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Hands Form Holdings Limited (HK:1920)
:1920
Hong Kong Market

Hands Form Holdings Limited (1920) AI Stock Analysis

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HK

Hands Form Holdings Limited

(1920)

Rating:30Underperform
Price Target:
Hands Form Holdings Limited faces significant financial difficulties, reflected in declining revenue and profitability, weak cash flow, and negative valuation metrics. The technical analysis points to a bearish trend, with the stock trading below key moving averages. The absence of positive earnings or corporate events further limits the stock's attractiveness. Overall, the stock presents considerable risks with limited upside potential.

Hands Form Holdings Limited (1920) vs. iShares MSCI Hong Kong ETF (EWH)

Hands Form Holdings Limited Business Overview & Revenue Model

Company DescriptionHands Form Holdings Limited, an investment holding company, operates as a subcontractor in Hong Kong. The company undertakes wet trades' works, including plastering on floors, walls, and ceilings; tile laying on internal and external walls and floors; brick laying; and laying of marble tiles to the floor. It also provides other wet trades related ancillary works, such as touch-ups, chiseling, smoothing, cleaning, applying sealant, washed granolithic screed, on-site logistics services, etc. The company primarily serves main contractors and subcontractors of various building construction projects; government customers; and property developers. Hands Form Holdings Limited was founded in 1989 and is headquartered in Jordan, Hong Kong.
How the Company Makes MoneyHands Form Holdings Limited generates revenue primarily through the sale of its glove products. The company's key revenue streams include direct sales to industrial clients, healthcare providers, and retail partners who distribute their products to end consumers. The company may also engage in strategic partnerships with distributors and retailers to expand its market reach. Additional earnings may come from exports to international markets, depending on the company's distribution and sales agreements.

Hands Form Holdings Limited Financial Statement Overview

Summary
Hands Form Holdings Limited is experiencing severe financial challenges. The income statement shows a significant decline in revenue and negative profitability metrics. The balance sheet indicates a weakening financial position, despite a low debt-to-equity ratio. Cash flow metrics are particularly concerning, with negative operating and free cash flow, raising liquidity risks.
Income Statement
15
Very Negative
The company has faced a significant decline in revenue, with a negative growth trend from 2019 to 2024. Profitability metrics such as gross profit margin and net profit margin are negative, indicating operational challenges. Consistent losses and decreasing revenue highlight financial instability.
Balance Sheet
40
Negative
The company maintains a relatively low debt-to-equity ratio, indicating conservative leverage. However, the declining stockholders' equity and total assets suggest a weakening financial position. The equity ratio has decreased, pointing to potential risks in financial stability.
Cash Flow
10
Very Negative
Cash flow metrics are concerning, with negative operating cash flow and free cash flow in most years. The inability to generate positive cash flow from operations poses liquidity risks. Lack of free cash flow growth indicates financial strain.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
109.95M86.70M122.52M117.46M304.96M
Gross Profit
-12.88M-21.49M-28.63M-63.46M3.80M
EBIT
-43.31M-54.91M-36.34M-72.77M7.70M
EBITDA
-40.66M-48.63M-53.79M-81.00M9.22M
Net Income Common Stockholders
-43.34M-51.62M-56.20M-83.19M7.37M
Balance SheetCash, Cash Equivalents and Short-Term Investments
10.54M18.60M14.01M9.56M5.95M
Total Assets
42.26M71.76M123.94M191.25M253.52M
Total Debt
5.31M9.62M9.70M16.28M17.81M
Net Debt
-5.23M-8.98M-4.31M6.72M11.86M
Total Liabilities
32.43M18.59M19.15M45.63M24.71M
Stockholders Equity
9.83M53.17M104.79M145.62M228.81M
Cash FlowFree Cash Flow
0.00-197.00K-13.15M8.50M-27.71M
Operating Cash Flow
0.00-197.00K-5.40M8.50M-27.71M
Investing Cash Flow
0.005.21M1.32M-3.00M-4.69M
Financing Cash Flow
0.00-414.00K8.52M-1.88M13.65M

Hands Form Holdings Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.38
Price Trends
50DMA
0.42
Negative
100DMA
0.59
Negative
200DMA
0.69
Negative
Market Momentum
MACD
-0.01
Negative
RSI
47.13
Neutral
STOCH
27.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1920, the sentiment is Neutral. The current price of 0.38 is above the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.42, and below the 200-day MA of 0.69, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 27.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1920.

Hands Form Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$4.46B12.115.38%5.02%4.17%-11.82%
60
Neutral
HK$39.00M10.2620.64%70.92%
52
Neutral
HK$264.00M112.730.80%-2.97%-42.11%
46
Neutral
HK$4.12B-29.17%17.69%-11.94%-756.32%
44
Neutral
HK$60.00M18.751.13%6.97%-12.00%-57.89%
30
Underperform
HK$118.56M-137.59%26.81%16.02%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1920
Hands Form Holdings Limited
0.38
0.08
26.67%
HK:8400
Asia Pioneer Entertainment Holdings Ltd.
0.04
0.00
0.00%
HK:8281
China Golden Classic Group Ltd.
0.06
-0.07
-53.85%
HK:6162
China Tianrui Automotive Interiors Co., Ltd.
0.12
0.02
20.00%
HK:3319
A-Living Smart City Services Co., Ltd. Class H
2.82
-0.06
-2.25%

Hands Form Holdings Limited Corporate Events

China Alliance Venture Limited Completes Cash Offer for China Wacan Group Shares
Apr 30, 2025

China Alliance Venture Limited and China Wacan Group Company Limited announced the closure of a mandatory unconditional cash offer made by Yellow River Securities Limited on behalf of China Alliance Venture Limited to acquire all issued shares of China Wacan Group, excluding those already owned or agreed to be acquired by China Alliance Venture Limited and its concert parties. The offer closed with five valid acceptances, representing approximately 1.31% of the total issued share capital, resulting in China Alliance Venture Limited and its concert parties holding approximately 63.81% of the company’s shares. The total cash consideration for the offer amounted to HK$1,049,341.5, with remittances to be dispatched to shareholders within seven business days.

China Alliance Venture Limited Initiates Share Acquisition of China Wacan Group
Apr 9, 2025

China Alliance Venture Limited has announced the dispatch of a Composite Document related to a mandatory unconditional cash offer to acquire all issued shares of China Wacan Group Company Limited, excluding those already owned by China Alliance Venture Limited or its concert parties. This move is part of a strategic acquisition effort, with the Composite Document providing further details of the offer, including recommendations and advice for shareholders. The dispatch marks a significant step in the acquisition process, with implications for shareholders and the market as the offer progresses.

Further Delay Announced in Dispatch of Composite Document for Cash Offer
Mar 31, 2025

China Alliance Venture Limited and China Wacan Group Company Limited have announced a further delay in the dispatch of a composite document related to a mandatory unconditional cash offer by Yellow River Securities Limited. This delay is due to the need for additional time to finalize certain information, including a letter of advice from the Independent Financial Adviser. The deadline for dispatch has been extended to on or before April 9, 2025, with the Executive indicating consent for this extension. Further announcements will be made as necessary.

China Wacan Group Reports 2024 Financial Results with Revenue Growth Amid Losses
Mar 18, 2025

China Wacan Group Company Limited, formerly known as Hands Form Holdings Limited, has announced its annual financial results for the year ended December 31, 2024. The company reported a revenue increase to HK$109,950,000 from HK$86,702,000 in the previous year, but also a gross loss of HK$12,883,000, which is an improvement from the previous year’s loss of HK$21,489,000. Despite the revenue growth, the company faced a total comprehensive expense of HK$43,338,000 attributable to equity holders, reflecting ongoing financial challenges.

China Wacan Group’s Share Acquisition Update and Document Despatch Timeline
Mar 13, 2025

China Alliance Venture Limited and China Wacan Group Company Limited have announced an update regarding a mandatory unconditional cash offer by Yellow River Securities Limited to acquire all issued shares of China Wacan Group, excluding those already owned by China Alliance Venture Limited. The despatch of the Composite Document, initially delayed, is now expected by March 31, 2025, with further announcements to follow as necessary.

China Wacan Group Appoints Independent Financial Adviser
Feb 13, 2025

China Wacan Group Company Limited has appointed Merdeka Corporate Finance Limited as the Independent Financial Adviser to the Independent Board Committee and Independent Shareholders. This appointment is part of the company’s response to the terms of an Offer, following the completion of a Sale and Purchase Agreement. The decision aims to ensure transparency and informed decision-making for stakeholders regarding the Offer.

Delay in Despatch of China Wacan Group’s Composite Document
Feb 13, 2025

China Alliance Venture Limited and China Wacan Group Company Limited have announced a delay in the despatch of a composite document related to a mandatory unconditional cash offer. This delay, extending the deadline from February 13, 2025, to March 31, 2025, is due to the need for additional time to finalize key information, including the Group’s indebtedness statement and an advisory letter from the Independent Financial Adviser. The extension has received a favorable response from the Executive, and further announcements will be made as necessary.

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.