Tomson Group Limited (0258) AI Stock Analysis

• Market Cap: HK$6.35B
• Dividend Yield: 5.22%
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.20
• Revenue Growth: 590.98%
• EPS Growth: 538.64%
• Country: HK
• Employees: 430
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 0.36
• Shares Outstanding: 2,259,023,200
• 10 Day Avg. Volume: 1,750,679
• 30 Day Avg. Volume: 1,532,327
• PEG Ratio: 0.12
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 15.68
• P/FCF Ratio: -2.90
• 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: 58 Neutral
• Price Target: HK$3.00 ▲(15.38% Upside)

The overall stock score is primarily influenced by strong valuation metrics, with a low P/E ratio and high dividend yield suggesting potential undervaluation. However, financial performance is hindered by declining revenues and negative cash flows, which pose risks to future stability. Technical analysis indicates weak momentum, further weighing on the stock's outlook.

Positive Factors

Strong Profitability

The significant improvement in net profit margin indicates effective cost management and enhanced profitability, which supports long-term financial health.

Solid Balance Sheet

A robust balance sheet with low leverage and high equity provides financial stability and flexibility, crucial for navigating economic uncertainties.

Diversified Revenue Streams

Diversified revenue sources across real estate and hospitality sectors reduce dependency on a single income stream, enhancing resilience against market fluctuations.

Negative Factors

Declining Revenue

The decline in revenue poses a challenge to growth prospects, indicating potential issues in market demand or competitive positioning that need addressing.

Negative Cash Flow

Persistent negative cash flow highlights potential liquidity issues, which could impact the company's ability to fund operations and invest in growth opportunities.

Revenue Growth Challenges

Ongoing challenges in achieving positive revenue growth may limit the company's ability to expand and capitalize on market opportunities, affecting long-term competitiveness.

Tomson Group Limited Business Overview & Revenue Model

Company Description

Tomson Group Limited, an investment holding company, engages in property development and investment, hospitality and leisure, securities trading, and media and entertainment investment businesses in Hong Kong, Macau, and Mainland China. It develops commercial, residential, and industrial properties; and offers property management services. The company also operates Tomson Shanghai Pudong golf club located in Huamu District of Pudong, Shanghai; and holds interest in a hotel situated in Lujiazui of Pudong. In addition, it provides nominee and secretarial, and administrative services. Further, the company engages in the investment and production of live entertainment shows; film distribution business; and trademark holding activities. Tomson Group Limited was incorporated in 1990 and is based in Central, Hong Kong.

How the Company Makes Money

Tomson Group Limited generates revenue through multiple streams, primarily from the leasing and sale of its real estate properties. The company earns significant income from its residential and commercial property developments, which are either sold or leased to tenants. Additionally, the group generates revenue from its hospitality sector through the operation of hotels and related services. Partnerships with local and international developers, as well as strategic alliances for joint ventures, enhance its project capabilities and market reach. The company's diversified portfolio and strategic investments in high-demand areas contribute to its overall earnings.

Tomson Group Limited Financial Statement Overview

Summary

Tomson Group Limited showcases strong profitability with improving margins and a solid balance sheet, characterized by low debt levels and high equity. However, declining revenues and negative cash flows present challenges that may impact future performance. The company should focus on reversing revenue declines and improving cash flow generation to enhance financial stability.

Income Statement

The company has experienced a decline in revenue over recent years, with the latest decrease from $513.81M in 2023 to $393.73M in 2024, reflecting a negative revenue growth rate. Gross profit margin remains strong at 85.54% in 2024, indicating effective cost management. However, the net profit margin has improved significantly from 8.31% in 2023 to 44.91% in 2024, primarily due to the increase in net income. Overall, the income statement shows strong profitability but declining revenue is a concern.

Balance Sheet

The balance sheet is robust with a high equity ratio of 56.96%, demonstrating financial stability and a conservative approach to leverage. The debt-to-equity ratio remains low at 0.10, indicating a low level of financial risk. Return on equity improved from 0.36% in 2023 to 1.50% in 2024, reflecting enhanced profitability. The company's strong equity position provides a solid foundation, although asset growth has been modest.

Cash Flow

The cash flow statement reveals challenges, with operating cash flow consistently negative recently, notably from -$299.90M in 2023 to $0 in 2024. Free cash flow has also been volatile, reflecting operational inefficiencies or significant capital expenditures. The lack of positive free cash flow growth is a concern for long-term sustainability. This negative trend in cash flow metrics highlights potential liquidity issues that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.91B	393.73M	513.81M	596.13M	942.31M	1.17B
Gross Profit	2.07B	336.75M	357.51M	450.42M	839.71M	738.42M
EBITDA	1.80B	285.26M	190.27M	292.29M	632.25M	494.24M
Net Income	855.31M	176.79M	42.68M	17.17M	283.45M	174.99M
Balance Sheet
Total Assets	21.67B	20.64B	18.36B	18.80B	20.53B	20.39B
Cash, Cash Equivalents and Short-Term Investments	6.61B	2.19B	3.59B	4.02B	4.56B	3.81B
Total Debt	1.48B	1.12B	393.30M	246.66M	306.08M	1.04B
Total Liabilities	8.69B	8.75B	6.22B	6.09B	6.70B	7.17B
Stockholders Equity	12.85B	11.76B	12.01B	12.39B	13.50B	12.89B
Cash Flow
Free Cash Flow	654.87M	-2.13B	-302.32M	-75.81M	251.38M	430.89M
Operating Cash Flow	658.65M	-2.12B	-299.90M	130.83M	257.63M	501.52M
Investing Cash Flow	-50.33M	144.11M	102.81M	-89.25M	1.44B	166.81M
Financing Cash Flow	337.89M	669.38M	-100.60M	-161.84M	-879.69M	-559.35M

Tomson Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0258, the sentiment is Neutral. The current price of 2.6 is below the 20-day moving average (MA) of 2.60, above the 50-day MA of 2.60, and below the 200-day MA of 2.83, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 65.14 is Neutral, neither overbought nor oversold. The STOCH value of 86.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0258.

Tomson Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0258	58 Neutral	HK$6.35B	7.14	6.94%	5.22%	590.98%	538.64%
0041	53 Neutral	HK$11.51B	-6.33	-3.35%	5.93%	1.37%	-157.43%
0978	50 Neutral	HK$1.35B	-0.71	-20.96%	4.36%	-16.06%	-529.92%
0242	49 Neutral	HK$2.02B	-3.86	-1.67%	―	-21.25%	24.06%
0480	48 Neutral	HK$1.69B	-2.14	-3.56%	―	72.75%	25.44%

Tomson Group Limited Corporate Events

Tomson Group Sets Formal Mandate for Board Remuneration Committee

Tomson Group Limited has formally established a Remuneration Committee under its board of directors, setting out detailed terms of reference that define its composition, authority and operating procedures. The committee, to be majority independent and chaired by an independent non-executive director, is empowered to obtain information from staff and seek external professional advice, and is tasked with recommending and approving policies and packages for directors’ and senior management remuneration, including benefits, pensions, termination compensation and share scheme matters, with safeguards to prevent directors from setting their own pay. This move strengthens the company’s corporate governance and transparency around pay practices, aligning compensation with corporate goals and market benchmarks while ensuring arrangements are fair, reasonable and compliant with Hong Kong listing requirements.

The most recent analyst rating on (HK:0258) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Tomson Group Limited stock, see the HK:0258 Stock Forecast page.