APT Satellite Holdings (1045) AI Stock Analysis

• Market Cap: HK$3.97B
• Dividend Yield: 4.25%
• Average Volume (3M): 264.71K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.38
• Revenue Growth: -4.17%
• EPS Growth: -18.28%
• Country: HK
• Employees: 122
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.08
• Shares Outstanding: 928,572,500
• 10 Day Avg. Volume: 265,850
• 30 Day Avg. Volume: 264,708
• PEG Ratio: -0.66
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 2.65
• P/FCF Ratio: 5.00
• 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: 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: 72 Outperform
• Price Target: HK$4.50 ▲(20.32% Upside)

The score is driven primarily by solid financial quality (strong margins, low leverage, and historically good free cash flow) and strong technical momentum (price above key moving averages with positive MACD). These positives are tempered by declining revenues and a less attractive valuation (higher P/E with only moderate dividend yield).

Positive Factors

Robust EBIT/EBITDA margins

Sustained strong EBIT/EBITDA margins indicate the business retains pricing power and operational leverage. This durable efficiency helps absorb revenue volatility, supports reinvestment in satellite assets, and underpins long-term profitability and cash generation capacity.

Conservative leverage and cash reserves

A low debt load and sizable cash reserves provide structural financial flexibility for capital-intensive satellite cycles. This conservative capital structure reduces refinancing risk, supports capital expenditure timing, and cushions the company through multi-year project timelines or industry downturns.

Historically positive free cash flow

Consistent historical free cash flow and strong cash conversion from net income indicate the core leasing model generates real cash. That durability allows funding of satellite maintenance, selective growth investments, and potential shareholder returns without relying solely on external financing.

Negative Factors

Multi-year revenue decline

A persistent revenue decline erodes scale economics in a capital-intensive industry, reduces capacity utilization of satellites, and constrains reinvestment. If not reversed, it weakens long-term earnings visibility, bargaining power with customers, and returns on new satellite investments.

Recent zero reported cash flows

A year with zero reported cash flows is a meaningful operational red flag in a business that historically converted earnings to cash. It may limit the firm's ability to fund capex or launches, increase reliance on reserves, and reduce maneuverability during multi-year satellite investments.

Slight decline in total equity

Gradual erosion of equity weakens the capital buffer essential for absorbing asset impairments or launch setbacks in the satellite industry. Over time this can reduce borrowing capacity, increase cost of capital, and constrain the company's ability to finance large, lumpy infrastructure projects.

APT Satellite Holdings Business Overview & Revenue Model

Company Description

APT Satellite Holdings Limited, an investment holding company, maintains, operates, and provides satellite transponder capacity and related services, satellite-based broadcasting and telecommunications services, and other services. It offers a range of C-band and Ku-band transponder leasing services to its broadcast and telecommunication customers; satellite TV broadcasting and multi channel per carrier broadcast platforms services; and teleport and network services, including hub-based and single channel per carrier services. The company also provides data center services that comprise rack leasing, server and equipment hosting, cloud management, IP gateway transit, and customized managed services; offers OTT services. It operates in-orbit satellites consisting of APSTAR-5C, APSTAR-6C, APSTAR-7, and APSTAR-9 in Asia, Australia, the Middle East, Africa, Europe, and the Pacific region. In addition, the company engages in property holding activities; and the provision of management and project management consultancy services. The company was founded in 1992 and is headquartered in Tai Po, Hong Kong. APT Satellite Holdings Limited is a subsidiary of APT Satellite International Company Limited.

How the Company Makes Money

APT Satellite generates revenue primarily through the leasing of satellite transponders to telecommunications companies, broadcasters, and other organizations requiring satellite communication services. The company earns money by charging customers for bandwidth and capacity on its satellites, which are used for various applications such as television broadcasting, internet services, and corporate communications. Additional revenue streams include service contracts for satellite management and maintenance, along with partnerships with other telecommunications firms that enhance its service offerings. The company's strategic alliances and long-term contracts with clients contribute significantly to its earnings stability and growth.

APT Satellite Holdings Financial Statement Overview

Summary

APT Satellite Holdings demonstrates strong operational efficiency and a solid balance sheet with low leverage and high equity. However, declining revenues and the potential sustainability of cash flows present challenges. The company is well-positioned financially, but it must address revenue growth to sustain long-term profitability.

Income Statement

The company has shown a declining trend in revenue over the years, with a noticeable decrease from HK$1.06 billion in 2019 to HK$784.65 million in 2024. Gross profit margin remains healthy but has slightly decreased over time. Net profit margin is relatively stable, indicating efficient cost management despite revenue declines. EBIT and EBITDA margins are robust, highlighting strong operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio is high, reflecting a solid capital structure. However, the total equity has slightly decreased over the years. The company's substantial cash reserves enhance its financial stability and provide a buffer against potential risks.

Cash Flow

Operating cash flow has been sufficient to cover capital expenditures, resulting in positive free cash flow historically. However, the recent year shows zero reported cash flows, which raises concerns about cash generation sustainability. Historically, the company has maintained a strong free cash flow to net income ratio, suggesting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	772.48M	784.65M	833.98M	944.30M	927.81M	889.23M
Gross Profit	240.68M	284.13M	355.56M	455.05M	446.40M	393.82M
EBITDA	534.20M	572.69M	697.95M	770.61M	745.92M	737.31M
Net Income	180.94M	205.22M	237.65M	231.61M	263.38M	231.46M
Balance Sheet
Total Assets	6.96B	6.97B	7.09B	7.13B	7.30B	7.20B
Cash, Cash Equivalents and Short-Term Investments	2.51B	2.45B	2.15B	1.75B	1.37B	1.29B
Total Debt	94.03M	111.32M	146.94M	166.79M	182.91M	194.51M
Total Liabilities	845.47M	877.44M	1.00B	1.06B	1.16B	1.26B
Stockholders Equity	6.12B	6.09B	6.08B	6.07B	6.13B	5.94B
Cash Flow
Free Cash Flow	508.25M	416.35M	549.73M	658.64M	598.80M	681.22M
Operating Cash Flow	543.24M	455.91M	566.91M	661.57M	626.94M	698.03M
Investing Cash Flow	-220.84M	40.59M	-628.12M	-585.52M	-321.52M	-259.00M
Financing Cash Flow	-145.83M	-210.85M	-232.25M	-272.03M	-243.32M	-197.18M

APT Satellite Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.74
• 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:1045, the sentiment is Positive. The current price of 3.74 is above the 20-day moving average (MA) of 3.33, above the 50-day MA of 2.56, and above the 200-day MA of 2.13, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 64.80 is Neutral, neither overbought nor oversold. The STOCH value of 54.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1045.

APT Satellite Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0315	81 Outperform	HK$5.28B	11.04	9.18%	6.79%	0.52%	2.07%
0552	76 Outperform	HK$32.00B	8.22	8.00%	5.24%	1.54%	-2.09%
1883	73 Outperform	HK$9.29B	10.14	8.67%	7.46%	-0.62%	-5.10%
1045	72 Outperform	HK$3.97B	21.91	2.99%	4.25%	-4.17%	-18.28%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0215	58 Neutral	HK$5.54B	230.00	0.26%	6.40%	6.79%	―
1310	50 Neutral	HK$10.01B	45.19	8.55%	5.45%	4.48%	1820.51%