Success Universe Group Limited (0487) AI Stock Analysis

• Market Cap: HK$610.88M
• Dividend Yield: N/A
• Average Volume (3M): 6.40M
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.78
• Revenue Growth: -49.59%
• EPS Growth: -44.77%
• Country: HK
• Employees: 80
• Sector: Services
• Sector Strength: N/A
• Industry: Travel Services
• EPS (TTM): 0.02
• Shares Outstanding: 4,926,491,000
• 10 Day Avg. Volume: 18,563,769
• 30 Day Avg. Volume: 6,403,456
• PEG Ratio: <0.01
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -32.74
• 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: 44 Neutral
• Price Target: ―

The overall stock score for Success Universe Group Limited reflects significant financial challenges, particularly in generating consistent revenue and positive cash flow. Although the balance sheet shows some stability, the technical analysis indicates a bearish trend. Despite a low P/E ratio suggesting potential undervaluation, the lack of earnings call data or notable corporate events limits insight into future prospects. Investors should be cautious given the financial and technical headwinds.

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 primarily generates revenue through its two core segments. The Travel Business segment makes money by offering a range of travel-related services such as air ticket sales, hotel bookings, and package tours, earning commissions and service fees from these transactions. The Property Investment segment contributes to the company's income by leasing properties to tenants and deriving rental income, as well as through potential capital gains from property value appreciation. The company's earnings are also influenced by strategic investments and partnerships in the tourism and property markets, which can enhance their service offerings and expand their market reach.

Success Universe Group Limited Financial Statement Overview

Summary

Success Universe Group Limited faces notable financial challenges, particularly in revenue generation and cash flow management. While the balance sheet shows resilience in equity and asset management, the income statement and cash flow statement highlight significant areas for improvement. The company must address revenue declines and enhance cash flow efficiency to achieve sustainable financial health.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
51.37M	101.90M	114.78M	151.13M	363.83M
	Gross Profit
2.28M	16.78M	12.42M	8.83M	17.46M
	EBIT
9.18M	51.84M	-36.09M	-36.07M	-33.38M
	EBITDA
-38.09M	64.01M	-219.29M	73.99M	-126.36M
	Net Income Common Stockholders
93.39M	169.30M	-477.71M	94.90M	-30.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
305.49M	245.84M	240.70M	316.42M	286.83M
	Total Assets
1.45B	1.39B	1.27B	1.39B	1.39B
	Total Debt
447.94M	480.10M	529.22M	363.42M	364.18M
	Net Debt
372.99M	422.71M	381.95M	313.81M	246.79M
	Total Liabilities
476.70M	501.19M	551.79M	381.19M	384.76M
	Stockholders Equity
977.39M	887.36M	719.37M	1.01B	1.00B
Cash Flow		Free Cash Flow
0.00	-17.52M	-22.57M	-29.68M	-24.47M
	Operating Cash Flow
-38.61M	-17.38M	-22.30M	-18.85M	-19.09M
	Investing Cash Flow
0.00	4.32M	-30.66M	-40.24M	-119.01M
	Financing Cash Flow
0.00	-76.31M	151.82M	-8.83M	156.27M

Success Universe 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:0487, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.07, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 42.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1235	72 Outperform	HK$77.50M	7.84	16.59%	4.61%	139.07%	193.94%
1701	61 Neutral	HK$109.00M	10.09	7.26%	―	128.45%	9.18%
Sector *	60 Neutral	$920.53M	5.88	2.43%	4.34%	10.27%	-74.96%
8668	45 Neutral	HK$87.60M	―	-33.00%	―	10.86%	-276.19%
0487	44 Neutral	HK$610.88M	6.16	10.02%	―	-49.59%	-44.77%
CG6		€22.87M	4.08	15.18%	―	―	―
1901	44 Neutral	HK$103.17M	―	-61.77%	―	29.04%	-393.69%

Success Universe Group Limited Corporate Events

Success Universe Group Limited Announces 2025 Annual General Meeting

Success Universe Group Limited has announced its upcoming annual general meeting, scheduled for June 12, 2025, at the Renaissance Harbour View Hotel in Hong Kong. The meeting will address several key agenda items, including the consideration of the company’s audited financial statements for 2024, the re-election of directors, the re-appointment of auditors, and resolutions regarding the repurchase of company shares. This announcement reflects the company’s ongoing governance and financial management efforts, potentially impacting shareholder value and market perception.

Success Universe Group Limited Reports 2024 Financial Results

Success Universe Group Limited reported its consolidated financial results for the year ending December 31, 2024, showing a significant decrease in revenue from HK$101,897,000 in 2023 to HK$51,370,000 in 2024. Despite the drop in revenue, the company managed to achieve a gross profit increase, driven by gains in financial assets and other revenues, although it faced challenges with fair value losses on investment properties and increased administrative and operating expenses.

Success Universe Group Schedules Board Meeting for Financial Results

Success Universe Group Limited has announced that a board meeting will be held on March 28, 2025, to consider and approve the company’s final results for the year ending December 31, 2024. The meeting will also discuss the recommendation of a final dividend payment. This announcement indicates a significant step in the company’s financial planning and could impact its stakeholders, as the approval of financial results and dividends are crucial for investor confidence and market positioning.

Success Universe Group Issues Profit Warning Amid Significant Losses

Success Universe Group Limited has issued a profit warning, indicating a significant decrease in its unaudited consolidated profit for the year ended December 31, 2024, by approximately 40% to 50% compared to the previous year. This decline is primarily attributed to increased fair value loss on investment properties, a write-down of property stocks, and a substantial impairment loss on leasehold land and buildings, despite a gain from the disposal of overseas listed equity securities. These losses are non-cash items and do not affect the company’s cash flow, but stakeholders are advised to exercise caution when dealing with the company’s shares.