Aceso Life Science Group Limited (0474) AI Stock Analysis

• Market Cap: HK$132.87M
• Dividend Yield: N/A
• Average Volume (3M): 2.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -21.03%
• EPS Growth: -97.01%
• Country: HK
• Employees: 146
• Sector: Industrials
• Sector Strength: 79
• Industry: Conglomerates
• EPS (TTM): -0.11
• Shares Outstanding: 7,381,777,000
• 10 Day Avg. Volume: 1,848,950
• 30 Day Avg. Volume: 2,374,184
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The most significant factor affecting the stock score is the company's poor financial performance, characterized by high leverage, negative profitability, and weak cash flow. Technical analysis indicates a bearish trend, further weighing down the score. Valuation metrics are unfavorable due to a negative P/E ratio and lack of dividends. These factors collectively result in a low overall stock score.

Aceso Life Science Group Limited Business Overview & Revenue Model

Company Description

Aceso Life Science Group Limited, an investment holding company, engages in money lending, securities investment, asset management, rental, and trading of construction machinery, repair and maintenance and transportation service, property leasing and development, and bioscience businesses. The company also provides commodities, futures, securities brokerage, and financial services, as well as rents and trades in construction machinery, including crawler cranes, other mobile cranes, aerial platforms, and foundation equipment, and spare parts. It offers repair and maintenance services for construction machinery; and transportation services, such as local container delivery, construction site delivery, and heavy machinery transport. In addition, the company retails men, and women apparels; sells construction materials; and offers management services. The company operates in Hong Kong, Macau, Cambodia, the United Kingdom, and the People's Republic of China. Aceso Life Science Group Limited was incorporated in 2005 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

Aceso Life Science Group Limited generates revenue through multiple key streams. Primarily, the company earns money by providing contract research and development services to pharmaceutical and biotechnology companies, which includes preclinical and clinical trial management. Additionally, Aceso commercializes its proprietary therapeutic products and diagnostic tools, generating sales revenue from healthcare providers and institutions. The company may also engage in strategic partnerships with other firms in the life sciences sector, allowing for shared resources and co-development initiatives that can lead to additional income through joint ventures or licensing agreements. Grants and funding from governmental or non-profit organizations for research initiatives also contribute to its financial stability.

Aceso Life Science Group Limited Financial Statement Overview

Summary

Aceso Life Science Group Limited is experiencing substantial revenue growth, but this is not translating into profitability. The company is heavily leveraged, which poses financial risks, and cash flow metrics indicate challenges in generating sufficient cash. Overall, the financial health of the company is concerning, with significant losses and high debt levels.

Income Statement

The company has shown a significant revenue growth rate of 1047.06% in the latest year, indicating a strong top-line performance. However, profitability metrics such as the net profit margin (-4.59%) and EBIT margin (-4.63%) are negative, reflecting ongoing losses. The gross profit margin stands at 46.15%, which is decent but overshadowed by the negative net income and EBIT figures.

Balance Sheet

The debt-to-equity ratio is extremely high at 191.75, indicating significant leverage and potential financial risk. Return on equity is negative (-74.58%), highlighting the company's inability to generate profit from shareholders' equity. The equity ratio is low, suggesting a heavy reliance on debt financing.

Cash Flow

The free cash flow growth rate is negative (-118.75%), indicating a decline in cash generation. The operating cash flow to net income ratio is low (0.0089), suggesting weak cash flow relative to net income. The free cash flow to net income ratio is 0.88, showing some ability to generate cash despite losses, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.00M	195.00M	11.00M	312.00M	315.00M	346.00M
Gross Profit	-125.00M	90.00M	-100.00M	141.00M	162.00M	213.00M
EBITDA	-116.00M	-860.00M	-220.00M	-21.00M	-359.00M	-69.00M
Net Income	-392.00M	-895.00M	-462.00M	-264.00M	-370.00M	-376.00M
Balance Sheet
Total Assets	4.38B	3.24B	4.79B	6.30B	6.26B	6.17B
Cash, Cash Equivalents and Short-Term Investments	298.00M	207.00M	466.00M	602.00M	717.00M	786.00M
Total Debt	558.00M	2.30B	2.74B	2.34B	3.01B	2.76B
Total Liabilities	2.74B	2.50B	2.97B	3.73B	3.44B	3.15B
Stockholders Equity	798.00M	12.00M	921.00M	1.55B	2.00B	2.38B
Cash Flow
Free Cash Flow	-80.00M	15.00M	-48.00M	175.00M	259.00M	164.00M
Operating Cash Flow	-73.00M	17.00M	-37.00M	222.00M	316.00M	179.00M
Investing Cash Flow	357.00M	337.00M	472.00M	-120.00M	-441.00M	-10.00M
Financing Cash Flow	-53.00M	-587.00M	117.00M	-98.00M	126.00M	-375.00M

Aceso Life Science Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0474, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0474.

Aceso Life Science Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.74B	15.86	8.15%	2.00%	2.70%	-15.17%
2182	56 Neutral	HK$248.00M	―	-1.79%	3.75%	-22.64%	-158.20%
0118	54 Neutral	HK$206.00M	22.13	0.53%	―	-9.32%	―
0862	48 Neutral	HK$184.44M	―	-29.12%	―	7.36%	-70.59%
0474	41 Neutral	HK$132.87M	―	-191.85%	―	-21.03%	-97.01%
SUNTF	―	$23.68M	10.00	-20.46%	―	―	―
2327	48 Neutral	HK$966.13M	24.58	3.21%	1.69%	-54.92%	26.32%

Aceso Life Science Group Limited Corporate Events

Aceso Life Science Group Faces Loan Repayment Demand

Aceso Life Science Group Limited has received a demand letter from a bank regarding two loan agreements, one of which is significant to the company’s operations. The significant loan, amounting to HK$270 million, has not yet matured, but the bank has demanded repayment due to a cross-default provision. The company is in discussions with the bank for an extension and advises caution to shareholders and potential investors.

Aceso Life Science Faces HK$352 Million Debt Demand

Aceso Life Science Group Limited has received a demand letter from a commercial bank in Hong Kong, requiring the company to repay approximately HK$352 million in debt by 31 March 2025. The company is currently seeking legal advice and negotiating with the bank to resolve the issue, while advising shareholders and potential investors to exercise caution.

Aceso Life Science and Hao Tian Extend Share Placing Deadline

Aceso Life Science Group Limited and Hao Tian International Construction Investment Group Limited have announced an extension of the long-stop date for the placing of new HTICI shares under a specific mandate. The new deadline is set for May 15, 2025, as more time is needed to finalize the list of placees. This extension indicates ongoing negotiations and adjustments in their strategic financial operations, potentially impacting stakeholders and market positioning.

Aceso Life Science Group Delays Circular Dispatch

Aceso Life Science Group Limited announced a delay in the dispatch of its circular, originally scheduled for release by April 23, 2025, now postponed to May 9, 2025. This delay is due to the need for additional time to finalize certain information, affecting shareholders and potential investors who are advised to exercise caution when dealing with the company’s securities.

Aceso Life Science Group Faces Loan Default Challenge

Aceso Life Science Group Limited has announced a default on its facility agreements, with an outstanding principal amount of approximately GBP79.0 million. The company is actively seeking legal advice and exploring financial options to address the default, while advising shareholders and potential investors to exercise caution.

Aceso Life Science Group Forms Major Joint Venture with Jiangsu Lettall

Aceso Life Science Group Limited announced the formation of a joint venture with Jiangsu Lettall, with HTICI, a subsidiary of Aceso, holding a 75% stake. This joint venture will become a subsidiary of Aceso, consolidating its financial results with the group. The transaction is considered a major one under the Hong Kong Listing Rules, requiring shareholder approval, which has been obtained from a group controlling over 57% of the company’s shares. The venture aims to strengthen Aceso’s market position and expand its operational scope.

Aceso Life Science Group Secures Shareholder Approval for Strategic Placing Agreement

Aceso Life Science Group Limited announced that the Ordinary Resolution proposed at their Extraordinary General Meeting (EGM) held on March 18, 2025, was successfully passed by shareholders. This resolution approves the Placing Agreement and related transactions, granting a specific mandate to Hao Tian International Construction Investment Group Limited’s directors for the issuance of Placing Shares. The approval reflects strong shareholder support, with 100% of votes cast in favor, potentially impacting the company’s strategic initiatives and market positioning positively.

Aceso Life Science Group Announces Extraordinary General Meeting for Share Issuance Approval

Aceso Life Science Group Limited has announced an extraordinary general meeting to be held on March 18, 2025, to approve a placing agreement. This agreement involves Hao Tian International Construction Investment Group Limited issuing up to 1,524,224,000 new ordinary shares at a price of HK$0.4 per share. The meeting will seek shareholder approval for the directors to execute the agreement and related transactions, potentially impacting the company’s financial strategy and stakeholder interests.