Apex Ace Holding Ltd. (6036) AI Stock Analysis

• Market Cap: HK$462.30M
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 68.3
• Beta (1Y): 0.43
• Revenue Growth: 20.64%
• EPS Growth: N/A
• Country: HK
• Employees: 141
• Sector: Technology
• Sector Strength: 91
• Industry: Technology Distributors
• EPS (TTM): <0.01
• Shares Outstanding: 1,075,110,000
• 10 Day Avg. Volume: 1,725,500
• 30 Day Avg. Volume: 1,585,666
• PEG Ratio: 4.79
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.96
• 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

• Rating: 48 Neutral
• Price Target: ―

Apex Ace Holding Ltd. presents a mixed financial outlook with strong revenue growth but challenges in profitability and cash flow. The technical indicators suggest a bearish trend with oversold conditions, while the high P/E ratio indicates potential overvaluation. These factors collectively result in a moderate overall score, emphasizing the need for improvements in profitability and cash flow to enhance financial stability.

Apex Ace Holding Ltd. Business Overview & Revenue Model

Company Description

Apex Ace Holding Ltd. (6036) is a company primarily engaged in the distribution of semiconductors and other electronic components. The company operates within the technology and electronics sectors, providing a variety of products essential for the production of consumer electronics, industrial electronics, and telecommunications equipment. Apex Ace Holding Ltd. focuses on maintaining a comprehensive inventory and supplying high-quality components to manufacturers and other clients across different industries.

How the Company Makes Money

Apex Ace Holding Ltd. generates revenue primarily through the sale and distribution of semiconductors and electronic components. The company's revenue model is based on maintaining partnerships with key suppliers and manufacturers, allowing it to offer a wide range of products to its customers. These products are sold to electronics manufacturers, who integrate them into their own products or systems. Apex Ace Holding Ltd.'s earnings are significantly influenced by market demand for electronic components, technological advances in the electronics sector, and its ability to efficiently manage supply chains and inventory. The company may also engage in value-added services, such as providing technical support or custom solutions for specific client needs, further enhancing its revenue streams.

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.05B	2.53B	2.69B	2.64B	1.76B
Gross Profit	177.71M	164.00M	114.88M	226.07M	139.03M
EBITDA	49.45M	43.62M	-2.02M	42.88M	16.85M
Net Income	6.72M	-16.16M	-33.04M	16.62M	121.00K
Balance Sheet
Total Assets	1.29B	1.35B	1.01B	1.09B	1.03B
Cash, Cash Equivalents and Short-Term Investments	141.70M	96.52M	99.56M	143.74M	95.04M
Total Debt	672.45M	828.16M	508.51M	539.77M	479.70M
Total Liabilities	968.70M	1.03B	670.88M	753.77M	707.03M
Stockholders Equity	289.31M	280.62M	311.16M	304.83M	293.41M
Cash Flow
Free Cash Flow	254.97M	-280.65M	25.83M	1.73M	-238.20M
Operating Cash Flow	256.60M	-279.55M	27.83M	3.57M	-229.37M
Investing Cash Flow	-4.88M	-1.73M	-15.16M	-1.84M	-8.83M
Financing Cash Flow	-234.62M	278.63M	-64.45M	46.16M	121.01M

Apex Ace Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.43
• 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 Neutral. The current price of 0.43 is above the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.46, and below the 200-day MA of 0.57, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.04 is Neutral, neither overbought nor oversold. The STOCH value of 65.28 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0595	71 Outperform	HK$354.38M	6.60	3.12%	10.26%	77.75%	295.97%
1184	69 Neutral	HK$2.64B	5.27	18.22%	5.92%	24.08%	24.13%
3991	69 Neutral	HK$2.26B	5.97	13.10%	5.68%	7.58%	5.20%
2166	66 Neutral	HK$825.87M	7.89	10.77%	7.10%	-17.97%	46.24%
Sector *	56 Neutral	HK$13.96B	5.37	-5.75%	5.38%	9.34%	-42.23%
6036	48 Neutral	HK$462.30M	68.25	2.38%	―	20.64%	―

Apex Ace Holding Ltd. Corporate Events

Apex Ace Holding Ltd. Successfully Passes All Resolutions at AGM

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.

Apex Ace Holding Limited Announces 2025 AGM and Key Resolutions

Apex Ace Holding Limited has announced its upcoming annual general meeting scheduled for May 21, 2025, where shareholders will consider adopting the audited financial statements for the year ended December 31, 2024. The meeting will also address the re-election of directors, the authorization of the board to fix directors’ remuneration, the re-appointment of the company’s independent auditor, and a resolution granting the board a mandate to repurchase up to 10% of the company’s issued shares.