Star Group Company Limited (1560) AI Stock Analysis

• Market Cap: HK$75.70M
• Dividend Yield: N/A
• Average Volume (3M): 30.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: -52.37%
• EPS Growth: 15.93%
• Country: HK
• Employees: 116
• Sector: Industrials
• Sector Strength: 72
• Industry: Real Estate - Development
• EPS (TTM): -0.03
• Shares Outstanding: 641,498,000
• 10 Day Avg. Volume: 24,000
• 30 Day Avg. Volume: 30,466
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 0.10
• 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: 46 Neutral
• Price Target: HK$0.12 ▲(0.00% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, which is the most significant factor. Technical analysis provides a neutral outlook, while valuation is negatively affected by the company's losses and lack of dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Diversified Revenue Streams

Diversified revenue streams across multiple sectors provide resilience against sector-specific downturns and enhance market stability.

Commitment to Innovation

Ongoing investment in R&D can drive product innovation, leading to increased sales and customer loyalty over the long term.

Strategic Partnerships

Partnerships enhance market reach and brand visibility, supporting long-term growth and competitive positioning.

Negative Factors

Declining Revenue

A downward revenue trajectory indicates challenges in market demand or competitive pressures, impacting long-term growth prospects.

High Financial Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.

Negative Cash Flow

Poor cash generation limits financial flexibility and the ability to fund operations or strategic initiatives, threatening long-term viability.

Star Group Company Limited Business Overview & Revenue Model

Company Description

Star Group Company Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Korea. The company also provides property management and security services; and financing services to the property buyers. In addition, it engages in the provision of construction and fitting out works; leasing of wine cellars and trading of fine wine; and provision of media production services in marketing, advertisement, and organization of music concerts. The company was formerly known as Star Properties Group (Cayman Islands) Limited and changed its name to Star Group Company Limited in June 2021. The company was founded in 2010 and is headquartered in Wan Chai, Hong Kong. Star Group Company Limited operates as a subsidiary of Star Properties Holdings (BVI) Limited.

How the Company Makes Money

Star Group Company Limited generates revenue through multiple streams, primarily from the sale of its manufactured products in various sectors. The company's core revenue model is based on direct sales to retailers and wholesalers, as well as online sales through e-commerce platforms. Additionally, the company engages in strategic partnerships with distributors and retailers, which helps expand its market reach and brand visibility. Key revenue streams include consumer electronics, home appliances, and personal care products, all of which contribute significantly to the company's overall earnings. Moreover, the company invests in research and development to innovate its product offerings, which can lead to increased sales and customer loyalty.

Star Group Company Limited Financial Statement Overview

Summary

Star Group Company Limited is facing substantial financial challenges. The income statement shows declining revenues and profitability, with negative profit margins and operational losses. The balance sheet reveals high financial leverage and decreasing equity, raising concerns about financial stability. Cash flow analysis highlights negative free cash flow and declining operating cash flow, pointing to liquidity issues. Overall, the company needs to address its operational inefficiencies and financial leverage to improve its financial health.

Income Statement

The company has experienced a significant decline in revenue and profitability. Gross Profit Margin and Net Profit Margin are negative due to high operational losses. Revenue has decreased from the previous year, indicating a downward trajectory. EBIT and EBITDA margins are also negative, reflecting substantial operational challenges.

Balance Sheet

The company's financial leverage is high, as indicated by a Debt-to-Equity Ratio greater than 1. The Equity Ratio has been decreasing, reflecting a decreasing proportion of equity in the company's capital structure. Return on Equity is negative, which suggests inefficiency in generating returns from shareholders' equity. The financial stability is concerning due to high liabilities relative to assets.

Cash Flow

The company exhibits negative Free Cash Flow and a significant decline in Operating Cash Flow. The Operating Cash Flow to Net Income Ratio is not calculable due to negative net income. Free Cash Flow growth has also been negative, indicating poor cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	744.48M	1.13B	1.24B	1.70B	78.44M	105.78M
Gross Profit	-148.65M	-276.86M	-123.00K	610.10M	62.69M	70.93M
EBITDA	-275.28M	-428.15M	-105.63M	409.19M	-14.66M	-7.23M
Net Income	-406.36M	-605.03M	-294.60M	329.93M	-37.13M	306.94M
Balance Sheet
Total Assets	2.37B	2.48B	4.02B	5.11B	5.30B	4.13B
Cash, Cash Equivalents and Short-Term Investments	11.04M	28.86M	49.50M	68.27M	129.01M	91.05M
Total Debt	1.38B	1.42B	2.30B	2.97B	3.50B	2.49B
Total Liabilities	1.58B	1.68B	2.61B	3.39B	3.92B	2.72B
Stockholders Equity	802.98M	817.54M	1.43B	1.73B	1.39B	1.42B
Cash Flow
Free Cash Flow	513.74M	1.02B	845.71M	802.14M	-873.13M	-115.38M
Operating Cash Flow	514.58M	1.02B	846.44M	806.92M	-871.56M	-114.68M
Investing Cash Flow	-21.32M	-9.29M	63.16M	-130.08M	11.47M	930.50M
Financing Cash Flow	-502.94M	-1.03B	-919.73M	-711.77M	901.51M	-848.14M

Star Group Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1560, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and above the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.32 is Neutral, neither overbought nor oversold. The STOCH value of 12.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1560.

Star Group Company Limited 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%
1560	46 Neutral	HK$75.70M	-0.18	-40.52%	―	-52.37%	15.93%
0755	42 Neutral	HK$65.17M	-0.20	-61.82%	―	-46.78%	3.78%
0106	39 Underperform	HK$86.60M	-0.05	―	―	-81.13%	-71.68%
0456	38 Underperform	HK$83.03M	-0.43	-37.65%	―	-54.13%	24.72%

Star Group Company Limited Corporate Events

Star Group Asia Limited Seeks Waiver for Circular Dispatch Extension

Star Group Asia Limited has announced its application for a further waiver from strict compliance with Rule 14.41(a) of the Listing Rules, following its major transaction involving the disposal of property. The company has already secured written approval from major shareholders, representing approximately 68.7% of its total issued share capital, negating the need for a physical shareholders’ meeting. The company seeks additional time to finalize the necessary financial information for its circular, aiming to dispatch it by 16 December 2025, which may impact its compliance timeline and shareholder communication.

Star Group Asia Limited Announces Key Man Insurance Policy Transaction

Star Group Asia Limited announced a discloseable transaction involving the subscription of a key man insurance policy for Mr. Chan Man Fai Joe, an executive director. The policy, taken out by the company’s subsidiary Metropolitan Wine Cellar Limited, involves an initial premium of approximately US$2.8 million, partially financed through a loan from China CITIC. The policy ensures a death benefit of US$2.94 million and includes provisions for changing the insured person if Mr. Chan leaves the company. This transaction, exceeding 5% of applicable percentage ratios under Hong Kong’s Listing Rules, highlights the company’s strategic risk management and financial planning efforts.

Star Group Asia Limited Clarifies Property Disposal Details

Star Group Asia Limited announced a correction to a previous statement regarding the disposal of a property, clarifying the reasons for the benefit of the disposal. The company also provided additional information about the purchaser, Thing On Financial Group Limited, which is owned by Thing On Enterprise Limited and ultimately by Mr. Wong Chung Tak Richard. This clarification ensures transparency and maintains the independence of the transaction from the company’s connected persons.

Star Group Asia Limited Announces Property Disposal

Star Group Asia Limited, a company incorporated in the Cayman Islands, announced a discloseable transaction involving the disposal of a property located at G/F, No.18 Yiu Wa Street, Causeway Bay, Hong Kong. The property is being sold for HK$14,975,000 to Thing on Financial Group Limited, an independent third party. This transaction, which exceeds 5% but is less than 25% of the applicable percentage ratios under the Listing Rules, requires notification and announcement. The sale reflects current market conditions and was negotiated on normal commercial terms.

Star Group Announces Major Property Disposal and Leaseback Deal

Star Group Asia Limited has announced a major transaction involving the sale of a property for HK$48,367,000, followed by a leaseback arrangement. This move allows the company to maintain operational use of the property while optimizing its financial structure. The transaction is classified as a major transaction under Hong Kong’s Listing Rules, requiring shareholder approval, which will be obtained through written consent from major shareholders, thus bypassing the need for a physical meeting.