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Fountain Set (Holdings) Limited
(0420)
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Rating:65Neutral
Price Target:
HK$0.77
▲(26.89% Upside)
Action:Reiterated
Date:08/10/26
The score is primarily driven by mixed financial performance: a strong balance sheet and improved 2025 profitability/cash flow are positives, but multi-year revenue contraction and thin margins limit confidence. Valuation is a secondary support due to the moderate P/E and high dividend yield. Technicals are constructive (price above key averages, positive MACD) but tempered by overbought signals (high RSI/Stochastics).
Positive Factors
Conservative balance sheet / low leverage
A very low debt-to-equity ratio gives the company durable financial flexibility: with limited leverage, Fountain Set can better absorb cyclical revenue pressure, finance working capital needs, and invest selectively without risking solvency, supporting resilience over the next 2–6 months.
Negative Factors
Multi-year revenue decline
A persistent top-line contraction undermines long-term margin recovery and scale economics. Shrinking revenue constrains operating leverage, limits the payoff from fixed-cost absorption, and makes sustained profit improvement harder without durable market share gains or new product growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
A very low debt-to-equity ratio gives the company durable financial flexibility: with limited leverage, Fountain Set can better absorb cyclical revenue pressure, finance working capital needs, and invest selectively without risking solvency, supporting resilience over the next 2–6 months.
Read all positive factors
Fountain Set (Holdings) Limited (0420) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$814.64M
Dividend Yield17.1%
Average Volume (3M)931.00K
Price to Earnings (P/E)7.7
Beta (1Y)0.25
Revenue Growth0.96%
EPS Growth90.40%
CountryHK
Employees5,600
SectorConsumer Cyclical
Sector Strength84
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)0.09
Shares Outstanding1,225,027,000
10 Day Avg. Volume1,990,600
30 Day Avg. Volume931,000
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.23
Price to Sales (P/S)0.18
P/FCF Ratio2.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Fountain Set (Holdings) Limited Business Overview & Revenue Model
Company Description
Fountain Set (Holdings) Limited, an investment holding company, produces and sells knitted fabrics and garments in Hong Kong, the People's Republic of China, Taiwan, Korea, Sri Lanka, the United States, Europe, and internationally. The company inv...
How the Company Makes Money
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Fountain Set (Holdings) Limited Financial Statement Overview
Summary
Income Statement
53
Neutral
Balance Sheet
74
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.18B | 4.14B | 4.43B | 4.44B | 6.05B | 6.75B |
| Gross Profit | 581.85M | 559.40M | 529.41M | 321.99M | 577.82M | 879.54M |
| EBITDA | 321.05M | 297.80M | 252.01M | 339.40M | 204.77M | 549.24M |
| Net Income | 104.45M | 71.30M | 14.26M | 50.90M | -115.53M | 241.33M |
Balance Sheet | ||||||
| Total Assets | 4.64B | 4.53B | 4.61B | 4.90B | 5.05B | 5.75B |
| Cash, Cash Equivalents and Short-Term Investments | 1.65B | 1.55B | 1.30B | 1.38B | 1.39B | 824.98M |
| Total Debt | 180.00M | 185.92M | 182.67M | 325.03M | 579.25M | 482.31M |
| Total Liabilities | 1.14B | 1.04B | 1.16B | 1.43B | 1.62B | 1.99B |
| Stockholders Equity | 3.26B | 3.25B | 3.24B | 3.27B | 3.22B | 3.56B |
Cash Flow | ||||||
| Free Cash Flow | 361.12M | 263.46M | -25.39M | 195.00M | 741.49M | -372.07M |
| Operating Cash Flow | 432.79M | 372.67M | 151.70M | 293.76M | 905.63M | -210.39M |
| Investing Cash Flow | -72.61M | 36.20M | 11.07M | 1.86M | -136.63M | -148.77M |
| Financing Cash Flow | -136.57M | -159.21M | -242.52M | -309.90M | -171.40M | -64.78M |
Fountain Set (Holdings) Limited Technical Analysis
Neutral
0.61
Price Trends
0.67
Negative
0.67
Negative
0.63
Positive
Market Momentum
>-0.01
Positive
45.22
Neutral
41.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0420, the sentiment is Neutral. The current price of 0.61 is below the 20-day moving average (MA) of 0.69, below the 50-day MA of 0.67, and below the 200-day MA of 0.63, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 41.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0420.
Fountain Set (Holdings) Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$19.81B | 10.56 | 14.47% | 6.21% | 4.21% | 9.77% | |
68 Neutral | HK$625.13M | 4.30 | 5.83% | 5.61% | -1.84% | 29.22% | |
65 Neutral | HK$814.64M | 7.68 | 3.21% | 17.10% | 0.96% | 90.40% | |
64 Neutral | HK$315.40M | 3.86 | 6.65% | 7.97% | 0.41% | ― | |
64 Neutral | HK$1.77B | 5.80 | 11.98% | 16.03% | 6.23% | -12.18% | |
62 Neutral | HK$54.63B | 10.23 | 12.10% | 5.78% | 1.86% | -27.58% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
HK:0420
Fountain Set (Holdings) Limited
0.66
0.05
7.91%
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Fountain Set (Holdings) Limited Corporate Events
Fountain Set boosts COFCO Finance deposit cap under new 2029 services deal
Aug 10, 2026
Fountain Set (Holdings) Limited has entered into a new 2029 Financial Services Agreement with COFCO Finance, replacing its existing 2028 arrangement and running from 1 November 2026 to 31 October 2029. The revised deal significantly raises the cap...
Fountain Set Flags Sharp Interim Profit Surge on Efficiency Gains
Aug 4, 2026
Fountain Set (Holdings) Limited has issued a positive profit alert indicating a sharp improvement in interim earnings for the six months ended 30 June 2026 versus the same period a year earlier. Profit attributable to shareholders nearly doubled t...
Fountain Set Sets August Board Meeting to Approve Interim Results and Consider Dividend
Aug 3, 2026
Fountain Set (Holdings) Limited has scheduled a board meeting for 20 August 2026 to review and approve the interim results for the six months ended 30 June 2026. At the same meeting, the board will consider whether to declare an interim dividend, ...
Fountain Set Overhauls Company Secretary Role With Appointment of Governance Specialist
Jun 5, 2026
Fountain Set (Holdings) Limited has announced a change in its senior corporate governance roles, with long-serving company secretary and authorised representative Ms. Cheng Wai Han Charmaine resigning effective 5 June 2026, having confirmed there ...
Fountain Set Shareholders Approve All Resolutions at 2026 AGM
Jun 4, 2026
Fountain Set (Holdings) Limited reported that all resolutions at its 2026 annual general meeting were approved by shareholders via poll, covering adoption of the 2025 financial statements, a final dividend of HK5.70 cents per share, and re-electio...
Fountain Set Warns Shareholders on Forfeiture of Unclaimed 2019 Dividends
Jun 4, 2026
Fountain Set (Holdings) Limited has reminded shareholders that, under its articles of association, any dividends left unclaimed for six years will be forfeited and revert to the company. This policy applies to the 2019 final dividend of HK9.28 cen...
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.