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Speedy Global Holdings Ltd. (HK:0540)
:0540
Hong Kong Market
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Speedy Global Holdings Ltd. (0540) AI Stock Analysis

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HK:0540

Speedy Global Holdings Ltd.

(0540)

Rating:53Neutral
Price Target:
Speedy Global Holdings Ltd. demonstrates a strong recovery in profitability and revenue growth, but cash flow issues and moderate leverage present risks. The technical indicators suggest limited momentum, and the valuation appears attractive with a low P/E ratio, but the absence of a dividend yield may deter some investors.

Speedy Global Holdings Ltd. (0540) vs. iShares MSCI Hong Kong ETF (EWH)

Speedy Global Holdings Ltd. Business Overview & Revenue Model

Company DescriptionSpeedy Global Holdings Limited, an investment holding company, engages in the provision of apparel supply chain services in the People's Republic of China, Cambodia, Hong Kong, and Macau. It offers apparel supply chain services, including product design and development, fashion trend ascertaining and sampling, raw material sourcing, production order and merchandise sourcing management, quality control, packaging, inventory management, and logistics management for the design, development, and production of a range of men's and women's woven wear, cut-and-sewn knitwear, and sweater knitwear products to owners or agents of various apparel brands. The company was founded in 2003 and is headquartered in Dongguan, the People's Republic of China. Speedy Global Holdings Limited is a subsidiary of Sky Halo Holdings Limited.
How the Company Makes MoneySpeedy Global Holdings Ltd. generates revenue through the manufacturing and sales of apparel products. The company capitalizes on its production facilities and strategic partnerships with fashion brands and retailers to secure orders for various clothing items. Its revenue model includes bulk sales to retailers and other businesses, as well as potential private label manufacturing agreements. Key revenue streams include direct sales of manufactured garments and possible collaboration deals with fashion labels seeking manufacturing expertise. Additionally, the company may benefit from economies of scale and cost efficiencies in production, contributing to its overall profitability.

Speedy Global Holdings Ltd. Financial Statement Overview

Summary
Speedy Global Holdings Ltd. has shown a strong recovery and improved profitability, with significant revenue growth and improved margins. The balance sheet indicates moderate leverage and a high reliance on liabilities. However, the cash flow statement raises concerns due to a drop in operating and free cash flows to zero, which affects cash sustainability.
Income Statement
65
Positive
The company has shown a significant improvement in its income statement. Gross profit margin improved from 8.5% in 2023 to 12.3% in 2024, indicating better cost management or pricing. The revenue growth rate from 2023 to 2024 was 42.8%, which is a strong recovery trajectory. Net profit margin improved substantially from -1.1% to 2.6%, marking a return to profitability. EBIT margin improved from -0.3% to 3.8% and EBITDA margin from 2.8% to 5.9%, reflecting better operational efficiency.
Balance Sheet
50
Neutral
The balance sheet indicates moderate financial health. The debt-to-equity ratio improved from 1.39 in 2023 to 0.88 in 2024, showing reduced leverage. Return on Equity (ROE) improved from -7.1% to 19.6%, indicating enhanced equity utilization. However, the equity ratio decreased from 26.6% to 30.4%, suggesting a relatively high level of liabilities compared to assets.
Cash Flow
40
Negative
Cash flow analysis reveals challenges. Operating cash flow dropped from 22.5 million in 2023 to zero in 2024, indicating potential operational cash generation issues. Free cash flow, which was 21.5 million in 2023, also fell to zero, raising concerns about cash sustainability. The operating cash flow to net income ratio was not computable due to zero operating cash flow, and free cash flow to net income ratio was also zero, reflecting cash management issues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue660.55M462.33M561.80M750.47M685.69M
Gross Profit81.41M39.32M42.60M48.80M59.98M
EBITDA39.13M12.95M-8.94M-11.14M-118.99M
Net Income16.90M-4.95M-34.46M-31.27M-148.85M
Balance Sheet
Total Assets283.31M260.96M319.86M437.27M497.15M
Cash, Cash Equivalents and Short-Term Investments87.34M127.11M160.72M193.11M179.84M
Total Debt76.05M96.73M154.25M116.55M135.91M
Total Liabilities197.19M191.43M244.43M316.56M346.82M
Stockholders Equity86.12M69.53M75.43M120.71M150.33M
Cash Flow
Free Cash Flow0.0021.54M14.58M13.60M-1.68M
Operating Cash Flow-18.95M22.51M16.03M15.62M1.28M
Investing Cash Flow0.00-28.78M-8.00K-1.39M-2.31M
Financing Cash Flow0.00-57.17M-45.86M-5.77M7.72M

Speedy Global Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.13
Price Trends
50DMA
0.16
Negative
100DMA
0.17
Negative
200DMA
0.15
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
24.56
Positive
STOCH
23.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0540, the sentiment is Negative. The current price of 0.13 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.16, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 24.56 is Positive, neither overbought nor oversold. The STOCH value of 23.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0540.

Speedy Global Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
HK$24.98B3.78-1.97%5.91%-0.17%-66.83%
53
Neutral
HK$79.20M4.6821.72%42.87%
$11.72M-2.50%2.35%
58
Neutral
HK$90.32M-1.92%20.02%90.55%
55
Neutral
HK$68.33M-2.60%-13.04%-111.11%
44
Neutral
HK$478.12M-5.04%46.93%63.40%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0540
Speedy Global Holdings Ltd.
0.13
0.05
62.50%
TUGHF
Tungtex (Holdings) Co
0.02
0.00
0.00%
DE:K1H
Kam Hing International Holdings Limited
HK:1906
Bonny International Holding Ltd.
0.32
0.02
6.67%
HK:2223
Casablanca Group Ltd.
0.26
-0.06
-18.75%
HK:0333
Top Form International Limited
0.30
0.00
0.00%

Speedy Global Holdings Ltd. Corporate Events

Speedy Global Holdings Ltd. Announces Change in Share Registrar
Apr 30, 2025

Speedy Global Holdings Ltd. has announced a change in its Hong Kong Branch Share Registrar and Transfer Office, effective from June 2, 2025. The new registrar will be Union Registrars Limited, and all applications for registration of transfer of shares should be directed to them from the effective date. This change is a part of the company’s administrative updates and is expected to streamline the process of share registration and transfer for stakeholders.

Speedy Global Holdings Announces Annual General Meeting Agenda
Apr 25, 2025

Speedy Global Holdings Ltd. has announced its upcoming annual general meeting scheduled for May 23, 2025, in Hong Kong. The meeting will address several key agenda items, including the approval of the company’s audited financial statements for the year ending December 31, 2024, the re-election of executive directors, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, the meeting will consider resolutions related to the issuance of shares and other securities, which could impact the company’s capital structure and shareholder value.

Speedy Global Holdings Ltd. Reports Strong Financial Turnaround in 2024
Mar 28, 2025

Speedy Global Holdings Ltd. reported a significant improvement in its financial performance for the year ended December 31, 2024. The company’s revenue increased by 42.9% to HK$660.5 million, and its gross profit more than doubled, reaching HK$81.4 million. The net profit attributable to equity holders was HK$16.9 million, a notable turnaround from the previous year’s loss. This positive financial outcome reflects the company’s enhanced operational efficiency and market positioning, potentially benefiting stakeholders and strengthening its industry presence.

Speedy Global Holdings Ltd. Announces Significant Profit Turnaround for 2024
Mar 14, 2025

Speedy Global Holdings Ltd. has announced a significant financial turnaround for the year ending December 31, 2024, expecting a net profit of at least HK$13.0 million compared to a net loss of approximately HK$5 million in the previous year. This improvement is attributed to a 42.9% increase in revenue due to higher sales orders from existing customers and a 44.6% reduction in finance costs from effective cost control measures. The final financial results are yet to be audited and will be released by the end of March 2025.

Speedy Global Holdings Ltd. Schedules Board Meeting to Approve Financial Statements and Discuss Dividend
Mar 14, 2025

Speedy Global Holdings Ltd. has announced a board meeting scheduled for March 28, 2025, to discuss and approve the company’s audited consolidated financial statements for the year ending December 31, 2024. The meeting will also address the potential declaration of a final dividend and the planning of the upcoming annual general meeting. This announcement is significant as it outlines the company’s financial performance and future shareholder returns, potentially impacting investor sentiment and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025