B & S International Holdings Ltd. (1705) AI Stock Analysis

• Market Cap: HK$188.00M
• Dividend Yield: 11.7%
• Average Volume (3M): 159.47K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.13
• Revenue Growth: -0.45%
• EPS Growth: 7.28%
• Country: HK
• Employees: 648
• Sector: Industrials
• Sector Strength: 93
• Industry: Food Distribution
• EPS (TTM): 0.02
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 376,400
• 30 Day Avg. Volume: 159,466
• PEG Ratio: -0.83
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.65
• 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: 74 Outperform
• Price Target: ―

B & S International Holdings Ltd. demonstrates strong financial performance with consistent growth and profitability. The company is potentially undervalued, with a low P/E ratio and high dividend yield. Technical indicators suggest continued positive momentum, although some caution is advised due to a slightly negative MACD. The overall strong financial position and valuation metrics make this stock an attractive opportunity, with careful monitoring of debt levels recommended.

B & S International Holdings Ltd. Business Overview & Revenue Model

Company Description

B & S International Holdings Ltd., an investment holding company, engages in the distribution and retail of food and beverage products in Hong Kong. The company distributes sweets and candies, biscuits, cakes and pastries, instant drink powders, dried meat products, tea leaves, pasta, fresh eggs and condiments, etc. It distributes its products to various customers, including supermarkets, pharmacies, convenience stores, department stores, bakeries, confectionery stores, and trading companies. The company also operates retail outlets for various international food and beverage brands; and provides catering services. As of March 31, 2022, it had a total of 62 self-operated retail outlets. The company was founded in 1990 and is headquartered in Yau Tong, Hong Kong.

How the Company Makes Money

B & S International Holdings Ltd. generates revenue through its Distribution Business by acting as a key distributor for various international and local food and beverage brands. The company sources products in bulk and supplies them to retail chains, ensuring a steady income through wholesale transactions. In the Retail Business segment, the company earns money from direct sales to consumers at its specialty stores, which focus on offering unique imported products. Additionally, B & S International Holdings may engage in strategic partnerships with brands for exclusive distribution rights or promotional activities, further enhancing its revenue potential. The company's ability to maintain strong relationships with suppliers and retail partners is critical to its financial success.

B & S International Holdings Ltd. Financial Statement Overview

Summary

B & S International Holdings Ltd. shows strong financial health with consistent revenue growth and improving profitability margins. The balance sheet is stable with improved leverage ratios, although past high debt levels warrant cautious monitoring. The robust cash flow generation provides a solid foundation for future growth and financial flexibility. Overall, the financial statements indicate a positive trajectory with a need for careful management of leverage.

Income Statement

The company has demonstrated consistent revenue growth over the past few years, with a notable increase of 6.99% from 2023 to 2024. The gross profit margin for 2024 stands at 23.41%, indicating efficient cost management. The net profit margin improved to 6.45% from 5.70% in 2023, reflecting enhanced profitability. The EBIT and EBITDA margins have also improved to 8.14% and 16.41%, respectively, highlighting strong operational performance. Overall, the income statement reflects healthy growth and profitability trends.

Balance Sheet

The debt-to-equity ratio has improved to 0.37 in 2024, indicating a more stable capital structure compared to previous years. The return on equity (ROE) for 2024 is 21.22%, showcasing strong returns for shareholders. The equity ratio is 59.25%, implying a solid equity base. However, past high leverage levels could pose potential risks if not managed carefully. The balance sheet is stable but requires careful monitoring of debt levels.

Cash Flow

The company maintains a strong cash flow position, with a notable free cash flow growth rate of -33.92% from 2023 to 2024, although absolute levels are strong. The operating cash flow to net income ratio is 1.75, indicating robust cash generation relative to net income. The free cash flow to net income ratio is 1.63, highlighting strong free cash flow generation. Overall, the cash flow statement reflects strong cash generation capacity, supporting potential future investments and debt repayments.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	520.81M	486.80M	468.24M	483.07M	513.74M
Gross Profit	121.94M	105.12M	77.08M	53.52M	94.20M
EBITDA	85.46M	82.21M	60.89M	76.99M	87.50M
Net Income	33.60M	27.75M	596.00K	583.00K	1.10M
Balance Sheet
Total Assets	267.25M	267.67M	251.81M	275.68M	318.83M
Cash, Cash Equivalents and Short-Term Investments	50.60M	76.36M	55.22M	45.07M	38.50M
Total Debt	58.84M	71.35M	81.40M	104.91M	151.89M
Total Liabilities	104.69M	118.99M	120.87M	145.01M	182.47M
Stockholders Equity	158.35M	144.74M	126.99M	126.39M	129.81M
Cash Flow
Free Cash Flow	54.71M	82.77M	72.71M	92.17M	47.85M
Operating Cash Flow	59.00M	89.10M	76.43M	100.41M	72.23M
Investing Cash Flow	-1.91M	-6.97M	-4.07M	-8.22M	-9.94M
Financing Cash Flow	-82.12M	-61.30M	-62.23M	-85.59M	-75.53M

B & S International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.47
• 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:1705, the sentiment is Positive. The current price of 0.47 is above the 20-day moving average (MA) of 0.43, above the 50-day MA of 0.40, and above the 200-day MA of 0.36, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1705.

B & S International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1705	74 Outperform	HK$188.00M	10.56	11.39%	11.70%	-0.45%	7.28%
1587	71 Outperform	HK$428.40M	9.04	9.10%	3.57%	-4.97%	111.21%
0677	66 Neutral	HK$611.07M	29.49	-1.12%	6.39%	1.30%	-85.43%
Sector *	65 Neutral	$11.14B	16.13	4.60%	2.08%	3.17%	-25.97%
8413	61 Neutral	HK$120.85M	122.22	1.07%	―	3.44%	-43.75%
0060	43 Neutral	HK$123.56M	―	-3.55%	―	-12.19%	-18.39%
8491	41 Neutral	HK$211.26M	―	-22.75%	―	-4.08%	-12.24%