Sitoy Group Holdings Limited (1023) AI Stock Analysis

• Market Cap: HK$510.23M
• Dividend Yield: 11.32%
• Average Volume (3M): 948.84K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.31
• Revenue Growth: -4.68%
• EPS Growth: -112.44%
• Country: HK
• Employees: 4,500
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.07
• Shares Outstanding: 965,430,000
• 10 Day Avg. Volume: 893,833
• 30 Day Avg. Volume: 948,844
• 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$0.50
• Price Target Upside: -7.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: HK$0.50 ▼(-7.41% Downside)

Sitoy Group Holdings Limited scores moderately well due to its financial stability and strong dividend yield, appealing to risk-averse and income-focused investors. However, challenges with declining revenue and profitability margins, along with a negative P/E ratio, present significant risks that weigh on the overall score.

Sitoy Group Holdings Limited Business Overview & Revenue Model

Company Description

Sitoy Group Holdings Limited is a leading manufacturer and retailer in the fashion accessories and leather goods industry. The company operates through two main segments: manufacturing and retail. In the manufacturing segment, Sitoy is renowned for producing high-quality leather goods, including handbags, small leather goods, and travel goods for various international luxury brands. The retail segment includes the company's own-brand retail business, featuring handbags, footwear, and accessories under proprietary and licensed brands.

How the Company Makes Money

Sitoy Group Holdings Limited generates revenue primarily through its manufacturing and retail segments. In the manufacturing segment, the company earns money by producing and supplying leather goods and accessories to a variety of top-tier global luxury brands, leveraging long-standing relationships and contracts with these clients. This segment accounts for a significant portion of the company's income, as it involves large-scale production for well-established brands. In the retail segment, Sitoy generates revenue by selling its products under its own brand, both through physical retail stores and online platforms. The company's retail strategy is supported by its ability to design and produce trendy and quality products that appeal to consumers. Additionally, Sitoy may engage in partnerships or licensing agreements to expand its brand portfolio and market reach, further contributing to its revenue streams.

Sitoy Group Holdings Limited Financial Statement Overview

Summary

Sitoy Group Holdings Limited exhibits financial stability with low leverage and strong equity. However, declining margins and revenue indicate challenges in profitability and growth. The company shows solid cost management and cash flow generation, but there is room for improvement in free cash flow growth.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.61B	1.83B	1.85B	1.31B	1.81B
Gross Profit	572.27M	605.72M	533.98M	327.75M	439.03M
EBITDA	185.59M	323.90M	253.95M	-15.44M	-12.79M
Net Income	101.89M	202.80M	150.51M	-79.97M	-132.83M
Balance Sheet
Total Assets	2.11B	2.14B	2.22B	2.32B	2.45B
Cash, Cash Equivalents and Short-Term Investments	460.55M	428.65M	361.64M	503.04M	541.35M
Total Debt	35.77M	47.51M	108.60M	210.78M	345.71M
Total Liabilities	308.74M	358.99M	450.53M	569.54M	619.77M
Stockholders Equity	1.81B	1.78B	1.77B	1.74B	1.86B
Cash Flow
Free Cash Flow	173.74M	266.12M	-50.25M	93.58M	162.88M
Operating Cash Flow	237.92M	280.79M	-37.26M	107.69M	185.73M
Investing Cash Flow	-63.62M	-6.23M	31.61M	-14.05M	-20.85M
Financing Cash Flow	-120.42M	-165.59M	-149.50M	-169.81M	-40.27M

Sitoy Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 0.54 is above the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.51, and above the 200-day MA of 0.51, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.70 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 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
2683	82 Outperform	HK$326.90M	5.09	23.19%	8.86%	21.82%	125.68%
1731	72 Outperform	HK$996.80M	4.28	18.71%	7.87%	16.66%	99.90%
1023	62 Neutral	HK$510.23M	5.10	-1.08%	11.32%	-4.68%	-112.44%
Sector *	57 Neutral	HK$25.99B	4.36	-4.73%	5.52%	-0.90%	-51.66%
2033	49 Neutral	HK$720.32M	63.64	0.49%	2.00%	-16.46%	-87.89%
1842	45 Neutral	HK$74.40M	―	-3.32%	―	5.42%	-511.11%
8285	39 Underperform	HK$18.48M	―		―	-35.21%	-19.75%

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.