Smart Globe Holdings Ltd. (1481) AI Stock Analysis

• Market Cap: HK$2.95B
• Dividend Yield: N/A
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): 1445.0
• Beta (1Y): -0.04
• 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: 47 Neutral
• Price Target: HK$3.00 ▲(62.16% Upside)

The score is driven primarily by weak financial performance (declining profitability and negative 2024 operating/free cash flow) and very stretched valuation (P/E 1265). Technicals are supportive due to a strong uptrend above key moving averages, but extremely overbought RSI/Stoch signals raise near-term pullback risk.

Positive Factors

Strong equity position

A high equity ratio (79.4%) and low reported leverage provide balance sheet resilience, lowering refinancing risk and giving the company capacity to fund project investment or absorb shocks. This financial strength supports durable operations and strategic execution over months.

Diversified smart infrastructure exposure

Exposure across smart city, renewable energy and telecoms offers structural demand drivers (urbanization, decarbonization, connectivity). Diversification across adjacent infrastructure markets helps stabilize revenue cycles and supports long-term growth opportunities from secular trends.

Recurring services and strategic partnerships

Recurring maintenance/support revenue and government/private partnerships improve revenue visibility and contract durability. These recurring and partnership-based streams reduce reliance on one-off project sales and can sustain cashflows and client relationships over multiple reporting periods.

Negative Factors

Negative operating and free cash flow

Operating and free cash flow turning negative in 2024 indicates the business is not converting operations into cash, driven by higher capex and weaker operations. Persisting cash flow deficits constrain reinvestment and may force external financing, weakening long-term financial flexibility.

Declining revenue and margins

Revenue decline alongside negative EBIT/EBITDA and net margins reflects structural operational pressures. Gross margin fell from 27.5% in 2020 to 11.7% in 2024, suggesting pricing, cost or mix issues that reduce sustainable profitability until corrective actions are taken.

Negative return on equity

Negative ROE since 2022 signals the company is not generating acceptable returns on shareholder capital. Over a multi-quarter horizon, persistent negative ROE questions management's capital allocation effectiveness and the firm's ability to restore shareholder value.

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

Income statement trends are weak (revenue decline and profitability deterioration, with negative EBIT/EBITDA and net margin in 2024). The balance sheet is comparatively resilient with a high equity ratio (79.4%) and low leverage, but negative ROE since 2022 and negative operating/free cash flow in 2024 weigh on overall financial quality.

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: 1.85
• 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:1481, the sentiment is Positive. The current price of 1.85 is below the 20-day moving average (MA) of 2.51, below the 50-day MA of 2.08, and above the 200-day MA of 1.02, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 69.15 is Neutral, neither overbought nor oversold. The STOCH value of 64.17 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	HK$743.35M	26.05	1.85%	6.15%	-15.60%	-58.97%
8368	58 Neutral	HK$190.67M	10.15	5.92%	―	-27.68%	-77.19%
0423	55 Neutral	HK$340.96M	-13.34	-3.21%	14.86%	-10.37%	-162.65%
1105	49 Neutral	HK$178.75M	-2.15	-5.12%	―	-7.76%	-55.96%
1481	47 Neutral	HK$2.95B	1,445.00	1.72%	―	66.20%	―
2008	46 Neutral	HK$948.80M	-3.47	-9.70%	―	-13.10%	13.01%

Smart Globe Holdings Ltd. Corporate Events

Smart Globe Forecasts Profit Turnaround on Surging Africa-Focused Logistics Revenue

Smart Globe Holdings Limited has issued a positive profit alert, indicating it expects to swing from a net loss of about HK$12 million in 2024 to a net profit of between HK$10 million and HK$16 million for the year ended 31 December 2025. The turnaround is driven by a sharp rise in revenue from its supply chain management services, projected at HK$108 million to HK$114 million versus HK$9.5 million a year earlier, on the back of strong logistics demand in the Sub-Saharan Africa market, partly offset by a decline in its printing segment revenue to HK$90 million to HK$96 million from HK$108.1 million. The figures are based on unaudited management accounts and may differ from the final audited results, but the guidance signals a significant shift in the group’s earnings profile towards higher-growth logistics and supply chain services and away from its legacy printing operations.

The most recent analyst rating on (HK:1481) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Smart Globe Holdings Ltd. stock, see the HK:1481 Stock Forecast page.

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.

The most recent analyst rating on (HK:1481) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Smart Globe Holdings Ltd. stock, see the HK:1481 Stock Forecast page.

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.

The most recent analyst rating on (HK:1481) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Smart Globe Holdings Ltd. stock, see the HK:1481 Stock Forecast page.