EGL Holdings Company Limited (6882) AI Stock Analysis

• Market Cap: HK$251.22M
• Dividend Yield: 12%
• Average Volume (3M): 199.80K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.27
• Revenue Growth: -1.27%
• EPS Growth: -50.18%
• Country: HK
• Employees: 447
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 0.01
• Shares Outstanding: 502,449,980
• 10 Day Avg. Volume: 191,200
• 30 Day Avg. Volume: 199,800
• PEG Ratio: 0.00
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 2.45
• 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: 64 Neutral
• Price Target: HK$0.50 ▲(0.00% Upside)

The overall stock score of 64 reflects a combination of solid valuation metrics with a low P/E ratio and high dividend yield, balanced by moderate financial performance and stable technical indicators. The lack of recent cash flow data and earnings call insights limits a more comprehensive assessment.

Positive Factors

Operational Efficiency

Improved gross profit margin indicates enhanced operational efficiency, which can lead to better cost management and profitability over time.

Leverage Management

Better leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities, supporting long-term stability.

Revenue Growth

Strong revenue growth reflects successful market penetration and demand for services, indicating a robust business model and potential for future expansion.

Negative Factors

High Leverage Risk

While high ROE is positive, it is driven by high leverage, which poses financial instability risks if not managed carefully, impacting long-term sustainability.

Cash Flow Uncertainty

Lack of recent cash flow data raises concerns about cash flow sustainability, limiting the ability to assess financial health and plan for future investments.

Declining Net Profit Margin

A declining net profit margin suggests challenges in maintaining profitability, which could affect the company's ability to reinvest in growth and innovation.

EGL Holdings Company Limited Business Overview & Revenue Model

Company Description

EGL Holdings Company Limited, an investment holding company, provides package tours, free independent travelers packages, individual travel elements, and ancillary travel related products and services in Hong Kong, Macau, Japan, and internationally. The company operates through three segments: Travel and Travel Related Services Business, Sale of Merchandises, and Hotel Operation. It also owns, develops, and manages a hotel, as well as operates EGL Market, an online shopping platform. The company was founded in 1987 and is headquartered in Kwun Tong, Hong Kong. EGL Holdings Company Limited is a subsidiary of Evergloss Management Group Company Limited.

How the Company Makes Money

EGL Holdings generates revenue primarily through its logistics and supply chain management services, which include freight forwarding, warehousing solutions, and related services. The company's revenue model is based on charging fees for the transportation and handling of goods, as well as for value-added services such as customs clearance and inventory management. Key revenue streams include contracts with businesses that require logistics support for their supply chain operations. Additionally, EGL Holdings benefits from partnerships with shipping lines, airlines, and other logistics providers, which help to expand its service offerings and customer base. The company's focus on technological advancements also plays a significant role in driving efficiency and attracting clients, thus contributing positively to its earnings.

EGL Holdings Company Limited Financial Statement Overview

Summary

EGL Holdings demonstrated revenue growth and improved operational efficiency. The balance sheet reflects better leverage management, though high leverage remains a risk. Limited cash flow data for 2024 constrains a comprehensive analysis of cash flow health. Overall, the company shows potential for profitability but should focus on maintaining cash flow strength and reducing financial risks.

Income Statement

EGL Holdings showed steady revenue growth from 2023 to 2024, with a revenue increase of approximately 19.52%. Gross profit margin improved to 22.86% in 2024 from the previous year. However, the net profit margin decreased slightly to 4.33% from 5.25%. The company demonstrated strong EBIT and EBITDA margins at 6.49% and 8.46%, respectively, indicating operational efficiency, though profitability has room for improvement.

Balance Sheet

The company's debt-to-equity ratio improved to 4.16 in 2024, down from 11.48 in 2023, signaling better leverage management. However, the equity ratio decreased to 12.85% from 5.52%, suggesting a low proportion of equity financing. Return on equity was 72.16% in 2024, indicating strong returns on shareholders' investments, despite being highly leveraged, which poses a risk of financial instability.

Cash Flow

There is no data available for cash flow metrics in 2024, making it challenging to assess cash flow performance. In 2023, the operating cash flow to net income ratio was strong at 3.23, reflecting efficient cash generation. However, the lack of recent data raises concerns about cash flow sustainability and impacts the ability to evaluate the free cash flow growth trajectory.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.57B	1.63B	1.37B	196.48M	44.58M	249.77M
Gross Profit	330.02M	373.20M	339.77M	-21.40M	-111.41M	30.34M
EBITDA	85.69M	138.00M	162.23M	-9.26M	-102.24M	-33.84M
Net Income	42.41M	70.74M	71.66M	-74.30M	-155.63M	-108.76M
Balance Sheet
Total Assets	790.27M	762.73M	858.24M	905.06M	905.12M	1.05B
Cash, Cash Equivalents and Short-Term Investments	160.92M	172.60M	230.18M	207.99M	136.68M	107.36M
Total Debt	429.74M	407.52M	544.22M	720.28M	468.02M	736.08M
Total Liabilities	698.34M	666.39M	813.10M	884.59M	782.82M	801.88M
Stockholders Equity	93.63M	98.03M	47.41M	23.09M	123.90M	252.58M
Cash Flow
Free Cash Flow	41.01M	127.39M	221.51M	67.08M	-58.69M	-357.29M
Operating Cash Flow	47.54M	132.77M	231.07M	68.60M	-56.04M	-216.80M
Investing Cash Flow	-6.96M	-3.94M	-9.89M	-1.52M	-2.40M	-140.49M
Financing Cash Flow	-114.58M	-177.68M	-206.46M	6.88M	90.00M	247.96M

EGL Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6882, the sentiment is Negative. The current price of 0.5 is below the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.53, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 34.89 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6882.

EGL Holdings Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6882	64 Neutral	HK$251.22M	5.92	54.71%	12.00%	-1.27%	-50.18%
1701	64 Neutral	HK$121.00M	4.43	16.79%	―	80.68%	131.62%
1235	64 Neutral	HK$89.23M	175.00	0.79%	4.57%	32.99%	-94.85%
0265	63 Neutral	HK$465.19M	14.16	12.44%	―	2.10%	1.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1745	53 Neutral	HK$253.08M	1.83	8.31%	―	-12.60%	-42.84%
1901	52 Neutral	HK$414.34M	-15.61	-29.79%	―	68.29%	41.90%

EGL Holdings Company Limited Corporate Events

EGL Holdings Announces Board Composition and Committee Roles

EGL Holdings Company Limited has announced the composition of its board of directors and their respective roles within the company. The board includes both executive and independent non-executive directors, with key figures such as Huen Kwok Chuen as Chairman and Yuen Ho Yee as CEO. The announcement also details the membership of four board committees, highlighting the roles of directors in the Audit, Nomination, Remuneration, and Risk Management Committees. This organizational update is crucial for stakeholders as it outlines the governance structure and leadership roles, which are vital for strategic decision-making and corporate oversight.

EGL Holdings Secures Revised HK$36 Million Banking Facility

EGL Holdings Company Limited announced that its subsidiary, EGL Tours Company Limited, has accepted a revised banking facility from its bank, amounting to HK$36,000,000. This facility includes a revolving loan and corporate credit card, subject to periodic bank reviews and certain conditions, such as maintaining key management positions and a minimum shareholding structure. The agreement underscores the company’s strategic financial management and its commitment to maintaining stability in its operations and market positioning.