EGL Holdings Company Limited (6882) AI Stock Analysis

• Market Cap: HK$246.20M
• Dividend Yield: 12%
• Average Volume (3M): 199.80K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.21
• 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$0.52 ▲(4.80% 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

Revenue Growth

A ~19.5% revenue increase from 2023 to 2024 indicates strengthening core logistics demand and successful contract wins. Durable revenue growth supports scale, better fixed-cost absorption and reinvestment in technology, improving competitive positioning over months.

Improving Gross Margin

A rise in gross margin to 22.86% signals improved pricing, route or network efficiency and cost control. Sustained higher gross margins provide a buffer against freight volatility and underpin long-term profitability if the company maintains operational discipline and tech-driven efficiency gains.

Operational Profitability

Healthy EBIT and EBITDA margins (6.49% and 8.46%) point to structural operating efficiency across forwarding, warehousing, and value-added services. Durable operating margins support cash generation and funding for network investments, aiding resilience across business cycles.

Negative Factors

High Leverage Remains

Despite leverage improvement, the firm remains highly leveraged, exposing it to interest-rate and refinancing risk. High leverage constrains strategic flexibility, risks covenant pressure and can amplify stress from operational setbacks over the next several months.

Lack of Recent Cash Flow Data

Absence of 2024 cash flow metrics creates uncertainty about current cash conversion and free cash flow trends. Without up-to-date OCF/FCF visibility, it's harder to assess ability to service debt, sustain dividends, or fund capex, raising medium-term financial risk.

Declining Net Margin

A drop in net margin to 4.33% from 5.25% suggests pressure below the operating line—from financing, taxes or one-off items—which narrows cushion for reinvestment. Persisting compressed net margins reduce retained earnings and limit the firm's ability to deleverage quickly.

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: Positive
• RSI: Neutral
• STOCH: Neutral

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 above the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.50, and below the 200-day MA of 0.55, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, 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
1745	71 Outperform	HK$379.62M	2.74	8.31%	―	-12.60%	-42.84%
6882	64 Neutral	HK$246.20M	5.81	54.71%	12.00%	-1.27%	-50.18%
1701	64 Neutral	HK$106.00M	3.91	16.79%	―	80.68%	131.62%
0265	63 Neutral	HK$439.35M	13.38	12.44%	―	2.10%	1.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1235	55 Neutral	HK$86.68M	170.00	0.79%	4.55%	32.99%	-94.85%
1901	46 Neutral	HK$409.34M	-15.24	-29.79%	―	68.29%	41.90%

EGL Holdings Company Limited Corporate Events

EGL Holdings Renews 2026 Tenancy Agreements with Great Port

EGL Holdings Company Limited has announced the renewal of its tenancy agreements with Great Port for the year 2026. These agreements involve leasing premises, car parking spaces, and advertising areas in Hong Kong, which will be recognized as right-of-use assets in the company’s financial statements. The transactions are classified as connected transactions under the Hong Kong Listing Rules, requiring reporting and announcement but exempt from circular and independent shareholders’ approval.

The most recent analyst rating on (HK:6882) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on EGL Holdings Company Limited stock, see the HK:6882 Stock Forecast page.