Sterling Group Holdings Limited (1825) AI Stock Analysis

• Market Cap: HK$49.77M
• Dividend Yield: N/A
• Average Volume (3M): 517.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: -26.68%
• EPS Growth: -60.46%
• Country: HK
• Employees: 1,254
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.02
• Shares Outstanding: 345,600,000
• 10 Day Avg. Volume: 139,250
• 30 Day Avg. Volume: 517,000
• PEG Ratio: 0.05
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.04
• P/FCF Ratio: 0.33
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.13 ▼(-2.31% Downside)

Sterling Group Holdings Limited's overall stock score is primarily impacted by its financial performance, which is under pressure due to declining revenues and high leverage. Technical analysis suggests mixed signals with potential short-term stability but medium-term weakness. Valuation concerns arise from negative earnings and lack of dividend yield, further weighing down the score.

Positive Factors

Cash Flow Management

Improved cash flow management indicates better financial discipline and enhances the company's ability to fund operations and investments.

Gross Profit Margin

An improved gross profit margin suggests better cost management, which can lead to enhanced profitability over time.

Revenue Diversification

Diversified revenue streams through partnerships reduce risk and provide stability, supporting long-term growth.

Negative Factors

High Leverage

Significant leverage increases financial risk and can limit the company's ability to invest in growth opportunities.

Declining Revenue

A decline in revenue indicates challenges in market demand or competitive positioning, impacting long-term growth prospects.

Profitability Pressures

Sustained profitability pressures can hinder reinvestment in the business and affect shareholder returns over time.

Sterling Group Holdings Limited Business Overview & Revenue Model

Company Description

Sterling Group Holdings Limited (1825) is a diversified investment holding company based in Hong Kong, primarily engaged in the development and management of real estate projects and investments across various sectors. The company focuses on property development, asset management, and investment opportunities in both commercial and residential markets, leveraging its expertise to deliver value to its stakeholders.

How the Company Makes Money

Sterling Group Holdings generates revenue primarily through the sale and leasing of residential and commercial properties developed by the company. The company profits from property development projects by selling units at market prices, and it also earns recurring income through leasing out commercial spaces. Additionally, the company may engage in joint ventures and partnerships with other developers or investors, allowing it to share resources, reduce risks, and enhance its revenue potential. Its diversified portfolio and strategic market positioning enable it to capitalize on growth opportunities within the real estate sector.

Sterling Group Holdings Limited Financial Statement Overview

Summary

Sterling Group Holdings Limited is facing 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	-583.00K	40.86M	-28.36M	-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: Negative
• Last Price: 0.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1825, the sentiment is Negative. The current price of 0.13 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.15, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.76 is Neutral, neither overbought nor oversold. The STOCH value of 17.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0048	61 Neutral	HK$29.07M	0.65	25.65%	―	38.42%	172.62%
1968	49 Neutral	HK$82.56M	-2.93	-11.54%	―	17.91%	20.40%
2223	48 Neutral	HK$149.56M	―	-3.62%	―	-9.34%	-177.30%
1825	46 Neutral	HK$49.77M	-10.07	-59.04%	―	-26.68%	-60.46%
8507	46 Neutral	HK$228.00M	380.00	14.33%	―	10.57%	―

Sterling Group Holdings Limited Corporate Events

Sterling Group Enhances Internal Controls and Treasury Management

Sterling Group Holdings Limited has conducted a comprehensive review of its internal control processes for the year ended March 31, 2025, with the assistance of Pan-China Tax and Business Advisory Limited. Key findings highlighted areas for improvement in human resources, revenue, and expenditure cycles, as well as the need for better segregation of duties in cheque handling. Although these findings were not deemed materially significant, the company plans to implement enhanced policies and procedures to address the issues identified, aiming to strengthen its internal control effectiveness and operational integrity.

Sterling Group Holdings Announces Upcoming Board Meeting for Interim Results

Sterling Group Holdings Limited has announced that its board of directors will meet on November 28, 2025, to consider and approve the interim results for the six months ending September 30, 2025. The meeting will also discuss the potential payment of an interim dividend, which may have implications for the company’s financial performance and shareholder returns.

Sterling Group Holdings Appoints New Executive Director

Sterling Group Holdings Limited has announced the appointment of Ms. Zhang Man as an executive director, effective November 7, 2025. Ms. Zhang, who holds degrees in Business Administration, brings extensive experience in investment and business management to the company. She has been a vice general manager at Hubei Dingfeng Building Materials Co., Ltd. since October 2023. Her appointment is expected to strengthen the company’s leadership team and contribute to its strategic planning and implementation.

Sterling Group Holdings Limited Announces Board Composition and Roles

Sterling Group Holdings Limited, incorporated in the Cayman Islands, has announced the composition of its board of directors and their respective roles within the company. The board consists of both executive and independent non-executive directors, with specific members assigned to various board committees, including the Audit, Remuneration, and Nomination Committees. This announcement provides clarity on the governance structure of the company, which may impact its strategic decision-making and operational oversight.

Sterling Group Holdings Reports Unanimous Approval of AGM Resolutions

Sterling Group Holdings Limited announced that all resolutions proposed at their 2025 Annual General Meeting were passed by shareholders. This includes the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting of mandates for share issuance and repurchase. The unanimous approval of these resolutions indicates strong shareholder support and positions the company for continued operational stability and strategic flexibility.

Sterling Group Holdings Appoints New Independent Director

Sterling Group Holdings Limited has announced the appointment of Ms. Wu Jing as an independent non-executive director and a member of the audit committee, effective from September 29, 2025. Ms. Wu brings over 15 years of experience in corporate financing and investment, having held significant roles in various companies. This strategic appointment is expected to enhance the company’s governance and oversight capabilities, potentially strengthening its position in the market.

Sterling Group Holdings Limited Announces Board Composition and Roles

Sterling Group Holdings Limited has announced the composition of its board of directors and their roles within the company. The board consists of both executive and independent non-executive directors, with Ms. Wong Mei Wai Alice serving as the Chairperson. The announcement outlines the membership of the board members in various committees, which include the Audit, Remuneration, and Nomination Committees. This organizational update is significant for stakeholders as it provides clarity on the governance structure and leadership roles within the company.

Sterling Group Holdings Appoints New Independent Director to Strengthen Governance

Sterling Group Holdings Limited has appointed Ms. Wu Jing as an independent non-executive director and a member of the audit committee, effective from September 18, 2025. Ms. Wu brings over 15 years of experience in corporate financing and investment, having held significant roles in various companies. Her appointment allows the company to re-comply with the listing rules of the Hong Kong Stock Exchange, enhancing its governance structure and potentially impacting its market position positively.

Sterling Group Holdings Updates Board Composition and Roles

Sterling Group Holdings Limited has announced the current composition of its board of directors, highlighting the roles and functions of each member. The board consists of both executive and independent non-executive directors, with Ms. Wong Mei Wai Alice serving as the chairperson. The announcement also details the membership of three board committees, indicating the leadership roles within the audit, remuneration, and nomination committees. This update on the board’s structure is crucial for stakeholders to understand the governance framework and decision-making hierarchy within the company.