Steve Leung Design Group Limited (2262) AI Stock Analysis

• Market Cap: HK$1.56B
• Dividend Yield: N/A
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 856.3
• Beta (1Y): 0.86
• Revenue Growth: 3.34%
• EPS Growth: N/A
• Country: HK
• Employees: 400
• Sector: Industrials
• Sector Strength: 95
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 1,141,401,000
• 10 Day Avg. Volume: 90,350
• 30 Day Avg. Volume: 1,841,083
• PEG Ratio: 7.00
• Price to Book (P/B): 5.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 73.53
• 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: HK$1.50
• Price Target Upside: 9.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: HK$1.50 ▲(9.49%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
EBITDA	38.84M	13.19M	-19.89M	89.74M	124.36M
Net Income	1.80M	-18.84M	-59.89M	1.65M	33.53M
Balance Sheet
Total Assets	497.35M	497.86M	523.08M	649.84M	710.05M
Cash, Cash Equivalents and Short-Term Investments	140.88M	148.89M	153.34M	276.96M	275.26M
Total Debt	61.70M	75.27M	71.16M	66.20M	87.03M
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: Neutral
• Last Price: 1.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2262, the sentiment is Neutral. The current price of 1.37 is below the 20-day moving average (MA) of 1.38, above the 50-day MA of 1.30, and above the 200-day MA of 0.70, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 58.52 is Neutral, neither overbought nor oversold. The STOCH value of 36.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1627	80 Outperform	HK$1.42B	6.21	13.63%	7.04%	5.06%	30.15%
Sector *	58 Neutral	HK$14.89B	4.74	-2.78%	5.07%	3.80%	-54.55%
1726	54 Neutral	HK$1.83B	―	-62.57%	―	37.20%	5.04%
1707	51 Neutral	HK$179.76M	―	-9.34%	―	-40.18%	3.09%
1683	50 Neutral	HK$1.55B	106.67	-9.39%	―	-35.62%	-481.82%
2262	44 Neutral	HK$1.56B	856.25	0.59%	―	3.34%	―
1499	43 Neutral	HK$2.39B	―	-10.00%	―	37.43%	-3100.00%

Steve Leung Design Group Limited Corporate Events

Steve Leung Design Group Reports Positive Profit Alert for Interim 2025

Steve Leung Design Group Limited has announced a positive profit alert, indicating a significant improvement in its interim financial results for the period ending June 30, 2025. The company attributes this improvement to increased revenue and gross profit, higher membership fee income, reduced litigation provisions, and decreased finance costs. However, these gains are partially offset by higher impairment losses on trade receivables and increased administrative expenses. The final interim results are yet to be finalized and will be published by the end of August 2025.

Steve Leung Design Group Announces Change in Hong Kong Share Registrar

Steve Leung Design Group Limited has announced a change in its Hong Kong share registrar and transfer office, effective from July 7, 2025. The new registrar will be Tricor Investor Services Limited, which will handle all applications for the registration of share transfers from this date. This change is part of the company’s operational adjustments and may impact shareholders who need to collect share certificates.

Steve Leung Design Group Announces Board Composition and Roles

Steve Leung Design Group Limited has announced the composition of its board of directors and the roles each member will play within the company’s five board committees. This announcement provides clarity on the leadership structure and governance of the company, potentially impacting its strategic direction and stakeholder confidence.

Steve Leung Design Group Announces Changes to Nomination Committee

Steve Leung Design Group Limited announced changes to its Nomination Committee, effective June 19, 2025, with Ms. Wang Wanjun appointed as a new member, replacing Mr. Liu Yi. These changes align with upcoming amendments to the Listing Rules and Corporate Governance Code, aiming to enhance board effectiveness and diversity, thereby strengthening corporate governance practices.

Steve Leung Design Group Updates Nomination Committee Terms

Steve Leung Design Group Limited has announced the amendment of the terms of reference for its Nomination Committee, initially adopted in 2018 and revised in 2025. This move aims to align with the listing rules of The Stock Exchange of Hong Kong Limited, ensuring compliance and enhancing governance. The committee will consist of at least three members, predominantly independent non-executive directors, with a focus on diversity by including at least one director of a different gender, which may impact the company’s governance structure and stakeholder confidence.

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.