Best Mart 360 Holdings Ltd. (2360) AI Stock Analysis

• Market Cap: HK$2.06B
• Dividend Yield: 10.19%
• Average Volume (3M): 458.41K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.15
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 1,005
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): N/A
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 590,000
• 30 Day Avg. Volume: 458,408
• PEG Ratio: 0.49
• Price to Book (P/B): 3.11
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 4.14
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: HK$2.50 ▲(19.62% Upside)

Best Mart 360 Holdings Ltd. receives a strong overall score driven by its robust financial performance and attractive valuation. The company's solid revenue growth and profitability, combined with a low P/E ratio and high dividend yield, make it an appealing investment. Technical indicators support a stable outlook, although the absence of recent cash flow data introduces some uncertainty.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective business strategies, enhancing long-term financial stability.

Profitability

Strong profit margins reflect efficient cost management and operational effectiveness, supporting sustainable business operations.

Balance Sheet Health

A balanced capital structure with manageable leverage ensures financial resilience and capacity for future investments.

Negative Factors

Cash Flow Uncertainty

Absence of current cash flow data introduces uncertainty, potentially impacting the assessment of liquidity and operational efficiency.

Debt Levels

While manageable, moderate debt levels could limit financial flexibility and increase risk if not carefully managed.

Lack of Recent Earnings Call Data

Absence of recent earnings call insights limits visibility into management's strategic direction and near-term business outlook.

Best Mart 360 Holdings Ltd. Business Overview & Revenue Model

Company Description

Best Mart 360 Holdings Ltd. (2360) is a retail and wholesale distribution company based in Hong Kong, primarily engaged in the operation of a chain of supermarkets and grocery stores. The company focuses on providing a wide range of consumer products, including food items, household goods, and personal care products. Best Mart 360 aims to deliver quality products at competitive prices while maintaining a strong commitment to customer service and community engagement.

How the Company Makes Money

Best Mart 360 Holdings Ltd. generates revenue primarily through the sale of consumer goods in its supermarkets and grocery stores. The company operates on a retail model, where it purchases products from suppliers at wholesale prices and sells them to consumers at a markup. Key revenue streams include sales from food and beverage items, household essentials, and personal care products. Additionally, Best Mart 360 may benefit from partnerships with suppliers that provide promotional discounts or exclusive products, enhancing profit margins. The company also explores opportunities in e-commerce and online sales, which have become increasingly important in the retail sector, further diversifying its revenue sources.

Best Mart 360 Holdings Ltd. Financial Statement Overview

Summary

Best Mart 360 Holdings Ltd. demonstrates strong financials with robust revenue growth and profitability. The balance sheet reflects a prudent capital structure, while historical cash flows have been positive. The absence of the latest cash flow figures introduces some uncertainty, but the company’s overall financial health appears strong, supported by its solid income and balance sheet performance.

Income Statement

The company exhibits strong revenue growth with a 9% increase from the previous year. Gross profit and net profit margins are healthy at approximately 37% and 8.8% respectively, indicating efficient cost management and profitability. EBIT and EBITDA margins are solid, reflecting good operational efficiency. Overall, the company shows robust financial performance with growing revenue and stable profitability.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.61, indicating manageable leverage. The equity ratio stands at approximately 50%, reflecting a balanced capital structure. Return on equity is strong at around 20.7%, pointing to efficient use of shareholder funds. Despite a moderate level of debt, the company's financial health remains solid with a good equity base.

Cash Flow

The cash flow statement reveals a lack of reported operating and free cash flows for the latest period, which impacts the assessment. However, previous periods show positive free cash flow growth and strong cash conversion ratios, indicating the company's ability to generate cash from operations. The absence of current cash flow data introduces uncertainty but historical trends are positive.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.85B	2.81B	2.57B	2.31B	1.98B	1.63B
Gross Profit	1.38B	1.03B	925.68M	817.26M	667.65M	520.15M
EBITDA	541.44M	529.24M	308.62M	433.02M	335.58M	267.51M
Net Income	343.39M	247.52M	224.45M	201.00M	109.80M	81.45M
Balance Sheet
Total Assets	983.28M	1.07B	983.28M	937.63M	900.15M	821.20M
Cash, Cash Equivalents and Short-Term Investments	165.15M	159.51M	165.15M	146.05M	130.08M	91.31M
Total Debt	324.96M	328.15M	324.96M	324.14M	323.65M	343.90M
Total Liabilities	526.91M	533.42M	526.91M	458.92M	462.11M	453.07M
Stockholders Equity	456.37M	534.56M	456.37M	478.71M	438.04M	368.13M
Cash Flow
Free Cash Flow	557.66M	401.32M	422.16M	332.58M	272.88M	210.16M
Operating Cash Flow	597.49M	416.74M	448.94M	361.66M	298.59M	238.57M
Investing Cash Flow	-33.29M	-9.57M	-20.17M	-29.30M	-26.47M	-206.76M
Financing Cash Flow	-482.81M	-378.54M	-325.18M	-316.18M	-233.43M	-156.41M

Best Mart 360 Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.09
• 50DMA: Negative
• 100DMA: Negative
• 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:2360, the sentiment is Negative. The current price of 2.09 is above the 20-day moving average (MA) of 2.07, above the 50-day MA of 2.09, and above the 200-day MA of 1.85, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.73 is Neutral, neither overbought nor oversold. The STOCH value of 28.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2360.

Best Mart 360 Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2360	80 Outperform	HK$2.06B	8.39	45.77%	10.19%	―	―
1525	68 Neutral	HK$1.09B	4.72	8.59%	7.04%	-0.56%	-26.67%
2199	67 Neutral	HK$2.45B	13.32	8.10%	4.42%	3.40%	151.24%
1982	64 Neutral	HK$2.62B	6.89	14.68%	11.47%	-0.95%	2.58%
0335	63 Neutral	HK$1.85B	27.60	2.39%	2.17%	-20.02%	10.62%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0178	56 Neutral	HK$1.92B	25.00	8.44%	4.67%	-3.18%	-36.46%

Best Mart 360 Holdings Ltd. Corporate Events

Best Mart 360 Secures Credit Facility and Updates CEO Emoluments

Best Mart 360 Holdings Ltd. has announced that its subsidiary, CIAO International Limited, has entered into a RMB65,000,000 credit facility agreement with a bank to support liquidity management and business operations. The agreement includes provisions that could trigger default if the company ceases to be listed on the Stock Exchange or if China Merchants Hoi Tung Trading Company Limited loses control over the borrower. Additionally, the company provided supplemental information regarding the emoluments of its CEO, Mr. Hui Chi Kwan, in its annual reports for the years ending March 2019 to 2022.