Sanergy Group Ltd. (2459) AI Stock Analysis

• Market Cap: HK$198.36M
• Dividend Yield: N/A
• Average Volume (3M): 4.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: -20.20%
• EPS Growth: -33.73%
• Country: HK
• Employees: 188
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -0.06
• Shares Outstanding: 1,710,000,000
• 10 Day Avg. Volume: 2,247,000
• 30 Day Avg. Volume: 4,512,200
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -3.03
• 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: 40 Underperform
• Price Target: HK$0.11 ▲(2.73% Upside)

Sanergy Group Ltd. is facing significant financial and operational challenges, with declining revenue and profitability, negative cash flow, and poor valuation metrics. The technical analysis indicates bearish momentum, further impacting the stock's outlook. These factors collectively result in a low overall stock score.

Positive Factors

Business Model Strength

Sanergy's business model of converting waste into valuable products like organic fertilizer and renewable energy is innovative and sustainable, addressing critical needs in sanitation and waste management while creating multiple revenue streams.

Partnerships and Funding

Partnerships with governments and NGOs provide Sanergy with stable funding and opportunities for expansion, enhancing its capacity to generate income through waste management contracts and subsidies, which supports long-term growth.

Market Position

By focusing on underserved urban areas, Sanergy positions itself as a leader in sustainable sanitation solutions, addressing public health and environmental issues, which strengthens its market position and long-term relevance.

Negative Factors

Declining Revenue

Significant revenue decline and negative margins indicate operational challenges, impacting financial stability and growth potential. This trend needs reversal for sustainable long-term performance.

Negative Cash Flow

Negative cash flow highlights liquidity challenges, limiting Sanergy's ability to invest in growth and operations. Improving cash generation is crucial for sustaining business activities and financial health.

Profitability Issues

Negative gross profit margin suggests cost management issues, affecting profitability. Addressing these issues is essential for improving financial performance and ensuring long-term viability.

Sanergy Group Ltd. Business Overview & Revenue Model

Company Description

Sanergy Group Limited manufactures and sells UHP graphite electrodes worldwide. Its products have applications in the automotive, infrastructure, construction, appliance, machinery, equipment, and transportation industries. The company is based in Wan Chai, Hong Kong. Sanergy Group Limited operates as a subsidiary of Otautahi Capital Inc.

How the Company Makes Money

Sanergy generates revenue through several key streams. Primarily, the company earns money by selling sanitation services and products, including its franchise-operated Fresh Life Toilets, which are strategically placed in underserved urban areas. Users pay a fee for access to these toilets, providing a steady income stream. Additionally, Sanergy collects human waste and converts it into valuable by-products such as organic fertilizer and renewable energy, which are sold to agricultural businesses and energy companies. The company has also established partnerships with local governments and NGOs to enhance its service reach and impact, which can provide financial support and facilitate operational growth. Furthermore, grants and impact investments may also contribute to its revenue, helping fund expansions and innovations in its sanitation solutions.

Sanergy Group Ltd. Financial Statement Overview

Summary

Sanergy Group Ltd. faces significant financial challenges with declining revenue, profitability, and cash flow. The balance sheet shows moderate leverage, but negative returns and cash flow issues raise concerns about financial stability and operational efficiency.

Income Statement

Sanergy Group Ltd. has experienced a significant decline in revenue and profitability over the past few years. The gross profit margin has turned negative, indicating cost issues, and the net profit margin has also deteriorated. Revenue has decreased significantly, and EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the return on equity has turned negative due to recent losses, and the equity ratio has decreased, indicating reduced financial stability.

Cash Flow

Cash flow analysis reveals negative free cash flow and operating cash flow, highlighting liquidity challenges. The free cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The company needs to improve cash generation to support operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.63M	56.95M	72.29M	115.52M	108.69M	108.54M
Gross Profit	-6.66M	-17.25M	841.00K	26.03M	22.83M	16.51M
EBITDA	-17.36M	-30.93M	-9.78M	17.81M	14.68M	6.25M
Net Income	-36.28M	-40.98M	-15.48M	7.50M	4.39M	4.19M
Balance Sheet
Total Assets	176.92M	173.97M	226.05M	205.85M	222.86M	209.57M
Cash, Cash Equivalents and Short-Term Investments	8.50M	10.94M	31.16M	11.68M	15.14M	12.69M
Total Debt	29.10M	31.28M	39.83M	31.97M	21.05M	8.62M
Total Liabilities	72.51M	68.22M	77.56M	72.93M	87.87M	76.36M
Stockholders Equity	104.41M	105.75M	148.49M	132.92M	134.99M	133.21M
Cash Flow
Free Cash Flow	-12.48M	-8.85M	-15.36M	738.00K	-274.00K	-10.96M
Operating Cash Flow	-8.56M	-3.14M	-6.09M	4.27M	6.28M	22.00M
Investing Cash Flow	-9.34M	-11.13M	-15.03M	-5.96M	-15.67M	-42.91M
Financing Cash Flow	7.06M	-3.87M	38.44M	-1.32M	12.38M	16.38M

Sanergy Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.11
• 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:2459, the sentiment is Neutral. The current price of 0.11 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.12, and below the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 33.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2459.

Sanergy Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1203	71 Outperform	€771.45M	4.85	6.32%	5.81%	16.92%	146.69%
6890	66 Neutral	HK$209.16M	4.73	4.73%	―	-20.52%	-68.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1938	61 Neutral	HK$303.34M	1.10	19.13%	―	-13.26%	63.38%
1090	49 Neutral	€1.06B	-2.36	-15.58%	―	-8.38%	-86.16%
2738	45 Neutral	HK$153.00M	―	-296.26%	―	-49.77%	-1095.34%
2459	40 Underperform	HK$198.36M	-0.52	-30.61%	―	-20.20%	-33.73%

Sanergy Group Ltd. Corporate Events

Sanergy Group Issues Supplemental Announcement on Share Option Scheme

Sanergy Group Limited, a company incorporated in the Cayman Islands, has issued a supplemental announcement regarding its annual report for the year ended 31 December 2024. The announcement provides additional details about the company’s Share Option Scheme, specifically the exercise period for options, which can be exercised at any time within a period determined by the Board, not exceeding 10 years from the grant date. This supplementary information does not affect other details in the annual report.