E-Commodities Holdings Limited (1733) AI Stock Analysis

• Market Cap: HK$2.43B
• Dividend Yield: 20.68%
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.33
• Revenue Growth: -23.72%
• EPS Growth: -86.69%
• Country: HK
• Employees: 2,290
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): 0.05
• Shares Outstanding: 2,673,088,900
• 10 Day Avg. Volume: 1,984,160
• 30 Day Avg. Volume: 2,114,904
• PEG Ratio: -0.07
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -9.05
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$1.00 ▲(9.89% Upside)

E-Commodities Holdings Limited scores well due to its strong financial performance and attractive valuation. The company's profitability and stable financial structure are significant strengths, while the high dividend yield enhances its appeal. Technical analysis provides a neutral outlook, with no significant bullish or bearish signals. The absence of recent cash flow data and earnings call insights limits the assessment of current operational efficiency and investor sentiment.

Positive Factors

Strong Profitability

Consistent profitability indicates a resilient business model capable of maintaining margins even in challenging market conditions.

Stable Financial Management

Stable debt management and strong equity growth enhance financial stability, providing a solid foundation for future growth.

Robust Free Cash Flow History

A history of strong free cash flow generation supports the company's ability to invest in growth and manage financial obligations effectively.

Negative Factors

Revenue Decline

Declining revenue growth and reduced EBIT margin suggest potential operational inefficiencies and market challenges that could impact future performance.

Lack of Current Cash Flow Data

The absence of current cash flow data raises concerns about the company's ability to sustain cash generation and manage capital expenditures efficiently.

Operational Efficiency Challenges

Decreased EBIT margin suggests challenges in maintaining operational efficiency, which could affect profitability and competitive positioning.

E-Commodities Holdings Limited Business Overview & Revenue Model

Company Description

E-Commodities Holdings Limited (1733) is a Hong Kong-based company primarily engaged in the trading and supply chain management of various commodities, including metals, energy products, and agricultural goods. The company operates in the commodities sector, providing a platform that connects suppliers and buyers, and offers services that encompass the procurement, logistics, and distribution of these commodities.

How the Company Makes Money

E-Commodities Holdings Limited generates revenue through several key streams. The primary source of income comes from the trading of commodities, where the company profits from the difference between the buying and selling prices. Additionally, the company earns revenue from supply chain management services, where it charges fees for logistics and distribution management. Strategic partnerships with suppliers and buyers enhance its market position and operational efficiency, contributing to increased sales volume and profitability. Furthermore, the company may also benefit from hedging activities and financial instruments related to commodity prices, which can provide additional revenue opportunities.

E-Commodities Holdings Limited Financial Statement Overview

Summary

E-Commodities Holdings Limited shows strong profitability and a stable financial foundation. The income statement reflects consistent gross profit margins and a healthy net profit margin, despite a revenue decline. The balance sheet indicates strong equity growth and stable debt management. However, the absence of 2024 cash flow data raises concerns about cash flow sustainability.

Income Statement

The income statement reflects strong profitability with a consistent gross profit margin of around 9-10% from 2019 to 2024. Despite a slight decline in revenue in 2024, the company maintained a healthy net profit margin of 2.35% compared to the previous year. However, revenue growth slowed, and EBIT margin decreased, indicating potential challenges in operational efficiency.

Balance Sheet

The balance sheet shows strong equity growth and a solid equity ratio of around 50% in 2024. The debt-to-equity ratio is stable, indicating prudent financial management. The company has reduced its net debt, enhancing its financial stability. However, there is room for further optimization in asset utilization.

Cash Flow

Cash flow analysis indicates a lack of free cash flow data for 2024, which limits insights into cash generation capabilities. Historical data shows robust free cash flow generation in previous years, but the absence of current year data raises concerns about cash flow sustainability and efficiency in capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.98B	39.17B	40.59B	34.41B	41.18B	21.98B
Gross Profit	585.92M	1.52B	3.70B	3.20B	5.83B	1.45B
EBITDA	509.41M	1.21B	3.13B	2.27B	4.44B	873.00M
Net Income	274.91M	921.53M	2.12B	1.67B	3.46B	462.36M
Balance Sheet
Total Assets	14.47B	17.43B	17.81B	13.29B	15.45B	8.69B
Cash, Cash Equivalents and Short-Term Investments	3.28B	2.11B	3.37B	2.97B	4.17B	1.63B
Total Debt	2.05B	2.81B	2.67B	1.90B	2.29B	2.02B
Total Liabilities	5.29B	8.33B	9.00B	6.10B	7.97B	4.88B
Stockholders Equity	8.79B	8.66B	8.49B	6.92B	7.23B	3.93B
Cash Flow
Free Cash Flow	1.94B	-385.42M	1.14B	1.54B	2.11B	2.50B
Operating Cash Flow	2.99B	640.40M	2.03B	2.17B	2.76B	2.97B
Investing Cash Flow	-479.23M	-909.00M	-1.83B	-752.48M	-456.37M	-559.09M
Financing Cash Flow	-1.17B	-651.77M	532.53M	-2.11B	152.90M	-2.44B

E-Commodities Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1733, the sentiment is Positive. The current price of 0.91 is above the 20-day moving average (MA) of 0.91, above the 50-day MA of 0.90, and above the 200-day MA of 0.88, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.21 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1733.

E-Commodities Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1277	81 Outperform	HK$11.13B	6.52	19.63%	9.85%	-2.79%	-39.45%
0639	79 Outperform	HK$14.76B	13.63	6.64%	9.38%	-5.78%	-29.52%
1088	78 Outperform	$861.60B	13.28	―	9.16%	-13.87%	-15.41%
1733	73 Outperform	HK$2.43B	8.83	3.21%	20.68%	-23.72%	-86.69%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
1898	64 Neutral	HK$171.98B	8.45	10.99%	4.54%	-3.42%	-18.73%
0866	46 Neutral	HK$6.67B	18.26	81.71%	1.52%	-20.71%	209.68%

E-Commodities Holdings Limited Corporate Events

E-Commodities Holdings Enhances Strategic Alliance with New Agreements

E-Commodities Holdings Limited has entered into a Settlement Agreement and a Payment Agreement as part of its strategic alliance with Bridge Mining. These agreements involve direct payment mechanisms that streamline financial transactions between the parties, aiming to improve operational efficiency and financial transparency. The transactions are classified as continuing connected transactions under the Listing Rules, requiring reporting and annual review but exempt from certain other regulatory requirements.

E-Commodities Enters Strategic Alliance with Bridge Mining for Mongolian Coal

E-Commodities Holdings Limited has entered into a strategic cooperation agreement with Bridge Mining Pte. Ltd. to establish a strategic alliance for coal mining in Mongolia. This partnership aims to enhance the company’s supply chain capabilities and secure a stable supply of high-quality Mongolian coal, which will mitigate operational risks and support future resource supply continuity. The agreement represents a significant milestone, allowing the company to replicate its full-chain service model successfully and improve asset utilization, thereby laying a foundation for sustainable profitability.

E-Commodities Secures RMB1.6 Billion Credit Facility for Subsidiary

E-Commodities Holdings Limited announced that its wholly-owned subsidiary, Hainan More Richway Supply Chain Management Co., Ltd., has secured a credit facility agreement with the Bank of China Limited Yangpu Branch for up to RMB1.6 billion. The company will provide a corporate guarantee of up to RMB600 million to support this agreement, which is expected to enhance cash flow and strengthen business operations. The terms of the agreement are considered fair and beneficial for the company and its shareholders, reflecting the favorable national financing environment.

E-Commodities Holdings Enters New Counter-Guarantee Agreements

E-Commodities Holdings Limited has entered into three counter-guarantee contracts with Xiangyu Joint Stock, committing to provide financial guarantees proportional to its 49% equity interest in Xianghui Energy. These contracts, which total up to RMB167.09 million, are intended to support banking facilities and involve the termination of a previous agreement. The transactions are classified as discloseable and connected under Hong Kong’s Listing Rules, requiring reporting and announcement but exempt from certain approval requirements.