REM Group (Holdings) Ltd. (1750) AI Stock Analysis

• Market Cap: HK$57.60M
• Dividend Yield: N/A
• Average Volume (3M): 504.00K
• Price to Earnings (P/E): 35.6
• Beta (1Y): 0.97
• Revenue Growth: -15.58%
• EPS Growth: -76.92%
• Country: HK
• Employees: 221
• Sector: Industrials
• Sector Strength: 84
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.00
• Shares Outstanding: 1,800,000,000
• 10 Day Avg. Volume: 586,000
• 30 Day Avg. Volume: 504,000
• PEG Ratio: -0.05
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.52
• 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: 50 Neutral
• Price Target: ―

REM Group (Holdings) Ltd. presents a mixed picture. The company has a strong balance sheet with low leverage, but significant challenges in revenue and profitability weigh heavily on its financial performance. Technical indicators suggest potential short-term weakness, and the high P/E ratio raises valuation concerns. Improving cash flows and operational efficiency will be crucial for future sustainability.

REM Group (Holdings) Ltd. Business Overview & Revenue Model

Company Description

REM Group (Holdings) Ltd. (1750) is a company engaged in the provision of electrical and mechanical engineering services. It primarily operates in sectors like building services, environmental engineering, and maintenance services, offering comprehensive solutions for a variety of engineering projects. The company is involved in the design, installation, and maintenance of electrical and mechanical systems, catering to both public and private sectors.

How the Company Makes Money

REM Group (Holdings) Ltd. generates revenue through its engineering services, with key streams coming from contracts for the design, installation, and maintenance of electrical and mechanical systems. The company's earnings are significantly influenced by its ability to secure and deliver on large-scale projects across its operating sectors. Strategic partnerships with construction firms and government contracts also play a vital role in their revenue model, as does their reputation for quality and reliability in service delivery.

REM Group (Holdings) Ltd. Financial Statement Overview

Summary

REM Group (Holdings) Ltd. faces significant financial challenges, particularly in revenue generation and profitability. While the balance sheet reflects a stable financial structure with low leverage, consistent negative cash flows pose a risk to liquidity and operational sustainability.

Income Statement

The income statement shows a significant decline in revenue over recent years, alongside shrinking profit margins. The Gross Profit Margin decreased from 25.74% in 2023 to 26.01% in 2024, while the Net Profit Margin dropped substantially. EBIT and EBITDA margins are poor, reflecting operational challenges. Revenue growth has also been negative, with a sharp drop from 2022 to 2023.

Balance Sheet

The balance sheet is relatively strong, with a low Debt-to-Equity Ratio of 0.02 in 2024, indicating minimal leverage. The company maintains a solid Equity Ratio of 80.48%, suggesting strong financial stability. However, the Return on Equity (ROE) has been modest, reflecting challenges in generating returns from equity.

Cash Flow

The cash flow statement reveals significant challenges, with operating cash flow consistently negative in recent years. The Free Cash Flow has been volatile and negative in 2023 and 2024, indicating cash management issues. The Operating Cash Flow to Net Income ratio is unfavorably low, raising concerns about cash generation efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
140.79M	166.78M	219.29M	130.64M	116.46M
	Gross Profit
36.63M	41.92M	41.95M	11.41M	2.09M
	EBIT
58.00K	5.61M	8.99M	-19.66M	-34.82M
	EBITDA
7.25M	12.57M	13.08M	-14.93M	-29.57M
	Net Income Common Stockholders
1.66M	7.00M	8.32M	-20.16M	-31.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
63.81M	53.00M	71.09M	71.75M	81.03M
	Total Assets
207.90M	204.04M	236.09M	228.19M	229.64M
	Total Debt
2.95M	5.58M	17.73M	8.66M	1.54M
	Net Debt
-60.86M	-47.42M	-53.36M	-63.09M	-78.79M
	Total Liabilities
40.57M	36.11M	73.44M	67.90M	51.02M
	Stockholders Equity
167.34M	167.93M	162.65M	160.29M	178.62M
Cash Flow		Free Cash Flow
0.00	-5.56M	-5.64M	-16.51M	2.88M
	Operating Cash Flow
22.75M	-62.00K	-5.13M	-15.59M	6.49M
	Investing Cash Flow
0.00	26.42M	-30.41M	-213.00K	-3.35M
	Financing Cash Flow
0.00	-13.47M	7.54M	6.75M	-1.40M

REM Group (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1750, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.11 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1750.

REM Group (Holdings) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1133	78 Outperform	€13.57B	7.43	11.35%	31.81%	30.12%	139.92%
1072	75 Outperform	HK$58.17B	12.00	8.13%	3.95%	15.29%	-9.20%
1969	73 Outperform	HK$4.90B	5.66	20.65%	4.90%	7.87%	7.13%
3898	68 Neutral	$45.73B	10.63	9.62%	2.78%	11.54%	16.09%
2727	65 Neutral	$106.97B	38.94	1.91%	―	2.20%	―
Sector *	57 Neutral	$1.32B	4.07	-2.93%	11.10%	3.37%	-51.35%
1750	50 Neutral	HK$57.60M	35.56	0.99%	―	-15.58%	-76.92%

REM Group (Holdings) Ltd. Corporate Events

REM Group Reports Decline in 2024 Financial Performance

REM Group (Holdings) Limited announced its audited consolidated results for the year ended 31 December 2024, reporting a decrease in revenue from HK$166,784,000 in 2023 to HK$140,792,000 in 2024. The company’s profit before taxation also fell significantly from HK$7,983,000 in 2023 to HK$1,865,000 in 2024, with a total comprehensive expense of HK$595,000 compared to an income of HK$5,284,000 the previous year. This decline in financial performance may impact the company’s market positioning and stakeholder confidence.

REM Group Issues Profit Warning Amid Revenue Decline

REM Group (Holdings) Limited has issued a profit warning, anticipating a significant decrease in net profit for the year ending December 31, 2024, compared to the previous year. The expected profit decline is attributed to a 15.6% drop in revenue, primarily due to reduced sales orders from the low-voltage electrical power distribution and control devices sector, which has been impacted by decreased construction activity and economic uncertainties in the real estate and infrastructure sectors.

REM Group Announces Upcoming Board Meeting for Financial Results

REM Group (Holdings) Limited has announced an upcoming board meeting scheduled for March 24, 2025, where the board will consider approving the company’s final results for the year ending December 31, 2024, and potentially determine a final dividend. This announcement indicates a significant step in the company’s financial reporting and could impact shareholder expectations and market positioning.