Success Dragon International Holdings Ltd. (1182) AI Stock Analysis

• Market Cap: HK$300.59M
• Dividend Yield: N/A
• Average Volume (3M): 64.80K
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.64
• Revenue Growth: 3.21%
• EPS Growth: 3117.65%
• Country: HK
• Employees: 80
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Specialty Business Services
• EPS (TTM): 0.07
• Shares Outstanding: 349,519,560
• 10 Day Avg. Volume: 125,460
• 30 Day Avg. Volume: 64,798
• PEG Ratio: 0.65
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 1.67
• P/FCF Ratio: -104.61
• 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: 61 Neutral
• Price Target: HK$0.96 ▲(62.71% Upside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is supported by a strong technical setup (price above major moving averages) and a very low P/E valuation, but is held back by weak financial performance—especially the steep revenue decline and major free cash flow contraction despite improved margins and a low-debt balance sheet.

Positive Factors

Low leverage / strong balance sheet

Extremely low debt-to-equity and a >54% equity ratio materially reduce financial distress risk and preserve financial flexibility. This durable capital structure supports funding for working capital, selective capex or opportunistic M&A and cushions the business through cyclical shocks without large refinancing needs.

Improved profitability margins

Material margin improvements indicate better cost control and operational efficiency, which can support sustainable profitability even if top line weakness persists. Higher gross and net margins provide room to absorb SG&A and interest, improving long-term cash generation if revenues stabilize or recover.

Strong operating cash conversion

Operating cash flow nearly triple reported net income signals high earnings quality and solid core cash generation ability. Over a multi-month horizon this supports working capital, reduces reliance on external financing, and gives management runway to implement restructuring or growth initiatives.

Negative Factors

Sharp revenue contraction

A greater-than-60% revenue decline erodes scale economics, shrinks addressable revenue base and undermines the sustainability of margins. Persistent top-line weakness would force continued cost cutting, limit reinvestment, and impair competitive position absent a structural recovery in demand or new revenue sources.

Free cash flow collapse

Nearly complete collapse in free cash flow dramatically reduces internal funding for capex, dividends or debt amortization. Even with positive operating cash conversion, negative FCF to income suggests working capital or capex pressures that can force asset sales, external funding needs, or constrain strategic investments over months.

Profitability reliant on cost-driven gains

Reported margin gains may reflect cost reductions on a much smaller revenue base rather than durable demand improvement. If margins are maintained primarily by temporary cuts, the company faces sustainability risk: continued profitability depends on revenue recovery or structural margin expansion, which is uncertain.

Success Dragon International Holdings Ltd. Business Overview & Revenue Model

Company Description

Success Dragon International Holdings Limited, an investment holding company, provides outsourced business process management services for electronic gaming machines in Hong Kong, Macau, and the People's Republic of China. The company also engages in the processing of gold-laden carbon; and sale of gold and other precious metals. In addition, it is involved in the money lending business. The company was formerly known as C Y Foundation Group Limited and changed its name to Success Dragon International Holdings Limited in December 2015. Success Dragon International Holdings Limited was incorporated in 1994 and is headquartered in Tsim Sha Tsui, Hong Kong.

Success Dragon International Holdings Ltd. Financial Statement Overview

Summary

Mixed fundamentals: profitability margins improved (gross 24.53%, net 6.80%) and leverage is very low (debt-to-equity 0.021), but revenue contracted sharply (-65.39%) and free cash flow deteriorated significantly (-95.62%), creating sustainability risk.

Income Statement

Success Dragon International Holdings Ltd. has shown a significant decline in revenue over the past year, with a revenue growth rate of -65.39%. However, the company has improved its profitability margins, with a gross profit margin of 24.53% and a net profit margin of 6.80% in the most recent year. The EBIT and EBITDA margins have also improved, indicating better operational efficiency. Despite these improvements, the substantial revenue decline poses a risk to future profitability.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.021, indicating minimal leverage and financial risk. The return on equity has improved to 6.97%, reflecting better profitability relative to shareholder equity. The equity ratio stands at 54.85%, suggesting a solid capital structure. Overall, the balance sheet reflects stability and low financial risk.

Cash Flow

The cash flow statement reveals challenges, with a significant decline in free cash flow growth at -95.62%. The operating cash flow to net income ratio is 2.86, indicating strong cash generation relative to net income. However, the negative free cash flow to net income ratio of -0.08 highlights cash flow issues. The company needs to address its cash flow management to ensure sustainable operations.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	373.49M	125.25M	422.73M	363.76M	182.03M	175.20M
Gross Profit	70.77M	30.73M	37.24M	33.79M	35.69M	19.86M
EBITDA	58.87M	17.71M	17.40M	15.10M	9.75M	-5.79M
Net Income	37.59M	8.51M	6.18M	816.00K	2.03M	-10.54M
Balance Sheet
Total Assets	289.78M	222.62M	204.85M	211.98M	141.92M	104.32M
Cash, Cash Equivalents and Short-Term Investments	19.22M	72.97M	79.75M	91.79M	31.79M	32.30M
Total Debt	12.00M	2.59M	4.04M	6.45M	19.71M	28.36M
Total Liabilities	140.40M	100.55M	86.89M	96.11M	92.04M	56.98M
Stockholders Equity	149.38M	122.07M	117.96M	115.87M	49.88M	47.35M
Cash Flow
Free Cash Flow	-46.30M	-2.00M	-7.28M	15.87M	10.11M	-4.40M
Operating Cash Flow	-12.33M	24.36M	-6.76M	18.00M	13.09M	-2.21M
Investing Cash Flow	-33.97M	-25.26M	1.21M	-2.47M	-2.99M	-982.00K
Financing Cash Flow	-5.34M	-5.16M	-3.81M	47.20M	-11.13M	33.83M

Success Dragon International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.59
• 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:1182, the sentiment is Positive. The current price of 0.59 is below the 20-day moving average (MA) of 0.83, below the 50-day MA of 0.77, and below the 200-day MA of 0.59, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 53.21 is Neutral, neither overbought nor oversold. The STOCH value of 57.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1182.

Success Dragon International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1540	74 Outperform	HK$231.88M	8.84	12.81%	18.18%	-7.56%	-2.06%
1975	63 Neutral	HK$187.20M	7.19	-20.83%	8.60%	-26.30%	-617.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1182	61 Neutral	HK$300.59M	1.51	27.70%	―	3.21%	3117.65%
8450	41 Neutral	HK$81.00M	-7.69	-30.63%	―	-30.12%	-208.11%
8206	41 Neutral	HK$72.04M	-33.50	11.87%	―	80.22%	53.85%

Success Dragon International Holdings Ltd. Corporate Events

Success Dragon outlines flexible capital plans for 7.39 million treasury shares

Success Dragon International Holdings has issued a supplemental announcement to its annual report for the year ended 31 March 2025, clarifying its plans for 7,385,000 treasury shares held as of that date. The group states that this additional disclosure does not alter any other information previously reported for the financial year.

The company intends to deploy these treasury shares flexibly, including potential cancellation, sale, or transfer, such as under share schemes or as consideration in transactions, subject to Hong Kong listing and regulatory requirements. This approach gives the group added levers for capital management and potential deal-making, allowing it to adjust its equity base in response to market conditions and evolving funding needs.

The most recent analyst rating on (HK:1182) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Success Dragon International Holdings Ltd. stock, see the HK:1182 Stock Forecast page.

Success Dragon Discloses HK$36.3 Million Supplier Prepayments and Listing Rules Breach

Success Dragon International Holdings disclosed that, as of 30 September 2025, it had made approximately HK$36.3 million in prepayments to suppliers in its gold processing and trading business for gold ore and gold-laden carbon. These prepayments, settled before delivery to secure sufficient and timely supply, are consistent with industry norms and were conducted in the ordinary course of business.

The company acknowledged that the outstanding balances of certain prepayments either exceeded 8% of its assets or increased by 3% or more since prior disclosure, triggering general disclosure obligations under Hong Kong listing rules. As a result, Success Dragon is issuing this supplemental announcement to detail these advances to entities, highlighting its previous non-compliance with specific disclosure requirements and seeking to rectify transparency for investors and regulators.

The most recent analyst rating on (HK:1182) stock is a Buy with a HK$0.89 price target. To see the full list of analyst forecasts on Success Dragon International Holdings Ltd. stock, see the HK:1182 Stock Forecast page.