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Sitoy Group Holdings Limited (HK:1023)
:1023
Hong Kong Market

Sitoy Group Holdings Limited (1023) AI Stock Analysis

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HK

Sitoy Group Holdings Limited

(1023)

Rating:53Neutral
Price Target:
HK$0.50
▲(2.04%Upside)
Sitoy Group Holdings Limited's stock score is primarily influenced by its strong financial stability and high dividend yield. However, declining profitability and lack of revenue growth are significant concerns. The technical analysis suggests a neutral trend, which doesn't offset the negative aspects sufficiently.

Sitoy Group Holdings Limited (1023) vs. iShares MSCI Hong Kong ETF (EWH)

Sitoy Group Holdings Limited Business Overview & Revenue Model

Company DescriptionSitoy Group Holdings Limited, an investment holding company, engages in the design, research, develop, manufacture, sale, wholesale, and retail of handbags, small leather goods, travel goods, and footwear under the TUSCAN'S, Fashion & Joy, and Cole Haan brands. It operates through three segments: Retail, Manufacturing, and Property Investment. The company offers travel luggage and business accessories. It also provides advertising and marketing services; and invests in office spaces. In addition, the company offers treasury management services; acts as a trade agency; and operates shops, boutiques, and department stores. Further, it is involved in the online sale of leather goods, clothing and accessories, and goods for daily use; and retail and wholesale of shoes, clothes, belts, stationaries, glasses, bags, and other fashion products. The company offers its products in Mainland China, Hong Kong, Macau, Taiwan, North America, Europe, other Asian countries, and internationally. Sitoy Group Holdings Limited was founded in 1968 and is headquartered in Kwun Tong, Hong Kong.
How the Company Makes MoneySitoy 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
65
Positive
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
72
Positive
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
60
Neutral
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.61B1.61B1.83B1.85B1.31B1.81B
Gross Profit560.57M572.27M605.72M533.98M327.75M439.03M
EBITDA115.80M185.59M323.90M253.95M-15.44M-12.79M
Net Income-18.75M101.89M202.80M150.51M-79.97M-132.83M
Balance Sheet
Total Assets1.98B2.11B2.14B2.22B2.32B2.45B
Cash, Cash Equivalents and Short-Term Investments437.53M460.55M428.65M361.64M503.04M541.35M
Total Debt19.36M35.77M47.51M108.60M210.78M345.71M
Total Liabilities295.93M308.74M358.99M450.53M569.54M619.77M
Stockholders Equity1.68B1.81B1.78B1.77B1.74B1.86B
Cash Flow
Free Cash Flow90.61M173.74M266.12M-50.25M93.58M162.88M
Operating Cash Flow145.31M237.92M280.79M-37.26M107.69M185.73M
Investing Cash Flow-54.79M-63.62M-6.23M31.61M-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
Negative
Last Price0.49
Price Trends
50DMA
0.50
Negative
100DMA
0.50
Negative
200DMA
0.52
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
38.94
Neutral
STOCH
0.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1023, the sentiment is Negative. The current price of 0.49 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.50, and below the 200-day MA of 0.52, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.94 is Neutral, neither overbought nor oversold. The STOCH value of 0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1023.

Sitoy Group Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
HK$896.00M3.8518.71%9.09%16.66%99.90%
78
Outperform
HK$330.99M5.1523.19%20.00%14.78%56.67%
63
Neutral
$16.67B10.98-6.97%2.95%1.72%-24.21%
54
Neutral
HK$699.74M61.820.49%2.06%-16.46%-87.89%
53
Neutral
HK$471.72M5.10-1.08%12.24%-4.68%-112.44%
49
Neutral
HK$87.60M-3.32%5.42%-511.11%
48
Neutral
HK$19.60M
-35.21%-19.75%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1023
Sitoy Group Holdings Limited
0.49
-0.01
-2.00%
HK:1731
Prosperous Industrial (Holdings) Ltd.
0.80
0.22
37.93%
HK:1842
Grown Up Group Investment Holdings Limited
0.07
0.01
16.67%
HK:2033
Time Watch Investments Ltd.
0.34
-0.07
-17.07%
HK:2683
Wah Sun Handbags International Holdings Ltd.
0.81
0.46
131.43%
HK:8285
Sling Group Holdings Ltd.
0.04
0.02
100.00%

Sitoy Group Holdings Limited Corporate Events

Sitoy Group Reports Interim Loss Amid Stable Revenue
Feb 24, 2025

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
Feb 24, 2025

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.

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: Jun 26, 2025