Upbest Group Limited (0335) AI Stock Analysis

• Market Cap: HK$1.88B
• Dividend Yield: 2.86%
• Average Volume (3M): 94.73K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.52
• Revenue Growth: -15.77%
• EPS Growth: -47.32%
• Country: HK
• Employees: 38
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Financial - Capital Markets
• EPS (TTM): 0.02
• Shares Outstanding: 2,682,317,000
• 10 Day Avg. Volume: 63,400
• 30 Day Avg. Volume: 94,733
• PEG Ratio: 1.21
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.29
• 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: 63 Neutral
• Price Target: ―

Upbest Group Limited shows a strong financial foundation with a robust balance sheet, but faces challenges with declining net income and free cash flow growth. The technical indicators show stability but lack strong momentum, and the high P/E ratio indicates potential overvaluation. These factors contribute to a moderate overall stock score.

Upbest Group Limited Business Overview & Revenue Model

Company Description

Upbest Group Limited, an investment holding company, provides a range of financial services primarily in Hong Kong, Macau, and the People's Republic of China. The company operates through: Broking, Financing, Corporate Finance, Assets Management, Property Investment, Precious Metal Trading, and Investment Holding segments. The Broking segment offers securities and futures brokerage. The Financing segment provides securities margin financing and money lending. The Corporate Finance segment offers corporate finance advisory, placing, and underwriting. The Assets Management segment provides assets management for listed and unlisted companies, and high net worth individuals. The Precious metal trading segment engages in the trading of precious metal. The Investment holding segment involved in share investments. The Property Investment segment involved in the property rental, management, and related businesses. Upbest Group Limited was founded in 1988 and is based in Central, Hong Kong. Upbest Group Limited is a subsidiary of CCAA Group Limited.

How the Company Makes Money

Upbest Group Limited generates revenue through a diversified financial services model. The company earns brokerage commissions from trading activities conducted on behalf of clients in the equity and derivatives markets. Additionally, it provides corporate finance services, including advisory services for mergers and acquisitions, initial public offerings, and other capital market transactions, contributing to its revenue. The asset management segment offers investment products and wealth management services, generating management fees based on the assets under management. Margin financing services also contribute to the company's earnings by providing clients with leveraged trading opportunities, earning interest income on the loans extended.

Upbest Group Limited Financial Statement Overview

Summary

Upbest Group Limited maintains a strong financial position with a robust balance sheet and efficient operational profitability. The income statement shows a solid gross profit margin, but a decline in net income and free cash flow growth are concerns. The low debt-to-equity ratio and high equity ratio provide a solid foundation for future stability.

Income Statement

Upbest Group Limited has demonstrated a steady revenue base with a gross profit margin of 99.87% for the most recent fiscal year. However, net income declined from the previous year, leading to a lower net profit margin of 70.08%. The EBIT margin is robust at 77.01%, indicating strong operational efficiency.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio of 0.04, suggesting minimal leverage risk. The equity ratio is high at 90.86%, indicating a solid capital structure. Return on equity (ROE) stands at 3.07%, which is relatively low, potentially suggesting room for improvement in generating shareholder returns.

Cash Flow

The cash flow position shows positive operating cash flow, yet the operating cash flow to net income ratio is 1.11, indicating efficient cash generation relative to net income. Free cash flow generation is stable, but free cash flow growth has declined compared to previous years.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	53.64M	121.95M	115.48M	127.55M	121.63M	175.72M
Gross Profit	53.54M	122.14M	115.36M	127.47M	121.54M	175.57M
EBITDA	30.67M	98.28M	42.02M	84.48M	82.21M	117.02M
Net Income	60.55M	85.73M	100.31M	87.04M	46.23M	47.74M
Balance Sheet
Total Assets	3.14B	3.07B	3.05B	3.29B	3.47B	3.24B
Cash, Cash Equivalents and Short-Term Investments	398.21M	307.56M	459.33M	568.39M	816.19M	480.21M
Total Debt	0.00	116.25M	139.34M	234.63M	263.35M	283.65M
Total Liabilities	378.37M	281.06M	285.97M	574.47M	812.49M	605.15M
Stockholders Equity	2.77B	2.79B	2.76B	2.72B	2.66B	2.63B
Cash Flow
Free Cash Flow	145.78M	94.69M	182.52M	-201.70M	389.32M	-110.40M
Operating Cash Flow	146.53M	95.43M	183.05M	-201.62M	389.36M	-110.34M
Investing Cash Flow	-200.47M	-190.07M	-18.00K	-82.00K	-38.00K	1.39M
Financing Cash Flow	36.34M	-54.92M	-292.09M	-46.10M	-53.34M	218.03M

Upbest Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0335, the sentiment is Negative. The current price of 0.69 is below the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.70, and below the 200-day MA of 0.75, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0335.

Upbest Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0335	63 Neutral	HK$1.88B	27.03	2.46%	2.86%	-15.77%	-47.32%
Sector *	62 Neutral	$16.79B	10.79	-7.01%	3.04%	1.73%	-25.15%
93W	―	€272.00M	―		―	―	―
ABM	―		―		―	―	―
0952	45 Neutral	HK$1.05B	59.38	-3.62%	―	14.16%	-161.03%
WAY	―	€383.65M	―	-5.86%	―	―	―
0064	60 Neutral	HK$1.92B	36.90	0.66%	6.45%	-37.82%	-104.07%

Upbest Group Limited Corporate Events

Upbest Group Extends Financial Services Collaboration with UBA Investments

Upbest Group Limited and UBA Investments Limited have entered into the 2025 Supplemental Agreements to continue their collaboration in providing securities margin financing, initial public offer financing, and brokerage services. These agreements, classified as continuing connected transactions under Hong Kong’s Listing Rules, entail specific regulatory obligations, including annual reviews and, for certain transactions, approval by UBA’s independent shareholders. This extension of services underscores Upbest’s commitment to sustaining its market positioning and stakeholder engagement within the financial services sector.