Smart Globe Holdings Ltd. (1481) AI Stock Analysis

• Market Cap: HK$1.86B
• Dividend Yield: N/A
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): 910.0
• Beta (1Y): -0.08
• Revenue Growth: 66.20%
• EPS Growth: N/A
• Country: HK
• Employees: 438
• Sector: Industrials
• Sector Strength: 72
• Industry: Publishing
• EPS (TTM): <0.01
• Shares Outstanding: 1,020,000,000
• 10 Day Avg. Volume: 4,890,000
• 30 Day Avg. Volume: 2,011,980
• PEG Ratio: -0.22
• Price to Book (P/B): 5.23
• Price to Sales (P/S): 5.03
• P/FCF Ratio: -69.25
• 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: 58 Neutral
• Price Target: HK$2.00 ▲(10.50% Upside)

The overall stock score is primarily influenced by the company's financial performance challenges, including declining revenue and profitability, and negative cash flow. While technical analysis shows strong upward momentum, the stock appears overbought, suggesting caution. The high P/E ratio indicates overvaluation, further impacting the score negatively.

Positive Factors

Strong Equity Position

A strong equity position provides a solid financial foundation, enhancing the company's ability to withstand economic fluctuations and invest in growth opportunities.

Revenue Model Diversification

Diversified revenue streams across smart technologies and partnerships reduce reliance on a single market, enhancing resilience and long-term growth potential.

Market Position in Smart Solutions

Positioning in growing sectors like smart cities and renewable energy aligns with global trends towards sustainability, supporting long-term demand and innovation.

Negative Factors

Declining Profitability

Decreasing profitability margins indicate rising costs and operational inefficiencies, which may hinder the company's ability to reinvest and grow sustainably.

Negative Cash Flow

Negative cash flow challenges liquidity and limits the company's ability to fund operations and strategic initiatives, potentially impacting long-term viability.

Revenue Decline

Consistent revenue decline suggests weakening market position or competitive pressures, which could affect the company's ability to maintain growth and profitability.

Smart Globe Holdings Ltd. Business Overview & Revenue Model

Company Description

Smart Globe Holdings Limited, an investment holding company, produces, prints, and distributes books, and novelty and packaging products in Hong Kong, the United States, the United Kingdom, the Netherlands, Australia, the People's Republic of China, France, and internationally. The company provides a range of services, including pre-press, printing, and finishing services, as well as offers customized and value-added printing products. Its products include box products, children's books and pop-ups, journals and book products, stationery and photo albums, leather products, and oversized books. The company was founded in 2012 and is headquartered in North Point, Hong Kong. Smart Globe Holdings Limited is a subsidiary of Master Sage Limited.

How the Company Makes Money

Smart Globe Holdings Ltd. generates revenue through multiple key streams, primarily by investing in and managing projects within the smart city and renewable energy sectors. The company earns income from the sale of smart technology solutions and services, including IoT devices, energy management systems, and telecommunications infrastructure. Additionally, Smart Globe engages in strategic partnerships with governmental bodies and private enterprises, enabling it to secure contracts and projects that contribute significantly to its earnings. The company's revenue model is further supported by recurring revenues from maintenance and support services for its technology solutions, as well as potential revenue-sharing arrangements with partners in joint ventures or public-private partnerships.

Smart Globe Holdings Ltd. Financial Statement Overview

Summary

Smart Globe Holdings Ltd. faces significant challenges with declining revenue and profitability. The income statement shows a decrease in gross profit margin and negative EBIT and EBITDA margins, indicating operational difficulties. Despite a strong equity position, the balance sheet reflects ongoing profitability issues, and cash flow analysis reveals negative operating and free cash flow, highlighting liquidity concerns.

Income Statement

Smart Globe Holdings Ltd. has experienced a decline in revenue from 2021 to 2024, with a significant drop in profitability. The gross profit margin decreased from 27.5% in 2020 to 11.7% in 2024, indicating increased cost pressures. The company reported negative EBIT and EBITDA margins in 2024, reflecting operational challenges. The net profit margin also turned negative, highlighting a need for strategic improvements to return to profitability.

Balance Sheet

The company's balance sheet shows a strong equity position with an equity ratio of 79.4% in 2024, indicating financial stability. However, the debt-to-equity ratio increased slightly to 0.07, suggesting a manageable level of leverage. The return on equity has been negative since 2022, reflecting ongoing profitability issues. Overall, the balance sheet remains robust, but profitability needs attention.

Cash Flow

Cash flow analysis reveals a challenging situation with negative operating cash flow in 2024, contrasting with positive figures in previous years. Free cash flow also turned negative in 2024, driven by increased capital expenditures and declining operating cash flow. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. The company needs to address cash flow management to ensure liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	169.63M	117.59M	97.24M	131.65M	167.90M	127.21M
Gross Profit	31.93M	13.75M	21.55M	7.67M	26.50M	45.96M
EBITDA	8.70M	-10.40M	-3.46M	-14.96M	4.39M	21.37M
Net Income	2.09M	-12.00M	-3.69M	-16.49M	1.65M	16.00M
Balance Sheet
Total Assets	222.85M	142.49M	150.33M	150.29M	159.29M	161.52M
Cash, Cash Equivalents and Short-Term Investments	47.22M	55.28M	65.65M	57.09M	32.47M	50.84M
Total Debt	25.14M	8.00M	6.60M	1.80M	4.04M	6.34M
Total Liabilities	89.38M	29.33M	23.73M	18.68M	25.41M	26.77M
Stockholders Equity	125.88M	113.16M	126.60M	131.61M	133.88M	134.75M
Cash Flow
Free Cash Flow	-26.41M	-8.54M	3.65M	15.73M	-10.81M	12.04M
Operating Cash Flow	17.17M	-3.91M	4.18M	16.84M	-2.76M	16.36M
Investing Cash Flow	-43.54M	-3.10M	7.28M	-8.05M	-7.97M	-1.09M
Financing Cash Flow	21.90M	-3.28M	-2.58M	18.00M	-7.75M	-7.33M

Smart Globe Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1481, the sentiment is Positive. The current price of 1.81 is above the 20-day moving average (MA) of 1.67, above the 50-day MA of 1.29, and above the 200-day MA of 0.71, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 64.64 is Neutral, neither overbought nor oversold. The STOCH value of 20.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1481.

Smart Globe Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0018	61 Neutral	€827.28M	28.99	1.85%	5.88%	-15.60%	-58.97%
8368	61 Neutral	HK$317.79M	16.92	5.92%	―	-27.68%	-77.19%
1481	58 Neutral	HK$1.86B	910.00	1.72%	―	66.20%	―
0423	55 Neutral	$358.23M	―	-3.21%	14.67%	-10.37%	-162.65%
1105	49 Neutral	HK$206.93M	-2.49	-5.12%	―	-7.76%	-55.96%
2008	46 Neutral	HK$853.92M	―	-9.70%	―	-13.10%	13.01%

Smart Globe Holdings Ltd. Corporate Events

Smart Globe Holdings Updates Lease Agreement Details

Smart Globe Holdings Limited has announced a supplemental disclosure regarding a lease agreement with Harmony Prosper Zambia, a company involved in production, warehousing, and logistics in Zambia. The announcement clarifies that Harmony Prosper Zambia and its owner, Mr. Li Zhichao, are independent third parties, with no changes to the previously disclosed information.

Smart Globe Holdings Expands Operations with New Lease Agreement

Smart Globe Holdings Ltd., through its subsidiary Tera Logistics, has entered into a lease agreement with Harmony Prosper Zambia for a term of nearly five years. This agreement marks a significant expansion in the company’s operations, increasing its scale by over 200% in terms of lease arrangements. The agreement also includes a contingent obligation for Tera Logistics to potentially acquire buildings constructed by the lessee, with a maximum cost of US$6 million. This potential acquisition is classified as a discloseable transaction under the Listing Rules, requiring notification and announcement but not shareholder approval.

Smart Globe Holdings Expands Fleet with Major Vehicle Purchase

Smart Globe Holdings Limited, a company incorporated in the Cayman Islands, has announced a significant purchase as part of its expansion strategy to enhance supply chain management. The company has entered into a sales contract with Rich-Coop Co., Limited for the acquisition of 50 tractor trucks and 50 40-foot 3-axle semi trailers, valued at approximately US$2,388,750. This transaction is classified as a discloseable transaction under the Hong Kong Stock Exchange’s listing rules, requiring notification and announcement but not shareholder approval. The purchase is intended to be funded through the company’s internal resources and aims to bolster its operational capabilities.

Smart Globe Holdings Updates Share Option Scheme Details

Smart Globe Holdings Ltd. has issued a supplemental announcement regarding its Share Option Scheme, which was initially adopted in December 2017. The scheme allows for the issuance of up to 100,000,000 shares, representing approximately 9.80% of the company’s total issued shares as of the latest annual report. This additional information does not alter any other details in the annual report, maintaining the integrity of previously disclosed data.