APT Satellite Holdings (1045) AI Stock Analysis

• Market Cap: $1.91B
• Dividend Yield: 4.43%
• Average Volume (3M): 264.71K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.30
• 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: -0.25
• Enterprise Value/Revenue: -0.62
• Enterprise Value/Gross Profit: -1.98
• Enterprise Value/Ebitda: -0.89
• 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: 68 Neutral
• Price Target: HK$2.50 ▲(23.15% Upside)

The overall stock score is primarily driven by strong financial performance and attractive valuation. The company's operational efficiency and solid balance sheet are significant strengths, but declining revenues and cash flow sustainability are concerns. Technical analysis indicates a lack of strong momentum, which slightly dampens the overall score.

Positive Factors

Balance Sheet Strength

A low debt-to-equity ratio and high equity ratio reflect a solid capital structure, enhancing financial stability and resilience against economic fluctuations.

Operational Efficiency

Strong operational efficiency and cost management contribute to stable net profit margins, ensuring the company remains competitive despite revenue challenges.

Cash Flow Management

Consistent positive free cash flow indicates effective cash management, allowing the company to fund operations and investments without relying on external financing.

Negative Factors

Revenue Decline

Declining revenue poses a challenge to growth and profitability, necessitating strategic initiatives to reverse the trend and sustain long-term business viability.

Cash Flow Concerns

Zero cash flow in the recent year raises red flags about the company's ability to generate cash, potentially impacting its capacity to fund operations and growth.

Equity Decrease

A decrease in total equity over time may indicate challenges in retaining earnings or managing capital, which could affect long-term financial health.

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: Negative
• Last Price: 2.03
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 2.03 is below the 20-day moving average (MA) of 2.03, below the 50-day MA of 2.07, and above the 200-day MA of 2.00, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 44.88 is Neutral, neither overbought nor oversold. The STOCH value of 22.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$5.27B	11.02	9.18%	6.74%	0.52%	2.07%
0552	76 Outperform	$33.59B	8.63	8.00%	5.20%	1.54%	-2.09%
1883	73 Outperform	HK$9.51B	10.38	8.67%	7.32%	-0.62%	-5.10%
1045	68 Neutral	$1.91B	10.57	2.99%	4.43%	-4.17%	-18.28%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0215	58 Neutral	$5.30B	220.00	0.26%	6.46%	6.79%	―
1310	57 Neutral	$11.00B	49.67	8.55%	4.90%	4.48%	1820.51%

APT Satellite Holdings Corporate Events

APT Satellite Holdings Reports Decline in 2025 Earnings

APT Satellite Holdings Limited, a company in the satellite communications industry, provides satellite transponder capacity and related services across Asia, Europe, Africa, and Oceania. In its latest earnings report for the first half of 2025, APT Satellite Holdings announced a revenue of HK$379.7 million, marking a 3.11% decrease from the previous year, primarily due to a decline in satellite transponder capacity income. The company’s profit attributable to shareholders also saw a significant drop of 23.88% to HK$77.4 million. The interim dividend declared was HK2.50 cents per share, down from HK4.50 cents in the previous year. Key financial metrics showed a decrease in EBITDA by 13.89% to HK$261 million, with a margin drop to 68.7%. The company continues to face challenges in the satellite transponder market due to oversupply and increased competition, notably from LEO operators like Starlink. Despite these challenges, APT Satellite Holdings is actively exploring new markets and enhancing its service offerings, particularly in Mainland China and Southeast Asia. Looking ahead, the company remains focused on leveraging its high-throughput satellites and expanding its service capabilities to maintain stable and sustainable growth.

APT Satellite Holdings Reports Decline in 2025 Interim Results Amid Strong Satellite Operations

APT Satellite Holdings Limited reported a decrease in revenue and profit for the first half of 2025, attributed to reduced income from satellite transponder capacity. The interim dividend was also reduced compared to the previous year. Despite financial declines, the company’s in-orbit satellites continue to operate effectively, offering extensive coverage and reliable services to a significant portion of the global population.

The most recent analyst rating on (HK:1045) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on APT Satellite Holdings stock, see the HK:1045 Stock Forecast page.

APT Satellite Holdings Announces Interim Dividend for 2025

APT Satellite Holdings Limited has announced an interim dividend of HKD 0.025 per share for the six months ending June 30, 2025. This announcement reflects the company’s financial performance and commitment to returning value to shareholders, with the payment scheduled for October 14, 2025, and a record date of September 24, 2025.

The most recent analyst rating on (HK:1045) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on APT Satellite Holdings stock, see the HK:1045 Stock Forecast page.

APT Satellite Holdings to Announce Interim Results and Consider Dividend

APT Satellite Holdings Limited has announced that its board of directors will meet on 22 August 2025 to approve the interim results for the first half of the year and consider recommending an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.