REF Holdings Limited (1631) AI Stock Analysis

• Market Cap: HK$124.16M
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.60
• Revenue Growth: -14.25%
• EPS Growth: -51.75%
• Country: HK
• Employees: 115
• Sector: Industrials
• Sector Strength: 82
• Industry: Specialty Business Services
• EPS (TTM): 0.02
• Shares Outstanding: 256,000,000
• 10 Day Avg. Volume: 647,300
• 30 Day Avg. Volume: 1,105,020
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

REF Holdings Limited's stock score of 66 reflects its mixed financial performance, with solid balance sheet metrics but weakening profitability. The technical analysis indicates strong momentum, though potential overbought conditions could pose risks. Valuation metrics suggest the stock may be slightly overvalued, with no dividend yield to appeal to income investors.

REF Holdings Limited Business Overview & Revenue Model

Company Description

REF Holdings Limited (1631) is a company based in Hong Kong, primarily engaged in the provision of financial printing services. The company offers a range of services including the printing of financial reports, shareholder circulars, and other compliance documents, particularly for clients in the financial and capital markets sector.

How the Company Makes Money

REF Holdings Limited generates revenue through its financial printing services. The company provides comprehensive solutions that cater to the needs of corporations, investment banks, and law firms, particularly those involved in initial public offerings (IPOs), mergers and acquisitions (M&A), and other financial transactions requiring detailed documentation. The key revenue streams come from the printing and distribution of these documents, as well as ancillary services such as design and translation. REF Holdings Limited may also benefit from strategic partnerships with financial institutions and other service providers that drive business to their printing services.

REF Holdings Limited Financial Statement Overview

Summary

REF Holdings Limited displays a mixed financial position. While profitability metrics have weakened over recent years, the company's balance sheet remains solid with low leverage and high equity ratios. Cash flow metrics highlight healthy cash generation, despite recent declines. Continued focus on revenue growth and operational efficiency will be crucial for future stability.

Income Statement

The company shows a declining trend in revenue over the past three years, with a notable revenue decrease of about 14.3% from 2020 to 2024. Gross profit margin has decreased from 47% in 2019 to approximately 52.7% in 2024, indicating cost management challenges. Net profit margin decreased from 17.6% in 2019 to 5.3% in 2024. EBITDA margin also fell from 33% in 2020 to 9.3% in 2024, showing reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio remains low, reflecting manageable leverage with a decrease from 0.04 in 2020 to 0.46 in 2024. The equity ratio is strong at 63.5% in 2024, indicating solid equity funding. However, total assets have been decreasing, signaling potential risks to long-term growth.

Cash Flow

Operating cash flow has been positive, albeit showing volatility with a significant drop from 2023 to 2024. Free cash flow is positive, though it decreased significantly in 2024 compared to previous years. The operating cash flow to net income ratio is favorable, indicating healthy cash generation relative to net income.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
124.04M	129.71M	135.08M	147.50M	190.49M
	Gross Profit
63.25M	66.23M	72.20M	69.46M	97.39M
	EBIT
12.70M	14.74M	17.51M	28.90M	42.14M
	EBITDA
38.02M	38.76M	34.13M	50.52M	63.47M
	Net Income Common Stockholders
11.71M	11.16M	8.63M	18.27M	33.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
55.09M	77.32M	128.99M	209.22M	249.95M
	Total Assets
104.22M	147.80M	210.37M	260.53M	320.90M
	Total Debt
8.54M	25.46M	41.64M	10.47M	27.12M
	Net Debt
-27.68M	8.10M	-85.92M	-176.01M	13.11M
	Total Liabilities
31.47M	48.38M	70.91M	52.90M	80.34M
	Stockholders Equity
72.75M	99.42M	139.46M	207.63M	240.57M
Cash Flow		Free Cash Flow
36.03M	20.91M	15.59M	26.40M	40.62M
	Operating Cash Flow
36.17M	21.53M	29.10M	26.43M	41.19M
	Investing Cash Flow
42.50M	-58.78M	5.50M	217.66M	-20.00M
	Financing Cash Flow
-59.82M	-72.96M	-93.52M	-71.61M	-20.10M

REF Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1631, the sentiment is Positive. The current price of 0.51 is above the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.27, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 63.46 is Neutral, neither overbought nor oversold. The STOCH value of 37.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1631.

REF Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1631	66 Neutral	HK$124.16M	22.17	7.44%	―	-14.25%	-51.75%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.06%	-10.21%
8128	54 Neutral	HK$170.34M	15.60	4.17%	―	2.61%	8.70%
8295	53 Neutral	HK$234.02M	―	-29.08%	―	23.58%	0.50%
8181	46 Neutral	HK$82.42M	―	-17.80%	―	1.24%	-56.85%

REF Holdings Limited Corporate Events

REF Holdings Limited Successfully Passes All Resolutions at 2025 AGM

REF Holdings Limited, a company incorporated in the Cayman Islands, announced that all proposed ordinary resolutions were passed by shareholders at the Annual General Meeting held on May 2, 2025. The resolutions included the adoption of financial statements, re-election of directors, and granting of mandates for share issuance and repurchase. This successful passing of resolutions indicates strong shareholder support and positions the company for continued strategic actions in the upcoming year.

REF Holdings Limited Announces 2025 Annual General Meeting

REF Holdings Limited has announced its upcoming annual general meeting scheduled for May 2, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, re-election of independent non-executive directors, and the re-appointment of the company’s independent auditor. Additionally, the meeting will address resolutions to authorize the board to issue additional shares, which could impact the company’s capital structure and shareholder value.

REF Holdings Issues Profit Warning, Anticipates Over 50% Profit Decline

REF Holdings Limited has issued a profit warning, indicating a significant decrease of at least 50% in profits for the year ending December 31, 2024, compared to the previous year. This decline is attributed to reduced revenue, increased share-based payment expenses, and higher provisions for expected credit losses. The company is still finalizing its financial results, which are yet to be audited. The board meeting scheduled for March 6, 2025, will discuss these results and consider any potential dividends.