Speedy Global Holdings Ltd. (0540) AI Stock Analysis

• Market Cap: HK$112.80M
• Dividend Yield: N/A
• Average Volume (3M): 147.87K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.38
• Revenue Growth: -5.03%
• EPS Growth: 229.17%
• Country: HK
• Employees: 138
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): <0.01
• Shares Outstanding: 600,000,000
• 10 Day Avg. Volume: 135,600
• 30 Day Avg. Volume: 147,866
• PEG Ratio: -0.01
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -4.36
• 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: 60 Neutral
• Price Target: HK$0.20 ▲(5.26% Upside)

The score is held back primarily by cash flow weakness (operating and free cash flow dropped to zero) despite improved profitability and strong revenue growth. Technicals are supportive with a strong uptrend and positive MACD, while valuation is favorable on a low P/E; however, overbought RSI increases near-term risk.

Positive Factors

Improved Profit Margins

The improvement in profit margins indicates better cost management and pricing strategies, enhancing long-term profitability and competitiveness.

Reduced Leverage

Reduced leverage enhances financial stability and flexibility, allowing the company to better manage economic fluctuations and invest in growth opportunities.

Revenue Recovery

Strong revenue recovery suggests effective market strategies and demand for services, supporting long-term growth and market position.

Negative Factors

Cash Flow Challenges

Zero operating cash flow raises concerns about the company's ability to sustain operations and fund growth without external financing.

High Liabilities

A relatively high level of liabilities compared to assets could limit financial flexibility and increase risk during economic downturns.

Cash Sustainability Issues

The lack of free cash flow indicates potential difficulties in funding operations and investments, impacting long-term growth prospects.

Speedy Global Holdings Ltd. Business Overview & Revenue Model

Company Description

Speedy 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 Money

Speedy Global Holdings generates revenue through multiple key streams, primarily from its logistics and supply chain management services. The company charges clients for transportation services, including freight forwarding and distribution, which are billed based on distance, cargo weight, and service type. Additionally, it earns income from warehousing operations, where clients pay for storage space and inventory management services. Speedy Global also benefits from significant partnerships with shipping lines, airlines, and other logistics providers, which enable it to offer competitive rates and expand its service offerings. These strategic alliances enhance its market reach and contribute to steady revenue growth. Furthermore, the company may also have ancillary revenue sources from consulting services related to supply chain optimization and technology solutions, enhancing its overall earnings potential.

Speedy Global Holdings Ltd. Financial Statement Overview

Summary

The company has shown a strong recovery in profitability with improved margins and revenue growth. However, the balance sheet shows moderate leverage, and cash flow sustainability is a concern due to zero operating and free cash flows.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	536.11M	660.55M	462.33M	561.80M	750.47M	685.69M
Gross Profit	68.84M	81.41M	39.32M	42.60M	48.80M	59.98M
EBITDA	34.36M	39.13M	12.95M	-8.94M	-11.14M	-118.99M
Net Income	14.25M	16.90M	-4.95M	-34.46M	-31.27M	-148.85M
Balance Sheet
Total Assets	176.46M	283.31M	260.96M	319.86M	437.27M	497.15M
Cash, Cash Equivalents and Short-Term Investments	59.61M	87.34M	127.11M	160.72M	193.11M	179.84M
Total Debt	5.03M	76.05M	96.73M	154.25M	200.11M	135.91M
Total Liabilities	87.52M	197.19M	191.43M	244.43M	316.56M	346.82M
Stockholders Equity	88.94M	86.12M	69.53M	75.43M	120.71M	150.33M
Cash Flow
Free Cash Flow	40.85M	-19.55M	21.54M	14.58M	13.60M	-1.68M
Operating Cash Flow	41.44M	-18.95M	22.51M	16.03M	15.62M	1.28M
Investing Cash Flow	34.49M	35.05M	-28.78M	-8.00K	-1.39M	-2.31M
Financing Cash Flow	-88.64M	-20.41M	-57.17M	-45.86M	-5.77M	7.72M

Speedy Global Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0540, the sentiment is Positive. The current price of 0.19 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.16, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 91.06 is Negative, neither overbought nor oversold. The STOCH value of 85.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0540.

Speedy Global Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0540	60 Neutral	HK$112.80M	7.93	17.42%	―	-5.03%	229.17%
0333	58 Neutral	HK$75.26M	-2.31	-8.92%	―	7.57%	-1383.56%
2223	48 Neutral	HK$201.13M	-15.40	-3.62%	―	-9.34%	-177.30%
0518	46 Neutral	HK$87.51M	-31.15	-0.71%	2.59%	3.84%	83.42%
1906	46 Neutral	HK$632.58M	-24.44	-6.24%	―	5.88%	16.82%