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1. Company Snapshot

1.a. Company Description

HF Foods Group Inc., through its subsidiaries, operates as a food service distributor to Asian restaurants located in the Southeastern, Pacific, and Mountain West regions of the United States.It distributes Asian specialty food items, meat and poultry products, seafood, fresh produce, packaging and other items, and commodities.The company also provides design and printing services, as well as logistic and food processing services.


In addition, it is involved in real estate holding activities.The company is headquartered in City of Industry, California.

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1.b. Last Insights on HFFG

Recent news suggests that HF Foods Group Inc. is facing challenges, weighing on its stock performance. The appointment of Felix Lin as CEO, while a positive move, may indicate uncertainty and transition within the company. The company's participation in conferences, such as the Oppenheimer Emerging Growth Conference and the 2025 ICR Conference, may be an effort to revamp its image and attract investors. However, the lack of recent earnings releases and significant sales or acquisition news may be contributing to the negative sentiment. The secured revolving credit agreement of up to $125 million provides some financial flexibility, but its impact on the company's growth strategy remains to be seen.

1.c. Company Highlights

2. HF Foods Delivers Mixed Results in Q3 2025

HF Foods Group reported a 2.9% year-over-year increase in net revenue to $307 million in the third quarter of 2025, with gross profit rising 0.5% to $50.4 million. However, the company's adjusted EBITDA showed a significant improvement, increasing 41.5% year-over-year to $11.7 million. The earnings per share (EPS) came in at $0.08, missing analyst estimates of $0.12.

Publication Date: Nov -16

📋 Highlights
  • Revenue Growth:: Net revenue rose 2.9% YoY to $307 million in Q3 2025.
  • Adjusted EBITDA Surge:: Adjusted EBITDA jumped 41.5% YoY to $11.7 million.
  • ERP Modernization:: Fully deployed a unified ERP system across all locations for operational efficiency.
  • Capacity Expansion:: Atlanta warehouse capacity to double with a 90,000 sq ft addition in 2026.
  • Warehouse Acquisition:: Acquired Chicago warehouse to reduce costs and boost cross-selling opportunities.

Operational Highlights

The company's transformation initiatives are driving growth and improvement across the business. Notably, HF Foods successfully deployed a new modern ERP application across their entire network, which is expected to bring about significant efficiency gains and improved visibility across operations. Additionally, the company acquired its Chicago warehouse, advancing its plan to improve operational efficiency and reduce facility costs.

Growth Prospects and Capacity Expansion

HF Foods is confident in its long-term growth strategy, with plans to increase capacity in the Atlanta market by 90,000 square feet, effectively doubling its capacity in the region. The company also expects to continue building momentum into 2026, with analysts estimating revenue growth of 3.4% next year. The restructuring of the sales force is expected to reduce costs and improve efficiency, with the initiative set to kick off in Q4 2025 and continue into Q1 2026.

Valuation and Outlook

With a P/E Ratio of -2.46 and an EV/EBITDA of -32.96, the company's valuation metrics suggest that the market is pricing in significant challenges. However, the Free Cash Flow Yield of 16.95% indicates that the company is generating cash, which could be a positive sign. As HF Foods continues to execute its transformation plan and expand its capacity, investors will be watching to see if the company can deliver on its growth promises and improve its profitability.

3. NewsRoom

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Head-To-Head Contrast: Hf Foods Group (NASDAQ:HFFG) and Utz Brands (NYSE:UTZ)

Nov -22

Source: defenseworld.net

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HF Foods Group May Sell Stock To Pay For An Acquisition

Nov -14

Source: seekingalpha.com

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HF Foods: New Numbers, Old Problems

Nov -14

Source: seekingalpha.com

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HF FOODS GROUP INC. (HFFG) Misses Q3 Earnings Estimates

Nov -11

Source: zacks.com

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HF Foods Group Inc. (HFFG) Q3 2025 Earnings Call Transcript

Nov -10

Source: seekingalpha.com

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HF Foods Group Announces Leadership Changes

Oct -16

Source: globenewswire.com

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HF Foods Group Announces Agreement to Acquire Chicago Distribution Facility

Sep -29

Source: globenewswire.com

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HF Foods Group Inc. Announces $100 Million At-The-Market (ATM) Equity Offering Program

Sep -25

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.73%)

6. Segments

Seafood

Expected Growth: 4.5%

Growing demand for healthy and sustainable protein sources, increasing popularity of seafood-based meals, and expanding distribution channels are expected to drive the seafood segment's growth.

Asian Specialty

Expected Growth: 8.5%

Growing demand for convenient and authentic Asian food products, increasing popularity of online food delivery, and rising health consciousness drive the growth of Asian Specialty segment.

Meat and Poultry

Expected Growth: 4.5%

Growing demand for convenient and affordable protein sources, increasing popularity of frozen meat and poultry products, and HF Foods Group Inc.'s wide range of high-quality products drive market growth.

Fresh Produce

Expected Growth: 5.5%

Growing demand for healthy and sustainable food options, increasing popularity of farm-to-table concept, and strategic sourcing from local farms and international suppliers drive the growth of fresh produce market.

Commodity

Expected Growth: 5.5%

Growing demand for fresh produce, increasing consumer preference for healthy eating, and expansion of online grocery shopping are expected to drive HF Foods Group's growth.

Packaging and Other

Expected Growth: 4.5%

Growing demand for sustainable packaging, increasing adoption of e-commerce, and rising consumer spending on household and personal care products drive the growth of Packaging and Other segment of HF Foods Group Inc.

7. Detailed Products

Food Distribution

HF Foods Group Inc. distributes a wide range of food products to restaurants, cafes, and other foodservice establishments.

Meat and Poultry

HF Foods Group Inc. offers a variety of meat and poultry products, including beef, pork, chicken, and seafood.

Produce and Dry Goods

HF Foods Group Inc. provides a wide selection of fresh produce and dry goods, including fruits, vegetables, and grains.

Dairy and Bakery

HF Foods Group Inc. offers a range of dairy and bakery products, including milk, cheese, bread, and pastries.

Beverages and Snacks

HF Foods Group Inc. distributes a variety of beverages and snacks, including juices, sodas, and chips.

Foodservice Equipment and Supplies

HF Foods Group Inc. provides equipment and supplies for the foodservice industry, including cooking utensils and cleaning products.

8. HF Foods Group Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

HF Foods Group Inc. operates in a competitive market with various substitutes available to customers, but the company's focus on quality and customer service helps to differentiate it from competitors.

Bargaining Power Of Customers

HF Foods Group Inc. has a large customer base, but the company's reliance on a few major customers gives them significant bargaining power, which can impact pricing and revenue.

Bargaining Power Of Suppliers

HF Foods Group Inc. has a diverse supplier base, which reduces the bargaining power of individual suppliers, allowing the company to negotiate better prices and terms.

Threat Of New Entrants

The food distribution industry has high barriers to entry, including significant capital requirements and complex logistics, making it difficult for new entrants to compete with established players like HF Foods Group Inc.

Intensity Of Rivalry

The food distribution industry is highly competitive, with many players competing for market share, which can lead to pricing pressure and reduced profit margins for HF Foods Group Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.92%
Debt Cost 5.56%
Equity Weight 61.08%
Equity Cost 12.91%
WACC 10.05%
Leverage 63.72%

11. Quality Control: HF Foods Group Inc. passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SpartanNash

A-Score: 5.3/10

Value: 7.3

Growth: 3.3

Quality: 2.1

Yield: 7.0

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Chefs Warehouse

A-Score: 5.2/10

Value: 3.9

Growth: 8.7

Quality: 5.2

Yield: 0.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
AMCON

A-Score: 4.6/10

Value: 7.5

Growth: 6.7

Quality: 3.6

Yield: 4.0

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
UNFI

A-Score: 4.4/10

Value: 7.0

Growth: 4.6

Quality: 1.9

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Mission Produce

A-Score: 4.2/10

Value: 5.1

Growth: 4.7

Quality: 4.3

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
HF Foods Group

A-Score: 3.3/10

Value: 9.5

Growth: 3.2

Quality: 3.1

Yield: 0.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.61$

Current Price

2.61$

Potential

-0.00%

Expected Cash-Flows