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

• Market Cap: HK$29.92M
• Dividend Yield: N/A
• Average Volume (3M): 42.40K
• Price to Earnings (P/E): 0.7
• Beta (1Y): -0.37
• Revenue Growth: -56.67%
• EPS Growth: N/A
• Country: HK
• Employees: 19
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): >-0.01
• Shares Outstanding: 262,473,330
• 10 Day Avg. Volume: 45,600
• 30 Day Avg. Volume: 42,400
• PEG Ratio: >-0.01
• Price to Book (P/B): 5.50
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 1.25
• 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: 52 Neutral
• Price Target: HK$0.15 ▼(-3.33% Downside)

The overall score reflects the company's improved profitability and undervaluation, offset by significant revenue decline and bearish technical indicators. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Profitability Improvement

Improved profitability margins indicate better cost management and operational efficiency, which can enhance long-term financial stability and shareholder value.

Manageable Leverage

A moderate debt-to-equity ratio suggests the company is not overly reliant on debt, providing financial flexibility and reducing risk in volatile markets.

Strong Return on Equity

A strong return on equity reflects effective management and the ability to generate profits from shareholders' investments, supporting long-term growth prospects.

Negative Factors

Revenue Decline

A substantial revenue decline can limit the company's ability to invest in growth opportunities and may signal weakening market demand or competitive pressures.

Cash Flow Instability

Instability in cash flow generation can hinder the company's ability to fund operations and investments, posing risks to financial health and strategic initiatives.

Negative Revenue Growth

Negative revenue growth suggests challenges in maintaining market share and competitiveness, potentially impacting long-term business viability and investor confidence.

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

Company Description

Steed Oriental (Holdings) Company Ltd. (8277) is a Hong Kong-based investment holding company primarily engaged in the trading of a diverse range of products, including electronic components, textiles, and consumer goods. The company operates across various sectors, providing a platform for international trade and investment opportunities, while also focusing on the development and management of properties. Steed Oriental aims to capitalize on market demands by leveraging its extensive supply chain and distribution networks.

How the Company Makes Money

Steed Oriental generates revenue through multiple streams, primarily by engaging in the wholesale and retail trading of products such as electronic components and textiles. The company profits from the markup on these goods, which are sourced from various suppliers and sold to businesses and consumers. Additionally, revenue is derived from property management and leasing activities, where the company owns and operates commercial properties that generate rental income. Strategic partnerships with suppliers and distributors enhance its market reach, while effective inventory management and cost control contribute to maintaining profitability. The company's ability to adapt to market trends and consumer preferences is crucial for sustaining its financial performance.

Steed Oriental (Holdings) Company Ltd. Financial Statement Overview

Summary

The company shows improved profitability with a positive net profit margin and EBIT margin despite a significant revenue decline. However, historical volatility in revenue and leverage issues remain concerns.

Income Statement

The income statement shows a significant decline in revenue with a negative growth rate of -43.94% in the most recent year. Despite this, the company has managed to achieve a positive net profit margin of 1.71% and an EBIT margin of 2.41%, indicating improved profitability compared to previous years. However, the historical volatility in revenue and profitability remains a concern.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.62, suggesting manageable leverage. The return on equity is relatively strong at 7.60%, indicating efficient use of equity. However, the equity ratio is low, and past high leverage ratios pose a potential risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a substantial improvement in free cash flow, but the growth rate is negative at -315.20%. The operating cash flow to net income ratio is healthy at 0.93, indicating good cash conversion. However, historical fluctuations in cash flow generation highlight potential instability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.24M	21.24M	63.12M	12.51M	93.83M	83.30M
Gross Profit	2.97M	2.97M	14.74M	1.99M	24.61M	18.84M
EBITDA	-6.90M	54.38M	-18.43M	-8.73M	29.97M	11.01M
Net Income	36.28M	36.28M	-38.62M	-29.19M	-5.04M	-27.50M
Balance Sheet
Total Assets	29.70M	29.70M	202.26M	235.66M	427.66M	414.05M
Cash, Cash Equivalents and Short-Term Investments	2.91M	2.91M	955.00K	644.00K	8.07M	20.95M
Total Debt	2.95M	2.95M	161.72M	170.42M	184.18M	228.31M
Total Liabilities	24.93M	24.93M	234.21M	226.35M	391.17M	382.89M
Stockholders Equity	4.77M	4.77M	-31.96M	9.31M	36.50M	31.16M
Cash Flow
Free Cash Flow	20.94M	20.94M	-11.93M	5.33M	3.96M	-10.57M
Operating Cash Flow	21.00M	21.00M	-11.76M	5.33M	9.14M	-1.28M
Investing Cash Flow	30.80M	30.80M	2.16M	50.20M	-5.18M	-1.05M
Financing Cash Flow	-49.83M	-49.83M	10.37M	-64.05M	-14.80M	7.77M

Steed Oriental (Holdings) Company Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 0.15 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.14, and above the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 28.07 is Positive, 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:8277.

Steed Oriental (Holdings) Company Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1822	56 Neutral	HK$152.97M	1.18	-17.27%	―	-17.96%	-95.06%
8277	52 Neutral	HK$29.92M	0.66	―	―	-56.67%	―
0094	50 Neutral	HK$189.21M	-1.68	-9.04%	―	-33.99%	42.25%
0731	50 Neutral	HK$294.24M	17.87	11.34%	―	-9.44%	―
8191	41 Neutral	HK$10.43M	-0.07	-49.13%	―	-55.81%	-15292.41%
1580	23 Underperform	HK$201.61M	-34.73	-395.28%	―	-35.61%	89.32%