Sitoy Group Holdings Limited (1023) AI Stock Analysis

• Market Cap: HK$500.61M
• Dividend Yield: 11.54%
• Average Volume (3M): 766.20K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.32
• Revenue Growth: -4.68%
• EPS Growth: -112.44%
• Country: HK
• Employees: 4,500
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.07
• Shares Outstanding: 965,430,000
• 10 Day Avg. Volume: 754,000
• 30 Day Avg. Volume: 766,200
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: -3.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: HK$0.50 ▼(-3.85%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, 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 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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Sitoy Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.52
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Negative. The current price of 0.52 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.50, and above the 200-day MA of 0.52, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.98 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2683	78 Outperform	HK$306.47M	4.77	23.19%	9.33%	14.78%	56.67%
1731	72 Outperform	HK$985.60M	4.23	18.71%	11.20%	16.66%	99.90%
1023	62 Neutral	HK$500.61M	5.10	-1.08%	11.54%	-4.68%	-112.44%
Sector *	57 Neutral	HK$25.34B	4.18	-2.03%	5.87%	-0.23%	-68.02%
2033	56 Neutral	HK$689.45M	60.91	0.49%	2.09%	-16.46%	-87.89%
1842	49 Neutral	HK$81.60M	―	-3.32%	―	5.42%	-511.11%
8285	40 Neutral	HK$17.36M	―		―	-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.