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EDA Group Holdings Limited (HK:2505)
:2505
Hong Kong Market
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EDA Group Holdings Limited (2505) AI Stock Analysis

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HK:2505

EDA Group Holdings Limited

(2505)

Rating:75Outperform
Price Target:
HK$3.50
▲(19.45% Upside)
EDA Group Holdings Limited's stock score is primarily driven by strong financial performance and positive technical indicators. The company's robust revenue growth and cash flow management contribute positively, while the high leverage and declining profit margins present risks. The technical analysis supports a bullish trend, but the valuation suggests the stock may be overvalued, which tempers the overall score.

EDA Group Holdings Limited (2505) vs. iShares MSCI Hong Kong ETF (EWH)

EDA Group Holdings Limited Business Overview & Revenue Model

Company DescriptionEDA Group Holdings Limited (2505) is a diversified company primarily engaged in the sectors of engineering, construction, and project management. The company offers a range of core services including infrastructure development, environmental consultancy, and sustainable engineering solutions. EDA Group focuses on delivering innovative and efficient project outcomes for both public and private sector clients, catering to various industries such as transportation, energy, and urban development.
How the Company Makes MoneyEDA Group Holdings Limited generates revenue through multiple streams including project contracts, consultancy fees, and service agreements. The company earns money by securing contracts for large-scale infrastructure projects, where it acts as the primary contractor responsible for execution and management. Additionally, EDA Group provides specialized consultancy services that involve environmental assessments and engineering solutions, allowing them to charge fees based on project scope and duration. Key partnerships with government agencies and private enterprises enhance their revenue potential, as they often collaborate on significant projects that require extensive expertise and resources. Factors contributing to its earnings include a strong reputation for delivering quality services, a diverse portfolio that mitigates risk, and strategic positioning in growing sectors such as renewable energy and urban infrastructure development.

EDA Group Holdings Limited Financial Statement Overview

Summary
EDA Group Holdings Limited demonstrates solid revenue growth and a stable balance sheet, with moderate equity returns. However, increasing debt levels and limited cash flow data suggest potential risks. Maintaining profitability and managing leverage will be crucial for future stability.
Income Statement
68
Positive
EDA Group Holdings Limited shows a strong revenue growth rate of approximately 39.8% from 2023 to 2024. The gross profit margin for 2024 is 14.85%, and the net profit margin is 2.78%, indicating moderate profitability levels. However, the decline in EBIT and EBITDA margins suggests pressure on operating efficiency.
Balance Sheet
72
Positive
The company maintains a stable financial structure with an equity ratio of 34.95% in 2024, and a reasonable debt-to-equity ratio of 1.48. The return on equity is 7.89%, reflecting moderate returns to shareholders. However, the increase in total debt may pose future financial risks.
Cash Flow
50
Neutral
Cash flow metrics are limited due to missing data for 2024. In 2023, the operating cash flow to net income ratio was 1.52, showing strong cash generation relative to net income. However, the absence of free cash flow data for 2024 prevents a comprehensive analysis.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.69B1.21B708.66M0.00
Gross Profit251.00M197.10M106.49M0.00
EBITDA81.83M135.77M95.60M3.05M
Net Income47.07M69.40M36.29M3.05M
Balance Sheet
Total Assets1.71B679.00M564.41M534.91M
Cash, Cash Equivalents and Short-Term Investments348.59M243.18M115.81M84.81M
Total Debt879.99M176.82M195.81M189.36M
Total Liabilities1.11B354.95M332.02M408.09M
Stockholders Equity596.21M324.04M232.39M126.82M
Cash Flow
Free Cash Flow115.55M104.33M78.42M-37.00K
Operating Cash Flow128.40M105.79M80.12M-37.00K
Investing Cash Flow-206.03M39.64M-8.44M-21.32M
Financing Cash Flow150.68M-37.46M-9.01M35.08M

EDA Group Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.93
Price Trends
50DMA
2.81
Positive
100DMA
2.78
Positive
200DMA
2.62
Positive
Market Momentum
MACD
0.06
Positive
RSI
53.97
Neutral
STOCH
38.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2505, the sentiment is Positive. The current price of 2.93 is below the 20-day moving average (MA) of 2.97, above the 50-day MA of 2.81, and above the 200-day MA of 2.62, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 38.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2505.

EDA Group Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$104.00M9.62-9.70%19.23%14.91%24.71%
75
Outperform
23.25
2.39%
59
Neutral
HK$15.62B28.59-16.88%4.75%8.45%-109.32%
51
Neutral
HK$50.70M-2.80%28.15%-144.00%
50
Neutral
HK$679.34M-19.39%-26.44%70.62%
48
Neutral
HK$232.96M6.69-2.34%30.32%-136.36%
41
Neutral
HK$539.21M-3.26%1.74%0.58%-142.16%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2505
EDA Group Holdings Limited
2.96
-1.59
-34.95%
HK:1732
XiangXing International Holding Limited
0.18
0.04
28.57%
HK:1737
A & S Group (Holdings) Limited
0.10
>-0.01
-9.09%
HK:6123
YTO International Express and Supply Chain Technology Limited
1.29
0.14
12.17%
HK:8292
Worldgate Global Logistics Ltd.
0.63
0.58
1160.00%
HK:8489
Grand Power Logistics Group Limited
0.17
0.03
21.43%

EDA Group Holdings Limited Corporate Events

EDA Group Holdings Limited AGM Resolutions Passed
May 28, 2025

EDA Group Holdings Limited announced that all resolutions proposed at their Annual General Meeting on May 28, 2025, were approved by shareholders via poll. This includes the acceptance of audited financial statements, declaration of a final dividend, re-election of independent non-executive directors, authorization of director remuneration, and re-appointment of Ernst & Young as independent auditors. The successful passing of these resolutions reflects strong shareholder support and positions the company for continued stability and governance.

The most recent analyst rating on (HK:2505) stock is a Buy with a HK$3.57 price target. To see the full list of analyst forecasts on EDA Group Holdings Limited stock, see the HK:2505 Stock Forecast page.

EDA Group Holdings Secures New Lease in Mississauga
May 27, 2025

EDA Group Holdings Limited has announced a new lease agreement for a warehouse and office space in Mississauga, Ontario, Canada. The lease, executed by its subsidiary EDA Cloud Canada Inc., spans ten years and involves a base rent starting at C$1.38 per square foot per month, with an average annual increase of 2.5%. The total base rent over the lease term is approximately C$24.7 million. This transaction is classified as a discloseable transaction under Hong Kong’s Listing Rules, requiring notification and announcement but not shareholder approval.

The most recent analyst rating on (HK:2505) stock is a Buy with a HK$3.57 price target. To see the full list of analyst forecasts on EDA Group Holdings Limited stock, see the HK:2505 Stock Forecast page.

EDA Group Holdings Signs 10-Year Lease in UK
May 21, 2025

EDA Group Holdings Limited, through its wholly owned subsidiary EDA Cloud UK Limited, has entered into a lease agreement for a premises in Telford, Shropshire, UK. The premises will be used for warehouse storage, distribution, and office purposes. The lease term is set for 10 years with an initial rent of £0.35 per square foot per month, increasing to £0.42 per square foot per month from the third year, totaling approximately £8.2 million over the lease term. This transaction is classified as a discloseable transaction under the Listing Rules, requiring notification and announcement but not shareholder approval.

The most recent analyst rating on (HK:2505) stock is a Buy with a HK$3.57 price target. To see the full list of analyst forecasts on EDA Group Holdings Limited stock, see the HK:2505 Stock Forecast page.

EDA Group Holdings Expands U.S. Operations with New Lease Agreement
May 11, 2025

EDA Group Holdings Limited, through its wholly owned subsidiary EDA International, Inc., has entered into a lease agreement for a substantial warehouse and office space in Atlanta, Georgia. This transaction, classified as discloseable under Hong Kong’s Listing Rules, involves a 63-month lease with a total base rent of approximately US$15.6 million. The lease agreement is expected to enhance the company’s operational capabilities in storage and distribution, potentially strengthening its market position in the U.S.

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.Date of analysis: Jul 28, 2025