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

• Market Cap: HK$826.20M
• Dividend Yield: 5.88%
• Average Volume (3M): 99.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: 8.19%
• EPS Growth: 32.85%
• Country: HK
• Employees: 35
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Services
• EPS (TTM): -0.66
• Shares Outstanding: 405,000,000
• 10 Day Avg. Volume: 269,000
• 30 Day Avg. Volume: 99,209
• PEG Ratio: 0.11
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.19
• 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

• 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.

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

Company Description

Safety Godown Co., Ltd. (0237) is a Hong Kong-based company primarily engaged in the business of warehousing and property investment. The company operates in two main segments: the godown operation and property investment. Its core services include providing storage and handling services for a wide range of goods, alongside investment and leasing of industrial and commercial properties to generate rental income.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	207.09M	177.19M	147.35M	123.25M	110.09M	137.93M
Gross Profit	178.06M	123.22M	96.88M	69.89M	64.18M	93.51M
EBITDA	130.24M	124.52M	102.45M	77.40M	70.59M	94.24M
Net Income	-70.72M	-122.65M	-188.29M	-84.54M	-147.58M	-292.53M
Balance Sheet
Total Assets	4.33B	4.05B	4.06B	4.18B	4.47B	4.66B
Cash, Cash Equivalents and Short-Term Investments	215.18M	1.04B	961.26M	947.31M	1.09B	1.04B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	133.75M	166.22M	155.46M	147.82M	143.61M	138.79M
Stockholders Equity	4.20B	3.88B	3.90B	4.03B	4.32B	4.52B
Cash Flow
Free Cash Flow	26.58M	62.30M	61.22M	60.25M	60.97M	36.72M
Operating Cash Flow	33.77M	77.27M	72.12M	69.66M	80.60M	54.35M
Investing Cash Flow	-12.19M	-136.07M	-263.22M	-114.30M	263.47M	187.91M
Financing Cash Flow	-28.59M	-22.23M	-32.24M	-210.04M	-48.49M	-145.47M

Safety Godown Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2.06 is above the 20-day moving average (MA) of 1.94, above the 50-day MA of 1.90, and above the 200-day MA of 1.87, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 74.35 is Negative, neither overbought nor oversold. The STOCH value of 93.93 is Negative, 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
0113	76 Outperform	$2.66B	13.65	5.58%	2.91%	-19.93%	-43.35%
0016	74 Outperform	HK$260.37B	14.75	2.88%	4.23%	20.91%	-29.29%
0083	69 Neutral	$79.15B	20.82	2.17%	1.73%	-30.38%	-43.73%
0012	69 Neutral	HK$125.39B	19.84	1.94%	10.04%	-7.64%	-32.01%
0017	56 Neutral	$13.77B	―	-10.34%	8.79%	-56.64%	-3398.20%
Sector *	54 Neutral	$1.17B	3.57	0.13%	7.12%	-2.13%	-128.06%
0237	50 Neutral	HK$826.20M	―	-7.11%	5.88%	8.19%	32.85%