Research & Analysis: Hyfusin Group Holdings Ltd
Despite trading at a negative enterprise value, is it really a value stock?
Welcome to my Substack, where I delve into the world of truly undiscovered companies from across the globe. Everyone is talking about the same 200-300 stocks, but there are more than 55,000 publicly traded companies in the world. Here, we explore hidden gems in the financial markets that often fly under the radar of mainstream analysts and investors.
Hyfusin Group Holdings Ltd
The undiscovered world of scented candles (exciting!).
Company Description
Hyfusin Group Holdings Ltd is an Hong Kong/Cayman Islands company specializing in candle products. Based in Hong Kong with a market capitalization of approximately HK$271 million ($35 USD), the firm manufactures and distributes daily-use, scented, and decorative candles, as well as diffusers. Hyfusin employs 1,270 full-time staff and serves markets in the USA, UK, Norway, Spain, and other overseas regions. The company went public on July 19, 2018.
Ownership and Management
Hyfusin Group Holdings Ltd has a concentrated ownership structure, with two major institutional investors holding approximately 89.82% of the company's shares. AVW International Ltd owns 70.06% (643.5 million shares), while Pioneer Unicorn Ltd holds 19.76% (181.5 million shares). This high level of institutional ownership can provide stability but may also limit the influence of smaller retail investors. It's worth noting that there have been no insider buy, sell, or buyback transactions in the past 18 months.
Financials over the Last 5 Years
Hyfusin Group Holdings has demonstrated remarkable financial growth and performance over the last 5 years:
Revenue: Surged by 281% to HK$866.25 million, with a 5-year CAGR of 32.09%. This significant growth outpaces the industry average of 6.49%, indicating strong market penetration and product demand.