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Success Dragon International Holdings Ltd. (HK:1182)
:1182
Hong Kong Market

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

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HK

Success Dragon International Holdings Ltd.

(1182)

Rating:63Neutral
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. (1182) vs. iShares MSCI Hong Kong ETF (EWH)

Success Dragon International Holdings Ltd. Business Overview & Revenue Model

Company DescriptionSuccess 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 MoneySuccess 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
72
Positive
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
68
Positive
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
60
Neutral
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
361.87M422.73M363.76M182.03M175.20M91.43M
Gross Profit
32.04M37.24M33.79M35.69M19.86M29.15M
EBIT
2.47M11.90M12.88M8.92M-6.72M-8.98M
EBITDA
7.20M16.22M15.10M9.75M-5.04M-4.41M
Net Income Common Stockholders
1.19M6.18M816.00K2.03M-10.54M-11.86M
Balance SheetCash, Cash Equivalents and Short-Term Investments
24.18M79.75M91.79M31.79M32.30M1.63M
Total Assets
72.51M204.85M211.98M141.92M104.32M65.20M
Total Debt
18.38M4.04M6.45M19.71M28.36M26.30M
Net Debt
-5.80M-75.71M-85.34M-12.09M-3.95M24.67M
Total Liabilities
31.51M86.89M96.11M92.04M56.98M35.88M
Stockholders Equity
41.00M117.96M115.87M49.88M47.35M29.32M
Cash FlowFree Cash Flow
-45.65M-7.28M15.87M10.11M-4.40M-23.02M
Operating Cash Flow
-44.96M-6.76M18.00M13.09M-2.21M-21.79M
Investing Cash Flow
1.33M1.21M-2.47M-2.99M-982.00K-5.64M
Financing Cash Flow
-3.62M-3.81M47.20M-11.13M33.83M4.83M

Success Dragon International Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.52
Price Trends
50DMA
0.58
Negative
100DMA
0.52
Positive
200DMA
0.39
Positive
Market Momentum
MACD
-0.02
Positive
RSI
40.46
Neutral
STOCH
24.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1182, the sentiment is Negative. The current price of 0.52 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.58, and above the 200-day MA of 0.39, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.46 is Neutral, neither overbought nor oversold. The STOCH value of 24.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1182.

Success Dragon International Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
HK$181.75M152.941.03%-11.09%-69.91%
51
Neutral
$2.02B-1.14-21.37%3.64%2.88%-30.57%
$291.74M200.000.30%
$2.15B19.525.24%
€43.62M6.673.78%
DE13O
€22.38M
34
Underperform
HK$26.25M
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1182
Success Dragon International Holdings Ltd.
0.52
0.25
92.59%
AGTEF
AGTech Holdings
0.02
0.00
0.00%
NGCRF
NagaCorp
0.48
-0.04
-7.69%
DE:4C30
CMBC Capital Holdings Limited
0.04
0.02
100.00%
DE:13O
Ourgame International Holdings Ltd
0.02
0.00
0.00%
HK:8277
Steed Oriental (Holdings) Company Ltd.
0.10
-0.42
-80.77%

Success Dragon International Holdings Ltd. Corporate Events

Success Dragon International Announces Acquisition of Key Machinery
Feb 18, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.