SG Group Holdings Ltd (1657) AI Stock Analysis

• Market Cap: HK$313.60M
• Dividend Yield: N/A
• Average Volume (3M): 13.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -42.38%
• EPS Growth: 28.61%
• Country: HK
• Employees: 56
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Apparel - Retail
• EPS (TTM): -0.50
• Shares Outstanding: 32,000,000
• 10 Day Avg. Volume: 30,050
• 30 Day Avg. Volume: 13,950
• PEG Ratio: -0.53
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.98
• 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

• Rating: 46 Neutral
• 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 Business Overview & Revenue Model

Company Description

SG 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 Money

SG 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

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

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

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.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	101.53M	122.91M	149.36M	168.89M	120.93M	257.32M
Gross Profit	17.79M	18.32M	18.67M	34.36M	19.43M	60.29M
EBITDA	-13.45M	-13.38M	-13.05M	3.37M	4.40M	25.08M
Net Income	-15.98M	-17.15M	-16.43M	491.00K	-88.00K	15.84M
Balance Sheet
Total Assets	100.33M	104.30M	132.62M	150.96M	155.23M	158.79M
Cash, Cash Equivalents and Short-Term Investments	27.82M	36.76M	45.28M	58.63M	56.11M	35.10M
Total Debt	5.74M	6.40M	6.39M	6.88M	8.30M	2.33M
Total Liabilities	19.90M	14.95M	25.65M	24.76M	29.27M	33.87M
Stockholders Equity	80.43M	89.34M	106.97M	126.19M	125.96M	124.92M
Cash Flow
Free Cash Flow	13.78M	-2.63M	-13.27M	8.19M	15.84M	-11.57M
Operating Cash Flow	13.98M	1.48M	-13.24M	9.58M	18.57M	-2.35M
Investing Cash Flow	4.62M	237.00K	464.00K	-11.02M	-10.42M	-5.24M
Financing Cash Flow	-2.45M	-3.01M	431.00K	-1.64M	5.53M	-1.43M

SG Group Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0375	64 Neutral	HK$149.28M	642.86	0.05%	11.11%	-5.58%	-91.36%
Sector *	62 Neutral	$16.90B	11.24	-7.48%	2.95%	1.60%	-23.76%
1817	61 Neutral	HK$418.00M	12.36	4.29%	―	-4.28%	-25.99%
0483	48 Neutral	HK$90.38M	7.74	6.87%	―	-7.14%	-110.87%
1657	46 Neutral	HK$313.60M	―	-18.04%	―	-42.38%	28.61%
ESHDF		$38.59M	―	-90.66%	―	―	―
2528	46 Neutral	HK$92.00M	―	-40.69%	―	-6.89%	-356.53%