Sitoy Group Holdings Limited (1023) AI Stock Analysis

• Market Cap: HK$490.98M
• Dividend Yield: 11.76%
• Average Volume (3M): 228.89K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.33
• Revenue Growth: -4.68%
• EPS Growth: -112.44%
• Country: HK
• Employees: 4,500
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.07
• Shares Outstanding: 965,430,000
• 10 Day Avg. Volume: 323,177
• 30 Day Avg. Volume: 228,892
• PEG Ratio: 0.12
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.97
• 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: 61 Neutral
• Price Target: HK$0.50 ▼(-1.96%Downside)

Sitoy Group Holdings Limited's stock score reflects moderate financial stability with strong equity and low leverage. However, profitability challenges and declining revenue are significant concerns. The technical indicators suggest a neutral market position, and a high dividend yield provides a buffer in valuation despite a negative P/E ratio.

Sitoy Group Holdings Limited Business Overview & Revenue Model

Company Description

Sitoy Group Holdings Limited (1023) is a leading manufacturer and retailer of handbags, small leather goods, travel goods, and footwear. The company operates in the fashion and accessories sector, offering a wide range of products that cater to both international luxury brands and its own branded products. Sitoy Group is known for its integrated manufacturing capabilities, from product design and development to production and distribution, serving a global market.

How the Company Makes Money

Sitoy Group Holdings Limited generates revenue through its dual business model comprising manufacturing and retailing. The manufacturing segment involves producing leather goods for well-known international luxury brands, leveraging its strong design and production capabilities. This segment forms a significant part of the company's revenue, relying on long-term partnerships and contracts with these global brands. The retail segment focuses on Sitoy's own branded products, distributed through its retail network and e-commerce platforms. The company also benefits from strategic partnerships and collaborations that enhance its product offerings and market reach. Additionally, Sitoy's earnings are influenced by its ability to adapt to market trends and consumer preferences in the fashion industry.

Sitoy Group Holdings Limited Financial Statement Overview

Summary

Sitoy Group Holdings Limited demonstrates financial stability with low leverage and strong equity. However, the decline in revenue and margins suggests challenges in growth and profitability, despite efficient cost management.

Income Statement

Sitoy Group Holdings Limited has seen a decline in total revenue over the past year, with a revenue decrease from 2023 to 2024. However, the company maintains a healthy gross profit margin of approximately 35.6% in 2024, indicating efficiency in production and cost control. The net profit margin also remains positive at 6.3%, though significantly reduced from the previous year. The EBIT and EBITDA margins show decreased profitability, reflecting the challenges faced in maintaining operating efficiency.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio of 0.02, indicating low leverage and potential financial stability. The equity ratio of 85.4% suggests that the company is primarily financed through equity, providing a buffer against volatility. Return on equity is moderate at 5.6%, reflecting cautious profitability relative to shareholder investments.

Cash Flow

The cash flow statement reveals a decline in free cash flow from the previous year, with a negative growth rate. The operating cash flow to net income ratio is 2.34, indicating strong cash generation relative to reported earnings. However, the free cash flow to net income ratio is lower, suggesting significant capital expenditures. Overall, the company's cash flow position is stable but shows room for improvement in terms of free cash flow growth.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.61B	1.61B	1.83B	1.85B	1.31B	1.81B
	Gross Profit
560.57M	572.27M	605.72M	533.98M	327.75M	439.03M
	EBIT
77.76M	130.23M	216.89M	154.10M	-27.58M	-94.78M
	EBITDA
115.80M	185.59M	323.90M	253.95M	-15.44M	-12.79M
	Net Income Common Stockholders
-18.75M	101.89M	202.80M	150.51M	-79.97M	-132.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
437.53M	460.55M	428.65M	361.64M	503.04M	541.35M
	Total Assets
1.98B	2.11B	2.14B	2.22B	2.32B	2.45B
	Total Debt
19.36M	35.77M	47.51M	108.60M	210.78M	345.71M
	Net Debt
-418.18M	-424.78M	-356.35M	-206.19M	-267.04M	-172.12M
	Total Liabilities
295.93M	308.74M	358.99M	450.53M	569.54M	619.77M
	Stockholders Equity
1.68B	1.81B	1.78B	1.77B	1.74B	1.86B
Cash Flow		Free Cash Flow
90.61M	173.74M	266.12M	-50.25M	93.58M	162.88M
	Operating Cash Flow
145.31M	237.92M	280.79M	-37.26M	107.69M	185.73M
	Investing Cash Flow
-54.79M	-63.62M	-6.23M	31.61M	-14.05M	-20.85M
	Financing Cash Flow
-86.78M	-120.42M	-165.59M	-149.50M	-169.81M	-40.27M

Sitoy Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1023, the sentiment is Positive. The current price of 0.51 is above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.50, and below the 200-day MA of 0.52, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.93 is Neutral, neither overbought nor oversold. The STOCH value of 39.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1023.

Sitoy Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2020	81 Outperform	$262.90B	15.67	28.11%	2.53%	11.51%	47.88%
1910	70 Outperform	$20.02B	8.69	20.15%	7.41%	-4.83%	-27.83%
2382	65 Neutral	$70.02B	23.82	11.45%	0.84%	18.80%	142.93%
Sector *	62 Neutral	$6.88B	11.07	2.77%	4.28%	2.67%	-24.94%
1023	61 Neutral	HK$490.98M	5.10	-1.08%	11.76%	-4.68%	-112.44%
3389	53 Neutral	$462.42M	13.54	-2.04%	―	-27.93%	-293.98%
3318	51 Neutral	HK$2.02B	101.63	0.59%	―	-21.05%	-87.68%

Sitoy Group Holdings Limited Corporate Events

Sitoy Group Reports Interim Loss Amid Stable Revenue

Sitoy Group Holdings Limited reported its interim results for the six months ending December 31, 2024. The company’s revenue remained stable at approximately HK$813.7 million, but it faced a decline in gross profit by 4.1% compared to the previous year. The company reported a loss of approximately HK$67.1 million, contrasting with a profit of HK$53.6 million in the same period of 2023. Despite the financial downturn, the company declared an interim dividend of HK2 cents per share.

Sitoy Group Holdings Declares Interim Dividend for 2024

Sitoy Group Holdings Limited announced an interim ordinary dividend of HKD 0.02 per share for the six months ending December 31, 2024, with a payment date set for April 28, 2025. This announcement reflects the company’s financial strategy and commitment to delivering shareholder value, suggesting stable operational performance amid market conditions.