Vongroup Limited (0318) AI Stock Analysis

• Market Cap: HK$124.58M
• Dividend Yield: N/A
• Average Volume (3M): 12.31K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.23
• Revenue Growth: 4.19%
• EPS Growth: -52.73%
• Country: HK
• Employees: 36
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 270,827,300
• 10 Day Avg. Volume: 15,675
• 30 Day Avg. Volume: 12,310
• PEG Ratio: -0.16
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -8.33
• 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: HK$0.50
• Price Target Upside: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: HK$0.50 ▲(8.70% Upside)

Vongroup Limited's strong valuation and bullish technical indicators are offset by financial performance concerns, particularly in cash flow management. The stock's undervaluation and positive price trends are significant strengths, but potential liquidity issues and overbought technical signals warrant caution.

Vongroup Limited Business Overview & Revenue Model

Company Description

Vongroup Limited, an investment holding company, engages in the technology and management, financial services, and property businesses in Hong Kong, Mainland China, Macau, Thailand, Indonesia, and internationally. The company operates through three segments: Technology & Management, Property, and Financial services. It is also involved in the consumer finance, securities trading services, and related activities; and acquiring, managing, operating, and renting undervalued commercial, residential, and carpark properties. Vongroup Limited is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

Vongroup Limited generates revenue through multiple streams, primarily from its property development and investment segments. The company earns income by developing residential and commercial properties, leasing them out, and managing property assets. Additionally, Vongroup engages in financial services, which contribute to its revenue through asset management and advisory fees. Strategic partnerships with local and international developers and financial institutions further bolster its earnings, allowing the company to leverage shared resources and expertise in its operations.

Vongroup Limited Financial Statement Overview

Summary

Vongroup Limited shows strong revenue growth and gross profit margins, but declining net profit margins and cash flow challenges pose risks. The balance sheet is robust with low leverage, but the company needs to improve cash flow management to sustain long-term growth and profitability.

Income Statement

Vongroup Limited has demonstrated consistent revenue growth over the years, with a notable gross profit margin of 95.95% in the latest period, indicating strong cost management. However, the net profit margin has decreased from 10.32% to 4.94%, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins have also shown a downward trend, which could impact future profitability.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.08, reflecting prudent financial management and low leverage risk. The return on equity has decreased over time, currently at 2.08%, which may indicate challenges in generating returns from equity. The equity ratio remains strong, suggesting a stable asset base.

Cash Flow

Cash flow performance is a concern, with negative operating and free cash flows in the latest period. The free cash flow to net income ratio is high at 4.72, indicating that cash generation is not aligned with reported profits. The negative growth in free cash flow highlights potential liquidity issues that need to be addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	213.12M	213.12M	204.75M	201.61M	193.23M	110.69M
Gross Profit	204.49M	204.49M	186.43M	188.24M	176.72M	102.23M
EBITDA	39.18M	29.43M	34.98M	30.76M	31.57M	22.96M
Net Income	10.52M	10.52M	21.12M	13.51M	20.04M	20.24M
Balance Sheet
Total Assets	624.90M	624.90M	620.83M	609.36M	591.60M	451.06M
Cash, Cash Equivalents and Short-Term Investments	28.54M	28.54M	59.59M	106.80M	89.02M	42.62M
Total Debt	42.83M	42.83M	53.01M	46.40M	70.95M	22.14M
Total Liabilities	62.80M	62.80M	74.32M	80.65M	108.19M	37.14M
Stockholders Equity	506.25M	506.25M	496.09M	471.40M	451.82M	413.92M
Cash Flow
Free Cash Flow	-2.32M	-10.89M	-52.97M	42.72M	-3.76M	19.35M
Operating Cash Flow	-2.31M	-2.31M	-28.21M	42.72M	-3.75M	19.38M
Investing Cash Flow	-14.10M	-14.10M	-24.45M	-158.00K	2.31M	224.00K
Financing Cash Flow	-5.82M	-5.82M	-5.05M	-3.86M	22.07M	-2.48M

Vongroup Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.46
• 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:0318, the sentiment is Positive. The current price of 0.46 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.40, and above the 200-day MA of 0.36, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 89.78 is Negative, neither overbought nor oversold. The STOCH value of 85.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0318.

Vongroup Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0318	72 Outperform	HK$124.58M	11.83	2.10%	―	4.19%	-52.73%
8319	68 Neutral	HK$89.16M	6.38	8.06%	6.47%	-9.11%	-8.90%
8033	68 Neutral	HK$81.94M	5.64	6.73%	7.52%	-1.57%	-18.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8606	51 Neutral	HK$101.21M	―	-1.95%	―	5.01%	82.54%
1949	46 Neutral	HK$196.80M	―	-83.97%	―	-78.41%	-3511.76%
0465	41 Neutral	HK$115.16M	―	-29.34%	―	-18.19%	4.52%

Vongroup Limited Corporate Events

Vongroup Limited Announces Change in Hong Kong Share Registrar

Vongroup Limited, a company incorporated in the Cayman Islands, has announced a change in its Hong Kong share registrar and transfer office, effective from July 3, 2025. The new registrar will be Tricor Investor Services Limited. This change signifies a strategic move in the company’s administrative operations, potentially impacting how stakeholders manage their share transactions and collections.