The last sentence extracted from the report is, in my eyes, still the key point for this year.
“However, if HKFoods’ profitability level were to continue improving sustainably, this would significantly increase the share’s value due to the company’s high debt leverage.”
Also, when/if a significant amount of loans are paid off and no dividend is paid, the “EV” decreases and thus significantly “cheapens” the share.
Loan repayments also ultimately contribute to the bottom line when high-interest ones are eliminated.
The result doesn’t even need to rise significantly from current -24 levels if the aforementioned occurs.
There are many variables in the sector, so it’s certainly a challenging equation overall. Now, however, the trend is upwards in more than just the share price.