Kingmaker Footwear Holdings (1170) AI Stock Analysis

• Market Cap: HK$404.05M
• Dividend Yield: 22.88%
• Average Volume (3M): 16.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -21.53%
• EPS Growth: -131.69%
• Country: HK
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.02
• Shares Outstanding: 671,607,400
• 10 Day Avg. Volume: 5,420
• 30 Day Avg. Volume: 16,740
• PEG Ratio: 0.16
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.67
• 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

Kingmaker Footwear Holdings has a mixed outlook with financial stability but weak profitability and negative stock momentum. The high dividend yield could present a value opportunity, but significant operational improvements are necessary for sustainable growth.

Kingmaker Footwear Holdings Business Overview & Revenue Model

Company Description

Kingmaker Footwear Holdings (1170) is a company that specializes in the design, development, and manufacturing of footwear. It operates within the footwear industry, focusing on producing a wide range of shoes that cater to various market segments, including casual, athletic, and fashion footwear. The company is known for delivering high-quality products to its customers, leveraging its extensive experience and expertise in the footwear manufacturing sector.

How the Company Makes Money

Kingmaker Footwear Holdings generates revenue primarily through the manufacturing and sale of footwear. The company collaborates with various global brands to design and produce footwear that meets specific brand requirements and consumer preferences. Its revenue streams include direct sales to retailers, wholesale distribution to other markets, and strategic partnerships with well-known footwear brands. Additionally, the company benefits from its established supply chain and manufacturing efficiency, which help to optimize production costs and improve profit margins.

Kingmaker Footwear Holdings Financial Statement Overview

Summary

Kingmaker Footwear Holdings faces significant challenges with declining revenue and weak profit margins despite a strong balance sheet and positive operating cash flow. The company needs to address operational inefficiencies to improve profitability.

Income Statement

The company's revenue has shown significant volatility, with a sharp decline from 2023 to 2024. The gross profit margin is relatively low, indicating cost pressures or inefficiencies. The net profit margin improved from a loss in prior years to a positive in 2024, but this is partly due to reduced revenue base. EBIT and EBITDA margins are weak, reflecting ongoing operational challenges.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio, indicating financial stability. The equity ratio is healthy, suggesting a strong buffer against liabilities. However, the overall asset base has declined, which may impact future growth opportunities.

Cash Flow

Operating cash flow is positive, signaling improved cash generation capabilities, although free cash flow has decreased significantly from 2023. The free cash flow to net income ratio suggests cash flow is not fully aligned with earnings, highlighting potential liquidity concerns.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
632.30M	689.27M	1.06B	842.69M	804.72M	1.05B
	Gross Profit
10.22M	29.11M	89.58M	25.16M	38.20M	74.27M
	EBIT
-77.65M	-58.32M	-7.59M	-74.98M	-72.32M	-70.53M
	EBITDA
-42.33M	15.99M	23.10M	-41.76M	102.44M	-38.32M
	Net Income Common Stockholders
-14.65M	20.22M	53.41M	-18.04M	88.10M	-51.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
780.27M	415.58M	392.65M	304.43M	377.87M	443.95M
	Total Assets
1.74B	1.51B	1.59B	1.66B	1.64B	1.53B
	Total Debt
0.00	2.10M	2.60M	18.84M	930.00K	1.32M
	Net Debt
-775.82M	-413.48M	-29.47M	-137.23M	-84.56M	-77.71M
	Total Liabilities
575.99M	323.85M	373.30M	437.59M	388.15M	348.95M
	Stockholders Equity
1.15B	1.17B	1.21B	1.21B	1.24B	1.16B
Cash Flow		Free Cash Flow
-60.80M	33.66M	124.46M	-59.12M	-33.73M	-94.86M
	Operating Cash Flow
-48.52M	45.04M	136.58M	-44.27M	-23.45M	-77.39M
	Investing Cash Flow
142.88M	2.91M	-213.76M	133.54M	62.96M	81.09M
	Financing Cash Flow
-66.02M	-28.82M	-45.97M	-18.96M	-33.59M	-39.14M

Kingmaker Footwear Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1170, the sentiment is Negative. The current price of 0.61 is below the 20-day moving average (MA) of 0.68, below the 50-day MA of 0.76, and below the 200-day MA of 0.68, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 19.35 is Positive, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1170.

Kingmaker Footwear Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2020	81 Outperform	$262.07B	15.62	28.11%	2.45%	11.51%	47.88%
1385	77 Outperform	$33.09B	35.21	9.53%	0.60%	-2.25%	-22.43%
1836	77 Outperform	$12.77B	9.30	15.89%	7.23%	3.18%	18.35%
2331	73 Outperform	$39.72B	12.13	11.92%	3.94%	1.85%	-6.19%
3816	69 Neutral	HK$189.00M	12.16	2.85%	2.54%	13.26%	-18.81%
Sector *	61 Neutral	$6.68B	11.75	3.01%	3.94%	2.61%	-21.96%
1170	57 Neutral	HK$404.05M	―	-1.27%	22.88%	-21.53%	-131.69%

Kingmaker Footwear Holdings Corporate Events

Kingmaker Footwear Expands Share Award Scheme with Significant Purchase

Kingmaker Footwear Holdings Limited announced a recent development in its share award scheme, where the Trustee purchased 4,536,000 shares on the market to hold on trust for selected participants. This move, which represents approximately 0.670% of the company’s total shares in issue, aims to benefit selected participants under the scheme. The board retains discretion over the number of awarded shares and their vesting conditions, potentially impacting stakeholder interests and the company’s market positioning.