SG Group Holdings Ltd (1657) AI Stock Analysis

• Market Cap: HK$523.20M
• Dividend Yield: N/A
• Average Volume (3M): 3.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 25.11%
• EPS Growth: 64.76%
• Country: HK
• Employees: 56
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.09
• Shares Outstanding: 32,000,000
• 10 Day Avg. Volume: 850
• 30 Day Avg. Volume: 3,650
• PEG Ratio: 0.84
• Price to Book (P/B): 3.97
• Price to Sales (P/S): 2.14
• P/FCF Ratio: -25.81
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$14.50 ▼(-11.31% Downside)

The overall stock score is primarily influenced by the company's financial performance and technical analysis. While revenue growth is strong, significant challenges in profitability and cash flow management weigh heavily on the score. Technical indicators suggest a bearish trend, further impacting the stock's attractiveness. The negative P/E ratio and lack of dividend yield also contribute to a lower valuation score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective business strategies, which can drive long-term success and market competitiveness.

Low Leverage

A low debt-to-equity ratio suggests financial stability and flexibility, allowing the company to invest in growth opportunities without significant risk.

Strong Equity Base

A strong equity base provides a solid foundation for long-term growth and resilience against market fluctuations, enhancing shareholder confidence.

Negative Factors

Profitability Challenges

Negative profitability margins indicate operational inefficiencies, which could hinder long-term financial health and require strategic improvements.

Cash Flow Issues

Negative cash flow impacts the company's ability to fund operations and growth, posing a risk to financial stability and operational efficiency.

Negative Return on Equity

A negative return on equity suggests inefficient use of shareholder funds, which can undermine investor confidence and limit future capital raising.

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 generates revenue through multiple streams, primarily from its core businesses in financial services, technology, and real estate. In the financial services sector, the company earns income through advisory fees, asset management, and brokerage services, capitalizing on its expertise and market presence. The technology division contributes to revenue by offering software solutions, IT consulting, and technology-driven services to a wide range of clients. In addition, the real estate segment generates income from property leasing, sales, and development projects. Significant partnerships with other firms enhance the company's operational capabilities and market reach, further supporting its revenue generation efforts.

SG Group Holdings Ltd Financial Statement Overview

Summary

SG Group Holdings Ltd shows strong revenue growth, but profitability and cash flow management remain significant challenges. The balance sheet is relatively strong with low leverage, but the negative return on equity and cash flow issues suggest operational inefficiencies. The company needs to focus on improving profitability and cash flow management to enhance overall financial health.

Income Statement

The company has shown significant revenue growth of 51.45% in the latest year, which is a positive indicator. However, profitability metrics such as the net profit margin (-3.93%) and EBIT margin (-3.76%) are negative, indicating operational challenges. The gross profit margin improved to 19.74%, suggesting some efficiency in cost management, but overall profitability remains a concern.

Balance Sheet

The debt-to-equity ratio is relatively low at 0.17, indicating a conservative leverage position. However, the return on equity is negative (-7.27%), reflecting poor profitability and potential inefficiencies in using shareholder funds. The equity ratio stands at 71.36%, suggesting a strong equity base relative to total assets.

Cash Flow

The company faces cash flow challenges, with negative operating cash flow and free cash flow. The free cash flow to net income ratio is slightly above 1, indicating that cash flow issues are impacting profitability. The operating cash flow to net income ratio is negative, further highlighting cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.77M	153.77M	122.91M	149.36M	168.89M	120.93M
Gross Profit	30.35M	30.35M	18.32M	18.67M	34.36M	19.43M
EBITDA	-754.00K	-754.00K	-13.38M	-13.05M	3.37M	4.40M
Net Income	-6.04M	-6.04M	-17.15M	-16.43M	491.00K	-88.00K
Balance Sheet
Total Assets	116.49M	116.49M	104.30M	132.62M	150.96M	155.23M
Cash, Cash Equivalents and Short-Term Investments	30.48M	30.48M	36.76M	45.28M	58.63M	56.11M
Total Debt	13.99M	13.99M	6.40M	6.39M	6.88M	8.30M
Total Liabilities	33.38M	33.38M	14.95M	25.65M	24.76M	29.27M
Stockholders Equity	83.11M	83.11M	89.34M	106.97M	126.19M	125.96M
Cash Flow
Free Cash Flow	-12.77M	-12.77M	-2.63M	-13.27M	8.19M	15.84M
Operating Cash Flow	-12.74M	-12.74M	1.48M	-13.24M	9.58M	18.57M
Investing Cash Flow	3.82M	3.82M	237.00K	464.00K	-11.02M	-10.42M
Financing Cash Flow	7.12M	7.12M	-3.01M	431.00K	-1.64M	5.53M

SG Group Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.35
• 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:1657, the sentiment is Positive. The current price of 16.35 is above the 20-day moving average (MA) of 15.65, above the 50-day MA of 15.99, and above the 200-day MA of 12.23, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 74.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
0483	70 Outperform	HK$102.87M	13.86	4.49%	―	-1.14%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0375	55 Neutral	HK$154.25M	-6.86	-5.35%	10.75%	-23.76%	-9785.71%
1817	54 Neutral	HK$294.50M	8.42	4.51%	―	-7.95%	98.95%
2528	49 Neutral	HK$132.00M	-7.55	-10.66%	―	-5.89%	71.06%
1657	44 Neutral	HK$523.20M	-86.60	-7.01%	―	25.11%	64.76%
0330	37 Underperform	HK$322.71M	-0.19	―	―	―	―

SG Group Holdings Ltd Corporate Events

SG Group Holdings Unanimously Passes All Resolutions at 2025 AGM

SG Group Holdings Limited, a company incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, held its Annual General Meeting on October 31, 2025. All proposed resolutions, including the adoption of financial statements, re-election of directors, and authorization of director remuneration, were unanimously approved by shareholders. The company also renewed mandates for share issuance and repurchase, indicating strong shareholder support for the current management and strategic direction.

SG Group Holdings Announces Annual General Meeting and Key Resolutions

SG Group Holdings Limited has announced its upcoming annual general meeting to be held on October 31, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the company’s audited financial statements, the re-election of directors, and the re-appointment of the independent auditor. Additionally, the company seeks approval for the directors to issue new shares, which could impact the company’s capital structure and shareholder value.