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Sincere Co. Ltd. (HK:0244)
:0244
Hong Kong Market
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Sincere Co. Ltd. (0244) AI Stock Analysis

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HK:0244

Sincere Co. Ltd.

(0244)

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Neutral 45 (OpenAI - Gpt-5.6Sol)
Rating:45Neutral
Price Target:
HK$0.30
â–²(6.07% Upside)
Action:N/A
Date:08/30/26
The score is primarily constrained by weak financial performance—persistent losses, recurring cash burn, and negative equity that increases financial risk. Technical indicators are only mildly supportive (near-term averages and MACD slightly positive, but still below the 200-day trend), and valuation is hampered by a loss-driven negative P/E and the absence of a dividend yield.
Positive Factors
Resilient Gross Margin
Although gross margin stayed relatively strong, it has not translated into operating profit. This suggests the company retains some product-level economics, but overhead, store productivity or other operating costs remain too high for sustainable earnings.
Negative Factors
Declining Revenue
Persistent revenue contraction points to weakening customer demand, store productivity or competitive position. A shrinking sales base makes it harder to absorb fixed retail costs and limits the company’s ability to restore profitability without structural changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient Gross Margin
Although gross margin stayed relatively strong, it has not translated into operating profit. This suggests the company retains some product-level economics, but overhead, store productivity or other operating costs remain too high for sustainable earnings.
Read all positive factors

Sincere Co. Ltd. (0244) vs. iShares MSCI Hong Kong ETF (EWH)

Sincere Co. Ltd. Business Overview & Revenue Model

Company Description
Operating across Hong Kong, The Sincere Company, Limited and its affiliated businesses manage a network of four department stores. These retail outlets offer an extensive array of goods, including clothing, shoes, handbags, sports gear, household ...

Sincere Co. Ltd. Financial Statement Overview

Summary
Financial statements indicate sustained weakness: revenue declined sharply year over year, profitability remains loss-making with negative operating and net margins, operating/free cash flow are consistently negative, and the balance sheet deteriorated to negative shareholders’ equity—raising solvency/refinancing risk despite some narrowing of cash burn in 2025.
Income Statement
18
Very Negative
Balance Sheet
12
Very Negative
Cash Flow
14
Very Negative
BreakdownDec 2025Dec 2024Dec 2022Feb 2021Feb 2020
Income Statement
Total Revenue134.19M131.29M146.52M168.07M177.47M
Gross Profit63.63M69.25M81.94M88.98M85.73M
EBITDA-31.46M16.76M13.46M-69.13M-43.70M
Net Income-64.10M-40.14M-62.25M-91.06M-145.02M
Balance Sheet
Total Assets313.39M343.94M682.69M713.46M571.90M
Cash, Cash Equivalents and Short-Term Investments35.43M11.79M101.75M56.40M98.63M
Total Debt209.38M180.34M443.59M400.66M430.12M
Total Liabilities281.09M251.55M507.77M476.23M543.50M
Stockholders Equity-13.70M46.59M128.99M2.92M-2.98M
Cash Flow
Free Cash Flow-33.76M-55.63M-43.61M-64.57M-9.78M
Operating Cash Flow-32.36M-54.42M-42.17M-64.48M-9.75M
Investing Cash Flow39.82M206.44M44.05M1.96M15.29M
Financing Cash Flow15.79M-233.77M42.21M21.89M68.65M

Sincere Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
HK$455.26M12.161.06%7.70%-13.36%155.17%
59
Neutral
HK$3.77B-14.00-1.66%8.89%-1.82%67.15%
49
Neutral
HK$864.02M-67.32-0.12%56.76%2.73%84.54%
45
Neutral
HK$407.33M-5.80687.69%2.50%-12.57%-49.50%
44
Neutral
HK$67.60M-0.2032.83%5.26%-3.13%9.97%
41
Neutral
HK$119.74M-1.06-14.50%2.86%0.84%-437.97%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0244
Sincere Co. Ltd.
0.32
-0.04
-11.11%
HK:2136
Lifestyle China Group
0.59
0.17
41.83%
HK:0289
Wing On Co. International Ltd.
13.16
1.29
10.88%
HK:0825
New World Department Store China Limited
0.27
-0.03
-10.00%
HK:0984
AEON Stores (Hong Kong) Co., Limited
0.25
-0.20
-44.94%
HK:0312
Shirble Department Store Holdings (China) Ltd.
0.05
-0.06
-54.90%

Sincere Co. Ltd. Corporate Events

Sincere Company Narrows Interim Loss but Revenue Drops in First Half of 2026
Aug 28, 2026
The Sincere Company, Limited reported unaudited consolidated revenue of HK$44.25 million for the six months ended 30 June 2026, down from HK$64.31 million a year earlier, reflecting softer sales. Cost of sales and operating expenses declined but n...
Sincere Company Sets Board Meeting to Approve Interim Results and Consider Dividend
Aug 14, 2026
The Sincere Company, Limited has announced that its board of directors will convene a meeting on 28 August 2026 to review and approve the unaudited interim results for the six months ended 30 June 2026 and to authorise their publication. At the sa...
Sincere Co. Shareholders Approve All AGM Resolutions, Renew Capital Mandates
Jun 5, 2026
The Sincere Company, Limited reported that all resolutions put to shareholders at its annual general meeting on 5 June 2026 were approved by poll, with Tricor Investor Services acting as scrutineer and no shareholders required to abstain or voting...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 30, 2026