Allied Group (0373) AI Stock Analysis

• Market Cap: HK$10.96B
• Dividend Yield: N/A
• Average Volume (3M): 971.61K
• Price to Earnings (P/E): 0.8
• Beta (1Y): 0.35
• Revenue Growth: 99.58%
• EPS Growth: N/A
• Country: HK
• Employees: 5,751
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.48
• Shares Outstanding: 3,513,684,300
• 10 Day Avg. Volume: 1,872,212
• 30 Day Avg. Volume: 971,605
• PEG Ratio: -0.01
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 0.75
• 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: 53 Neutral
• Price Target: HK$3.00 ▲(31.00% Upside)
• Action: Reiterated Date: 01/13/26
• Date: Action: Reiterated 01/13/26

The score is primarily held back by weak financial performance, driven by deteriorating profitability and inconsistent cash generation alongside meaningful leverage. Technicals are supportive due to a clear uptrend, but overbought signals temper that strength. Valuation is moderately positive given the low P/E, but lacks dividend support data.

Positive Factors

Diversified Business Model

The diversified business model helps mitigate risks and capitalize on various market opportunities, providing a stable revenue base across sectors.

Strategic Partnerships

Strategic partnerships enhance market reach and profitability, supporting long-term growth and competitive positioning in diverse sectors.

Revenue Growth

Strong revenue growth indicates effective market expansion and product adoption, which are crucial for sustaining long-term business momentum.

Negative Factors

Leverage-Heavy Balance Sheet

High leverage can increase financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.

Inconsistent Cash Flows

Inconsistent cash flows can hinder financial stability and operational efficiency, making it challenging to sustain long-term investments and growth.

Declining Profitability

Declining profitability undermines financial health and can affect the company's ability to reinvest in its business, impacting long-term growth prospects.

Allied Group Business Overview & Revenue Model

Company Description

Allied Group Limited, an investment holding company, engages in the property investment and development, and financial service businesses in Hong Kong, Mainland China, and internationally. The company operates through Investment and Finance, Consumer Finance, Property Development, Property Investment, Property Management, and Elderly Care Services segments. The Investment and Finance segment is involved in the investment activities; and provision of mortgage loan and term loan financing services. The Consumer Finance segment offers consumer SME and other financing products. The Property Development segment engages in the development and sale of properties. The Property Investment segment is involved in the property rental, as well as hotel operations managed by third parties. The Property Management segment provides property management; and cleaning and security guarding. The Elderly Care Services segment elderly care services. The company also offers property holding; securities trading; money lending; consultancy; real estate agency; investment portfolio; corporate; and building management, maintenance, and cleaning services. In addition, it is involved in the medical equipment supplies distribution activities. The company is based in Wan Chai, Hong Kong. Allied Group Limited is a subsidiary of Lee and Lee Trust.

How the Company Makes Money

Allied Group generates revenue through multiple streams, including the sale of manufactured products, which constitutes a significant portion of its earnings. The company leverages its established distribution networks to reach customers globally, thus driving sales volume. Additionally, Allied Group engages in strategic partnerships with other companies to co-develop products and share resources, enhancing its market presence and reducing operational costs. The company's investments in emerging technologies and markets further contribute to its revenue, allowing it to capitalize on new business opportunities and trends in consumer demand.

Allied Group Financial Statement Overview

Summary

Overall fundamentals are pressured: the income statement reflects declining revenue/profitability with a recent sharp net income drop and negative margin, while cash flows are inconsistent with periods of negative operating and free cash flow. The balance sheet is comparatively steadier (moderate equity ratio) but leverage is significant, adding risk.

Income Statement

The income statement reveals a volatile performance with declining revenue and profitability trends. The most recent year shows a sharp decline in net income, resulting in a negative net profit margin. Despite some periods of positive EBIT margins, the overall trajectory suggests challenges in maintaining stable revenue growth and profitability.

Balance Sheet

The balance sheet shows a moderate level of stability with a reasonable equity ratio. However, the debt-to-equity ratio indicates a significant leverage, which could pose risks if not managed carefully. The overall equity has been relatively stable, but there is room for improvement in reducing debt levels to enhance financial health.

Cash Flow

Cash flow analysis indicates inconsistency, with periods of negative free cash flow and operating cash flow. The operating cash flow to net income ratio is difficult to assess due to negative net income figures, highlighting a need for better cash management and profitability alignment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.28B	6.46B	7.30B	8.26B	6.02B	4.95B
Gross Profit	14.28B	6.46B	4.04B	3.63B	4.61B	4.15B
EBITDA	7.28B	2.35B	1.06B	1.15B	4.82B	4.34B
Net Income	1.13B	-776.70M	-125.40M	-1.22B	6.69B	2.04B
Balance Sheet
Total Assets	111.40B	113.96B	113.82B	113.25B	120.31B	70.34B
Cash, Cash Equivalents and Short-Term Investments	19.93B	15.14B	14.70B	20.36B	10.90B	7.90B
Total Debt	9.03B	8.68B	24.76B	24.55B	29.50B	19.92B
Total Liabilities	42.37B	48.19B	46.42B	45.04B	46.46B	21.37B
Stockholders Equity	44.63B	42.52B	43.54B	43.11B	46.21B	37.02B
Cash Flow
Free Cash Flow	5.21B	6.79B	1.03B	12.28B	-1.11B	2.22B
Operating Cash Flow	5.41B	7.04B	1.24B	12.39B	-1.00B	2.29B
Investing Cash Flow	77.30M	-1.19B	3.38B	-4.51B	2.55B	1.09B
Financing Cash Flow	-5.30B	-5.19B	-1.11B	-5.99B	490.30M	-2.56B

Allied Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0373, the sentiment is Neutral. The current price of 2.29 is below the 20-day moving average (MA) of 3.39, below the 50-day MA of 3.03, and above the 200-day MA of 2.29, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 31.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0373.

Allied Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0086	71 Outperform	HK$8.39B	1.88	5.71%	6.47%	28.71%	―
1905	71 Outperform	HK$6.67B	5.14	7.87%	11.28%	0.59%	-5.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1601	64 Neutral	HK$1.36B	2.30	9.82%	7.43%	1.11%	3.98%
2003	58 Neutral	HK$802.07M	1.97	12.27%	9.77%	16.56%	110.71%
0373	53 Neutral	HK$10.96B	0.84	2.59%	―	99.58%	―