Aceso Life Science Group Limited (0474) AI Stock Analysis

• Market Cap: HK$885.81M
• Dividend Yield: N/A
• Average Volume (3M): 71.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -64.04%
• EPS Growth: 1.66%
• Country: HK
• Employees: 146
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.05
• Shares Outstanding: 7,381,777,000
• 10 Day Avg. Volume: 32,027,675
• 30 Day Avg. Volume: 71,252,001
• PEG Ratio: >-0.01
• Price to Book (P/B): 30.59
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 24.47
• 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: 50 Neutral
• Price Target: HK$0.13 ▲(6.67% Upside)

The overall stock score is primarily influenced by the concerning financial performance, characterized by significant losses and high leverage. While technical analysis shows positive momentum, the valuation remains unattractive due to negative earnings and no dividend yield. The absence of earnings call data and corporate events means these factors do not impact the score.

Positive Factors

Revenue Growth

Aceso's strong revenue growth indicates robust demand for its offerings, enhancing its market position and potential for future expansion.

Business Model Diversification

Diversified revenue streams reduce dependency on a single source, providing stability and resilience against market fluctuations.

Gross Profit Margin

A healthy gross profit margin suggests efficient production and pricing strategies, supporting long-term profitability potential.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.

Negative Profitability

Ongoing losses indicate challenges in achieving profitability, which could hinder long-term financial sustainability and investor confidence.

Weak Cash Flow

Declining cash flow generation limits the company's ability to fund operations and strategic initiatives, impacting long-term growth potential.

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 primarily through the development and commercialization of its proprietary pharmaceuticals. The company's revenue model includes income from product sales, licensing agreements, and strategic partnerships with other pharmaceutical firms. Key revenue streams include milestone payments from licensing deals, royalties from sales of licensed products, and direct sales from its own marketed therapies. Significant collaborations with research institutions and healthcare organizations also contribute to its earnings, particularly in funding for clinical trials and research initiatives that enhance the company's product pipeline.

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	195.00M	195.00M	11.00M	312.00M	315.00M	346.00M
Gross Profit	90.00M	90.00M	-100.00M	141.00M	162.00M	213.00M
EBITDA	-173.00M	-860.00M	-220.00M	-21.00M	-359.00M	-69.00M
Net Income	-895.00M	-895.00M	-462.00M	-264.00M	-370.00M	-376.00M
Balance Sheet
Total Assets	3.24B	3.24B	4.79B	6.30B	6.26B	6.17B
Cash, Cash Equivalents and Short-Term Investments	207.00M	207.00M	466.00M	602.00M	717.00M	786.00M
Total Debt	2.30B	2.30B	2.74B	2.34B	3.01B	2.76B
Total Liabilities	2.50B	2.50B	2.97B	3.73B	3.44B	3.15B
Stockholders Equity	12.00M	12.00M	921.00M	1.55B	2.00B	2.38B
Cash Flow
Free Cash Flow	15.00M	15.00M	-48.00M	175.00M	259.00M	164.00M
Operating Cash Flow	17.00M	17.00M	-37.00M	222.00M	316.00M	179.00M
Investing Cash Flow	311.00M	337.00M	472.00M	-120.00M	-441.00M	-10.00M
Financing Cash Flow	-499.00M	-587.00M	117.00M	-98.00M	126.00M	-375.00M

Aceso Life Science Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 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:0474, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.37 is Neutral, neither overbought nor oversold. The STOCH value of 69.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2182	54 Neutral	HK$235.60M	-13.62	-2.30%	4.00%	7.98%	-236.14%
2327	51 Neutral	HK$1.15B	29.17	3.21%	2.00%	-54.92%	26.32%
0474	50 Neutral	HK$885.81M	-2.21	-63.64%	―	-64.04%	1.66%
0118	50 Neutral	HK$199.97M	20.19	0.53%	―	-9.32%	―
0862	48 Neutral	HK$184.44M	-3.29	-33.36%	―	-25.59%	0.69%
1063	45 Neutral	HK$160.01M	10.94	7.00%	―	9.69%	-33.79%

Aceso Life Science Group Limited Corporate Events

Aceso Life Science Group Reports Strong Interim Results for 2025

Aceso Life Science Group Limited announced its interim results for the six months ending September 30, 2025, reporting a significant turnaround with a profit of HK$384 million compared to a loss of HK$195 million in the previous year. The improvement is attributed to increased revenue from continuing operations and substantial other gains, despite challenges such as fair value losses and administrative expenses.

The most recent analyst rating on (HK:0474) stock is a Hold with a HK$0.13 price target. To see the full list of analyst forecasts on Aceso Life Science Group Limited stock, see the HK:0474 Stock Forecast page.

Aceso Life Science Group Limited Announces Positive Profit Alert

Aceso Life Science Group Limited has announced a positive profit alert, expecting to record a profit of approximately HK$380 million for the six months ended 30 September 2025, compared to a loss of HK$195 million in the same period in 2024. This significant turnaround is primarily due to the gain from the disposal of a subsidiary, although the figures are based on preliminary assessments and have not yet been audited.

Aceso Life Science Group Schedules Board Meeting for Interim Results

Aceso Life Science Group Limited has announced a board meeting scheduled for November 28, 2025, to approve and publish the unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the payment of an interim dividend, reflecting the company’s ongoing commitment to transparency and shareholder value.

Aceso Life Science Group Completes Full Loan Repayment

Aceso Life Science Group Limited has announced the full repayment of a significant outstanding loan amounting to approximately HK$352 million from a commercial bank in Hong Kong. This financial move is likely to positively impact the company’s financial stability and reassure shareholders and investors about its fiscal management.