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

• Market Cap: HK$76.80M
• Dividend Yield: N/A
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: 12.29%
• EPS Growth: 51.28%
• Country: HK
• Employees: 87
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): <0.01
• Shares Outstanding: 737,510,000
• 10 Day Avg. Volume: 99,000
• 30 Day Avg. Volume: 1,075,666
• PEG Ratio: <0.01
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 1.62
• P/FCF Ratio: -21.19
• 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: 49 Neutral
• Price Target: HK$0.11 ▲(5.00% Upside)

The overall stock score reflects significant financial challenges, including declining revenues and profitability, and negative cash flows. While technical analysis shows some positive momentum, the valuation remains unattractive due to a negative P/E ratio and lack of dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Market Position

As a leader in sustainability consulting, Allied benefits from growing demand for environmental compliance and sustainable practices, reinforcing its market position.

Revenue Streams

Diverse revenue streams from consulting and training provide resilience against sector-specific downturns, supporting long-term financial stability.

Industry Trends

Increasing regulatory pressures and societal shifts towards sustainability drive demand for Allied's services, ensuring continued relevance and growth opportunities.

Negative Factors

Revenue Decline

Declining revenue indicates potential loss of market share or reduced demand, which could impact long-term growth and profitability.

Profitability Issues

Consistent losses and negative cash flows highlight operational inefficiencies, posing risks to financial health and sustainability.

Rising Leverage

Increasing leverage could strain financial flexibility, leading to higher risk in economic downturns and limiting growth investments.

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

Company Description

Allied Sustainability and Environmental Consultants Group Limited (8320) is a leading consultancy firm specializing in sustainability and environmental services. The company operates in various sectors, including environmental assessment, waste management, and renewable energy consulting. By providing comprehensive solutions that help organizations comply with environmental regulations and implement sustainable practices, Allied plays a crucial role in promoting environmental stewardship and responsible resource management.

How the Company Makes Money

The company generates revenue through multiple streams, primarily by offering consulting services to businesses and government agencies seeking to enhance their sustainability practices and meet regulatory compliance. Key revenue streams include fees for environmental assessments, project management for sustainability initiatives, and training programs in environmental compliance. Additionally, Allied may engage in partnerships with public and private organizations to deliver specialized projects, which can provide substantial revenue opportunities. The demand for sustainability consulting has been growing, fueled by increasing regulatory pressures and a societal shift towards environmental responsibility, further contributing to the company's earnings.

Allied Sustainability and Environmental Consultants Group Limited Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues, negative profitability, and cash flow issues. While the balance sheet shows some stability, the overall financial health is concerning due to consistent losses and increasing leverage.

Income Statement

The company has experienced a decrease in revenue from the prior year with a negative revenue growth rate. Gross profit margin has declined, and both EBIT and net profit margins are negative, indicating operational challenges. The consistent negative net income over the years further suggests profitability issues.

Balance Sheet

The balance sheet shows a reasonable equity ratio, indicating a stable capital structure. However, the debt-to-equity ratio has increased, reflecting rising leverage. Return on equity is negative due to net losses, posing a concern for equity holders.

Cash Flow

Operating cash flow has been negative, suggesting struggles with generating cash from core operations. Free cash flow is also negative, indicating potential liquidity issues. The free cash flow to net income ratio is unfavorable, pointing to inefficiencies in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.02M	47.58M	52.02M	46.74M	43.14M	40.32M
Gross Profit	20.66M	17.84M	23.78M	16.55M	18.61M	20.97M
EBITDA	-7.85M	-4.06M	5.65M	1.57M	-48.00K	9.76M
Net Income	-11.40M	-9.58M	561.00K	-3.29M	-4.94M	3.54M
Balance Sheet
Total Assets	97.66M	97.66M	98.12M	94.29M	95.25M	98.67M
Cash, Cash Equivalents and Short-Term Investments	11.90M	11.90M	14.22M	12.94M	16.45M	26.65M
Total Debt	26.56M	26.56M	21.25M	15.22M	11.47M	13.24M
Total Liabilities	33.14M	33.14M	27.70M	24.68M	21.34M	20.20M
Stockholders Equity	64.52M	64.52M	70.41M	69.59M	73.87M	78.39M
Cash Flow
Free Cash Flow	-3.76M	-3.64M	-1.07M	-2.12M	-5.55M	7.67M
Operating Cash Flow	-3.29M	-3.21M	-306.00K	-1.51M	-5.10M	8.11M
Investing Cash Flow	-654.00K	-426.00K	-949.00K	4.18M	-2.16M	-236.00K
Financing Cash Flow	2.97M	1.44M	2.79M	-5.75M	-3.03M	10.48M

Allied Sustainability and Environmental Consultants Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Positive
• 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:8320, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.10, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 40.48 is Neutral, neither overbought nor oversold. The STOCH value of 33.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1397	75 Outperform	HK$531.20M	6.00	21.36%	2.95%	6.12%	78.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1790	63 Neutral	HK$370.00M	5.54	4.69%	―	17.22%	-21.23%
0436	52 Neutral	HK$224.64M	-13.45	-1.91%	2.42%	-5.95%	33.73%
8320	49 Neutral	HK$76.80M	―	-4.04%	―	12.29%	51.28%
0923	47 Neutral	HK$106.11M	-0.22	-107.25%	―	-2.08%	-647.01%
0646	46 Neutral	HK$58.94M	―	―	―	4.13%	-5.11%