Safety Godown Co., Ltd. (0237) AI Stock Analysis

• Market Cap: HK$822.15M
• Dividend Yield: 3.94%
• Average Volume (3M): 30.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -7.47%
• EPS Growth: -300.57%
• Country: HK
• Employees: 35
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.04
• Shares Outstanding: 405,000,000
• 10 Day Avg. Volume: 70,609
• 30 Day Avg. Volume: 30,069
• PEG Ratio: -0.02
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 4.45
• P/FCF Ratio: 200.95
• 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: 50 Neutral
• Price Target: ―

Safety Godown Co., Ltd. maintains a strong equity position and revenue growth, but persistent net losses and declining profitability are significant concerns. Weak technical indicators and a negative P/E ratio further challenge the stock's attractiveness, though the robust dividend yield offers some compensation. Overall, the company's financial stability is overshadowed by its need to improve profitability and regain positive market sentiment.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for the company's services and effective market positioning, supporting long-term expansion.

Balance Sheet Health

A robust balance sheet with no debt enhances financial stability, providing flexibility for future investments and resilience against economic downturns.

Cash Flow Generation

Positive operating cash flow supports the company's ability to fund operations and invest in growth opportunities, despite net losses.

Negative Factors

Profitability Challenges

Persistent profitability issues can hinder long-term financial health and limit the company's ability to reinvest in business growth.

Net Losses

Ongoing net losses undermine financial stability and investor confidence, necessitating strategic changes to improve profitability.

Negative Free Cash Flow to Net Income Ratio

Negative free cash flow to net income ratio indicates that the company struggles to convert earnings into cash, impacting its ability to fund future operations.

Safety Godown Co., Ltd. Business Overview & Revenue Model

Company Description

Safety Godown Company, Limited, an investment holding company, engages in leasing of investment properties in Hong Kong. The company operates through Godown Operations, Property Investment, and Treasury Investment segments. It is involved in the operation of godowns; and securities trading and investment activities. The company was incorporated in 1960 and is based in Kwun Tong, Hong Kong.

How the Company Makes Money

Safety Godown Co., Ltd. generates revenue through its dual business model consisting of godown operations and property investment. The godown operation segment involves providing warehousing services, where the company charges clients for the storage and handling of various types of goods. The property investment segment contributes to the company's revenue by leasing out industrial and commercial properties, earning rental income. Significant factors contributing to its earnings include the strategic locations of its properties and the demand for storage solutions in the region. The company may also engage in partnerships or investments that enhance its property portfolio and service offerings, although specific details on such partnerships are null.

Safety Godown Co., Ltd. Financial Statement Overview

Summary

Safety Godown Co., Ltd. demonstrates strong revenue growth and a robust balance sheet with no debt, reflecting financial stability. However, persistent net losses and profitability challenges pose significant risks. The company needs to focus on improving its net profit margins to enhance overall financial health and market competitiveness.

Income Statement

The company has shown revenue growth of 20.24% from 2023 to 2024 and improving EBIT and EBITDA margins at 56.89% and 70.27%, respectively. However, the company is facing challenges with profitability, as indicated by the negative net profit margin of -69.20% in 2024. This persisting net loss is a significant concern for the financial health of the company.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 95.89% and no debt, indicating financial stability and low leverage risk. However, the negative net income affects the ROE, which remains negative, highlighting profitability issues despite strong asset management.

Cash Flow

There is a modest increase in free cash flow from 2023 to 2024, with a growth rate of 1.77%. The operating cash flow to net income ratio is positive, indicating healthy operating cash flow despite net losses. However, the free cash flow to net income ratio is negative due to the consistent net losses, suggesting that profitability remains a key challenge.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	168.15M	177.46M	177.19M	147.35M	123.25M	110.09M
Gross Profit	0.00	177.46M	123.22M	96.88M	69.89M	64.18M
EBITDA	117.09M	156.73M	154.98M	128.52M	106.05M	94.35M
Net Income	-283.25M	-265.51M	-122.65M	-188.29M	-84.54M	-147.58M
Balance Sheet
Total Assets	3.73B	3.75B	4.05B	4.06B	4.18B	4.47B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.11B	1.04B	961.26M	947.31M	1.09B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	182.03M	163.46M	166.22M	155.46M	147.82M	143.61M
Stockholders Equity	3.55B	3.58B	3.88B	3.90B	4.03B	4.32B
Cash Flow
Free Cash Flow	156.84M	3.93M	62.30M	61.22M	60.25M	60.97M
Operating Cash Flow	155.25M	9.64M	77.27M	72.12M	69.66M	80.60M
Investing Cash Flow	37.54M	21.66M	-136.07M	-263.22M	-114.30M	263.47M
Financing Cash Flow	-32.32M	-30.63M	-22.23M	-32.24M	-210.04M	-48.49M

Safety Godown Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.03
• 50DMA: Positive
• 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:0237, the sentiment is Positive. The current price of 2.03 is above the 20-day moving average (MA) of 2.02, above the 50-day MA of 2.02, and above the 200-day MA of 1.95, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0237.

Safety Godown Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0898	66 Neutral	HK$827.71M	2.40	4.18%	4.04%	-2.19%	78.43%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0212	52 Neutral	HK$1.02B	-13.51	-1.49%	3.67%	7.59%	37.46%
0237	50 Neutral	HK$822.15M	-2.90	-7.65%	3.94%	-7.47%	-300.57%
0266	50 Neutral	HK$992.19M	-8.30	-3.04%	6.22%	-3.09%	62.33%
0224	46 Neutral	HK$634.72M	-6.28	-1.42%	―	-6.24%	34.53%