A & S Group (Holdings) Limited (1737) AI Stock Analysis

• Market Cap: HK$101.00M
• Dividend Yield: 20%
• Average Volume (3M): 292.67K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.27
• Revenue Growth: 14.91%
• EPS Growth: 24.71%
• Country: HK
• Employees: 363
• Sector: Industrials
• Sector Strength: 93
• Industry: Integrated Freight & Logistics
• EPS (TTM): -0.02
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 659,000
• 30 Day Avg. Volume: 292,666
• PEG Ratio: -0.24
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.62
• 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: 76 Outperform
• Price Target: ―

A & S Group exhibits strong financial performance with robust revenue growth and cash flow generation, coupled with a conservative balance sheet. The valuation is appealing due to a low P/E ratio and high dividend yield. However, technical indicators suggest caution due to potential overbought conditions. Overall, the stock is fundamentally strong and attractively valued, but investors should monitor technical signals closely.

A & S Group (Holdings) Limited Business Overview & Revenue Model

Company Description

A & S Group (Holdings) Limited (1737) is a company engaged in providing a range of services and products, primarily focusing on sectors such as construction and engineering. The company's core offerings include construction services, project management, and engineering solutions, catering to various infrastructure and development projects.

How the Company Makes Money

A & S Group (Holdings) Limited generates revenue through its diverse service offerings in the construction and engineering sectors. The company earns money by undertaking construction projects, providing engineering solutions, and offering project management services. Key revenue streams include contracts for infrastructure development, civil engineering works, and building construction projects. Significant factors contributing to its earnings include long-term contracts with government agencies, private developers, and partnerships with other construction firms to leverage combined expertise and resources.

A & S Group (Holdings) Limited Financial Statement Overview

Summary

A & S Group has demonstrated strong financial health with significant revenue growth and robust cash flow generation. The company maintains a conservative balance sheet with low leverage, ensuring stability. While profitability metrics are sound, there is room for improvement in net profit margins.

Income Statement

A & S Group has demonstrated strong revenue growth, with a 27.75% increase in the latest year, while maintaining healthy gross and net profit margins of 11.41% and 2.71%, respectively. The EBIT and EBITDA margins of 3.47% and 12.15% indicate efficient operational management. However, the company should continue to focus on improving net profitability.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.05 and a strong equity ratio of 72.21%, reflecting financial stability. Return on Equity (ROE) at 7.87% is moderate, suggesting moderate profitability relative to equity. Overall, the company maintains a conservative financial structure with low leverage.

Cash Flow

The cash flow statement shows a positive trend with a 10.44% growth in free cash flow. The operating cash flow to net income ratio of 3.11 and a free cash flow to net income ratio of 2.95 demonstrate strong cash generation relative to earnings, reinforcing liquidity and operational efficiency.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	649.57M	508.46M	520.20M	408.50M	418.12M
Gross Profit	74.13M	45.85M	79.42M	59.31M	40.88M
EBITDA	78.95M	68.10M	87.73M	93.15M	36.99M
Net Income	17.63M	8.59M	32.52M	40.52M	-8.85M
Balance Sheet
Total Assets	310.35M	329.20M	316.23M	310.12M	311.25M
Cash, Cash Equivalents and Short-Term Investments	84.99M	82.69M	128.73M	101.86M	90.29M
Total Debt	11.02M	60.14M	36.94M	54.04M	97.38M
Total Liabilities	86.22M	122.71M	93.32M	89.73M	131.38M
Stockholders Equity	224.13M	206.49M	222.91M	220.39M	179.87M
Cash Flow
Free Cash Flow	52.08M	47.16M	83.15M	65.58M	30.71M
Operating Cash Flow	54.81M	54.62M	90.37M	74.93M	39.36M
Investing Cash Flow	-2.34M	-6.98M	-7.22M	-8.26M	-7.17M
Financing Cash Flow	-50.18M	-93.68M	-56.28M	-55.10M	-31.45M

A & S Group (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1737, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 32.58 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1737.

A & S Group (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1995	77 Outperform	HK$3.84B	7.42	9.70%	6.82%	2.68%	8.41%
1737	76 Outperform	HK$101.00M	9.62	-9.70%	20.00%	14.91%	24.71%
1235	72 Outperform	HK$80.56M	23.94	5.77%	4.43%	139.07%	193.94%
1623	59 Neutral	€293.48M	9.72	0.86%	―	7.69%	-81.72%
Sector *	58 Neutral	HK$14.89B	4.69	-2.78%	5.83%	3.80%	-54.55%

A & S Group (Holdings) Limited Corporate Events

A & S Group Delays Circular Dispatch for JV Agreement

A & S Group (Holdings) Limited has announced a further delay in the dispatch of a circular related to major transactions concerning a joint venture agreement. Initially expected to be sent out by May 2, 2025, the circular’s dispatch has been postponed to on or before May 12, 2025, due to the need for additional time to finalize certain information. This delay may impact stakeholders’ expectations regarding the timeline of the joint venture’s progression.

A & S Group Enhances Security Service Agreement Oversight

A & S Group (Holdings) Limited has issued a supplemental announcement regarding its Security Service Framework Agreement, ensuring that the terms for Continuing Connected Transactions are fair and reasonable. The company has implemented internal control measures, including fee reviews by the operation manager, final approval by the general manager, and transaction monitoring by the finance manager, to maintain compliance with pricing policies and listing rules. Annual reviews by auditors and independent directors will further ensure adherence to the agreement’s terms, supporting the company’s operational integrity and stakeholder trust.

A & S Group Granted Waiver for Circular Dispatch Delay

A & S Group (Holdings) Limited has announced a delay in the dispatch of a circular related to a major transaction involving a joint venture agreement. The company has been granted a waiver by the Stock Exchange from strict compliance with a listing rule, allowing them to send the circular by May 2, 2025, instead of the initially planned April 10, 2025. This waiver is conditional and may be withdrawn if the company’s situation changes.

A & S Group Renews Security Service Agreement with Parkston

A & S Group (Holdings) Limited has entered into a renewed Security Service Framework Agreement with Parkston, effective from April 1, 2025, to March 31, 2028. This agreement involves Parkston providing security services to A & S Group, with pricing determined through competitive quotations to ensure market fairness. The transactions under this agreement are classified as continuing connected transactions under Hong Kong’s Listing Rules, requiring reporting and annual review but exempt from circular and shareholder approval due to the size of the transactions. Directors with potential conflicts of interest abstained from voting on the agreement.

A & S Group Enters Major JV Agreement to Expand Logistics Operations

A & S Group (Holdings) Limited has entered into a joint venture (JV) agreement with independent third parties, Mr. Fei and Ms. Fu, to form a JV company. This major transaction involves the grant of Call and Put Options, with a potential consideration of up to HK$95,000,000. The transaction is classified as a major one under the Listing Rules, requiring reporting and shareholder approval, which has been obtained from the majority shareholder, Dynamic Victor. The JV aims to expand the company’s logistics operations, but its formation is subject to several conditions precedent, and shareholders are advised to exercise caution.