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

• Market Cap: HK$188.74M
• Dividend Yield: N/A
• Average Volume (3M): 29.51K
• Price to Earnings (P/E): 158.8
• Beta (1Y): 0.71
• Revenue Growth: -11.09%
• EPS Growth: -69.91%
• Country: HK
• Employees: 80
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Specialty Business Services
• EPS (TTM): -0.01
• Shares Outstanding: 349,519,560
• 10 Day Avg. Volume: 32,780
• 30 Day Avg. Volume: 29,510
• PEG Ratio: -1.89
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.98
• 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

• Rating: 63 Neutral
• Price Target: ―

Success Dragon International Holdings Ltd. exhibits strong revenue growth and improving profit margins, supported by a stable balance sheet with low leverage. However, significant liquidity concerns arise from negative free cash flow, necessitating efficient cash management. Technical indicators suggest positive momentum, though the high P/E ratio indicates potential overvaluation concerns. The absence of a dividend yield further limits immediate investor returns.

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. generates revenue largely through its management services provided to the gaming sector in Macau. This includes offering outsourced management solutions for electronic gaming equipment and systems, which help casino operators optimize their operations. The company may also derive income from its involvement in other industries, including the information technology sector, although the primary focus remains on gaming-related services. Partnerships with casino operators and technology providers play a significant role in sustaining its revenue streams, allowing the company to maintain a steady flow of income and expand its service offerings.

Success Dragon International Holdings Ltd. Financial Statement Overview

Summary

Success Dragon International Holdings Ltd. demonstrates robust revenue growth and improved profit margins, showcasing a positive trajectory in income. The balance sheet is strong with low leverage, but cash flow analysis reveals liquidity concerns with negative free cash flow, requiring careful cash management moving forward.

Income Statement

The company has shown a strong revenue growth rate from 2023 to 2024, indicating a positive trajectory. The gross profit margin and net profit margin have improved, reflecting better cost management and profitability. However, the EBIT and EBITDA margins have decreased slightly, suggesting potential challenges in operational efficiency.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio, indicating conservative leverage and financial stability. The equity ratio is strong, showing a high proportion of assets financed by equity. However, return on equity (ROE) is moderate, suggesting room for improvement in generating returns for shareholders.

Cash Flow

The free cash flow has turned negative, highlighting potential cash management issues. The operating cash flow to net income ratio is negative, indicating that cash generated from operations is insufficient to cover net income. There is a concerning trend in free cash flow to net income ratio, pointing to potential liquidity challenges.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
361.87M	422.73M	363.76M	182.03M	175.20M	91.43M
	Gross Profit
32.04M	37.24M	33.79M	35.69M	19.86M	29.15M
	EBIT
2.47M	11.90M	12.88M	8.92M	-6.72M	-8.98M
	EBITDA
7.20M	16.22M	15.10M	9.75M	-5.04M	-4.41M
	Net Income Common Stockholders
1.19M	6.18M	816.00K	2.03M	-10.54M	-11.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.18M	79.75M	91.79M	31.79M	32.30M	1.63M
	Total Assets
72.51M	204.85M	211.98M	141.92M	104.32M	65.20M
	Total Debt
18.38M	4.04M	6.45M	19.71M	28.36M	26.30M
	Net Debt
-5.80M	-75.71M	-85.34M	-12.09M	-3.95M	24.67M
	Total Liabilities
31.51M	86.89M	96.11M	92.04M	56.98M	35.88M
	Stockholders Equity
41.00M	117.96M	115.87M	49.88M	47.35M	29.32M
Cash Flow		Free Cash Flow
-45.65M	-7.28M	15.87M	10.11M	-4.40M	-23.02M
	Operating Cash Flow
-44.96M	-6.76M	18.00M	13.09M	-2.21M	-21.79M
	Investing Cash Flow
1.33M	1.21M	-2.47M	-2.99M	-982.00K	-5.64M
	Financing Cash Flow
-3.62M	-3.81M	47.20M	-11.13M	33.83M	4.83M

Success Dragon International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.54
• 50DMA: Negative
• 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 0.54 is below the 20-day moving average (MA) of 0.55, below the 50-day MA of 0.57, and above the 200-day MA of 0.40, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 46.31 is Neutral, neither overbought nor oversold. The STOCH value of 50.40 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
1182	63 Neutral	HK$188.74M	158.82	1.03%	―	-11.09%	-69.91%
Sector *	51 Neutral	$2.04B	-1.23	-21.09%	3.96%	2.90%	-30.45%
AGTEF		$306.20M	200.00	0.30%	―	―	―
NGCRF		$2.17B	19.68	5.24%	―	―	―
4C30		€48.48M	7.22	3.78%	―	―	―
13O		€22.07M	―		―	―	―
8277	34 Underperform	HK$26.25M	―		―	―	―

Success Dragon International Holdings Ltd. Corporate Events

Success Dragon International Announces Acquisition of Key Machinery

Success Dragon International Holdings Limited announced a discloseable transaction involving the acquisition of machinery and equipment used in gold-laden carbon processing. The purchase, valued at approximately HKD23,573,000, will be financed by proceeds from a previous rights issue. This transaction, subject to certain conditions, underscores the company’s strategic investment in enhancing its operational capabilities. Shareholders and investors are advised to exercise caution as the completion of the transaction is contingent on the fulfillment of various conditions.