Allied Sustainability and Environmental Consultants Group Limited (8320) AI Stock Analysis

• Market Cap: HK$76.80M
• Dividend Yield: N/A
• Average Volume (3M): 96.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -3.68%
• EPS Growth: -136.36%
• Country: HK
• Employees: 87
• Sector: Industrials
• Sector Strength: 92
• Industry: Waste Management
• EPS (TTM): >-0.01
• Shares Outstanding: 737,510,000
• 10 Day Avg. Volume: 228,500
• 30 Day Avg. Volume: 96,833
• PEG Ratio: 0.13
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.79
• 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: 57 Neutral
• Price Target: ―

Allied Sustainability and Environmental Consultants Group Limited's stock score is primarily influenced by its financial performance, which shows signs of recovery. However, challenges in profitability and cash flow, combined with weak technical indicators and valuation concerns, result in a moderate overall score. The company's strong balance sheet provides a stable foundation, but current market trends and valuation metrics suggest cautious optimism is warranted.

Allied Sustainability and Environmental Consultants Group Limited Business Overview & Revenue Model

Company Description

Allied Sustainability and Environmental Consultants Group Limited, an investment holding company, provides environmental consulting services in Hong Kong, the People's Republic of China, Macau, and internationally. The company operates through four segments: Green Building Certification Consultancy; Sustainability and Environmental Consultancy; Acoustic, Noise and Vibration Control, and Audio-Visual Design Consultancy; and Environmental, Social and Governance (ESG) Reporting and Consultancy. It offers green building certification consultancy services for property developers, contractors, architects, designers, and government departments; and sustainable design solutions to architects for urban regeneration, sustainable development, and integrated planning, as well as environmental impact assessment, noise impact assessment, air quality impact assessment, air ventilation assessment, carbon/energy audit, and built environmental study services. The company also provides services to assist architects and engineers to test and evaluate environmental performance of various materials and products for buildings; and architectural acoustics, building acoustics, mechanical service and airborne noise control products, sound reinforcement and public address systems, and architectural and facade lighting systems, as well as theatre planning and stage equipment systems. In addition, it offers consultancy services on ESG reporting for companies listed on the stock exchange; and Sustainature, an ESG online management platform. The company was founded in 1994 and is based in Wan Chai, Hong Kong. Allied Sustainability and Environmental Consultants Group Limited is a subsidiary of Gold Investments Limited.

How the Company Makes Money

Allied Sustainability and Environmental Consultants Group Limited generates revenue primarily through its consultancy services. The company charges fees for its green building certification consultancy, which assists clients in achieving recognized environmental standards for buildings. Additionally, Allied Sustainability earns income from providing sustainability and environmental advisory services, which include helping businesses to implement sustainable practices and strategies. Revenue is also derived from their acoustics, noise, and vibration control services, as well as environmental monitoring and modeling projects. Key revenue streams involve long-term contracts and projects with companies and government bodies seeking to enhance their environmental efficiency and comply with regulatory standards. Strategic partnerships and collaborations with industry stakeholders may also contribute to the company's earnings.

Allied Sustainability and Environmental Consultants Group Limited Financial Statement Overview

Summary

Allied Sustainability and Environmental Consultants Group Limited demonstrates positive revenue growth and improved operational profitability. However, low net profit margins and cash flow challenges offset these gains. The balance sheet is strong with low leverage, providing financial stability.

Income Statement

Allied Sustainability and Environmental Consultants Group Limited has shown a positive revenue growth rate of 11.29% from 2023 to 2024, indicating a recovery trajectory. The gross profit margin stands at 45.71%, showcasing strong profitability in core operations. However, the net profit margin is low at 1.08%, reflecting challenges in controlling non-operational costs. The EBIT margin of 2.17% and EBITDA margin of 10.86% highlight improved operational efficiency from the previous year.

Balance Sheet

The company maintains a healthy equity base with an equity ratio of 71.77%, which indicates financial stability and low leverage. The debt-to-equity ratio is 0.30, reflecting conservative debt usage. Return on equity (ROE) is low at 0.80%, suggesting limited efficiency in generating returns from shareholders' equity.

Cash Flow

The company faces challenges with its cash flow, as seen by the negative free cash flow of -1.28 million. Operating cash flow to net income ratio is negative, indicating cash flow issues despite reported profits. However, there is a free cash flow improvement from the previous year, suggesting potential for recovery.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
47.53M	52.02M	46.74M	43.14M	40.32M	42.50M
	Gross Profit
20.41M	23.78M	16.55M	18.61M	20.97M	20.92M
	EBIT
-5.26M	1.13M	-5.70M	-5.59M	2.10M	1.13M
	EBITDA
-4.70M	5.65M	1.57M	-34.00K	9.76M	4.89M
	Net Income Common Stockholders
-5.42M	561.00K	-3.29M	-4.94M	3.54M	771.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.06M	14.22M	12.94M	16.45M	26.65M	8.09M
	Total Assets
85.09M	98.12M	94.29M	95.25M	98.67M	85.84M
	Total Debt
0.00	21.25M	15.22M	11.47M	13.24M	12.15M
	Net Debt
-39.06M	7.03M	2.28M	-4.98M	-13.41M	4.05M
	Total Liabilities
3.19M	27.70M	24.68M	21.34M	20.20M	21.39M
	Stockholders Equity
81.91M	70.41M	69.59M	73.87M	78.39M	64.45M
Cash Flow		Free Cash Flow
-2.80M	-1.28M	-2.12M	-5.55M	7.67M	-3.11M
	Operating Cash Flow
-1.95M	-306.00K	-1.51M	-5.10M	8.11M	-1.68M
	Investing Cash Flow
-1.02M	-949.00K	4.18M	-2.16M	-236.00K	-4.42M
	Financing Cash Flow
4.91M	2.79M	-5.75M	-3.03M	10.48M	-2.86M

Allied Sustainability and Environmental Consultants Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8320, the sentiment is Positive. The current price of 0.11 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 59.06 is Neutral, neither overbought nor oversold. The STOCH value of 42.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8320.

Allied Sustainability and Environmental Consultants Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
8320	57 Neutral	HK$76.80M	―	-8.09%	―	-3.68%	-136.36%
MNNGF		$68.90M	―	-14.00%	―	―	―
DYN		€1.08B	8.12	7.85%	6.90%	―	―
1658	77 Outperform	HK$556.66B	5.47	10.41%	5.52%	-1.43%	5.12%
1710	59 Neutral	HK$136.00M	16.51	2.07%	15.38%	-13.16%	-81.74%
2198	54 Neutral	HK$2.04B	3.43	11.49%	―	47.32%	492.76%