Allied Group (0373) AI Stock Analysis

• Market Cap: HK$5.66B
• Dividend Yield: N/A
• Average Volume (3M): 138.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: 12.85%
• EPS Growth: -519.33%
• Country: HK
• Employees: 5,751
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Credit Services
• EPS (TTM): -0.22
• Shares Outstanding: 3,513,684,300
• 10 Day Avg. Volume: 149,200
• 30 Day Avg. Volume: 138,360
• PEG Ratio: 0.05
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.53
• 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: 49 Neutral
• Price Target: ―

The stock's overall score is influenced by financial challenges, including declining profitability and high leverage, as well as inconsistent cash flows. Technical signals are mixed, providing no clear direction. Valuation is weak due to negative earnings and lack of dividend yield, indicating caution for investors.

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 makes money through its diversified business operations, which include generating revenue from property development and investment by selling and leasing real estate properties. In the financial services sector, the company earns income through interest and fees from providing mortgage loans, consumer credit finance, and other related financial products. Allied Group also benefits from its investments in various sectors, which contribute to its earnings through dividends and capital appreciation. Partnerships with other financial institutions and property developers enhance its revenue streams and market presence. The company's earnings are significantly influenced by the performance of the real estate market and the financial services industry in the regions where it operates.

Allied Group Financial Statement Overview

Summary

Financial performance is under strain, with declining revenue and profitability trends, significant leverage, and inconsistent cash flows. The company needs to improve revenue stability, manage debt more effectively, and better align cash flows with profitability.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.46B	5.96B	7.08B	7.30B	5.83B
	Gross Profit
6.46B	2.70B	2.45B	5.89B	5.04B
	EBIT
1.12B	3.84B	380.40M	7.32B	2.32B
	EBITDA
2.35B	1.06B	1.15B	4.82B	0.00
	Net Income Common Stockholders
-776.70M	-125.40M	-1.13B	6.69B	3.66B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.14B	14.70B	15.54B	10.90B	7.90B
	Total Assets
113.96B	113.82B	113.25B	120.31B	70.34B
	Total Debt
8.68B	24.76B	24.55B	29.50B	19.92B
	Net Debt
-6.46B	-15.92B	9.01B	18.60B	12.02B
	Total Liabilities
48.19B	46.42B	45.04B	46.46B	21.37B
	Stockholders Equity
42.52B	43.54B	43.11B	46.21B	37.02B
Cash Flow		Free Cash Flow
0.00	1.03B	12.28B	-1.11B	2.22B
	Operating Cash Flow
0.00	1.24B	12.39B	-1.00B	2.29B
	Investing Cash Flow
0.00	3.38B	-4.51B	2.55B	1.09B
	Financing Cash Flow
0.00	-1.11B	-5.99B	532.40M	-2.56B

Allied Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1.61 is above the 20-day moving average (MA) of 1.58, above the 50-day MA of 1.53, and above the 200-day MA of 1.48, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.73 is Neutral, neither overbought nor oversold. The STOCH value of 76.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0373.

Allied Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	C$14.28B	5.24	20.17%	6.06%	26.91%	-38.39%
0373	49 Neutral	HK$5.66B	―	-1.80%	―	12.85%	-519.33%
5HF		€85.61M	8.33	0.58%	―	―	―
SHK		€667.29M	14.24	1.76%	9.45%	―	―
2003	69 Neutral	HK$1.83B	3.54	10.93%	5.32%	6.36%	2.42%
1905	69 Neutral	HK$6.84B	4.53	8.15%	10.45%	-2.26%	-7.00%
1601	68 Neutral	HK$1.15B	3.90	10.90%	8.71%	2.47%	2.27%

Allied Group Corporate Events

Allied Group Limited Announces Annual General Meeting for 2025

Allied Group Limited has announced its Annual General Meeting, scheduled for May 29, 2025, in Hong Kong. The meeting will address several key agenda items, including the adoption of the audited financial statements for 2024, the re-election of directors, the re-appointment of Deloitte Touche Tohmatsu as auditor, and resolutions regarding the issuance of additional shares. This meeting is crucial for stakeholders as it will determine the company’s leadership and financial strategies moving forward.

Allied Group Reports Significant Loss in 2024 Financial Results

Allied Group Limited announced its audited consolidated results for the year ending December 31, 2024, reporting a significant loss of HK$712.3 million compared to a profit of HK$256.0 million in 2023. The loss is attributed to several factors, including a substantial decrease in property values and net impairment losses on financial assets, impacting the company’s financial performance and shareholder returns.

Allied Group Issues Profit Warning Amid Increased Losses

Allied Group Limited has issued a profit warning, indicating a significant increase in consolidated losses for the fiscal year 2024, ranging from HK$0.7 billion to HK$0.9 billion, compared to HK$0.1 billion in 2023. The decline is attributed to several factors, including losses from its subsidiary Tian An China Investments due to decreased property sales and investment property values, and a loss from its associate APAC Resources. However, Sun Hung Kai & Co. Limited, another subsidiary, reported a profit due to gains in financial instruments, although this was partially offset by reduced credit business profits. The company also announced the completion of a residential project in Shanghai, expected to positively impact 2025 revenues.

Allied Group Issues Profit Warning Amid Financial Challenges

Allied Group Limited has issued a profit warning, indicating an expected consolidated loss of HK$0.7 billion to HK$0.9 billion for FY2024, compared to a loss of HK$0.1 billion in FY2023. This decline is attributed to several factors, including losses from its subsidiary Tian An China Investments due to decreased property sales and investment property value, as well as a loss from its associate APAC Resources Limited. However, Sun Hung Kai & Co. reported a profit due to gains in financial instruments, despite reduced credit business profits. Additionally, the completion of Phase 2C of The One Tian An Place in Shanghai is anticipated to positively impact future revenues.