Upbest Group Limited (0335) AI Stock Analysis

• Market Cap: HK$1.88B
• Dividend Yield: 2.86%
• Average Volume (3M): 76.47K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.55
• Revenue Growth: -15.77%
• EPS Growth: -47.32%
• Country: HK
• Employees: 38
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Financial - Capital Markets
• EPS (TTM): 0.02
• Shares Outstanding: 2,682,317,000
• 10 Day Avg. Volume: 87,400
• 30 Day Avg. Volume: 76,466
• 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 (0335) is a financial services company based in Hong Kong, primarily engaged in providing brokerage services, corporate finance, asset management, and margin financing. It caters to a broad range of clients, including individual investors, corporate entities, and institutional clients.

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
	EBIT
24.25M	94.17M	41.91M	84.40M	82.12M	116.88M
	EBITDA
30.67M	98.28M	42.02M	84.48M	82.21M	117.02M
	Net Income Common Stockholders
60.55M	85.73M	100.31M	87.04M	46.23M	47.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
398.21M	307.56M	459.33M	568.39M	816.19M	480.21M
	Total Assets
3.14B	3.07B	3.05B	3.29B	3.47B	3.24B
	Total Debt
0.00	116.25M	139.34M	234.63M	263.35M	283.65M
	Net Debt
-398.21M	-191.30M	-319.99M	-333.76M	-552.84M	-196.56M
	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: 0.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.7 is below the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.70, and below the 200-day MA of 0.75, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 18.75 is Positive, 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
0991	71 Outperform	£56.20B	11.55	17.92%	0.40%	-1.05%	―
1428	68 Neutral	HK$12.83B	22.62	47.60%	4.37%	-5.88%	-18.17%
0393	67 Neutral	HK$1.94B	31.77	2.39%	70.59%	10.83%	41.96%
0335	63 Neutral	HK$1.88B	27.03	2.46%	2.86%	-15.77%	-47.32%
0026	60 Neutral	HK$2.38B	―	-1.88%	0.38%	-1.10%	27.14%
3999	58 Neutral	HK$650.36M	28.91	0.92%	―	-8.33%	-69.38%
Sector *	55 Neutral	HK$24.12B	4.36	-1.73%	9.58%	-0.05%	-66.27%

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.