Success Universe Group Limited (0487) AI Stock Analysis

• Market Cap: HK$270.96M
• Dividend Yield: N/A
• Average Volume (3M): 2.32M
• Price to Earnings (P/E): 2.8
• Beta (1Y): 1.12
• Revenue Growth: -27.48%
• EPS Growth: N/A
• Country: HK
• Employees: 80
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): >-0.01
• Shares Outstanding: 4,926,491,000
• 10 Day Avg. Volume: 5,410,400
• 30 Day Avg. Volume: 2,321,053
• PEG Ratio: -0.12
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 9.88
• P/FCF Ratio: -12.76
• 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: 44 Neutral
• Price Target: HK$0.06 ▼(-5.00% Downside)

The overall stock score is primarily impacted by poor financial performance and bearish technical indicators. While the valuation appears low, it is overshadowed by significant financial and operational challenges.

Positive Factors

Market Position

Success Universe's strategic focus on Asia, particularly Macau, positions it to capitalize on the region's growing tourism and entertainment sectors, potentially driving long-term revenue growth.

Partnerships

Collaborative ventures with other operators can expand Success Universe's market reach and clientele, providing a durable competitive advantage and diversified revenue streams.

Balance Sheet Health

A stable balance sheet with strong asset backing provides financial stability, enabling the company to withstand market fluctuations and invest in growth opportunities.

Negative Factors

Revenue Decline

Persistent revenue declines indicate challenges in market demand or competitive positioning, potentially impacting long-term profitability and growth prospects.

Negative Cash Flows

Negative cash flows highlight inefficiencies in operations, limiting the company's ability to reinvest in growth and potentially leading to liquidity issues.

Low Profit Margins

Low profit margins suggest cost management challenges, which can erode profitability and hinder the company's ability to compete effectively in the long term.

Success Universe Group Limited Business Overview & Revenue Model

Company Description

Success Universe Group Limited, an investment holding company, engages in the travel-related and property investment businesses in Hong Kong and North America. The company provides travel-related services; administration services; sells airline tickets and tour packages; and leases office premises and sells properties. It also operates Ponte 16, an integrated casino-entertainment resort comprising a five-star luxury hotel-Sofitel Macau At Ponte 16, a casino, as well as food and beverage facilities. The company was formerly known as Macau Success Limited and changed its name to Success Universe Group Limited in June 2009. The company was founded in 2003 and is headquartered in Hong Kong. Success Universe Group Limited is a subsidiary of Silver Rich Macau Development Limited.

How the Company Makes Money

Success Universe Group Limited generates revenue through multiple streams, primarily from its gaming operations, which include revenue from gaming tables and electronic gaming machines. The company also earns income from its hospitality services, including hotel accommodations and food and beverage sales within its establishments. Additionally, partnerships with other gaming and entertainment operators enhance its revenue potential through collaborative ventures and shared clientele. The strategic focus on Asia's burgeoning gaming market, especially in Macau, positions the company to benefit from the region's tourism and entertainment growth.

Success Universe Group Limited Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenues and negative cash flows. Despite a stable balance sheet, profitability and cash efficiency are major concerns.

Income Statement

The company exhibits declining revenue trends with a significant drop in total revenue from 2019 to 2024. Gross profit margins are low, indicating high cost relative to sales. Net income has been volatile with occasional profitability, but recent figures show a substantial net profit despite declining revenues, which could indicate one-time gains or accounting adjustments. Overall, profitability metrics such as EBIT and EBITDA margins are concerning, with negative EBITDA in recent years.

Balance Sheet

The company maintains a solid equity base with a relatively stable debt-to-equity ratio over the years. Stockholders' equity improved significantly from 2022 to 2024, indicating strong asset backing. The equity ratio suggests a reasonable level of financial stability, although the total debt remains significant. The balance sheet reflects a mix of strengths in asset management and potential risks from high debt levels.

Cash Flow

Cash flow metrics reveal significant challenges, with consistent negative operating and free cash flows, indicating difficulty in generating cash from operations. No evident growth in free cash flow suggests ongoing struggles in improving cash efficiency. The operating cash flow to net income ratio is poor, reflecting inefficiencies in translating profit into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.84M	51.37M	101.90M	114.78M	151.13M	363.83M
Gross Profit	7.49M	2.28M	16.78M	12.42M	8.83M	17.46M
EBITDA	-30.41M	21.06M	64.01M	-219.29M	73.99M	-126.36M
Net Income	95.16M	93.39M	169.30M	-287.07M	4.86M	-141.94M
Balance Sheet
Total Assets	1.42B	1.45B	1.39B	1.27B	1.39B	1.39B
Cash, Cash Equivalents and Short-Term Investments	238.06M	305.49M	245.84M	240.70M	316.42M	286.83M
Total Debt	450.65M	447.94M	480.10M	529.22M	363.42M	364.18M
Total Liabilities	478.58M	476.70M	501.19M	551.79M	381.19M	384.76M
Stockholders Equity	945.32M	977.39M	887.36M	719.37M	1.01B	1.00B
Cash Flow
Free Cash Flow	-47.75M	-39.77M	-17.52M	-22.57M	-29.68M	-24.47M
Operating Cash Flow	-43.52M	-38.61M	-17.38M	-22.30M	-18.85M	-19.09M
Investing Cash Flow	73.42M	92.71M	4.32M	-30.66M	-40.24M	-119.01M
Financing Cash Flow	-34.22M	-62.17M	-76.31M	151.82M	-8.83M	156.27M

Success Universe Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0487, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.08, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.05 is Neutral, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0487.

Success Universe Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1701	64 Neutral	HK$121.00M	4.46	16.79%	―	80.68%	131.62%
0265	63 Neutral	HK$516.88M	15.74	12.44%	―	2.10%	1.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1235	55 Neutral	HK$84.13M	165.00	0.79%	4.55%	32.99%	-94.85%
8668	51 Neutral	HK$126.00M	-27.63	-18.19%	―	1.28%	60.00%
1901	46 Neutral	HK$429.31M	-15.99	-29.79%	―	68.29%	41.90%
0487	44 Neutral	HK$270.96M	2.85	10.60%	―	-27.48%	―

Success Universe Group Limited Corporate Events

Success Universe Group Announces Termination of Casino Ponte 16 Operations

Success Universe Group Limited announced the early termination of the service agreement between SJM Resorts and Pier 16 – Entertainment, leading to the cessation of operations at Casino Ponte 16. This decision impacts the company’s share of profits from the Ponte 16 project, with a significant reduction expected in the Group’s share of results from the associates. Despite this, Success Universe will continue its travel-related and property investment businesses.