EDA Group Holdings Limited (2505) AI Stock Analysis

• Market Cap: HK$960.56M
• Dividend Yield: 3.43%
• Average Volume (3M): 768.10K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.49
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 367
• Sector: General
• Sector Strength: N/A
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.04
• Shares Outstanding: 442,930,500
• 10 Day Avg. Volume: 213,300
• 30 Day Avg. Volume: 768,100
• PEG Ratio: -0.50
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 8.17
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: HK$2.00 ▼(-1.96% Downside)

The overall stock score of 62 reflects strong financial performance, particularly in revenue growth and cash flow management, which is offset by increased leverage and declining profit margins. The technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued. The lack of earnings call data and corporate events limits additional insights.

EDA Group Holdings Limited Business Overview & Revenue Model

Company Description

EDA Group Holdings Limited provides e-commerce supply chain solutions in the People's Republic of China, the United States, Canada, the United Kingdom, Germany, and Australia. It offers logistics, warehousing, international freight, and fulfillment delivery services. The company was founded in 2014 and is based in Shenzhen, the People's Republic of China.

How the Company Makes Money

EDA 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 strong revenue growth and effective cash flow management, contributing to a positive financial outlook. However, increased leverage and declining profit margins pose potential risks. The company should focus on improving operational efficiency and managing debt levels to sustain long-term financial health.

Income Statement

EDA Group Holdings Limited has shown strong revenue growth over the past years, with a notable increase from 708.67 million in 2022 to 1.69 billion in 2024. The gross profit margin improved to 14.85% in 2024, indicating better cost management. However, the net profit margin decreased from 5.74% in 2023 to 2.78% in 2024, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins also show a decline, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The company's debt-to-equity ratio increased significantly from 0.55 in 2023 to 1.48 in 2024, indicating higher leverage and potential financial risk. However, the return on equity (ROE) remains solid at 7.89% in 2024, demonstrating effective use of equity to generate profits. The equity ratio decreased to 34.97% in 2024, suggesting a higher reliance on debt financing.

Cash Flow

Operating cash flow has consistently increased, reaching 128.40 million in 2024, supporting the company's liquidity. The free cash flow growth rate was positive, with free cash flow increasing to 115.55 million in 2024. The operating cash flow to net income ratio is robust, indicating strong cash generation relative to reported profits. However, the free cash flow to net income ratio shows some decline, highlighting potential investment or capital expenditure pressures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.86B	1.69B	1.21B	708.66M	0.00
Gross Profit	228.10M	251.00M	197.10M	106.49M	0.00
EBITDA	87.72M	81.83M	95.06M	95.60M	3.05M
Net Income	36.41M	47.07M	69.40M	36.29M	3.05M
Balance Sheet
Total Assets	1.93B	1.71B	679.00M	564.41M	534.91M
Cash, Cash Equivalents and Short-Term Investments	49.28M	348.59M	221.43M	129.61M	94.87M
Total Debt	1.12B	879.99M	176.82M	195.81M	189.36M
Total Liabilities	1.35B	1.11B	354.95M	332.02M	408.09M
Stockholders Equity	587.66M	596.21M	324.04M	232.39M	126.82M
Cash Flow
Free Cash Flow	76.16M	115.55M	104.33M	78.42M	-37.00K
Operating Cash Flow	80.04M	128.40M	105.79M	80.12M	-37.00K
Investing Cash Flow	-47.19M	-206.03M	39.64M	-8.44M	-21.32M
Financing Cash Flow	-49.32M	150.68M	-37.46M	-9.01M	35.08M

EDA Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2505, the sentiment is Negative. The current price of 2.04 is below the 20-day moving average (MA) of 2.32, below the 50-day MA of 2.61, and below the 200-day MA of 2.69, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 30.18 is Neutral, neither overbought nor oversold. The STOCH value of 17.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2505.

EDA Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2505	―	HK$960.56M	22.92	6.36%	3.43%	―	―
Sector *	―	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
1737	―	HK$96.00M	―	-9.70%	20.83%	-14.78%	-212.50%
1732	―	HK$298.24M	-51.78	-2.51%	―	-1.40%	-128.66%
6123	―	HK$459.79M	―	-4.97%	2.09%	-35.13%	-11.52%
8292	―	HK$539.16M	―	-7.88%	―	9.79%	89.05%
8489	―	HK$41.10M	―	-25.91%	―	3.45%	-339.07%

EDA Group Holdings Limited Corporate Events

EDA Group Holdings Limited Announces Changes to Nomination Committee

EDA Group Holdings Limited has announced changes to its Nomination Committee, effective from October 1, 2025. Mr. Liu Yong will resign as chairman and member, while Ms. Li Qin will join as a member and Mr. Wong Ping Yee Natalis will become the new chairman. These changes are in line with the Corporate Governance Code to enhance diversity and corporate governance practices.

The most recent analyst rating on (HK:2505) stock is a Hold with a HK$3.00 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 Partners with UTCPAY to Enhance Digital Asset Payment Solutions

EDA Group Holdings Limited has entered into a partnership with UTCPAY Limited to enhance its digital asset payment solutions for cross-border e-commerce. This collaboration aims to leverage both companies’ expertise in digital asset trading and blockchain applications to provide efficient and cost-effective payment methods, particularly through stablecoin, in response to the growing adoption of cryptocurrency in the global business sector. The announcement aligns with Hong Kong’s regulatory advancements in the Web3 industry, positioning the Group to capitalize on emerging market opportunities.

The most recent analyst rating on (HK:2505) stock is a Hold with a HK$3.00 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 Reports Revenue Growth Amid Profit Decline

EDA Group Holdings Limited announced its interim financial results for the six months ending June 30, 2025. The company reported a 23.2% increase in revenue to RMB918.7 million compared to the same period in 2024. However, gross profit decreased by 19.5% to RMB94.4 million, and profit for the period fell by 35.6% to RMB19.3 million. The adjusted net profit, excluding listing and share-based payment expenses, saw a significant decline of 60.8% to RMB22.2 million. Despite these challenges, the Board declared an interim dividend of HK3.5 cents per share.

The most recent analyst rating on (HK:2505) stock is a Hold with a HK$3.00 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 Announces Interim Dividend for 2025

EDA Group Holdings Limited has announced an interim cash dividend of HKD 0.035 per share for the six months ending June 30, 2025. The dividend is set to be paid on October 31, 2025, with the ex-dividend date on September 30, 2025, and a record date of October 7, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

The most recent analyst rating on (HK:2505) stock is a Hold with a HK$3.00 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 Issues Profit Warning Amid Rising Costs

EDA Group Holdings Limited has issued a profit warning, indicating a significant decline in net profit for the first half of 2025 compared to the same period in 2024. The anticipated decrease in profitability is attributed to increased operating costs due to new overseas warehouses, tariff policy adjustments affecting market conditions, and rising logistics and labor costs. The company emphasizes that the adjusted net profit, which excludes certain non-operating expenses, provides a clearer view of its operational performance.

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 Limited Announces Upcoming Board Meeting for Dividend and Interim Results

EDA Group Holdings Limited has announced a board meeting scheduled for August 22, 2025, where the declaration, recommendation, or payment of a dividend will be discussed, and the unaudited interim results for the six months ending June 30, 2025, will be approved for publication. This announcement indicates potential financial decisions that could impact shareholders and provides insight into the company’s financial performance for the first half of the year.

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.