Sundart Holdings Ltd. (1568) AI Stock Analysis

• Market Cap: HK$1.77B
• Dividend Yield: 8%
• Average Volume (3M): 603.60K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.33
• Revenue Growth: -9.50%
• EPS Growth: -24.73%
• Country: HK
• Employees: 1,628
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 0.06
• Shares Outstanding: 2,158,210,000
• 10 Day Avg. Volume: 747,400
• 30 Day Avg. Volume: 603,600
• PEG Ratio: 0.00
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 1.26
• 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: 78 Outperform
• Price Target: HK$1.00 ▲(35.14% Upside)

Sundart Holdings Ltd. is financially robust with strong revenue growth and stable profit margins. The stock's low P/E ratio and high dividend yield make it an attractive investment. However, technical indicators suggest a neutral trend with weak momentum, and challenges in cash flow generation could pose liquidity concerns.

Positive Factors

Financial Health

Sundart Holdings' strong balance sheet with minimal leverage indicates financial stability, reducing risk and enhancing its ability to invest in growth opportunities.

Revenue Growth

Consistent revenue growth showcases the company's ability to expand its market presence and sustain its business model, ensuring long-term viability.

Profit Margins

Stable profit margins reflect efficient cost management and pricing strategies, supporting the company's profitability and competitive positioning.

Negative Factors

Cash Flow Challenges

Difficulties in cash flow generation could limit Sundart's ability to fund operations and investments, posing a risk to its financial flexibility.

Revenue Decline

A decline in revenue growth indicates potential challenges in market demand or competitive pressures, which could impact future financial performance.

EPS Decline

A significant drop in EPS growth suggests declining profitability, which could affect investor confidence and the company's ability to reinvest in its business.

Sundart Holdings Ltd. Business Overview & Revenue Model

Company Description

Sundart Holdings Limited, an investment holding company, provides fitting-out services in the People's Republic of China, Hong Kong, and Macau. The company undertakes fitting-out works for hotels, serviced apartments, residential properties, factories, commercial buildings, and other properties; and alteration, addition, and construction and civil engineering works. It also manufactures, sources, and distributes interior decorative materials; and leases intellectual properties.In addition, Sundart Holdings Limited provides project management and consultancy services. Further, it manufactures interior decorative timber products, such as fire-rated timber doors and wooden furniture. The company was founded in 1986 and is headquartered in Kowloon, Hong Kong. Sundart Holdings Limited is a subsidiary of Reach Glory International Limited.

How the Company Makes Money

Sundart Holdings generates revenue primarily through its construction and engineering services, which encompass a range of activities including project management, interior fit-out, and renovation works. The company earns money by securing contracts for both private and public sector projects, with payments typically made based on project milestones or upon completion. Key revenue streams include contract works for high-rise buildings, commercial spaces, and specialized fit-out projects. The company also benefits from strategic partnerships with various stakeholders in the construction industry, which enhance its project pipeline and market reach. Additionally, Sundart's focus on maintaining strong client relationships and delivering high-quality services contributes to repeat business and referrals, further bolstering its revenue generation capabilities.

Sundart Holdings Ltd. Financial Statement Overview

Summary

Sundart Holdings Ltd. showcases strong financial health with consistent revenue growth and stable profit margins. The balance sheet is solid, characterized by low leverage and a high equity ratio, indicating minimal financial risk. However, recent challenges in cash flow generation could pose liquidity concerns, though offset by previous cash reserves.

Income Statement

Sundart Holdings Ltd. demonstrates solid revenue growth with a 9.8% increase from 2023 to 2024. The gross profit margin is stable at approximately 13.3% in 2024, consistent with previous years. Despite a slight reduction in net income, the company maintains a healthy net profit margin of 5.4%. These metrics indicate a strong income-generating ability, supported by consistent EBIT and EBITDA margins.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. The equity ratio stands high at 52.4%, showcasing a strong equity base. Return on equity is satisfactory at 8.6%, reflecting efficient utilization of shareholder funds. Overall, the company's financial stability is reinforced by its strong equity position and low leverage.

Cash Flow

Sundart Holdings Ltd. has experienced challenges in generating free cash flow in 2024. However, the significant cash reserves and minimal debt mitigate liquidity risks. The operating cash flow to net income ratio was not calculable due to zero operating cash flow for 2024. Despite this, the company maintains a strong cash position from previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.51B	6.00B	5.46B	4.68B	5.69B	5.93B
Gross Profit	680.48M	800.20M	696.22M	663.70M	808.77M	914.58M
EBITDA	298.23M	405.82M	423.34M	366.69M	464.43M	510.12M
Net Income	288.98M	320.80M	330.27M	287.53M	371.29M	406.46M
Balance Sheet
Total Assets	6.62B	7.12B	7.25B	6.69B	7.03B	6.28B
Cash, Cash Equivalents and Short-Term Investments	1.86B	2.64B	1.95B	1.69B	1.80B	1.57B
Total Debt	49.97M	41.86M	13.35M	20.47M	94.52M	182.94M
Total Liabilities	3.14B	3.39B	3.81B	3.45B	3.81B	3.28B
Stockholders Equity	3.48B	3.72B	3.44B	3.25B	3.23B	3.00B
Cash Flow
Free Cash Flow	775.99M	782.29M	382.77M	59.32M	530.60M	637.65M
Operating Cash Flow	934.55M	812.39M	401.35M	67.35M	540.34M	865.98M
Investing Cash Flow	-830.66M	-244.66M	-594.06M	9.02M	-66.08M	-176.85M
Financing Cash Flow	-456.29M	-6.24M	-146.57M	-246.37M	-265.62M	-224.88M

Sundart Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1568, the sentiment is Positive. The current price of 0.74 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.75, and above the 200-day MA of 0.71, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 77.49 is Negative, neither overbought nor oversold. The STOCH value of 71.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1568.

Sundart Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1568	78 Outperform	HK$1.77B	6.12	8.17%	8.00%	-9.50%	-24.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8455	48 Neutral	HK$120.00M	-10.33	-601.82%	―	4.00%	13.57%
1376	47 Neutral	HK$111.00M	-17.90	29.87%	―	1.93%	-158.33%
8501	47 Neutral	HK$96.00M	-12.50	-5.93%	―	50.50%	27.48%
8040	46 Neutral	HK$137.70M	-4.96	-57.83%	―	-3.47%	-57.53%
3893	46 Neutral	HK$317.39M	-6.36	―	―	-24.93%	-72.69%

Sundart Holdings Ltd. Corporate Events

Sundart Holdings to Forfeit Unclaimed Dividends by December 2025

Sundart Holdings Ltd. has announced that unclaimed dividends from the years 2018 and 2019 will be forfeited if not claimed by December 15, 2025. Shareholders are advised to contact the company’s Hong Kong branch share registrar to claim their dividends before the deadline. This announcement underscores the company’s adherence to its Articles of Association and may impact shareholders who have yet to claim their dividends.

The most recent analyst rating on (HK:1568) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Sundart Holdings Ltd. stock, see the HK:1568 Stock Forecast page.