Pegasus International Holdings Limited (0676) AI Stock Analysis

• Market Cap: HK$730.65M
• Dividend Yield: 0.99%
• Average Volume (3M): 12.27K
• Price to Earnings (P/E): 261.8
• Beta (1Y): 0.11
• Revenue Growth: -3.15%
• EPS Growth: -330.61%
• Country: HK
• Employees: 118
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.01
• Shares Outstanding: 730,649,960
• 10 Day Avg. Volume: 5,600
• 30 Day Avg. Volume: 12,266
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$1.00
• Price Target Upside: -0.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: HK$1.00 ▼(-0.99% Downside)

The overall stock score reflects significant financial challenges, particularly in profitability and cash flow management. While the technical analysis shows some positive momentum, the valuation is concerning due to negative earnings. The high dividend yield provides a slight offset, but the company's financial health remains a primary concern.

Pegasus International Holdings Limited Business Overview & Revenue Model

Company Description

Pegasus International Holdings Limited, an investment holding company, engages in the manufacture, trade, and sale of footwear products in the United States, Morocco, and internationally. It operates through Manufacture and Sales of Footwear Products; and Lease of Properties segments. The company offers fashion and outdoor casual, skateboard, aqua sport, athletic, and golf shoes, as well as hiking and snow-board boots, sports sandals, and slippers for man, woman, and child. It is also involved in the manufacture and trade of footwear materials; and leasing of investment properties, as well as provision of administrative services. The company was founded in 1956 and is headquartered in Kowloon, Hong Kong. Pegasus International Holdings Limited is a subsidiary of Pegasus Footgear Management Limited.

How the Company Makes Money

Pegasus International Holdings Limited generates revenue through several key streams. Primarily, the company earns money from property development projects by selling or leasing residential and commercial properties. Additionally, it generates income from its investment portfolio, which may include equity investments, debt instruments, and financial services. The company's revenue is further bolstered by strategic partnerships with local and international developers and investors, enabling it to expand its market reach and capitalize on lucrative real estate opportunities. Furthermore, management fees from its investment activities contribute to its earnings, ensuring a diversified income base.

Pegasus International Holdings Limited Financial Statement Overview

Summary

Overall, Pegasus International Holdings Limited faces significant financial challenges, with declining revenues and profitability, coupled with negative cash flows. The balance sheet remains strong with low leverage, suggesting some stability. However, the company needs to address operational and cash flow issues to improve its financial health and performance.

Income Statement

The income statement reveals challenges with declining revenue and profitability. Gross profit margin improved to 62.1% in 2024 from 52.4% in 2023, indicating better cost management. However, the company reported a negative net profit margin of -18.1% in 2024, down from 7.5% in 2023, reflecting significant net losses. The revenue declined by 2.9% from 2023 to 2024, showing a downward trend. EBIT margin showed improvement to 12.5% in 2024 from -4.0% in 2023, though EBITDA turned negative, indicating potential operational challenges.

Balance Sheet

The balance sheet suggests a stable financial position with relatively low leverage. The debt-to-equity ratio stands at 0.01 in 2024, showcasing minimal reliance on debt. The equity ratio improved to 80.4% in 2024 from 79.6% in 2023, indicating strong equity financing. However, the declining stockholders' equity from 2023 to 2024 suggests potential challenges in maintaining equity growth.

Cash Flow

The cash flow analysis presents concerns with negative operating cash flow of -991,000 in 2024, a sharp decline from positive 1,992,000 in 2023, indicating cash management issues. The free cash flow turned negative in 2024, highlighting potential liquidity challenges. The operating cash flow to net income ratio is negative, further emphasizing inefficiencies in converting income to cash. The free cash flow to net income ratio is also negative, indicating a need for improved cash flow management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.87M	6.04M	9.25M	7.31M	3.35M
Gross Profit	3.64M	3.16M	4.52M	2.33M	449.00K
EBITDA	-1.01M	1.29M	2.98M	-163.00K	1.50M
Net Income	-1.06M	451.00K	1.68M	-957.00K	-625.00K
Balance Sheet
Total Assets	94.80M	99.02M	99.61M	101.86M	67.88M
Cash, Cash Equivalents and Short-Term Investments	9.49M	10.44M	9.04M	9.22M	10.13M
Total Debt	886.00K	800.00K	905.00K	1.09M	878.00K
Total Liabilities	18.52M	20.24M	21.07M	22.24M	14.97M
Stockholders Equity	76.28M	78.78M	78.55M	79.62M	52.91M
Cash Flow
Free Cash Flow	-991.00K	1.92M	1.33M	-2.24M	-3.45M
Operating Cash Flow	-991.00K	1.99M	1.35M	-2.20M	-3.45M
Investing Cash Flow	386.00K	271.00K	107.00K	683.00K	792.00K
Financing Cash Flow	-1.09M	-1.09M	-1.09M	-146.00K	-133.00K

Pegasus International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0676, the sentiment is Neutral. The current price of 1.01 is below the 20-day moving average (MA) of 1.02, above the 50-day MA of 1.00, and above the 200-day MA of 0.92, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of -5.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0676.

Pegasus International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$17.75B	12.51	-5.49%	3.06%	1.43%	-14.10%
0676	50 Neutral	HK$730.65M	261.76	-1.37%	0.99%	-3.15%	-330.61%
DPNEF	―	$129.21M	7.06	15.44%	4.92%	―	―
KMSWF	―	$46.65M	―	-3.04%	25.52%	―	―
2683	82 Outperform	HK$330.99M	5.09	23.19%	8.64%	21.82%	125.68%
1731	74 Outperform	HK$918.40M	4.70	14.86%	8.54%	6.92%	4.74%
1023	62 Neutral	HK$529.49M	5.10	-1.08%	11.11%	-4.68%	-112.44%

Pegasus International Holdings Limited Corporate Events

Pegasus International Holdings AGM Approves Key Resolutions

Pegasus International Holdings Limited held its Annual General Meeting on May 29, 2025, where all proposed resolutions were unanimously approved by shareholders. Key resolutions included the re-election of directors, approval of a final dividend, reappointment of auditors, and granting of mandates to repurchase and issue shares, indicating strong shareholder support and stability in the company’s governance and financial strategies.

Pegasus International Faces Export Challenges Amid U.S. Tariffs

Pegasus International Holdings Limited announced that its footwear manufacturing and export business has been significantly impacted by increased tariffs imposed by the U.S. government on Chinese goods, leading to zero export revenue from January to April 2025. Despite these challenges, the company maintains a stable financial position through its property leasing business and has implemented a cost control plan to mitigate the impact. Shareholders and potential investors are advised to exercise caution when dealing with the company’s shares.