SG Group Holdings Ltd (1657) AI Stock Analysis

• Market Cap: HK$304.00M
• Dividend Yield: N/A
• Average Volume (3M): 14.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -42.38%
• EPS Growth: 28.61%
• Country: HK
• Employees: 56
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Retail
• EPS (TTM): -0.28
• Shares Outstanding: 32,000,000
• 10 Day Avg. Volume: 600
• 30 Day Avg. Volume: 14,350
• PEG Ratio: -0.71
• Price to Book (P/B): 3.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.72
• 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: HK$9.50
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$9.50 ▲(0.00%Upside)

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 Ltd (1657) is a company listed on the Hong Kong Stock Exchange, primarily engaged in the provision of interior design and fit-out services. The company operates through several business segments, including interior design services, renovation, decoration, and furniture procurement, catering to both residential and commercial properties. SG Group Holdings is known for delivering high-quality craftsmanship and innovative design solutions to its diverse clientele.

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

SG Group Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.50
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 9.5 is below the 20-day moving average (MA) of 9.54, below the 50-day MA of 9.67, and above the 200-day MA of 9.37, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 68.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
3988	77 Outperform	$1.67T	5.39	9.57%	1.30%	6.59%	-0.89%
2381	73 Outperform	HK$204.00M	7.73	19.91%	9.80%	10.46%	26.92%
Sector *	57 Neutral	HK$26.04B	4.09	-2.03%	5.50%	-0.23%	-68.02%
1466	51 Neutral	$517.50M	―	-0.25%	―	60.41%	-185.00%
1657	46 Neutral	HK$304.00M	―	-18.04%	―	-42.38%	28.61%
1782	46 Neutral	HK$2.59B	―	-36.81%	―	-14.38%	-56.66%