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Steed Oriental (Holdings) Company Ltd. (HK:8277)
:8277
Hong Kong Market

Steed Oriental (Holdings) Company Ltd. (8277) AI Stock Analysis

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HK

Steed Oriental (Holdings) Company Ltd.

(8277)

Rating:34Underperform
Price Target:
Steed Oriental (Holdings) Company Ltd. is facing significant financial instability, with persistent operational losses and a high leverage risk due to negative equity. Technical indicators suggest a bearish trend, further reflecting the company's challenges. The stock's valuation, hampered by negative earnings and lack of dividends, does not offer compelling investment prospects. Overall, the company requires significant strategic interventions to improve its financial health and stock performance.

Steed Oriental (Holdings) Company Ltd. (8277) vs. iShares MSCI Hong Kong ETF (EWH)

Steed Oriental (Holdings) Company Ltd. Business Overview & Revenue Model

Company DescriptionSteed Oriental (Holdings) Company Ltd. is a company listed on the Growth Enterprise Market of the Hong Kong Stock Exchange under the stock code 8277. The company primarily engages in the business of manufacturing and trading plywood and other wood products. Its operations are primarily based in China, and it serves a range of markets looking for quality wood materials suitable for construction and furniture manufacturing.
How the Company Makes MoneySteed Oriental (Holdings) Company Ltd. generates revenue through the production and sale of plywood and other wood-related materials. The company's primary revenue stream comes from its manufacturing facilities where it processes raw timber into finished plywood products. These products are then sold to various customers, including construction companies and furniture manufacturers. Additionally, the company may engage in trading activities involving wood materials, further contributing to its revenue. Key factors influencing its earnings include the cost of raw materials, operational efficiency, and the demand from the construction and furniture sectors. The company may also establish partnerships or agreements with suppliers and distributors to optimize its supply chain and market reach.

Steed Oriental (Holdings) Company Ltd. Financial Statement Overview

Summary
Steed Oriental (Holdings) Company Ltd. faces significant financial challenges. Revenue and profitability have been declining, with consistent operational losses. The balance sheet reflects high leverage and potential insolvency risks due to negative equity. Cash flow problems persist, further exacerbating financial difficulties. The company needs strategic interventions to stabilize and improve its financial health.
Income Statement
30
Negative
The company displays significant challenges in its income statement, with consistent revenue decline over the years. Gross profit margins are deteriorating, and the net profit margins are negative, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational difficulties.
Balance Sheet
25
Negative
The balance sheet shows a concerning financial structure with negative stockholders' equity, indicating potential insolvency risks. The debt-to-equity ratio is extremely high due to negative equity, implying leveraged risk. Return on equity is not applicable due to negative equity, and the equity ratio is negative as well, signaling financial instability.
Cash Flow
35
Negative
Cash flow analysis reveals negative operating cash flow and free cash flow, indicating poor cash generation from operations. The free cash flow to net income ratio is not favorable, and the operating cash flow to net income ratio reflects cash flow issues. Despite this, there was some positive cash flow from financing activities.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
37.88M63.12M12.51M93.83M181.88M223.49M
Gross Profit
6.21M14.74M1.99M24.61M35.89M42.48M
EBIT
-20.55M-24.67M-15.10M9.98M-14.69M-20.74M
EBITDA
-4.86M-18.43M-8.73M29.97M11.01M-7.65M
Net Income Common Stockholders
-44.84M-38.62M-29.19M-5.04M-27.50M-31.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
955.00K955.00K644.00K8.07M20.95M11.18M
Total Assets
202.26M202.26M235.66M427.66M414.05M387.93M
Total Debt
215.42M161.72M170.42M184.18M228.31M135.61M
Net Debt
214.47M160.76M169.78M176.11M207.36M124.44M
Total Liabilities
234.21M234.21M226.35M391.17M382.89M335.96M
Stockholders Equity
-31.96M-31.96M9.31M36.50M31.16M51.97M
Cash FlowFree Cash Flow
-9.73M-11.93M5.33M3.96M-10.57M-22.53M
Operating Cash Flow
-9.56M-11.76M5.33M9.14M-1.28M6.50M
Investing Cash Flow
5.88M2.16M50.20M3.40M-1.05M-30.67M
Financing Cash Flow
3.91M10.37M-64.05M-14.80M7.77M21.64M

Steed Oriental (Holdings) Company Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.10
Price Trends
50DMA
0.10
Positive
100DMA
0.12
Negative
200DMA
0.15
Negative
Market Momentum
MACD
<0.01
Positive
RSI
48.20
Neutral
STOCH
26.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8277, the sentiment is Negative. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and below the 200-day MA of 0.15, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.20 is Neutral, neither overbought nor oversold. The STOCH value of 26.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8277.

Steed Oriental (Holdings) Company Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
HK$12.81B7.027.12%4.81%-14.13%-30.69%
51
Neutral
HK$1.91B92.930.59%-21.05%-87.68%
51
Neutral
$2.02B-1.19-21.37%3.64%2.88%-30.57%
45
Neutral
€10.23B-26.60%-46.56%-1256.77%
44
Neutral
HK$386.31M33.65
-23.08%-85.52%
37
Underperform
HK$326.39M
-49.75%48.12%
34
Underperform
HK$26.25M
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8277
Steed Oriental (Holdings) Company Ltd.
0.10
-0.40
-80.00%
HK:2128
China Lesso Group Holdings
4.18
0.88
26.67%
HK:1196
Realord Group Holdings Limited
7.09
1.84
35.05%
HK:1159
Starlight Culture Entertainment Group Limited
3.39
1.39
69.50%
HK:3318
China Boton Group Co., Ltd.
1.71
-0.32
-15.76%
HK:0399
Innovative Pharmaceutical Biotech
0.21
0.00
0.00%
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.