Sitoy Group Holdings Limited (1023) AI Stock Analysis

• Market Cap: HK$500.61M
• Dividend Yield: 11.54%
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -1.38%
• EPS Growth: -275.02%
• Country: HK
• Employees: 4,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.12
• Shares Outstanding: 965,430,000
• 10 Day Avg. Volume: 1,985,600
• 30 Day Avg. Volume: 1,336,066
• PEG Ratio: -0.11
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 3.11
• 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: 62 Neutral
• Price Target: HK$0.50 ▼(-5.66% 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.

Positive Factors

Strong Equity Position

A strong equity position with low leverage enhances financial stability, providing a buffer against market volatility and supporting long-term growth.

Cash Generation Ability

Strong cash generation relative to earnings ensures liquidity and operational flexibility, enabling the company to invest in growth opportunities and weather economic downturns.

Healthy Gross Profit Margin

A healthy gross profit margin indicates efficient production and cost control, which are crucial for sustaining profitability and competitive pricing in the long term.

Negative Factors

Declining Revenue

Declining revenue can signal weakening demand or competitive pressures, potentially impacting the company's ability to invest in growth and maintain market position.

Decreased Profitability Margins

Decreased profitability margins reflect challenges in maintaining operating efficiency, which could hinder the company's ability to generate sustainable profits and reinvest in its business.

Negative Free Cash Flow Growth

Negative free cash flow growth can limit the company's ability to fund new projects, reduce debt, or return capital to shareholders, affecting long-term financial health.

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 shows financial stability with strong equity and low leverage. However, the company faces challenges with declining revenue and profitability margins. Strong cost management and cash flow generation are positive aspects, but revenue growth and profitability need improvement.

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	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
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
EBITDA	115.80M	185.59M	323.90M	253.95M	-15.44M	-12.79M
Net Income	-18.75M	101.89M	202.80M	150.51M	-79.97M	-132.83M
Balance Sheet
Total Assets	1.98B	2.11B	2.14B	2.22B	2.32B	2.45B
Cash, Cash Equivalents and Short-Term Investments	437.53M	460.55M	428.65M	361.64M	503.04M	541.35M
Total Debt	19.36M	35.77M	47.51M	108.60M	210.78M	345.71M
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	-85.86M	-120.42M	-165.59M	-149.50M	-169.81M	-40.27M

Sitoy Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 0.53 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 0.48, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.16 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	73 Outperform	HK$465.83M	5.44	28.87%	5.45%	31.25%	147.52%
1731	73 Outperform	HK$817.60M	4.18	14.86%	9.21%	6.92%	4.74%
1023	62 Neutral	HK$500.61M	-2.81	-10.55%	11.54%	-1.38%	-275.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2033	54 Neutral	HK$668.87M	-38.24	-0.77%	2.09%	-21.75%	-152.15%
1842	48 Neutral	HK$63.60M	-8.83	-5.68%	―	6.38%	-275.00%
8285	44 Neutral	HK$21.84M	-5.42	―	―	-48.40%	66.36%

Sitoy Group Holdings Limited Corporate Events

Sitoy Group Announces AGM Results and Board Changes

Sitoy Group Holdings Limited announced the results of its Annual General Meeting held on November 17, 2025, where all proposed resolutions were passed by shareholders. Additionally, the company announced the retirement of Mr. Kwan Po Chuen, Vincent as an independent non-executive director and the appointment of Ms. So Sze Wan, Lisa to the same position, along with changes in the composition of several board committees. These changes are expected to bring fresh perspectives to the board and potentially impact the company’s governance and strategic direction.

The most recent analyst rating on (HK:1023) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Sitoy Group Holdings Limited stock, see the HK:1023 Stock Forecast page.

Sitoy Group Holdings Announces Board Composition and Governance Structure

Sitoy Group Holdings Limited has announced the current composition of its board of directors and their respective roles, highlighting the leadership structure within the company. The announcement provides insights into the governance framework of the company, which includes four board committees: Audit, Remuneration, Nomination, and Environmental, Social, and Governance. This structure is crucial for stakeholders as it outlines the decision-making hierarchy and the company’s commitment to governance and sustainability practices.

The most recent analyst rating on (HK:1023) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Sitoy Group Holdings Limited stock, see the HK:1023 Stock Forecast page.

Sitoy Group Holdings Announces AGM and Key Resolutions

Sitoy Group Holdings Limited has announced its upcoming annual general meeting scheduled for November 17, 2025, in Hong Kong. Key agenda items include the adoption of financial statements, the declaration of a special dividend, re-election of directors, re-appointment of auditors, and a resolution to allow the company to repurchase shares up to 10% of its issued shares. These resolutions aim to strengthen the company’s governance and financial strategies, potentially impacting shareholder value and market positioning.

The most recent analyst rating on (HK:1023) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Sitoy Group Holdings Limited stock, see the HK:1023 Stock Forecast page.