Singamas Container Holdings (0716) AI Stock Analysis

• Market Cap: HK$1.52B
• Dividend Yield: 11.43%
• Average Volume (3M): 2.95M
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.55
• Revenue Growth: 35.10%
• EPS Growth: 12.47%
• Country: HK
• Employees: 4,195
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.04
• Shares Outstanding: 2,382,205,800
• 10 Day Avg. Volume: 2,986,800
• 30 Day Avg. Volume: 2,954,200
• PEG Ratio: 0.08
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.36
• P/FCF Ratio: -2.95
• 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: 64 Neutral
• Price Target: HK$0.50 ▼(-26.47% Downside)

Singamas Container Holdings has a balanced overall stock score. The valuation is the strongest aspect, with a low P/E ratio and high dividend yield making it attractive. Financial performance shows potential but is tempered by cash flow concerns. Technical analysis indicates a neutral market position, lacking strong momentum.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Singamas' container products, suggesting effective market positioning and potential for continued expansion.

Balance Sheet Health

Low leverage and a strong equity position enhance financial resilience, providing flexibility to invest in growth opportunities and weather economic fluctuations.

Improved Profit Margins

Improved profit margins indicate effective cost control and operational efficiency, which can sustain profitability and support long-term financial health.

Negative Factors

Cash Flow Management

Inconsistent cash flow generation can limit the company's ability to fund operations and growth initiatives, potentially impacting financial stability.

Equity Value Concerns

Declining equity value may indicate challenges in generating shareholder returns, affecting investor confidence and long-term growth prospects.

Revenue and Profit Volatility

Volatility in financial performance can signal market or operational risks, potentially hindering strategic planning and long-term stability.

Singamas Container Holdings Business Overview & Revenue Model

Company Description

Singamas Container Holdings Limited, an investment holding company, manufactures and sells containers and other related products. It operates in two segments, Manufacturing and Logistics Services. The Manufacturing segment manufactures dry freight containers, collapsible flat rack containers, tank containers, U.S. domestic containers, offshore containers, open top containers, bitutainers, and other specialized containers and container parts. The Logistics Services segment provides container storage, repair, trucking, container/cargo handling, and other container related services; and serves as a freight station. It operates eight container depots, including seven at Dalian, Tianjin, Qingdao, Shanghai, Ningbo, Fuzhou, and Xiamen ports. The company also provides drayage, dry freight manufacturing, container leasing, management, mid-stream, property holding, and human resource management services. It operates in the United States, Korea, Hong Kong, Singapore, Europe, the People's Republic of China, the Middle East, Taiwan, and internationally. The company was incorporated in 1988 and is based in Central, Hong Kong.

How the Company Makes Money

Singamas generates revenue through multiple streams, primarily from the sale of shipping containers, which includes both standard and specialized types. The company benefits from a robust manufacturing operation that produces a high volume of containers to meet global demand. Additionally, Singamas earns revenue from leasing its containers to shipping companies and logistics firms, providing a steady income stream. The company also engages in trading activities, buying and selling containers, which further contributes to its earnings. Strategic partnerships with shipping lines and logistics providers enhance its market presence and stability, while fluctuating global trade volumes and shipping rates can significantly influence its overall revenue performance.

Singamas Container Holdings Financial Statement Overview

Summary

Singamas Container Holdings shows a mixed financial picture. The income statement indicates recovery with improved net profit margins and strong recent revenue growth. The balance sheet is stable with low leverage and good liquidity. However, cash flow management is a concern due to recent periods lacking clear cash generation.

Income Statement

Singamas Container Holdings has shown a mixed performance over the years. The gross profit margin in the latest period was approximately 15.92%, indicating a moderate level of profitability, though down from prior highs. The net profit margin has improved to 5.86%, reflecting better cost management and a return to profitability after a period of losses. Revenue growth was strong recently, with a 52.41% increase from 2023 to 2024, after a previous decline. The EBIT and EBITDA margins are positive, showing operational efficiency. However, past volatility in revenues and profits suggests underlying challenges in maintaining consistent growth.

Balance Sheet

The balance sheet indicates financial stability, with a debt-to-equity ratio of 0.053 in 2024, highlighting low leverage. The equity ratio stands at 66.53%, suggesting a strong equity position. Return on equity (ROE) was 6.11%, showing moderate profitability relative to shareholder investments. The company has improved its cash position significantly, contributing to reduced net debt and increased liquidity. Despite these strengths, the decrease in stockholders' equity over recent years raises some concerns about long-term value creation.

Cash Flow

The cash flow statement reveals some weaknesses, notably the absence of operating, investing, and free cash flows in the latest period, which raises concerns about cash management. Historically, the company has experienced fluctuations in free cash flow, with notable free cash flow in 2022 but challenges in other years. The absence of consistent free cash flow growth and the reliance on financing activities in the past indicate potential cash flow volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	591.57M	582.80M	382.47M	775.98M	1.15B	274.31M
Gross Profit	94.22M	92.79M	56.53M	146.66M	325.70M	102.34M
EBITDA	44.77M	40.50M	40.76M	101.90M	249.13M	-1.59M
Net Income	30.34M	34.13M	19.44M	46.34M	186.80M	4.58M
Balance Sheet
Total Assets	825.70M	840.22M	756.47M	812.25M	994.00M	657.35M
Cash, Cash Equivalents and Short-Term Investments	204.96M	253.09M	300.96M	369.77M	438.17M	48.79M
Total Debt	51.59M	29.47M	10.72M	6.14M	5.13M	30.35M
Total Liabilities	207.15M	215.79M	141.83M	153.38M	260.76M	123.66M
Stockholders Equity	554.23M	558.99M	551.78M	595.83M	676.27M	497.59M
Cash Flow
Free Cash Flow	-53.81M	-70.73M	-25.32M	56.47M	194.69M	-29.52M
Operating Cash Flow	-42.15M	-61.69M	-20.81M	64.41M	212.19M	-20.55M
Investing Cash Flow	90.50M	137.62M	-118.48M	-39.87M	231.25M	-6.72M
Financing Cash Flow	-32.34M	-4.84M	-62.07M	-132.33M	-52.60M	-39.62M

Singamas Container Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0716, the sentiment is Negative. The current price of 0.68 is above the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.69, and above the 200-day MA of 0.65, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 32.68 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0716.

Singamas Container Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0716	64 Neutral	HK$1.52B	6.45	5.47%	11.43%	35.10%	12.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1626	58 Neutral	HK$1.48B	-134.24	-7.35%	―	-82.87%	-110.99%
6898	58 Neutral	HK$660.83M	41.42	13.20%	0.59%	-2.08%	-23.18%
1820	46 Neutral	HK$751.58M	-24.49	-5.51%	3.20%	3.51%	-950.83%
8291	45 Neutral	HK$14.13M	3.20	―	―	-44.08%	―

Singamas Container Holdings Corporate Events

Singamas Renews Three-Year Services Framework with Controlling Shareholder PIL

Singamas Container Holdings has entered into a new Master Services Contract 2026 with its controlling shareholder Pacific International Lines and its group, under which Singamas will continue to provide container depot and logistics services from 1 January 2026 to 31 December 2028, replacing the current framework that expires at the end of 2025. The agreement, which sets pricing based on estimated costs plus a 10%–30% markup aligned with market rates and no less favourable than terms offered to independent customers, is classified as a continuing connected transaction under Hong Kong listing rules; because the relevant percentage ratios exceed 0.1% but remain below 5%, it will be subject to announcement, reporting and annual review requirements but exempt from circular and shareholder approval, underscoring the ongoing strategic and operational reliance on PIL while seeking to safeguard minority shareholders’ interests through pricing and governance safeguards.

The most recent analyst rating on (HK:0716) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Singamas Container Holdings stock, see the HK:0716 Stock Forecast page.

Singamas Container Holdings Enters Long-term Leasing Agreement

Singamas Container Holdings Limited has entered into a Leasing Framework Agreement with SCLC for the lease of containers, effective from March 2024 to December 2034. This agreement, involving recurring transactions, is considered a continuing connected transaction under the Hong Kong Stock Exchange Listing Rules, requiring annual reporting but exempt from shareholder approval due to its compliance with specific regulatory thresholds.

The most recent analyst rating on (HK:0716) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Singamas Container Holdings stock, see the HK:0716 Stock Forecast page.