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SG Group Holdings Ltd (HK:1657)
:1657
Hong Kong Market

SG Group Holdings Ltd (1657) AI Stock Analysis

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HK

SG Group Holdings Ltd

(1657)

Rating:46Neutral
Price Target:
HK$9.50
▼(-3.06%Downside)
The overall stock score of 46 reflects SG Group Holdings Ltd's financial struggles, particularly in revenue and profitability, as well as weak valuation metrics. Technical indicators suggest cautious trading sentiment. The absence of earnings call and corporate events does not influence the score.

SG Group Holdings Ltd (1657) vs. iShares MSCI Hong Kong ETF (EWH)

SG Group Holdings Ltd Business Overview & Revenue Model

Company DescriptionSG Group Holdings Limited, an investment holding company, supplies apparel products with designing and sourcing services to fashion retailers. The company operates through Supply of Apparel Products and Consultation Services segments. It also provides consultation services to manufacturers, including the assistance services to comply with the corporate social responsibility standards requirements; fashion trend forecast analysis; design specifications; and introducing potential customers. In addition, the company offers quality assurance services; and operates a showroom, as well as invests in properties. It operates in the United Kingdom, the People's Republic of China, Germany, the United States, Hong Kong, Ireland, the Middle East, and Internationally. The company was formerly known as S&G Holdings Co. Ltd. SG Group Holdings Limited was incorporated in 2015 and is headquartered in Kwai Chung, Hong Kong. SG Group Holdings Limited is a subsidiary of JC Fashion International Group Limited.
How the Company Makes MoneySG Group Holdings Ltd generates revenue primarily through its comprehensive suite of interior design and fit-out services. The company earns money by charging fees for its design consultancy, project management, and execution services, which include renovation, decoration, and furniture procurement. Key revenue streams include contract-based projects with property developers, individual homeowners, and corporate clients who require customization and refurbishment of spaces. Additionally, the company may form partnerships with suppliers and subcontractors, optimizing costs and expanding its service offerings to enhance profitability. Factors such as economic conditions, real estate market trends, and client preferences significantly influence the company's earnings.

SG Group Holdings Ltd Financial Statement Overview

Summary
SG Group Holdings Ltd faces significant challenges in revenue and profitability with a decline in both, resulting in negative EBIT and net income. Despite a strong equity position and low leverage, the declining asset base and persistent negative free cash flow indicate financial pressures.
Income Statement
40
Negative
SG Group Holdings Ltd has experienced a significant decline in revenue from 2020 to 2024, with total revenue dropping from HK$257.3M to HK$122.9M. The gross profit margin has also decreased, indicating a squeeze in profitability. In addition, the company has reported negative EBIT and net income in recent years, reflecting operational challenges and persistent losses.
Balance Sheet
65
Positive
The company maintains a healthy equity position with a debt-to-equity ratio below 0.1, indicating low leverage and minimal reliance on debt financing. Stockholders' equity has remained stable, but total assets have decreased over the period. The equity ratio shows a strong financial base, but the decline in asset base poses a potential risk.
Cash Flow
50
Neutral
SG Group Holdings Ltd has shown some improvement in operating cash flow, turning positive in the latest period. However, free cash flow remains negative, suggesting ongoing challenges in generating sufficient cash from operations to cover capital expenditures. The operating cash flow to net income ratio has improved, reflecting better cash generation relative to reported losses.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue101.53M122.91M149.36M168.89M120.93M257.32M
Gross Profit17.79M18.32M18.67M34.36M19.43M60.29M
EBITDA-13.45M-13.38M-13.05M3.37M4.40M25.08M
Net Income-15.98M-17.15M-16.43M491.00K-88.00K15.84M
Balance Sheet
Total Assets100.33M104.30M132.62M150.96M155.23M158.79M
Cash, Cash Equivalents and Short-Term Investments27.82M36.76M45.28M58.63M56.11M35.10M
Total Debt5.74M6.40M6.39M6.88M8.30M2.33M
Total Liabilities19.90M14.95M25.65M24.76M29.27M33.87M
Stockholders Equity80.43M89.34M106.97M126.19M125.96M124.92M
Cash Flow
Free Cash Flow13.78M-2.63M-13.27M8.19M15.84M-11.57M
Operating Cash Flow13.98M1.48M-13.24M9.58M18.57M-2.35M
Investing Cash Flow4.62M237.00K464.00K-11.02M-10.42M-5.24M
Financing Cash Flow-2.45M-3.01M431.00K-1.64M5.53M-1.43M

SG Group Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price9.80
Price Trends
50DMA
9.87
Negative
100DMA
9.92
Negative
200DMA
9.31
Positive
Market Momentum
MACD
-0.04
Negative
RSI
51.68
Neutral
STOCH
91.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1657, the sentiment is Neutral. The current price of 9.8 is above the 20-day moving average (MA) of 9.73, below the 50-day MA of 9.87, and above the 200-day MA of 9.31, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 91.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1657.

SG Group Holdings Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
HK$149.28M642.860.05%11.11%-5.58%-91.36%
62
Neutral
$16.90B11.24-7.48%2.95%1.60%-23.76%
61
Neutral
HK$418.00M12.364.29%-4.28%-25.99%
48
Neutral
HK$90.38M7.746.87%-7.14%-110.87%
46
Neutral
HK$313.60M-18.04%-42.38%28.61%
$38.59M-90.66%
46
Neutral
HK$92.00M-40.69%-6.89%-356.53%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1657
SG Group Holdings Ltd
9.80
1.99
25.48%
ESHDF
Esprit Holdings
0.03
<0.01
50.00%
HK:1817
Mulsanne Group Holding Limited
0.44
-0.71
-61.74%
HK:2528
Forward Fashion (International) Holdings Company Limited
0.23
0.00
0.00%
HK:0375
YGM Trading Limited
0.90
-0.07
-7.22%
HK:0483
Bauhaus International (Holdings) Ltd.
0.25
-0.07
-21.88%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 31, 2025