M	680.63M	714.24M	777.84M
Cash Flow
Free Cash Flow	456.69M	415.27M	530.54M	610.41M	484.99M	671.03M
Operating Cash Flow	645.02M	586.45M	650.11M	709.44M	561.47M	780.90M
Investing Cash Flow	-231.28M	-275.90M	-160.84M	-156.78M	-50.89M	-111.47M
Financing Cash Flow	-547.20M	-510.24M	-537.27M	-520.71M	-569.73M	-565.42M

Fairwood Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.33
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0052, the sentiment is Neutral. The current price of 5.33 is below the 20-day moving average (MA) of 5.40, below the 50-day MA of 5.40, and below the 200-day MA of 5.39, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0052.

Fairwood Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6811	64 Neutral	HK$1.09B	11.95	10.47%	5.31%	4.16%	59.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0538	57 Neutral	HK$1.10B	89.91	0.38%	6.34%	0.26%	-73.09%
0052	55 Neutral	HK$690.52M	19.43	5.42%	4.19%	-1.18%	-29.85%
1314	50 Neutral	HK$252.28M	19.57	2.54%	19.13%	-5.04%	-67.83%
1978	46 Neutral	HK$308.00M	23.14	-2.62%	23.18%	-5.71%	-144.00%

Fairwood Holdings Corporate Events

Fairwood Holdings to Discuss Share Options Grant at Special General Meeting

Fairwood Holdings Limited has announced a Special General Meeting to be held on September 5, 2025, to discuss the approval of granting 1,040,000 share options to Mr. Lo Fai Shing Francis under the company’s share option scheme. This move is part of Fairwood’s strategic initiatives to align the interests of its executives with shareholders, potentially impacting the company’s governance and executive compensation structure.

Fairwood Holdings Announces Annual General Meeting and Key Resolutions

Fairwood Holdings Limited has announced its Annual General Meeting to be held on September 5, 2025, in Hong Kong. The meeting will cover several key agenda items, including the adoption of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. Additionally, a resolution will be discussed regarding the authorization of the company’s directors to allot and issue shares within specified limits, potentially impacting the company’s capital structure and shareholder value.

Fairwood Holdings Revamps Share Option Scheme to Boost Stakeholder Engagement

Fairwood Holdings Limited announced the cancellation of 3,330,000 outstanding share options due to their high exercise price, which deterred holders from exercising them. To motivate its employees and directors, the company has granted 5,500,000 new share options at a lower exercise price, aligning with current market conditions, and ensuring better engagement and incentive alignment with its stakeholders.

Fairwood Holdings Announces Board Composition and Committee Roles

Fairwood Holdings Limited, a company incorporated in Bermuda, has announced the composition of its Board of Directors and their respective roles and functions. The Board includes a mix of non-executive, executive, and independent non-executive directors, with Dennis Lo Hoi Yeung serving as the Chairman. The announcement details the membership of the Board’s three committees: Audit, Remuneration, and Nomination, highlighting the leadership roles within these committees. This update provides insights into the governance structure of Fairwood Holdings, which may influence its strategic direction and operational oversight.

Fairwood Holdings Enhances Board Governance with New Nomination Committee

Fairwood Holdings Limited has established a Nomination Committee to oversee the structure, size, and composition of its Board of Directors. The committee is tasked with identifying qualified individuals for board positions, assessing the independence of non-executive directors, and making recommendations on director appointments and succession planning. This initiative is aimed at enhancing the company’s governance and aligning its board composition with corporate strategy, potentially impacting its operational effectiveness and stakeholder confidence.

Fairwood Holdings Reports Decline in Annual Profit and Revenue

Fairwood Holdings Limited reported a decrease in profit attributable to equity shareholders, amounting to HK$35.5 million for the year ended 31 March 2025, down from HK$50.7 million the previous year. The company’s revenue also saw a slight decline of 1.2% to HK$3,100.1 million. Despite these decreases, Fairwood maintained a healthy financial position with substantial bank deposits and cash equivalents. The company proposed a final dividend of HK17.0 cents per share, resulting in a total dividend per share for the year of HK22.0 cents, with a payout ratio of approximately 80.2%. These results indicate a challenging year for Fairwood, with implications for its financial strategy and stakeholder returns.

Fairwood Holdings Declares Final Dividend for FY2025

Fairwood Holdings Limited, a company listed on the Hong Kong Stock Exchange, has announced a final ordinary cash dividend of HKD 0.17 per share for the financial year ending March 31, 2025. The dividend, pending shareholder approval on September 5, 2025, will be paid on October 2, 2025, with the record date set for September 16, 2025. This announcement reflects Fairwood Holdings’ commitment to returning value to its shareholders and may impact its market positioning by potentially enhancing investor confidence.

Fairwood Holdings to Review Annual Results and Dividend Proposal

Fairwood Holdings Limited has announced that its board of directors will hold a meeting on June 30, 2025, to consider and approve the company’s annual results for the fiscal year ending March 31, 2025. The meeting will also address the recommendation for the payment of a final dividend. This announcement is significant as it will provide insights into the company’s financial performance and potential returns for stakeholders.

Fairwood Holdings Issues Profit Warning Amid Market Challenges

Fairwood Holdings Limited has issued a profit warning, anticipating a potential decrease of up to 30% in profit for the year ending March 2025 compared to the previous year. This decline is attributed to increased outbound spending, economic challenges, and intensified price competition in Hong Kong and Mainland China. In response, Fairwood is implementing strategies to restore growth, including revenue optimization, brand revitalization, and operational efficiency improvements. The company is focusing on digital transformation and corporate responsibility to strengthen its market position and deliver sustainable value.