SEA Holdings Ltd. (0251) AI Stock Analysis

• Market Cap: HK$812.87M
• Dividend Yield: 3.85%
• Average Volume (3M): 7.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• Revenue Growth: -1.26%
• EPS Growth: 54.17%
• Country: HK
• Employees: 190
• Sector: Industrials
• Sector Strength: 72
• Industry: Real Estate - Diversified
• EPS (TTM): -0.27
• Shares Outstanding: 602,122,740
• 10 Day Avg. Volume: 6,600
• 30 Day Avg. Volume: 7,266
• PEG Ratio: 0.08
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 2.08
• P/FCF Ratio: 2.36
• 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: HK$1.50 ▲(16.28% Upside)

The overall stock score is primarily influenced by financial performance challenges, including negative net income and high leverage. Technical analysis provides a neutral outlook with mild bullish momentum, while valuation reflects risk due to negative earnings despite a decent dividend yield.

Positive Factors

Strong Gross Margins

High gross margins indicate effective cost management and pricing power, which can support profitability as the company addresses other financial challenges.

Strategic Partnerships

Collaborations with other developers and financial institutions allow the company to leverage expertise and share risks, supporting long-term growth and stability.

Operational Efficiency

A healthy EBIT margin suggests the company is managing its core operations effectively, which is crucial for improving overall profitability and financial health.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting flexibility and increasing vulnerability to interest rate changes, which could impact long-term sustainability.

Negative Net Income

Negative net income reflects ongoing challenges in covering costs, which can hinder reinvestment in growth opportunities and affect long-term financial health.

Declining Revenue

A trend of declining revenue can signal market share loss or demand issues, posing a risk to future growth and requiring strategic adjustments to reverse the trend.

SEA Holdings Ltd. Business Overview & Revenue Model

Company Description

S E A Holdings Limited, an investment holding company, engages in the investment and development of properties in Hong Kong, Australia, and the United Kingdom. The company operates through Property Development, Property Investment, Hotel Operation, and Financial Investment segments. It provides financial investment, treasury, bond issuance, and corporate and property management services, as well as operates hotels. The company was founded in 1956 and is headquartered in Wanchai, Hong Kong. S E A Holdings Limited is a subsidiary of Nan Luen International Limited.

How the Company Makes Money

SEA Holdings generates revenue primarily through property sales, rental income, and property management services. The company profits from the sale of developed residential and commercial properties, which can yield substantial returns upon completion and sale. Additionally, SEA Holdings earns recurring income from leasing its investment properties, providing a steady cash flow. The firm may also have partnerships with other developers and investors, enhancing its market reach and resource access. Economic conditions, property demand, and effective project management play significant roles in driving the company's earnings.

SEA Holdings Ltd. Financial Statement Overview

Summary

SEA Holdings Ltd. shows strong gross margins but faces challenges with negative net income and high leverage. The fluctuating cash flows and declining assets indicate financial instability, requiring strategic management to improve revenue streams and reduce debt.

Income Statement

SEA Holdings Ltd. has experienced declining revenue over the past few years, with a slight recovery in the latest fiscal year. The company has a strong gross profit margin of 100% for 2024 due to negligible cost of goods sold. However, the net profit margin remains negative, indicating ongoing challenges in controlling costs or generating sufficient revenue to cover expenses. The EBIT margin is healthy, reflecting operational efficiency, but overall profitability is hindered by substantial interest or other non-operating expenses.

Balance Sheet

The balance sheet shows a relatively high debt-to-equity ratio, indicating significant leverage and potential financial risk if not managed properly. The equity ratio is around 35%, showing a moderate level of equity financing. The company's total assets have been declining, which could indicate asset sales or impairments, impacting long-term growth potential.

Cash Flow

Cash flow analysis reveals fluctuating operating cash flows over the years, with negative free cash flow in the latest fiscal year. The inconsistent free cash flow growth rate signals potential challenges in generating cash to support business operations and investments. The absence of operating cash flow in 2024 may indicate operational inefficiency or timing issues in cash collections.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	425.07M	414.13M	413.79M	373.95M	530.58M	605.71M
Gross Profit	425.07M	353.68M	346.58M	284.95M	451.80M	548.00M
EBITDA	244.23M	246.25M	-456.14M	-120.75M	342.72M	470.49M
Net Income	-224.07M	-136.73M	-853.75M	-383.66M	70.16M	150.97M
Balance Sheet
Total Assets	10.88B	11.11B	12.14B	13.79B	14.37B	16.96B
Cash, Cash Equivalents and Short-Term Investments	2.15B	2.46B	2.48B	2.59B	3.30B	4.27B
Total Debt	5.23B	7.01B	7.83B	8.35B	8.45B	10.49B
Total Liabilities	7.00B	7.18B	8.06B	9.10B	8.91B	10.72B
Stockholders Equity	3.89B	3.92B	4.09B	4.69B	5.46B	6.24B
Cash Flow
Free Cash Flow	-79.36M	364.57M	204.18M	60.61M	111.84M	161.43M
Operating Cash Flow	-62.06M	377.66M	228.64M	65.21M	141.81M	460.55M
Investing Cash Flow	239.61M	797.59M	880.20M	-734.30M	1.63B	1.98B
Financing Cash Flow	-695.96M	-1.17B	-1.13B	196.26M	-2.45B	-4.10B

SEA Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0251, the sentiment is Positive. The current price of 1.29 is below the 20-day moving average (MA) of 1.30, above the 50-day MA of 1.28, and above the 200-day MA of 1.28, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 77.67 is Negative, neither overbought nor oversold. The STOCH value of 35.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0251.

SEA Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0672	52 Neutral	HK$676.30M	29.27	0.21%	―	-43.28%	-93.81%
0251	50 Neutral	HK$812.87M	-3.63	-5.69%	3.85%	-1.26%	54.17%
0978	50 Neutral	HK$1.35B	-0.71	-20.96%	4.36%	-16.06%	-529.92%
0480	50 Neutral	HK$1.62B	-2.05	-3.56%	―	72.75%	25.44%
0488	41 Neutral	HK$872.00M	-0.29	-11.79%	―	-18.16%	21.78%
3377	39 Underperform	HK$1.19B	-0.16	-154.48%	―	-57.94%	45.77%