APT Electronics Co., Ltd. Class H (2551) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 2.57%
• Average Volume (3M): 119.27K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.28
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 3,020
• Sector: Technology
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 254,146,640
• 10 Day Avg. Volume: 99,600
• 30 Day Avg. Volume: 119,273
• PEG Ratio: 0.27
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.69
• P/FCF Ratio: -237.41
• 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: 72 Outperform
• Price Target: HK$2.50 ▼(-11.35% Downside)

APT Electronics Co., Ltd. has a solid financial foundation with strong revenue growth and profitability. However, technical indicators suggest caution due to potential bearish trends. The valuation is fair, with a reasonable P/E ratio and moderate dividend yield.

Positive Factors

Strong Revenue Growth

A 39.5% annual revenue increase indicates sustained demand and successful commercialization of products. Coupled with OEM/ODM partnerships and R&D focus, this growth supports longer-term scale, stronger negotiating power with suppliers, and a foundation for continued top-line expansion.

Robust Balance Sheet

Low leverage and a 41.7% equity base give the company financial flexibility to fund capex or weather downturns without heavy borrowing. Improved ROE shows effective equity use, supporting durable investment capacity and lower refinancing risk across economic cycles.

Improving Profitability Margins

Rising gross and EBITDA margins signal better cost control and operational leverage that can sustain cash generation as revenue scales. Margin improvement enhances reinvestment capacity for R&D and capacity expansion, strengthening competitive positioning over the medium term.

Negative Factors

Negative Free Cash Flow

A move to negative free cash flow driven by rising capital expenditures can pressure liquidity and force external financing. Over several quarters this constrains discretionary spending, dividend flexibility and share buybacks, and raises execution risk on expansion plans.

Rising Total Liabilities

An increase in total liabilities, although current leverage is low, could erode balance sheet strength if sustained. Rising liabilities tied to capex or working capital increases heighten refinancing and interest-rate exposure, reducing financial resilience over the medium term.

Modest Net Profit Margin

A 4.0% net margin leaves limited buffer against input cost inflation, pricing pressure, or demand slowdowns. Modest net profitability constrains free cash flow capacity and reduces room for strategic investments or returns to shareholders during adverse industry cycles.

APT Electronics Co., Ltd. Class H Business Overview & Revenue Model

Company Description

APT Electronics Co., Ltd. provides intelligent vision products and system solutions. The company offers intelligent headlamps, rear lamps, interior lights, and interactive applications for smart cars, EVS, and ICE vehicles; low high beam, DRL/position, position/stop, turning indicator, turn/DRL/position, reversing, interior, and ADS Indicator Lighting for automotive; mini backlights and LEDs; backlights; general lighting products, such as COB, SMD white LED, flip-chip LED, full spectrum light, and intelligent lighting; and special lighting products comprising Infrared, UV LED, RGB LED, and flashlights. It also provides automotive-grade LED device, automotive electrical module, and intelligent automotive lighting system; backlight device and module for high color gamut and slim LCD display; Mini LED display device and module; high-end lighting devices and module used for indoor and outdoor lighting; and horticultural and UV/IR lighting. The company was founded in 2003 and is based in Guangzhou, China.

How the Company Makes Money

APT Electronics generates revenue through multiple streams, including the sale of electronic components to major manufacturers and distributors. The company has established significant partnerships with OEMs (Original Equipment Manufacturers) and ODMs (Original Design Manufacturers), allowing it to secure long-term contracts that provide steady income. Additionally, APT Electronics invests in research and development to innovate new products, which helps capture emerging market trends and demands. Service agreements and technical support for their products also contribute to recurring revenue, while international sales expand their market reach and profitability.

APT Electronics Co., Ltd. Class H Financial Statement Overview

Summary

APT Electronics Co., Ltd. demonstrates strong revenue growth and profitability improvements, supported by a solid balance sheet with low leverage. However, challenges in maintaining free cash flow due to rising capital expenditures need attention.

Income Statement

APT Electronics Co., Ltd. has shown strong revenue growth of 39.5% from 2023 to 2024, with a consistent increase over the past few years. The gross profit margin improved to 18.1% in 2024, indicating efficient cost management. Net profit margin also increased to 4.0%, reflecting enhanced profitability. The EBIT and EBITDA margins are 3.8% and 10.6% respectively, showing solid operational performance. However, the net profit margin is relatively modest, suggesting room for further improvement.

Balance Sheet

The company's balance sheet is robust with an equity ratio of 41.7%, indicating a strong equity base. The debt-to-equity ratio is low at 0.08, reflecting minimal leverage and financial risk. Return on equity improved to 8.1%, showcasing effective use of equity to generate profits. However, the growth in total liabilities warrants attention for future leverage management.

Cash Flow

Cash flow analysis shows a decline in free cash flow from 2023 to 2024, primarily due to increased capital expenditures. The operating cash flow to net income ratio is 2.3, indicating strong cash generation relative to net income. However, the negative free cash flow in 2024 highlights potential challenges in funding operations and investments without external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.59B	1.86B	1.41B	1.39B
Gross Profit	470.55M	339.01M	235.19M	228.28M
EBITDA	273.88M	207.72M	127.18M	163.98M
Net Income	104.86M	66.38M	40.79M	85.90M
Balance Sheet
Total Assets	3.10B	2.40B	2.08B	1.98B
Cash, Cash Equivalents and Short-Term Investments	543.15M	397.36M	252.23M	275.39M
Total Debt	103.16M	80.86M	131.33M	150.18M
Total Liabilities	1.81B	1.37B	1.13B	1.07B
Stockholders Equity	1.29B	1.03B	890.52M	847.57M
Cash Flow
Free Cash Flow	-7.50M	262.54M	2.76M	-139.01M
Operating Cash Flow	241.78M	431.49M	125.29M	87.25M
Investing Cash Flow	-120.79M	-272.75M	-85.72M	-281.02M
Financing Cash Flow	167.97M	-57.07M	-28.52M	116.22M

APT Electronics Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2551, the sentiment is Negative. The current price of 2.82 is above the 20-day moving average (MA) of 2.58, above the 50-day MA of 2.76, and below the 200-day MA of 3.07, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 29.00 is Positive, neither overbought nor oversold. The STOCH value of 17.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2551.

APT Electronics Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2551	72 Outperform	―	11.43	―	2.57%	―	―
3773	70 Outperform	HK$664.00M	26.67	7.35%	―	12.63%	-37.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6036	53 Neutral	HK$478.42M	32.01	5.11%	―	14.50%	247.50%
1632	43 Neutral	HK$91.51M	-1.58	-51.57%	―	―	―