San Miguel Brewery HK Ltd. (0236) AI Stock Analysis

• Market Cap: HK$455.76M
• Dividend Yield: 4.07%
• Average Volume (3M): 34.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: 2.77%
• EPS Growth: -110.76%
• Country: HK
• Employees: 480
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.13
• Shares Outstanding: 373,570,560
• 10 Day Avg. Volume: 40,200
• 30 Day Avg. Volume: 34,629
• PEG Ratio: 0.13
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 6.47
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: HK$1.50 ▲(21.95% Upside)

San Miguel Brewery HK Ltd. faces significant challenges with declining revenue and negative profitability, impacting its financial performance. The stock's technical indicators are neutral, offering no strong momentum signals. Valuation is poor due to negative earnings, though the dividend yield provides some investor appeal. The overall score reflects these mixed factors, with financial performance being the most significant concern.

Positive Factors

Strong Market Position

The company's strong market position in Hong Kong and Macau provides a competitive advantage, allowing it to leverage brand recognition and customer loyalty for sustained revenue.

Robust Balance Sheet

Low leverage and a high equity ratio enhance financial stability, providing flexibility for strategic investments and shielding against economic downturns.

Improved Profitability

The increase in profitability reflects effective cost management and operational efficiency, indicating a positive trend in financial performance.

Negative Factors

Declining Revenue

Decreasing revenue poses a challenge to sustaining growth and profitability, potentially impacting long-term financial health and market competitiveness.

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and cost pressures, which could hinder the company's ability to generate sustainable profits.

Leadership Changes

Frequent leadership changes can disrupt strategic continuity and impact governance, potentially affecting the company's long-term strategic direction.

San Miguel Brewery HK Ltd. Business Overview & Revenue Model

Company Description

San Miguel Brewery Hong Kong Limited manufactures and distributes bottled, canned, and draught beers in Hong Kong, Mainland China, the Philippines, and internationally. It sells its beers under the brand names of San Miguel Pale Pilsen, San Mig Light, San Miguel Cerveza Negra, and San Miguel Cerveza Blanca. The company was founded in 1948 and is based in Shatin, Hong Kong. San Miguel Brewery Hong Kong Limited is a subsidiary of Neptunia Corporation Limited.

How the Company Makes Money

San Miguel Brewery HK Ltd. generates revenue primarily through the sale of its alcoholic and non-alcoholic beverages. The company's key revenue streams include the direct sale of beer to retailers, restaurants, and bars, as well as distribution agreements with local and international partners. The brewery benefits from economies of scale in production and established brand loyalty, which contribute to consistent sales. Additionally, the company engages in promotional campaigns and partnerships with various businesses to enhance its market reach, thus driving sales growth. Seasonal promotions and product launches also play a crucial role in boosting revenue, especially during peak consumption periods such as holidays and festivals.

San Miguel Brewery HK Ltd. Financial Statement Overview

Summary

San Miguel Brewery HK Ltd. faces challenges with declining revenue and negative profitability in 2024, impacting income statement performance. Despite this, the balance sheet remains robust, supported by low leverage and a high equity ratio, while cash flow shows resilience with positive operating and free cash flow. The company must address profitability issues to enhance overall financial health.

Income Statement

San Miguel Brewery HK Ltd. exhibited a decline in revenue growth from 2023 to 2024, with a drop in total revenue from 741.6M to 711.2M HKD. The gross profit margin decreased slightly, and the company experienced a negative net profit margin of -2.83% in 2024, down from 11.58% in 2023. The EBIT and EBITDA margins also turned negative, reflecting operational challenges.

Balance Sheet

The company maintains a strong equity position, with a debt-to-equity ratio of 0.01, indicating low leverage and a high equity ratio of 86.6% in 2024. However, the return on equity dropped significantly due to negative net income, showing a need for profitability improvement.

Cash Flow

Operating cash flow remains positive at 67.7M HKD in 2024, and free cash flow is strong at 48.5M HKD, though it decreased year-over-year. The free cash flow to net income ratio is not meaningful due to negative net income, but operating cash flow to net income ratio indicates stronger cash flow generation relative to net profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	723.35M	711.16M	741.62M	681.16M	595.62M	555.66M
Gross Profit	282.33M	266.13M	285.44M	247.08M	243.04M	243.39M
EBITDA	98.94M	3.08M	91.03M	54.16M	41.94M	22.24M
Net Income	-8.07M	-20.10M	85.90M	32.30M	19.36M	17.23M
Balance Sheet
Total Assets	797.95M	759.21M	807.56M	719.34M	721.08M	743.74M
Cash, Cash Equivalents and Short-Term Investments	249.60M	216.52M	179.98M	114.01M	132.39M	156.11M
Total Debt	6.02M	6.07M	6.49M	6.92M	46.01M	92.94M
Total Liabilities	129.35M	124.41M	135.08M	129.63M	149.98M	200.73M
Stockholders Equity	689.92M	657.20M	696.57M	617.84M	602.84M	576.53M
Cash Flow
Free Cash Flow	68.58M	48.52M	67.46M	21.80M	24.41M	31.58M
Operating Cash Flow	87.76M	67.70M	91.96M	37.16M	37.03M	45.21M
Investing Cash Flow	-27.48M	-21.17M	-17.56M	17.66M	4.50M	-30.96M
Financing Cash Flow	-19.15M	-19.57M	-4.33M	-39.84M	-53.66M	-12.06M

San Miguel Brewery HK Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0236, the sentiment is Negative. The current price of 1.23 is above the 20-day moving average (MA) of 1.23, below the 50-day MA of 1.24, and above the 200-day MA of 1.07, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0236.

San Miguel Brewery HK Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0168	76 Outperform	$81.24B	13.71	14.80%	4.69%	1.51%	5.50%
1876	73 Outperform	HK$101.78B	22.03	5.74%	5.59%	-9.54%	-27.75%
0291	69 Neutral	HK$85.19B	13.62	16.77%	3.42%	-0.31%	10.85%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3839	62 Neutral	HK$1.68B	7.05	12.24%	―	153.95%	551.46%
0236	56 Neutral	HK$455.76M	-56.48	-1.15%	4.07%	2.77%	-110.76%
0828	54 Neutral	HK$359.14M	15.55	7.46%	1.30%	-4.14%	-21.15%