China Sinostar Group Company Limited (0485) AI Stock Analysis

• Market Cap: HK$30.22M
• Dividend Yield: N/A
• Average Volume (3M): 27.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: -32.53%
• EPS Growth: 29.06%
• Country: HK
• Employees: 19
• Sector: Technology
• Sector Strength: 84
• Industry: Real Estate - Development
• EPS (TTM): -0.02
• Shares Outstanding: 212,839,870
• 10 Day Avg. Volume: 18,281
• 30 Day Avg. Volume: 27,668
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.74
• 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: 41 Neutral
• Price Target: ―

China Sinostar Group Company Limited's stock is facing significant challenges, primarily due to its ongoing net losses and negative profit margins, despite positive cash flow and revenue growth. The technical indicators suggest a cautious market stance, with potential for a downturn. Valuation concerns, highlighted by a negative P/E ratio and lack of dividend yield, further dampen the stock's attractiveness. Overall, the stock scores low, reflecting the need for substantial improvements in profitability and operational efficiency.

China Sinostar Group Company Limited Business Overview & Revenue Model

Company Description

China Sinostar Group Company Limited (0485) is a Hong Kong-based company engaged in the business of energy and resources. The company primarily focuses on the distribution and sale of liquefied petroleum gas (LPG) and natural gas. It also engages in property investments and development as part of its diversified portfolio.

How the Company Makes Money

China Sinostar Group Company Limited generates revenue through the sale and distribution of liquefied petroleum gas (LPG) and natural gas, serving both residential and industrial customers. The company leverages its infrastructure to efficiently distribute these energy products, ensuring a steady revenue stream. Additionally, the company earns income from its property investments and development projects, which involve leasing and selling properties. The combination of energy sales and real estate investments forms the core of the company's revenue model.

China Sinostar Group Company Limited Financial Statement Overview

Summary

The company's financial performance is mixed. While there is a positive revenue growth and a robust free cash flow, significant net losses and negative profit margins highlight operational inefficiencies. The balance sheet is stable with a strong equity ratio, but the lack of profitability is concerning for long-term stability.

Income Statement

The company's income statement reflects significant challenges, with a net loss of $18.59M for the most recent year. Despite a revenue increase of 34.33% from the previous year, the net profit margin remained negative due to high operating losses, with an EBIT margin of -23.58% and EBITDA margin of -34.74%. While revenue growth is a positive sign, the persistent negative profit margins suggest ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a relatively stable equity position with a strong equity ratio of 75%. However, the debt-to-equity ratio is 0.14, indicating a manageable level of debt relative to equity. The company's return on equity remains negative due to net losses, which is a concern for profitability and shareholder returns. While the firm maintains a healthy equity base, its inability to generate profits is a notable weakness.

Cash Flow

Cash flow statements reveal a strong free cash flow of $11.65M, supported by positive operating cash flow. The free cash flow growth rate is a healthy 7.73% year-over-year. The operating cash flow to net income ratio is strong, indicating effective cash generation relative to reported losses. However, the reliance on cash flow to cover net losses highlights potential sustainability issues if negative income persists.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
24.26M	31.92M	23.76M	38.94M	29.54M	71.18M
	Gross Profit
4.47M	5.86M	3.41M	11.02M	9.04M	22.35M
	EBIT
-9.16M	-7.53M	-31.18M	-6.71M	-9.11M	-6.68M
	EBITDA
-12.99M	-11.09M	-43.70M	-9.31M	-5.67M	-12.90M
	Net Income Common Stockholders
-19.68M	-18.59M	-51.21M	-17.61M	-15.43M	-25.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.17M	4.57M	4.20M	12.67M	12.09M	13.81M
	Total Assets
266.19M	262.13M	307.23M	412.48M	392.73M	368.38M
	Total Debt
28.26M	28.03M	30.30M	52.31M	35.21M	34.50M
	Net Debt
19.77M	23.46M	26.10M	39.64M	23.12M	20.69M
	Total Liabilities
65.36M	65.54M	75.46M	101.89M	79.68M	69.38M
	Stockholders Equity
200.82M	196.59M	231.77M	310.60M	313.05M	299.01M
Cash Flow		Free Cash Flow
2.01M	11.65M	10.81M	-16.22M	-3.64M	-23.30M
	Operating Cash Flow
2.08M	12.11M	10.86M	-16.19M	-3.63M	-18.61M
	Investing Cash Flow
-72.00K	-454.00K	-31.00K	120.00K	1.51M	-47.29M
	Financing Cash Flow
-1.64M	-11.04M	-17.49M	14.84M	-1.69M	2.33M

China Sinostar Group Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0485, the sentiment is Positive. The current price of 0.14 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.14, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 53.13 is Neutral, neither overbought nor oversold. The STOCH value of 111.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0485.

China Sinostar Group Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1109	76 Outperform	$200.38B	7.23	9.66%	8.70%	9.97%	-19.80%
1199	70 Outperform	HK$19.18B	7.08	5.64%	5.74%	5.93%	-3.64%
Sector *	62 Neutral	$11.96B	10.09	-7.50%	3.10%	7.33%	-8.11%
0485	41 Neutral	HK$30.22M	―	-9.57%	―	-32.53%	29.06%
1238	36 Underperform	HK$1.35B	―	-16.13%	―	10.08%	-118.45%

China Sinostar Group Company Limited Corporate Events

China Sinostar Group Negotiates Charged Shares Settlement

China Sinostar Group Company Limited has announced a supplemental update concerning the release of receivers over its charged shares. The company is currently in discussions with Achieve Prosper and Huang Zi Shan, but no settlement has been reached, and there is no intention from Huang Zi Shan to appoint a receiver over the charged shares.