Grown Up Group Investment Holdings Limited (1842) AI Stock Analysis

• Market Cap: HK$69.60M
• Dividend Yield: N/A
• Average Volume (3M): 460.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: 6.38%
• EPS Growth: -275.00%
• Country: HK
• Employees: 406
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): >-0.01
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 406,800
• 30 Day Avg. Volume: 460,400
• PEG Ratio: 0.04
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -8.53
• 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: 45 Neutral
• Price Target: HK$0.05 ▲(6.00% Upside)

The overall stock score of 45 reflects significant financial performance challenges, particularly in profitability and cash flow management. Technical analysis shows a neutral trend, but valuation metrics are unattractive due to negative earnings. Improvements in financial health are crucial for a better outlook.

Positive Factors

Balanced Capital Structure

A moderate debt-to-equity ratio indicates that the company maintains a balanced capital structure, which can provide financial stability and flexibility for future investments or operational needs.

Strategic Partnerships

Strategic partnerships can facilitate co-investments and access to new markets, potentially driving long-term revenue growth and expanding the company's market reach.

Revenue Growth

Positive revenue growth indicates the company's ability to expand its market presence and improve its financial performance over time, despite current profitability challenges.

Negative Factors

Profitability Challenges

Persistent profitability challenges, as indicated by a negative net profit margin, suggest operational inefficiencies that could hinder long-term financial health and shareholder value.

Cash Flow Management Issues

Inconsistent cash flow can strain the company's ability to fund operations and investments, posing risks to its financial stability and growth prospects.

Operational Inefficiencies

Negative EBIT and EBITDA margins highlight operational inefficiencies that could impact the company's ability to generate sustainable profits and compete effectively in the market.

Grown Up Group Investment Holdings Limited Business Overview & Revenue Model

Company Description

Grown Up Group Investment Holdings Limited, together with its subsidiaries, designs, develops, manufactures, trades in, and sells bags and luggage products and accessories in Hong Kong. It also offers medical related products, and tool storage products and accessories. In addition, the company provides product development and supply chain services for bags and luggage products. It also exports its products. The company was founded in 1989 and is headquartered in Tai Po, Hong Kong. Grown Up Group Investment Holdings Limited is a subsidiary of GP Group Investment Holding Limited.

How the Company Makes Money

Grown Up Group Investment Holdings Limited generates revenue primarily through its equity investments in portfolio companies. The company earns returns on its investments through capital appreciation and dividends received from its subsidiaries. Additionally, it may collect management fees from companies within its portfolio for providing advisory services and operational support. Strategic partnerships with other investment firms and industry leaders can also enhance its earnings potential by facilitating co-investments and access to new markets.

Grown Up Group Investment Holdings Limited Financial Statement Overview

Summary

Grown Up Group Investment Holdings Limited faces profitability and cash flow challenges amidst fluctuating revenue. While the balance sheet reflects a balanced capital structure, operational inefficiencies and cash flow management issues pose significant risks. Strategic improvements in revenue generation and cost management are essential for better financial health.

Income Statement

The company shows a volatile revenue trend with a decline in recent years. The most recent annual report indicates a gross profit margin of 16.45% and a negative net profit margin of -1.45%, showing challenges in profitability. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is moderate at 0.40, suggesting manageable leverage levels. The return on equity is negative due to the net loss, indicating inefficiencies in using equity. The equity ratio stands at 50.34%, showing a balanced capital structure with moderate financial stability.

Cash Flow

The company has fluctuating free cash flow, with a recent figure of zero indicating potential liquidity issues. The operating cash flow to net income ratio is undefined due to zero operating cash flow, highlighting cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	303.48M	307.36M	291.56M	394.12M	304.72M	276.64M
Gross Profit	51.77M	50.58M	42.30M	57.98M	58.62M	55.63M
EBITDA	-3.77M	-2.32M	7.89M	9.48M	14.39M	15.97M
Net Income	-7.16M	-4.45M	1.09M	-466.00K	-1.32M	-14.48M
Balance Sheet
Total Assets	224.69M	260.60M	252.91M	275.88M	228.88M	295.02M
Cash, Cash Equivalents and Short-Term Investments	78.16M	70.92M	71.80M	52.80M	9.41M	28.44M
Total Debt	40.93M	52.37M	42.95M	68.88M	36.95M	85.93M
Total Liabilities	103.16M	129.43M	116.43M	141.64M	124.15M	187.12M
Stockholders Equity	121.53M	131.16M	136.48M	134.23M	104.73M	107.90M
Cash Flow
Free Cash Flow	-9.63M	-10.13M	-5.87M	18.92M	10.67M	36.97M
Operating Cash Flow	-9.32M	-8.52M	-4.59M	19.62M	12.13M	37.60M
Investing Cash Flow	1.72M	5.04M	42.47M	-20.21M	26.54M	-20.83M
Financing Cash Flow	3.69M	8.81M	-25.49M	44.47M	-8.31M	-13.43M

Grown Up Group Investment Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1842, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.06, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 40.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1842.

Grown Up Group Investment Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2683	73 Outperform	HK$355.50M	5.53	28.87%	5.23%	31.25%	147.52%
1023	62 Neutral	HK$500.61M	-2.81	-10.55%	11.76%	-1.38%	-275.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1100	57 Neutral	HK$545.04M	6.67	7.16%	6.20%	23.17%	-7.30%
1842	45 Neutral	HK$69.60M	-9.67	-5.68%	―	6.38%	-275.00%
8285	44 Neutral	HK$23.52M	-5.83	―	―	-48.40%	66.36%
1058	41 Neutral	HK$204.45M	-6.04	-134.59%	―	-8.05%	33.37%

Grown Up Group Investment Holdings Limited Corporate Events

Grown Up Group Updates 2024 Annual Report with Share Option Scheme Details

Grown Up Group Investment Holdings Limited, a company incorporated in the Cayman Islands, has issued a supplemental announcement regarding its 2024 Annual Report. The company has provided additional details about its Share Option Scheme, which was adopted in 2019. The scheme allows options to be exercised within a ten-year period from the date of grant, with terms and conditions set at the Board’s discretion. This announcement clarifies the terms of the Share Option Scheme without altering any other information in the 2024 Annual Report.