Bedrijfsoverzicht
HWH International Inc. is a player within the consumer cyclical sector, specifically focusing on the leisure industry in Singapore and South Korea. The business model involves operating cafés alongside an online healthy food store, executed through three distinct segments: Hapi Marketplace, Hapi Cafés, and Hapi Wealth Builder. The Hapi Marketplace segment functions by offering products at a discounted rate, while the other segments manage physical locations and wealth-building initiatives. This company operates on a very small scale, characterized by a market capitalization of $7.70M and an annual revenue of $866,926 over the trailing twelve months. With an employee count of just four, the organization represents a micro-cap entity with minimal operational footprint relative to its reported financial metrics.
Financiële gezondheid
The company reported a revenue of $866,926 for the trailing twelve months, yet it simultaneously recorded a net income of -$2,630,620 and an EBITDA of -$3,052,384. The significant divergence between positive revenue and substantial negative net income indicates a highly fragile cost structure where expenses and losses vastly outweigh gross earnings. Free cash flow stands at -$884,406, suggesting that the company is currently burning cash rather than generating liquidity for operations or expansion. Despite these operating losses, the balance sheet retains $2.17M in cash against a total debt level of $846,408. The debt-to-equity ratio is calculated at 31.53, which provides a specific metric for leverage analysis, though the negative earnings context complicates the interpretation of this leverage ratio. The current ratio is 2.32, indicating that the company possesses 2.32 units of current assets for every single unit of current liabilities, pointing to adequate short-term liquidity coverage. Return on Equity is recorded at -95.6% and Return on Assets at -35.0%, metrics that clearly reveal that management has not yet achieved profitability, resulting in value destruction relative to the equity and asset base employed.
Waarderingsbeoordeling
The valuation metrics present a complex picture due to the absence of positive earnings, as both the P/E Ratio (TTM) and Forward P/E are listed as N/A. The lack of a trailing P/E and a forward P/E implies that traditional earnings-based valuation models cannot be applied, rendering any discussion of expected earnings trajectory speculative without historical profit data. The price-to-book ratio is 2.94, indicating that the market is pricing the company at a significant premium relative to its tangible book value. Additionally, the price-to-sales ratio is 8.88, while the EV/EBITDA stands at -2.11, suggesting that alternative valuation metrics are heavily distorted by the negative earnings and cash flow situation. The stock trades between a 52-week high of $7.77 and a 52-week low of $0.88, defining the volatility range within which the security has moved over the past year. The beta value is -0.24, a negative coefficient that indicates the stock price tends to move inversely to the broader market rather than with it, creating a unique volatility profile distinct from standard market-correlated assets.
Growth & Income
Revenue growth year-over-year is -81.0%, while earnings growth year-over-year is N/A due to the lack of prior period earnings data to facilitate a comparative calculation. The absence of positive earnings growth relative to revenue growth is evident, as the company is contracting sharply in both top-line sales and profitability simultaneously. As the company does not pay a dividend, the dividend yield is N/A and the payout ratio is 0.0%, meaning there are no cash distributions returned to shareholders. Consequently, the company reinvests its limited capital or relies on its cash reserves rather than distributing income, which is typical for entities in a loss-making phase. The overall growth and income profile reflects a struggling business with significant revenue contraction and no current income generation to support shareholder returns or organic expansion.