Future Bright Holdings (0703) AI Stock Analysis

• Market Cap: HK$96.51M
• Dividend Yield: N/A
• Average Volume (3M): 173.73K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.26
• Revenue Growth: 0.41%
• EPS Growth: -43.14%
• Country: HK
• Employees: 629
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.01
• Shares Outstanding: 694,302,400
• 10 Day Avg. Volume: 51,600
• 30 Day Avg. Volume: 173,733
• PEG Ratio: -0.18
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 1.04
• 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: 49 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 49 reflects significant financial challenges, particularly in cash flow and profitability, which weigh heavily on the company's outlook. Technical indicators suggest a bearish trend, while the valuation indicates potential undervaluation. The lack of earnings call data and corporate events limits additional insights.

Future Bright Holdings Business Overview & Revenue Model

Company Description

Future Bright Holdings Limited, an investment holding company, engages in the food and catering business in Hong Kong, Macau, Mainland China, and Taiwan. The company operates through three segments: Food and Catering, Food Souvenir, and Property Investment. It is involved in the sale of food souvenirs, such as festival food products; and operation of restaurants, food processing centers, and coffee shops. The company also provides administrative and supporting services; invests in and leases properties; and trades in food products. As of December 31, 2021, it operated 29 restaurants, including 17 self-owned restaurants and 12 franchise restaurants; and 19 food court counters. Future Bright Holdings Limited was incorporated in 2001 and is headquartered in Sheung Wan, Hong Kong.

How the Company Makes Money

Future Bright Holdings generates revenue primarily through the operation of its restaurant and fast food chains, where it earns income from food and beverage sales. Additionally, the company may engage in wholesale distribution of food products, contributing to its revenue streams. Key revenue sources include both dine-in and takeaway services, as well as catering services for events and corporate clients. Strategic partnerships with suppliers and distributors enhance its supply chain efficiency and reduce operational costs, further bolstering profitability. The company also invests in market research and development to innovate its menu offerings, which can lead to increased customer retention and sales growth.

Future Bright Holdings Financial Statement Overview

Summary

Future Bright Holdings faces challenges in profitability and cash flow generation, with declining revenue, margins, and cash flow in 2024. While the debt-to-equity ratio shows slight improvement, the company struggles with reduced net income and operational efficiency. The significant decrease in operating and free cash flow points to potential liquidity issues, necessitating strategic adjustments to improve financial health.

Income Statement

Future Bright Holdings has experienced declining revenue growth with total revenue decreasing from HKD 491.11 million in 2023 to HKD 480.04 million in 2024. The gross profit margin declined to 22.8% in 2024 from 25.9% in 2023. Net profit margin also decreased to 1.25% from 9.89%, indicating weakening profitability. The EBIT margin dropped from 11.65% to 7.74%, while the EBITDA margin fell from 25.54% to 13.92%, reflecting reduced operational efficiency.

Balance Sheet

The debt-to-equity ratio improved slightly from 1.23 in 2023 to 1.12 in 2024, suggesting a slight reduction in leverage. However, the return on equity (ROE) decreased significantly from 13.02% in 2023 to 1.58% in 2024, indicating reduced profitability for shareholders. The equity ratio remained stable at approximately 39.6% in 2024, slightly improved from 37.2% in 2023, showing moderate financial stability.

Cash Flow

The operating cash flow dropped significantly from HKD 124.56 million in 2023 to zero in 2024, raising concerns about cash generation capability. The free cash flow also decreased from HKD 112.69 million to zero, indicating potential liquidity issues. The lack of positive free cash flow and operating cash flow suggests challenges in sustaining operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	485.75M	480.04M	491.11M	285.06M	475.42M	419.43M
Gross Profit	116.02M	109.43M	127.12M	-12.89M	12.31M	-95.58M
EBITDA	72.15M	66.83M	125.47M	-46.52M	34.96M	51.71M
Net Income	14.11M	6.01M	48.59M	-125.61M	-72.95M	-120.94M
Balance Sheet
Total Assets	947.99M	958.62M	1.00B	949.94M	1.09B	1.29B
Cash, Cash Equivalents and Short-Term Investments	30.62M	32.80M	42.06M	26.07M	36.81M	65.85M
Total Debt	479.71M	424.55M	522.59M	422.08M	511.13M	608.74M
Total Liabilities	587.30M	608.73M	647.59M	654.43M	683.26M	802.47M
Stockholders Equity	387.85M	379.50M	373.16M	324.46M	431.55M	515.10M
Cash Flow
Free Cash Flow	79.86M	93.55M	112.69M	-34.23M	12.39M	-114.63M
Operating Cash Flow	91.62M	109.13M	124.56M	-21.51M	16.64M	-105.98M
Investing Cash Flow	-12.19M	-15.78M	-11.94M	-12.72M	-4.25M	10.27M
Financing Cash Flow	-76.25M	-102.42M	-96.54M	18.54M	-46.55M	-103.11M

Future Bright Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0703, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.16, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.72 is Neutral, neither overbought nor oversold. The STOCH value of 35.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0703.

Future Bright Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8495	51 Neutral	HK$103.68M	245.45	0.78%	―	-2.67%	22.22%
0703	49 Neutral	HK$96.51M	6.85	3.70%	―	0.41%	-43.14%
1443	47 Neutral	HK$76.70M	―	-41.01%	5.08%	-7.56%	-231.11%
1869	40 Underperform	HK$131.15M	―	―	―	-18.92%	-2250.00%
8519	39 Underperform	HK$57.99M	―	-350.87%	―	-5.22%	-7.65%

Future Bright Holdings Corporate Events

Future Bright Holdings Expands with New Lease for Cantonese Restaurant in Macau

Future Bright Holdings Limited, through its subsidiary Bright Gain, has entered into a lease agreement for a property in Macau to operate a casual Cantonese restaurant. The lease, which spans over six years, represents a discloseable transaction under the Hong Kong Listing Rules, reflecting the company’s strategic expansion in the catering sector.

Future Bright Holdings Reports Strong Interim Results for 2025

Future Bright Holdings Limited announced its interim results for the six months ended June 30, 2025, reporting a 3% increase in turnover to HK$230,961,000 and a significant rise in profit attributable to owners by 1,511.2% to HK$8,636,000. The company’s net assets increased by 3.1%, and the gearing ratio improved by 10.3%, indicating a stronger financial position. These results reflect a positive operational performance, with improvements in gross margin and operating profit, suggesting enhanced efficiency and profitability. The announcement indicates a solid financial standing and potential growth, positively impacting stakeholders and reinforcing the company’s market position.

Future Bright Holdings Schedules Board Meeting to Review Interim Results

Future Bright Holdings Limited has announced a board meeting scheduled for August 29, 2025, to discuss and approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Future Bright Holdings Reports Significant Profit Surge in First Half of 2025

Future Bright Holdings Limited has announced a significant increase in profit for the first half of 2025, reporting an unaudited profit of HK$8.6 million compared to HK$0.5 million in the same period of 2024. This remarkable 1,620% increase is attributed to higher gross operating profits and reduced finance costs, driven by a 3% rise in turnover due to more visitors to Macau and Hong Kong. The company’s food and catering, food souvenir, and property investment businesses all contributed positively, despite a net fair value loss of HK$3.5 million on a key investment property.