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Apex Ace Holding Ltd. (HK:6036)
:6036
Hong Kong Market
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Apex Ace Holding Ltd. (6036) AI Stock Analysis

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HK:6036

Apex Ace Holding Ltd.

(6036)

Rating:57Neutral
Price Target:
HK$0.50
▲(13.64%Upside)
The overall stock score is driven by strong revenue growth and improving profitability, but is weighed down by high leverage, cash flow constraints, and an overvalued market position. Technical indicators suggest a neutral trend without significant upward momentum.

Apex Ace Holding Ltd. (6036) vs. iShares MSCI Hong Kong ETF (EWH)

Apex Ace Holding Ltd. Business Overview & Revenue Model

Company DescriptionApex Ace Holding Ltd. (6036) is a company that operates primarily in the distribution of semiconductors and other electronic components. The company serves a diverse range of sectors including consumer electronics, telecommunications, and industrial applications. Its core products include a variety of electronic components such as memory chips, microcontrollers, and other semiconductor products.
How the Company Makes MoneyApex Ace Holding Ltd. generates revenue through the distribution and sale of semiconductors and electronic components. The company sources products from leading semiconductor manufacturers and delivers them to a wide array of clients in the consumer electronics and telecommunications industries. Its revenue streams are primarily driven by the sales of electronic components, supported by its strong partnerships with major suppliers and a well-established distribution network that allows for efficient delivery and customer service. Key factors contributing to its earnings include its ability to maintain strong supplier relationships, effectively manage inventory, and respond to market demand for electronic components.

Apex Ace Holding Ltd. Financial Statement Overview

Summary
Apex Ace Holding Ltd. shows significant revenue growth and improving profitability metrics. However, challenges persist in profitability and cash flow generation, with high leverage posing potential risks. Stability is observed in the equity ratio, suggesting a stable asset base. Improving cash flow and profitability margins will be crucial for financial health.
Income Statement
65
Positive
The company shows a positive revenue growth of 20.6% in 2024, indicating strong sales performance. Gross profit margin improved slightly to 5.8% from the previous year's 6.5%. However, net profit margin remains low at 0.2%, showing a significant improvement from a negative net income in 2023. EBIT and EBITDA margins are improving, but they are still relatively low at 1.2% and 1.6%, respectively, suggesting that profitability is still a challenge.
Balance Sheet
60
Neutral
The debt-to-equity ratio is high at 2.3, indicating significant leverage and potential financial risk. However, the company maintains a reasonable equity ratio of 22.4%, suggesting a stable asset base. ROE improved to 2.3%, a positive sign of growing profitability, but it remains low, reflecting challenges in generating returns on equity.
Cash Flow
50
Neutral
Cash flow from operations has improved from a significant negative in 2023 to break-even in 2024, but free cash flow remains minimal. The lack of positive free cash flow indicates potential challenges in funding operations internally. The ratio of operating cash flow to net income is challenging to calculate due to minimal cash flow, suggesting operational cash constraints.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.05B2.53B2.69B2.64B1.76B
Gross Profit177.71M164.00M114.88M226.07M139.03M
EBITDA49.45M43.62M-2.02M42.88M16.85M
Net Income6.72M-16.16M-33.04M16.62M121.00K
Balance Sheet
Total Assets1.29B1.35B1.01B1.09B1.03B
Cash, Cash Equivalents and Short-Term Investments141.70M96.52M99.56M143.74M95.04M
Total Debt672.45M828.16M508.51M539.77M479.70M
Total Liabilities968.70M1.03B670.88M753.77M707.03M
Stockholders Equity289.31M280.62M311.16M304.83M293.41M
Cash Flow
Free Cash Flow254.97M-280.65M25.83M1.73M-238.20M
Operating Cash Flow256.60M-279.55M27.83M3.57M-229.37M
Investing Cash Flow-4.88M-1.73M-15.16M-1.84M-8.83M
Financing Cash Flow-234.62M278.63M-64.45M46.16M121.01M

Apex Ace Holding Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.44
Price Trends
50DMA
0.43
Positive
100DMA
0.48
Negative
200DMA
0.57
Negative
Market Momentum
MACD
<0.01
Negative
RSI
52.94
Neutral
STOCH
38.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6036, the sentiment is Neutral. The current price of 0.44 is above the 20-day moving average (MA) of 0.44, above the 50-day MA of 0.43, and below the 200-day MA of 0.57, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.94 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6036.

Apex Ace Holding Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$2.36B6.2413.10%5.43%7.58%5.20%
57
Neutral
HK$467.67M69.052.38%20.64%
57
Neutral
HK$14.02B7.30-5.38%4.96%8.42%-47.13%
HK$511.46M3.763.94%1.09%
71
Outperform
HK$894.29M8.5510.77%6.56%-17.97%46.24%
71
Outperform
HK$390.73M7.283.12%6.98%77.75%295.97%
69
Neutral
HK$2.93B5.8418.22%8.55%24.08%24.13%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6036
Apex Ace Holding Ltd.
0.44
0.00
0.00%
HK:0529
SiS International Holdings
1.84
0.06
3.37%
HK:0595
AV Concept Holdings Limited
0.40
0.00
0.00%
HK:1184
S.A.S. Dragon Holdings Limited
4.67
1.34
40.24%
HK:2166
Smart-Core Holdings Ltd.
1.77
0.79
80.61%
HK:3991
Changhong Jiahua Holdings Ltd.
0.90
0.49
119.51%

Apex Ace Holding Ltd. Corporate Events

Apex Ace Holding Ltd. Successfully Passes All Resolutions at AGM
May 21, 2025

Apex Ace Holding Limited announced that all proposed ordinary resolutions were successfully passed during their annual general meeting held on May 21, 2025. The resolutions included the adoption of the audited financial statements for the year ending December 31, 2024, the re-election of directors, and the re-appointment of the independent auditor. The meeting saw full participation from shareholders, with no abstentions or votes against the resolutions, indicating strong support for the company’s governance and strategic direction.

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 31, 2025