S.A.S. Dragon Holdings Limited (1184) AI Stock Analysis

• Market Cap: HK$2.87B
• Dividend Yield: 8.89%
• Average Volume (3M): 135.20K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.33
• Revenue Growth: -0.06%
• EPS Growth: -6.11%
• Country: HK
• Employees: 510
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.42
• Shares Outstanding: 625,837,460
• 10 Day Avg. Volume: 125,600
• 30 Day Avg. Volume: 135,200
• PEG Ratio: 0.23
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 4.76
• 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: 76 Outperform
• Price Target: HK$6.00 ▲(35.75% Upside)

S.A.S. Dragon Holdings Limited is well-positioned with strong technical indicators and attractive valuation metrics. The financial performance is solid, though cash flow concerns need addressing. The stock's bullish momentum and undervaluation are significant positives.

Positive Factors

Strong Supplier Relationships

The company's robust supplier relationships allow it to negotiate favorable terms, enhancing profitability and ensuring a steady supply of high-demand products, which supports long-term business stability and growth.

Diverse Revenue Streams

Diverse revenue streams from components, logistics, and contracts reduce dependency on a single market, providing resilience against sector-specific downturns and supporting sustainable growth.

Stable Profitability

Stable profitability and consistent revenue growth reflect efficient operations and market demand, ensuring the company's ability to reinvest in growth and maintain competitive positioning.

Negative Factors

Cash Flow Concerns

The absence of reported cash flow in 2024 raises concerns about liquidity and financial flexibility, potentially impacting the company's ability to fund operations and growth initiatives.

Revenue Decline

A decline in revenue growth indicates potential challenges in market demand or competition, which could affect the company's ability to maintain its market position and profitability over time.

Profit Margin Pressure

Stagnant net profit margins suggest limited pricing power or rising costs, which could hinder profitability improvements and affect long-term financial health if not addressed.

S.A.S. Dragon Holdings Limited Business Overview & Revenue Model

Company Description

S.A.S. Dragon Holdings Limited, an investment holding company, distributes electronic components and semiconductor products in Hong Kong, Mainland China, Taiwan, Singapore, the United States, Vietnam, Macao, India, and internationally. The company provides electronic supply chain services specializing in design, development, sourcing, quality assurance, and logistics management of electronic components and semiconductors products, including chipset solutions, display panels, memory chips, light-emitting diode (LED) lighting solutions, power supply system solutions, multimedia system solutions, PEMCO, IoT home automation solutions, LED lighting, and other premier solutions. Its solutions are used in mobile phone, consumer electronics, computer and networking, telecommunication, and LED lighting and display products. The company also distributes home appliances and business equipment, as well as provides related ancillary services; provides digital out-of-home advertising solutions; and sells LED UV-C wellness products. It markets its products under the SHARP, SQUARE, Light in Motion, Life in Motion, and LIM InfraSystems brand names. The company serves semiconductor suppliers and electronics manufacturing services providers, original equipment manufacturers, original design manufacturers, valued-added resellers, retailers, and end customers. As of December 31, 2021, it carried 18 units of investment properties for commercial and industrial uses in Hong Kong and China. The company was founded in 1981 and is based in Kwai Chung, Hong Kong.

How the Company Makes Money

S.A.S. Dragon Holdings Limited generates revenue through multiple streams, primarily from the distribution and sales of electronic components to businesses across various industries. The company's revenue model is anchored in its ability to source high-demand products from reputable manufacturers, which it then sells to clients in the technology and telecommunications sectors. Key revenue streams include direct sales of electronic components, value-added services such as logistics and supply chain management, and long-term contracts with strategic partners. Additionally, the company benefits from economies of scale and strong relationships with suppliers, enabling it to negotiate favorable terms and competitive pricing, which further enhances its profitability.

S.A.S. Dragon Holdings Limited Financial Statement Overview

Summary

S.A.S. Dragon Holdings Limited exhibits strong revenue growth and stable profitability. The balance sheet is solid with good leverage management, but the absence of cash flow data for 2024 is concerning. Improving cash flow consistency and profit margins will enhance financial stability.

Income Statement

S.A.S. Dragon Holdings Limited shows a strong income statement with consistent revenue growth from 2023 to 2024. The gross profit margin increased slightly from 5.88% in 2023 to 5.15% in 2024, and the net profit margin improved from 1.81% to 1.81%. EBIT and EBITDA margins are stable, indicating efficient operational management. However, the company needs to improve further on its net profit margins to maximize profitability.

Balance Sheet

The balance sheet demonstrates a stable financial position with a healthy debt-to-equity ratio of 0.83 in 2024, showing good leverage management. The equity ratio stands at 27.94%, reflecting a solid base of equity financing. Return on equity is moderately strong at 17.51%, indicating efficient use of equity to generate profits. However, maintaining this stability will be crucial as the industry evolves.

Cash Flow

The cash flow statement highlights a concerning trend with zero reported operating cash flow and free cash flow in 2024, possibly due to unreported figures. Previously, there was a significant operating cash flow in 2023, highlighting operational efficiency. The company needs to ensure consistent cash flow generation going forward to support long-term growth and investment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.71B	27.76B	22.37B	24.97B	35.30B	20.16B
Gross Profit	1.20B	1.43B	1.32B	1.29B	1.59B	870.74M
EBITDA	769.61M	909.90M	847.44M	804.71M	1.21B	519.13M
Net Income	434.47M	501.24M	403.80M	400.34M	713.19M	261.90M
Balance Sheet
Total Assets	10.41B	10.25B	7.83B	8.14B	9.33B	7.28B
Cash, Cash Equivalents and Short-Term Investments	4.60B	3.05B	1.67B	1.54B	1.89B	1.22B
Total Debt	2.67B	2.39B	1.06B	1.60B	2.52B	2.03B
Total Liabilities	7.11B	7.16B	5.00B	5.13B	6.49B	5.16B
Stockholders Equity	3.00B	2.86B	2.64B	2.46B	2.39B	1.86B
Cash Flow
Free Cash Flow	2.80B	549.33M	1.03B	938.10M	363.46M	283.43M
Operating Cash Flow	2.81B	552.81M	1.04B	954.23M	373.96M	303.94M
Investing Cash Flow	148.31M	12.91M	38.22M	-5.80M	17.83M	61.11M
Financing Cash Flow	508.80M	781.74M	-928.46M	-1.29B	223.90M	-333.67M

S.A.S. Dragon Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.42
• 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:1184, the sentiment is Positive. The current price of 4.42 is below the 20-day moving average (MA) of 4.51, below the 50-day MA of 4.54, and above the 200-day MA of 4.33, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 56.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1184.

S.A.S. Dragon Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1184	76 Outperform	HK$2.87B	6.60	14.95%	8.89%	-0.06%	-6.11%
2166	66 Neutral	HK$1.38B	11.69	11.96%	6.74%	-5.58%	22.50%
3991	65 Neutral	HK$2.98B	7.53	13.40%	4.42%	6.01%	9.76%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0400	60 Neutral	HK$6.42B	25.87	5.41%	―	33.59%	-15.98%
0595	58 Neutral	HK$358.92M	5.99	3.38%	4.94%	17.39%	-55.26%
6036	53 Neutral	HK$478.42M	32.01	5.11%	―	14.50%	247.50%