Steve Leung Design Group Limited (2262) AI Stock Analysis

• Market Cap: HK$1.52B
• Dividend Yield: N/A
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 831.3
• Beta (1Y): 0.83
• Revenue Growth: 3.34%
• EPS Growth: N/A
• Country: HK
• Employees: 400
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 1,141,401,000
• 10 Day Avg. Volume: 6,274,500
• 30 Day Avg. Volume: 2,241,066
• PEG Ratio: <0.01
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.27
• 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: 44 Neutral
• 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 Business Overview & Revenue Model

Company Description

Steve 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 Money

Steve 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
367.69M	355.80M	381.00M	455.04M	432.97M
	Gross Profit
146.82M	139.03M	139.25M	188.90M	187.94M
	EBIT
21.79M	-13.53M	-25.68M	49.47M	86.50M
	EBITDA
38.84M	13.19M	-19.89M	89.74M	124.36M
	Net Income Common Stockholders
1.80M	-18.84M	-59.89M	1.65M	33.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
140.88M	148.89M	153.34M	276.96M	275.26M
	Total Assets
497.35M	497.86M	523.08M	649.84M	710.05M
	Total Debt
61.70M	75.27M	71.16M	66.20M	87.03M
	Net Debt
-79.19M	-73.63M	-82.17M	-180.46M	-188.23M
	Total Liabilities
183.29M	181.80M	183.88M	171.96M	210.19M
	Stockholders Equity
303.27M	304.54M	326.42M	466.92M	487.80M
Cash Flow		Free Cash Flow
27.43M	20.56M	-40.03M	60.96M	43.09M
	Operating Cash Flow
29.99M	21.72M	-35.21M	66.83M	56.14M
	Investing Cash Flow
-2.11M	-671.00K	26.47M	-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 Price: 1.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1830	73 Outperform	HK$2.96B	10.21	58.52%	19.15%	-9.98%	-12.36%
3311	71 Outperform	$66.24B	6.75	14.62%	5.26%	1.21%	2.15%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
1616	52 Neutral	HK$73.15M	―	-21.00%	―	-29.79%	-146.84%
3319	46 Neutral	HK$4.19B	―	-29.17%	2.21%	-11.94%	-756.32%
2262	44 Neutral	HK$1.52B	831.25	0.59%	―	3.34%	―
1996	30 Underperform	€182.32M	―	-238.71%	―	-43.49%	31.62%

Steve Leung Design Group Limited Corporate Events

Steve Leung Design Group Secures Unanimous Approval for AGM Resolutions

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

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

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

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.