Apex Ace Holding Ltd. (6036) AI Stock Analysis

• Market Cap: HK$451.55M
• Dividend Yield: N/A
• Average Volume (3M): 651.33K
• Price to Earnings (P/E): 30.2
• Beta (1Y): 0.35
• Revenue Growth: 14.50%
• EPS Growth: 247.50%
• Country: HK
• Employees: 141
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.01
• Shares Outstanding: 1,075,110,000
• 10 Day Avg. Volume: 689,500
• 30 Day Avg. Volume: 651,333
• PEG Ratio: -0.77
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 2.85
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: HK$0.50 ▲(19.05% Upside)

The overall stock score of 53 reflects significant revenue growth and improving profitability metrics, but challenges remain in profitability and cash flow generation. The high P/E ratio suggests potential overvaluation, and technical indicators show a neutral trend. The absence of a dividend yield and high leverage are additional concerns.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for the company's products and effective market penetration, supporting long-term business expansion.

Supplier Relationships

Solid supplier relationships and distribution network enhance the company's ability to efficiently meet market demand and maintain competitive advantage.

Profitability Improvement

Improving ROE suggests better management efficiency and potential for enhanced shareholder returns, contributing to long-term financial health.

Negative Factors

High Leverage

High leverage can increase financial risk and limit the company's ability to invest in growth opportunities, affecting long-term stability.

Low Cash Flow

Minimal free cash flow suggests operational cash constraints, limiting the company's ability to invest in growth and manage debt effectively.

Low Profit Margins

Persistently low profit margins indicate challenges in cost management and pricing power, potentially impacting long-term profitability.

Apex Ace Holding Ltd. Business Overview & Revenue Model

Company Description

Apex Ace Holding Ltd. (6036) is a diversified investment holding company based in Hong Kong. The company primarily operates in sectors such as manufacturing, trading, and real estate. Apex Ace focuses on providing high-quality products and services, including electronic components, consumer goods, and property development, catering to both local and international markets.

How the Company Makes Money

Apex Ace Holding Ltd. generates revenue through multiple streams, including the sale of electronic components and consumer goods, which are produced either in-house or sourced from third-party manufacturers. The company also earns income from its investments in real estate, through leasing commercial properties and developing residential projects. Significant partnerships with suppliers and distributors enhance its market reach and operational efficiency, contributing positively to its earnings. Additionally, the company may benefit from strategic alliances that facilitate access to new markets and technologies, bolstering its revenue-generating capabilities.

Apex Ace Holding Ltd. Financial Statement Overview

Summary

Apex Ace Holding Ltd. is experiencing significant revenue growth and improving profitability metrics. However, the company faces challenges 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.66B	3.05B	2.53B	2.69B	2.64B	1.76B
Gross Profit	194.77M	177.71M	164.00M	114.88M	226.07M	139.03M
EBITDA	70.72M	49.45M	43.62M	-2.02M	42.88M	16.85M
Net Income	14.68M	6.72M	-16.16M	-32.44M	6.74M	-5.12M
Balance Sheet
Total Assets	1.60B	1.29B	1.35B	1.01B	1.09B	1.03B
Cash, Cash Equivalents and Short-Term Investments	120.20M	141.70M	96.52M	99.56M	143.74M	95.04M
Total Debt	824.43M	672.45M	828.16M	508.51M	539.77M	479.70M
Total Liabilities	1.25B	968.70M	1.03B	670.88M	753.77M	707.03M
Stockholders Equity	302.13M	289.31M	280.62M	311.16M	304.83M	293.41M
Cash Flow
Free Cash Flow	20.63M	254.97M	-280.65M	25.83M	1.73M	-238.20M
Operating Cash Flow	19.98M	256.60M	-279.55M	27.83M	3.57M	-229.37M
Investing Cash Flow	7.18M	-4.88M	-1.73M	-15.16M	-1.84M	-8.83M
Financing Cash Flow	0.00	-234.62M	278.63M	-64.45M	46.16M	121.01M

Apex Ace Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6036, the sentiment is Negative. The current price of 0.42 is below the 20-day moving average (MA) of 0.42, below the 50-day MA of 0.43, and below the 200-day MA of 0.47, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.32 is Neutral, neither overbought nor oversold. The STOCH value of 49.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6036.

Apex Ace Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1184	76 Outperform	HK$2.85B	6.48	14.95%	8.89%	-0.06%	-6.11%
2166	74 Outperform	HK$943.15M	8.00	11.96%	6.74%	-5.58%	22.50%
0529	73 Outperform	HK$597.63M	3.01	5.52%	0.98%	9.73%	90.98%
3991	65 Neutral	HK$2.90B	7.34	13.40%	4.42%	6.01%	9.76%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0595	58 Neutral	HK$354.38M	6.15	3.38%	5.06%	17.39%	-55.26%
6036	53 Neutral	HK$451.55M	30.22	5.11%	―	14.50%	247.50%

Apex Ace Holding Ltd. Corporate Events

Apex Ace Holding Appoints CCTH CPA Limited as New Auditors

Apex Ace Holding Limited has appointed CCTH CPA Limited as its new auditors following the resignation of Graham H. Y. Chan & Co. The decision, recommended by the Audit Committee, was based on CCTH’s experience, technical competence, independence, and market reputation. This appointment is deemed beneficial for the company and its shareholders.

Apex Ace Holding Limited Announces Auditor Resignation

Apex Ace Holding Limited announced the resignation of its auditors, Graham H. Y. Chan & Co., effective November 19, 2025, due to considerations of corporate governance related to the length of service. The resignation is not expected to impact the company’s annual audit for the 2025 financial year, as no audit work had commenced. The company is in the process of appointing new auditors and will announce the appointment once finalized.