Hingtex Holdings Ltd. (1968) AI Stock Analysis

• Market Cap: HK$64.00M
• Dividend Yield: N/A
• Average Volume (3M): 86.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: 31.79%
• EPS Growth: 7.61%
• Country: HK
• Employees: 346
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.03
• Shares Outstanding: 640,000,000
• 10 Day Avg. Volume: 85,600
• 30 Day Avg. Volume: 86,933
• PEG Ratio: N/A
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.21
• 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

The overall stock score of Hingtex Holdings Ltd. is low due to significant financial challenges, including declining revenues and ongoing losses which highlight operational inefficiencies and sustainability concerns. Technical analysis also suggests bearish momentum, and the valuation is unattractive with a negative P/E ratio and no dividend yield.

Hingtex Holdings Ltd. Business Overview & Revenue Model

Company Description

Hingtex Holdings Ltd. (1968) is a Hong Kong-based company specializing in the design, manufacturing, and sale of denim fabrics. The company operates within the textile industry and is known for its innovative approaches to denim production, catering to a global clientele that includes major fashion brands and retailers.

How the Company Makes Money

Hingtex Holdings Ltd. generates revenue primarily through the sale of its denim fabrics. The company designs and manufactures a wide range of denim products, which it sells to clothing brands and retailers around the world. Key revenue streams include direct sales to fashion companies, as well as partnerships with major retailers who integrate Hingtex's denim into their product lines. The company's focus on innovation and sustainability in denim production has also positioned it favorably within the industry, potentially leading to premium pricing for its specialized products.

Hingtex Holdings Ltd. Financial Statement Overview

Summary

Hingtex Holdings Ltd. faces significant financial challenges with declining revenues and persistent losses indicating operational inefficiencies. Despite a strong equity base relative to debt, the ongoing struggles with profitability and cash generation raise concerns about long-term financial health and sustainability.

Income Statement

Hingtex Holdings Ltd. has experienced a decline in revenue over recent years, with a significant drop from 2019 to 2024. Gross profit margins have decreased, and the company has faced consistent net losses. The negative EBIT and EBITDA margins indicate operational challenges.

Balance Sheet

The company maintains a relatively strong equity position compared to its total assets, with a decrease in total assets over time. The Debt-to-Equity ratio remains low, suggesting manageable leverage. However, declining equity due to continued losses is a concern.

Cash Flow

Hingtex Holdings Ltd. has shown inconsistent operating cash flows and negative free cash flows in several years, indicating cash generation issues. The inability to generate positive free cash flow consistently poses a liquidity risk. The lack of free cash flow growth further exacerbates this issue.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
214.67M	162.88M	245.18M	363.00M	255.44M
	Gross Profit
33.42M	21.70M	18.89M	65.36M	23.80M
	EBIT
-33.54M	-45.62M	-56.60M	-10.51M	-40.49M
	EBITDA
-23.56M	-25.00M	-33.38M	8.26M	-29.27M
	Net Income Common Stockholders
-34.95M	-37.80M	-49.96M	-11.91M	-41.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.19M	60.74M	84.69M	119.87M	160.88M
	Total Assets
331.70M	343.18M	394.42M	504.01M	518.67M
	Total Debt
38.40M	32.43M	40.39M	52.94M	74.24M
	Net Debt
-7.79M	-28.31M	-44.31M	-66.93M	-86.64M
	Total Liabilities
90.98M	67.51M	80.94M	140.58M	143.33M
	Stockholders Equity
240.72M	275.67M	313.47M	363.43M	375.34M
Cash Flow		Free Cash Flow
0.00	-17.95M	5.08M	-14.07M	7.15M
	Operating Cash Flow
0.00	-14.45M	8.17M	-5.98M	15.21M
	Investing Cash Flow
0.00	444.00K	-18.99M	-7.78M	1.59M
	Financing Cash Flow
0.00	-9.95M	-24.35M	-27.26M	-14.42M

Hingtex Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1968, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 101.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1968.

Hingtex Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3998	80 Outperform	$52.66B	14.03	25.72%	5.67%	32.49%	37.50%
3898	77 Outperform	$49.79B	11.43	9.62%	2.58%	11.54%	16.09%
1338	65 Neutral	HK$170.77M	24.55	4.61%	―	4.77%	-53.19%
Sector *	61 Neutral	$6.98B	11.35	2.88%	3.90%	2.65%	-21.84%
1313	50 Neutral	$11.73B	31.34	0.79%	1.61%	―	―
1968	43 Neutral	HK$64.00M	―	-13.54%	―	31.79%	7.61%
2383	36 Underperform	$1.82B	―		―	-4.77%	-15.54%

Hingtex Holdings Ltd. Corporate Events

Hingtex Holdings Announces 2025 Annual General Meeting Agenda

Hingtex Holdings Limited has announced its upcoming annual general meeting scheduled for May 30, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the company’s financial statements for 2024, the re-election of directors, and the re-appointment of Ernst & Young as auditors. Additionally, the board seeks approval to issue new shares, which could impact the company’s capital structure and shareholder value.

Hingtex Holdings Reports Revenue Growth Amidst Continued Losses

Hingtex Holdings Ltd. reported a significant increase in total revenue by approximately 31.8% for the year ended December 31, 2024, reaching HK$214.7 million compared to the previous year. Despite the revenue growth, the company recorded a net loss of HK$35.0 million, a slight improvement from the HK$37.8 million loss in 2023, indicating ongoing financial challenges but a positive trend in reducing losses.

Hingtex Holdings Ltd. Announces Board Meeting for Financial Review and Dividend Consideration

Hingtex Holdings Ltd. has announced a board meeting scheduled for March 28, 2025, to review and approve the audited consolidated financial statements for the year ending December 31, 2024, and to consider declaring a final dividend. This meeting is significant as it will provide insights into the company’s financial health and potential returns for shareholders, impacting its market positioning and stakeholder confidence.