Chow Sang Sang Holdings International (0116) AI Stock Analysis

• Market Cap: HK$8.15B
• Dividend Yield: 4.6%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.51
• Revenue Growth: -10.41%
• EPS Growth: 67.25%
• Country: HK
• Employees: 11,005
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 1.35
• Shares Outstanding: 671,712,000
• 10 Day Avg. Volume: 626,095
• 30 Day Avg. Volume: 1,352,397
• PEG Ratio: -0.27
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 2.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 17.58
• Revenue Forecast (FY): HK$167.86B

• Rating: 61 Neutral
• Price Target: HK$13.00 ▼(-9.60% Downside)

The overall stock score of 61 reflects a combination of stable financial performance and attractive valuation, offset by weak technical indicators. The company's strong equity base and moderate leverage are positives, but challenges in revenue and cash flow growth pose risks. The stock's current bearish trend and low momentum further weigh on the score, despite its potential undervaluation and attractive dividend yield.

Positive Factors

Strong Equity Base

A strong equity base with low leverage enhances financial stability, providing a solid foundation for long-term growth and resilience.

Operational Efficiency

Consistent operational efficiency supports sustainable profitability, allowing the company to maintain competitive pricing and reinvest in growth.

Reputation and Customer Loyalty

Strong brand reputation and customer loyalty drive repeat business and market share, supporting long-term revenue stability and growth.

Negative Factors

Revenue Decline

Inconsistent revenue growth indicates challenges in market expansion, which could hinder long-term profitability and competitive positioning.

Cash Flow Volatility

Volatile cash flow can strain liquidity management, affecting the company's ability to invest in growth opportunities and meet financial obligations.

Market Expansion Challenges

Challenges in expanding market presence may limit revenue growth and competitive advantage, impacting long-term business sustainability.

Chow Sang Sang Holdings International Business Overview & Revenue Model

Company Description

Chow Sang Sang Holdings International Limited is a prominent Hong Kong-based jewelry retailer and manufacturer, primarily engaged in the design, production, and sale of gold, platinum, and diamond jewelry. The company operates a network of retail stores throughout Hong Kong, Macau, and mainland China, catering to a diverse clientele. In addition to its retail operations, Chow Sang Sang also engages in the wholesale distribution of jewelry and offers related services, positioning itself as a leading player in the luxury goods sector.

How the Company Makes Money

Chow Sang Sang generates revenue primarily through the sale of its jewelry products across various retail outlets. The company's revenue model is heavily reliant on direct sales to consumers, which includes gold and diamond jewelry, as well as customized designs. Key revenue streams include in-store sales, online sales through their e-commerce platforms, and wholesale distribution to other retailers. The company benefits from significant partnerships with suppliers and manufacturers, enabling it to maintain a robust supply chain and competitive pricing. Seasonal promotions, festive collections, and loyalty programs also contribute to customer retention and drive sales, particularly during peak shopping periods such as Chinese New Year and weddings. Additionally, the company's reputation for quality and craftsmanship helps to attract a loyal customer base, ultimately bolstering its earnings.

Chow Sang Sang Holdings International Financial Statement Overview

Summary

Chow Sang Sang Holdings International has a stable financial foundation with a strong equity base and moderate leverage. However, inconsistent revenue and cash flow growth pose challenges to future profitability and liquidity. Operational efficiency is a strength, but strategic improvements are needed.

Income Statement

The company has maintained a stable gross profit margin over the years with an average of around 25-26%. The net profit margin has shown some fluctuation but remains moderate, reflecting consistent profitability. Revenue growth has been inconsistent, with declines in recent years, suggesting potential challenges in market expansion. The EBIT and EBITDA margins indicate healthy operational efficiency, although there is room for improvement.

Balance Sheet

The company's debt-to-equity ratio is relatively low, indicating a conservative approach to leverage. The return on equity has been moderate, which reflects a steady return on investments made by shareholders. The equity ratio is strong, suggesting a solid asset base primarily financed by equity, which enhances financial stability.

Cash Flow

Cash flow performance has been volatile, with significant fluctuations in free cash flow, especially in recent years where it turned negative. This inconsistency may pose risks to liquidity management. The operating cash flow has generally been positive, though its growth has not been consistent, indicating challenges in converting revenue into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.90B	21.18B	25.01B	20.56B	21.99B	15.00B
Gross Profit	6.49B	5.99B	6.60B	5.54B	5.52B	4.35B
EBITDA	1.97B	2.10B	2.42B	1.55B	1.88B	1.95B
Net Income	1.18B	805.58M	1.01B	452.33M	643.26M	544.46M
Balance Sheet
Total Assets	21.34B	19.65B	19.16B	18.65B	18.09B	16.83B
Cash, Cash Equivalents and Short-Term Investments	1.34B	1.35B	1.11B	762.96M	681.75M	1.66B
Total Debt	6.19B	5.96B	5.62B	5.62B	4.12B	3.08B
Total Liabilities	7.62B	7.27B	6.99B	6.78B	5.35B	4.81B
Stockholders Equity	13.77B	12.43B	12.20B	11.89B	12.75B	12.02B
Cash Flow
Free Cash Flow	1.27B	1.56B	1.71B	-396.95M	-1.18B	2.05B
Operating Cash Flow	1.43B	1.78B	2.16B	9.40M	-732.41M	2.31B
Investing Cash Flow	-150.10M	-175.15M	-409.07M	-347.44M	-401.18M	-109.94M
Financing Cash Flow	-1.27B	-1.34B	-1.39B	417.98M	133.61M	-1.61B

Chow Sang Sang Holdings International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0116, the sentiment is Positive. The current price of 14.38 is above the 20-day moving average (MA) of 12.13, above the 50-day MA of 12.52, and above the 200-day MA of 10.28, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 50.05 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0116.

Chow Sang Sang Holdings International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0590	77 Outperform	HK$14.24B	11.19	9.54%	4.43%	10.89%	2.02%
0887	69 Neutral	HK$1.67B	5.99	5.10%	4.05%	6.60%	-14.32%
1929	64 Neutral	HK$127.16B	21.47	23.74%	4.21%	-9.49%	32.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0116	61 Neutral	HK$8.15B	6.84	9.13%	4.60%	-10.41%	67.25%
1815	57 Neutral	HK$3.49B	49.08	3.54%	―	-23.48%	―
0256	48 Neutral	HK$844.27M	-2.60	-7.92%	―	-18.07%	-1041.89%