Sterling Group Holdings Limited (1825) AI Stock Analysis

• Market Cap: HK$49.08M
• Dividend Yield: N/A
• Average Volume (3M): 317.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: -16.39%
• EPS Growth: 81.31%
• Country: HK
• Employees: 1,254
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.03
• Shares Outstanding: 345,600,000
• 10 Day Avg. Volume: 329,500
• 30 Day Avg. Volume: 317,166
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 55 reflects significant financial challenges and valuation concerns, with a negative P/E ratio and high leverage. However, positive technical indicators provide some support, suggesting potential short-term bullish momentum. The absence of earnings call data and corporate events limits further insights.

Sterling Group Holdings Limited Business Overview & Revenue Model

Company Description

Sterling Group Holdings Limited, an investment holding company, manufactures and trades in apparel products in Hong Kong, the United States, the United Kingdom, Italy, and internationally. The company offers outerwear, including jackets, coats, and blazers; bottoms, such as pants, shorts, and skirts; tops comprising shirts, blouses, and tank tops; and other products that include dresses, suits, gowns, scarfs, jumpsuits, sleepwear, masks, and vests. It also manages and licenses trademarks. The company serves international apparel brand customers. Sterling Group Holdings Limited was founded in 1993 and is headquartered in San Po Kong, Hong Kong.

How the Company Makes Money

Sterling Group Holdings Limited generates revenue through multiple streams. The primary revenue sources include management fees from its financial services division, rental income from its real estate holdings, and profits from technology ventures. The company often enters into strategic partnerships with other firms to enhance its market position and expand its service offerings. Additionally, the company capitalizes on market trends by investing in high-growth sectors, allowing it to diversify its income and mitigate risks associated with economic fluctuations.

Sterling Group Holdings Limited Financial Statement Overview

Summary

Sterling Group Holdings Limited faces significant financial challenges, with declining revenues and profitability pressures. The company is highly leveraged, posing financial risks, although recent improvements in cash flow management offer some optimism. Overall, the financial statements reflect a company under financial strain, with a need for strategic improvements to enhance stability and profitability.

Income Statement

Sterling Group Holdings Limited has faced challenges in maintaining revenue growth, with a notable decline of 8.62% in the latest year. The company has struggled with profitability, evidenced by a negative net profit margin of -1.29% and a low EBIT margin of 1.01%. However, the gross profit margin has improved to 18.32%, indicating some efficiency in cost management. Overall, the income statement reflects a company under pressure with limited profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.58, indicating significant leverage and potential financial risk. The return on equity is negative at -20.14%, reflecting challenges in generating returns for shareholders. The equity ratio stands at 12.19%, suggesting a low proportion of equity financing. Overall, the balance sheet highlights financial instability and high leverage.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow growth at 146.48%, signaling better cash management. The operating cash flow to net income ratio is 0.30, indicating some ability to convert income into cash. The free cash flow to net income ratio is nearly 1, suggesting efficient cash generation relative to net income. Despite these improvements, historical volatility in cash flows remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	522.80M	477.73M	571.39M	623.43M	455.97M	371.28M
Gross Profit	92.49M	87.53M	87.40M	107.18M	61.07M	43.85M
EBITDA	16.31M	11.91M	495.00K	45.00M	-28.02M	-14.58M
Net Income	-7.19M	-6.14M	-18.36M	19.93M	-38.85M	-33.25M
Balance Sheet
Total Assets	304.03M	250.25M	321.48M	301.57M	324.24M	384.58M
Cash, Cash Equivalents and Short-Term Investments	22.61M	14.71M	26.96M	20.85M	33.39M	63.85M
Total Debt	121.61M	109.28M	194.10M	151.02M	189.93M	246.62M
Total Liabilities	268.26M	219.75M	294.15M	254.57M	297.39M	327.57M
Stockholders Equity	35.77M	30.50M	27.33M	47.00M	26.84M	57.00M
Cash Flow
Free Cash Flow	25.62M	63.16M	-18.66M	36.47M	17.02M	-15.02M
Operating Cash Flow	26.06M	63.44M	-16.79M	37.91M	19.49M	-13.41M
Investing Cash Flow	585.00K	10.32M	-8.41M	-3.71M	4.10M	-1.71M
Financing Cash Flow	-6.47M	-85.95M	31.38M	-45.96M	-51.81M	30.97M

Sterling Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 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:1825, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.11, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.29 is Neutral, neither overbought nor oversold. The STOCH value of 57.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1825.

Sterling Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$17.87B	13.25	-4.88%	3.05%	1.25%	-14.67%
1825	55 Neutral	HK$49.08M	―	-21.24%	―	-16.39%	81.31%
2223	55 Neutral	HK$70.91M	―	-3.62%	―	-9.34%	-177.30%
0048	54 Neutral	HK$30.65M	1.07	16.60%	―	10.78%	-8.27%
1968	51 Neutral	HK$93.44M	―	-13.54%	―	31.79%	7.61%
8507	49 Neutral	HK$54.40M	91.33	3.64%	―	38.70%	―
8607	―	HK$33.60M	―		―	―	―

Sterling Group Holdings Limited Corporate Events

Sterling Group Holdings Benefits from Early Loan Repayment

Sterling Group Holdings Limited announced the receipt of an early loan repayment from Santai, amounting to HK$3.3 million. This early repayment is considered beneficial to the company’s financial condition and cash flow, as it improves the overall business stability and reduces outstanding liabilities.

Sterling Group Holdings Benefits from Early Loan Repayment

Sterling Group Holdings Limited announced the early repayment of a loan by Santai, amounting to HK$10 million, which is part of a larger principal amount of US$4,212,811. This early repayment is seen as beneficial to the company’s financial health and cash flow, indicating positive implications for its overall business operations.

Sterling Group Announces Key Executive Resignation and Leadership Changes

Sterling Group Holdings Limited announced the resignation of Mr. Chung Sam Kwok Wai from multiple key positions within the company, including executive director, chief financial officer, and chief operating officer, due to personal health reasons. The company has appointed Mr. Wong Sai Hung as the new authorised representative and process agent, ensuring a smooth transition in leadership roles.

Sterling Group Holdings Limited Announces Board Composition

Sterling Group Holdings Limited has announced the current composition of its board of directors and their roles within the company. The board includes both executive and independent non-executive directors, with specific members serving on the audit, remuneration, and nomination committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes within the organization.

Sterling Group Holdings Ratifies Key Loan Agreement at EGM

Sterling Group Holdings Limited announced that all proposed ordinary resolutions were approved by shareholders at the extraordinary general meeting held on March 14, 2025. This includes the ratification of a loan agreement between its subsidiary, Sterling Apparel Limited, and Santai Global Asset Management Ltd, involving a principal sum of approximately US$4.2 million. The approval of this agreement is expected to impact the company’s financial operations positively, reinforcing its strategic financial engagements.

Sterling Group Holdings Announces Strategic Financial Agreements

Sterling Group Holdings Limited has announced an extraordinary general meeting to approve several agreements involving its subsidiary, Sterling Apparel Limited. These agreements include a loan agreement with Santai Global Asset Management Ltd and two agreements with Santai and JP Outfitters Inc. The agreements involve financial transactions, termination of previous support letters, and the provision of financial assistance, reflecting strategic financial restructuring and operational adjustments that may impact the company’s market positioning and stakeholder interests.

Sterling Group Announces Key Agreement Extensions and Amendments

Sterling Group Holdings Limited has announced a supplemental agreement involving its subsidiary, Asiamax Holdings Limited, and JP Outfitters, LLC, which appoints Asiamax as the exclusive manufacturer for apparel products for 20 years. The agreement also amends previous loan terms, extending the long stop date for satisfaction of conditions to 30 April 2025 due to additional time needed for various preparations. This extension is crucial for the company’s operational timelines and stakeholder planning, ensuring all conditions are met for the agreements to proceed as intended.