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

• Market Cap: HK$363.50M
• Dividend Yield: N/A
• Average Volume (3M): 64.80K
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.67
• 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$1.00 ▲(69.49% 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

Very low leverage / strong capital structure

A debt-to-equity of 0.021 and a 54.85% equity ratio indicate minimal financial leverage and solid capital structure, giving the company durable financial flexibility. Low leverage reduces insolvency risk, supports survival through downturns, and enables funding strategic initiatives without high refinancing pressure.

Improved profitability margins

Reported improvements in gross and net margins and better EBIT/EBITDA margins point to enhanced operational efficiency or pricing power. If structural (cost discipline, product mix), these margin gains can persist and support medium-term earnings resilience even if top-line volatility continues.

Strong operating cash conversion relative to income

Operating cash flow converting at 2.86x net income signals high cash quality of reported profits and the company's ability to generate cash from operations. Durable cash conversion supports working capital needs and cushions capital allocation choices, even as free cash flow levels require monitoring.

Negative Factors

Severe revenue contraction

A 65% year-on-year revenue decline substantially erodes scale, reduces fixed-cost absorption and raises sustainability concerns. Loss of top-line volume can reverse margin gains, limit pricing power, and make long-term growth and investment plans difficult without a credible revenue recovery path.

Major free cash flow collapse

A near-total collapse in free cash flow (‑95.62%) and a negative FCF-to-income ratio show the company struggles to translate earnings into distributable cash. Persistent FCF weakness constrains reinvestment, dividends, and creates potential liquidity or financing needs despite low debt.

Improved margins may be fragile versus revenue loss

Margin improvement amid a large revenue decline suggests gains may reflect cost cuts or temporary mix shifts rather than durable demand-led profitability. If margins depend on reduced activity or one-offs, they could unwind on recovery or sustained top-line weakness, risking medium-term earnings stability.

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.

How the Company Makes Money

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: Negative
• STOCH: Negative

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 0.81, below the 50-day MA of 0.75, and above the 200-day MA of 0.59, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 76.24 is Negative, neither overbought nor oversold. The STOCH value of 82.42 is Negative, 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$229.39M	8.84	12.81%	18.18%	-7.56%	-2.06%
1975	63 Neutral	HK$194.40M	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$363.50M	1.51	27.70%	―	3.21%	3117.65%
8450	41 Neutral	HK$81.00M	-10.14	-23.68%	―	-30.12%	-208.11%
8206	41 Neutral	HK$72.04M	-33.50	―	―	80.22%	53.85%

Success Dragon International Holdings Ltd. Corporate Events

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.