U.S. stock futures slip lower; Cook’s firing increases Fed independence worries
LAS VEGAS - HF Foods Group Inc. (NASDAQ: HFFG), a prominent distributor to Asian restaurants in the U.S., has revised its credit agreement, enhancing financial flexibility to support its expansion plans. The amended agreement, announced today, includes JPMorgan Chase (NYSE:JPM) Bank, Comerica (NYSE:CMA) Bank, and newly added Wells Fargo (NYSE:WFC), collectively increasing the company’s revolving commitment from $100 million to $125 million. With a current market capitalization of $131 million and trading near its 52-week low, InvestingPro analysis suggests the stock is currently undervalued.
Felix Lin, President and CEO of HF Foods, stated that the expanded credit facility reflects the banking partners’ growing confidence in the company’s future. "This additional revolver capacity will help support our growth strategy and the continued execution of our strategic transformation plan by providing us with further financial flexibility," Lin said. According to InvestingPro data, the company maintains a healthy current ratio of 1.18, indicating sufficient liquidity to meet short-term obligations.
HF Foods, headquartered in Las Vegas, Nevada, serves a growing market for Asian cuisine in the United States by distributing fresh produce, frozen and dry food, and non-food products to Asian restaurants and other foodservice customers nationwide. The company leverages its network of distribution centers and relationships with suppliers in the US, South America, and Asia to meet the increasing demand for high-quality specialty restaurant supplies. With annual revenue of $1.18 billion and a modest revenue growth of 1.5% in the last twelve months, the company maintains a significant market presence despite operating with relatively thin margins.
Details of the credit agreement amendment were filed with the SEC on February 18, 2025, in a form 8-K. The company’s stock is traded on the Nasdaq exchange under the ticker symbol HFFG.
The press release also contained forward-looking statements regarding HF Foods’ future results and operational plans. These statements are based on current expectations and are subject to risks and uncertainties that could materially affect the company’s actual performance. HF Foods cautions readers not to place undue reliance on these forward-looking statements, which are only valid as of the date they were made. For deeper insights into HFFG’s financial health and growth prospects, including 10 additional exclusive ProTips and comprehensive financial metrics, visit InvestingPro.
This news report is based on a press release statement from HF Foods Group Inc. and aims to provide investors with a concise overview of the company’s amended credit agreement and its implications for the company’s growth strategy.
In other recent news, HF Foods Group Inc. has formalized a severance agreement with former CEO Xiao Mou (Peter) Zhang, effective as of late October. The agreement, established in November, entitles Zhang to standard severance benefits as per the company’s Amended and Restated Severance Plan, details of which were outlined in HF Foods’ Proxy Statement for the Annual Meeting of Stockholders held in June. Specific terms of Zhang’s severance benefits have not been disclosed by the Las Vegas-based company, but the agreement includes a general release of claims by Zhang against the company, a common practice in executive severance arrangements. The severance agreement was announced as part of a regulatory filing with the Securities and Exchange Commission (SEC), reflecting HF Foods’ commitment to compliance and transparency in its executive transitions. As of now, HF Foods has not announced a successor to Zhang. These are the recent developments concerning the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.