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Steve Leung Design Group Limited (HK:2262)
:2262
Hong Kong Market

Steve Leung Design Group Limited (2262) AI Stock Analysis

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HK

Steve Leung Design Group Limited

(2262)

Rating:44Neutral
Price Target:
HK$1.50
▲(12.78%Upside)
The stock score is primarily impacted by financial recovery, but inconsistent profitability and very high P/E ratio indicate potential risks. Technical indicators show bullish momentum but suggest overbought conditions.

Steve Leung Design Group Limited (2262) vs. iShares MSCI Hong Kong ETF (EWH)

Steve Leung Design Group Limited Business Overview & Revenue Model

Company DescriptionSteve Leung Design Group Limited (2262) is a leading design firm based in Hong Kong, specializing in providing high-quality interior design, architectural design, and product design services. The company operates across various sectors including residential, hospitality, commercial, and retail spaces. Renowned for its contemporary and innovative design solutions, the group caters to an extensive clientele in Asia and beyond, offering bespoke designs tailored to meet the specific needs of its clients.
How the Company Makes MoneySteve Leung Design Group Limited generates revenue primarily through its design services, which include interior and architectural design projects for a diverse range of sectors such as residential, hospitality, and commercial spaces. The company charges clients for design consultation, project management, and execution services. Additionally, the firm collaborates with developers, property owners, and other stakeholders on large-scale projects, which provide significant revenue streams. Partnerships with international brands and licensing agreements for product designs also contribute to its earnings. By maintaining a portfolio of high-profile projects and leveraging its reputation for quality and innovation, the company sustains its financial performance.

Steve Leung Design Group Limited Financial Statement Overview

Summary
The company shows financial recovery with revenue growth and positive net profit margin. However, profitability is inconsistent, and ROE is low, indicating limited shareholder returns.
Income Statement
45
Neutral
The company showed a modest improvement in revenue from 2023 to 2024, with a revenue growth rate of 3.34%. However, the gross profit margin was 39.92% in 2024, which reflects healthy operational efficiency. The net profit margin turned positive at 0.49% in 2024 after experiencing losses in the previous years, indicating a return to profitability. The EBIT margin rebounded to 5.93%, showcasing better control over operating expenses. Despite these improvements, the company still faces challenges in sustaining consistent profitability, as evidenced by fluctuating margins over the years.
Balance Sheet
60
Neutral
The company's balance sheet shows a stable financial position with a debt-to-equity ratio of 0.20 in 2024, reflecting low leverage and reduced financial risk. The equity ratio stood at 60.96%, indicating strong capitalization and a solid asset base. Return on Equity (ROE) was low at 0.59% due to minimal net income, suggesting limited returns for shareholders. Overall, the company's balance sheet demonstrates stability, but profitability remains a concern.
Cash Flow
55
Neutral
The cash flow statements indicate a healthy operating cash flow to net income ratio of 16.61 in 2024, showcasing strong cash generation relative to net income. Free cash flow increased by 33.41% from 2023 to 2024, highlighting improved cash management and lower capital expenditures. However, the company's cash flow from operations has shown volatility over the years, which could be a potential risk factor.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
367.69M355.80M381.00M455.04M432.97M
Gross Profit
146.82M139.03M139.25M188.90M187.94M
EBIT
21.79M-13.53M-25.68M49.47M86.50M
EBITDA
38.84M13.19M-19.89M89.74M124.36M
Net Income Common Stockholders
1.80M-18.84M-59.89M1.65M33.53M
Balance SheetCash, Cash Equivalents and Short-Term Investments
140.88M148.89M153.34M276.96M275.26M
Total Assets
497.35M497.86M523.08M649.84M710.05M
Total Debt
61.70M75.27M71.16M66.20M87.03M
Net Debt
-79.19M-73.63M-82.17M-180.46M-188.23M
Total Liabilities
183.29M181.80M183.88M171.96M210.19M
Stockholders Equity
303.27M304.54M326.42M466.92M487.80M
Cash FlowFree Cash Flow
27.43M20.56M-40.03M60.96M43.09M
Operating Cash Flow
29.99M21.72M-35.21M66.83M56.14M
Investing Cash Flow
-2.11M-671.00K26.47M-29.33M-12.17M
Financing Cash Flow
-34.64M-24.42M-75.81M-69.90M-49.82M

Steve Leung Design Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.33
Price Trends
50DMA
0.95
Positive
100DMA
0.81
Positive
200DMA
0.52
Positive
Market Momentum
MACD
0.11
Positive
RSI
93.60
Negative
STOCH
63.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2262, the sentiment is Positive. The current price of 1.33 is above the 20-day moving average (MA) of 1.21, above the 50-day MA of 0.95, and above the 200-day MA of 0.52, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 93.60 is Negative, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2262.

Steve Leung Design Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$2.96B10.2158.52%19.15%-9.98%-12.36%
71
Outperform
$66.24B6.7514.62%5.26%1.21%2.15%
66
Neutral
$4.47B12.215.40%3.65%4.14%-12.00%
52
Neutral
HK$73.15M-21.00%-29.79%-146.84%
46
Neutral
HK$4.19B-29.17%2.21%-11.94%-756.32%
44
Neutral
HK$1.52B831.250.59%3.34%
30
Underperform
€182.32M-238.71%-43.49%31.62%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2262
Steve Leung Design Group Limited
1.33
1.17
731.25%
HK:1830
Perfect Medical Health Management Limited
2.36
0.26
12.38%
HK:1616
A Metaverse Company
0.03
<0.01
50.00%
HK:1996
Redsun Properties Group Ltd.
0.06
-0.02
-28.57%
HK:3311
China State Construction International Holdings
12.54
2.82
29.07%
HK:3319
A-Living Smart City Services Co., Ltd. Class H
2.95
<0.01
0.20%

Steve Leung Design Group Limited Corporate Events

Steve Leung Design Group Secures Unanimous Approval for AGM Resolutions
May 29, 2025

Steve Leung Design Group Limited announced that all proposed resolutions were unanimously passed at its Annual General Meeting held on May 29, 2025. The resolutions included the re-election of directors, authorization of the board to determine directors’ remuneration, re-appointment of the auditor, and granting of mandates to the board for share allotment and repurchase. The approval of these resolutions reflects strong shareholder support and positions the company for continued strategic governance and operational flexibility.

Steve Leung Design Group Announces AGM and Key Resolutions
Apr 22, 2025

Steve Leung Design Group Limited has announced its upcoming annual general meeting (AGM) scheduled for May 29, 2025, in Hong Kong. The meeting will address several key resolutions, including the re-election of directors, the re-appointment of BDO Limited as the company’s auditor, and the authorization for directors to manage share allotments and related financial instruments. These resolutions are crucial for maintaining the company’s governance structure and ensuring continued compliance with the Hong Kong Stock Exchange’s listing rules.

Steve Leung Design Group Proposes Amendments to Articles of Association
Mar 31, 2025

Steve Leung Design Group Limited has announced proposed amendments to its articles of association to align with updated regulatory requirements, including the expanded paperless listing regime and electronic dissemination of corporate communications. These amendments are pending approval by shareholders at the upcoming annual general meeting, indicating a strategic move to enhance compliance and operational efficiency.

Steve Leung Design Group Reports 2024 Financial Results with Revenue Growth
Mar 19, 2025

Steve Leung Design Group Limited announced its annual results for the year ended December 31, 2024, reporting a revenue increase to HK$367.7 million from HK$355.8 million in 2023. The company achieved a profit attributable to equity owners of HK$1.8 million, a significant improvement from the previous year’s loss. Despite the positive financial performance, the board did not recommend a final dividend for 2024. The group’s remaining contract sum increased to HK$507.1 million, indicating a strong pipeline of future work.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.