AL Group Limited (8360) AI Stock Analysis

• Market Cap: HK$93.67M
• Dividend Yield: N/A
• Average Volume (3M): 433.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 42.39%
• EPS Growth: -123.37%
• Country: HK
• Employees: 39
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 360,274,000
• 10 Day Avg. Volume: 969,400
• 30 Day Avg. Volume: 433,280
• PEG Ratio: 0.66
• Price to Book (P/B): -19.90
• Price to Sales (P/S): 3.29
• P/FCF Ratio: -13.74
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.50 ▲(138.10% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, negative equity, and lack of cash flow generation. Technical indicators suggest a bearish trend, and the valuation is unattractive due to a negative P/E ratio. These factors collectively result in a low overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates the company's ability to expand its market presence and enhance its product offerings, supporting long-term business sustainability.

Business Model Diversification

Diversified revenue streams across sectors like manufacturing, logistics, and consulting reduce dependence on any single market, enhancing resilience.

Gross Profit Margin Improvement

Improvement in gross profit margin suggests better cost management and pricing strategies, which could lead to sustainable profitability over time.

Negative Factors

Negative Equity

Negative equity indicates potential solvency issues, which could limit the company's ability to finance operations and growth, posing a risk to long-term stability.

Cash Flow Challenges

Inability to generate cash flow from operations suggests liquidity issues, affecting the company's capacity to invest in growth and meet financial obligations.

High Leverage

High leverage increases financial risk, potentially impacting the company's ability to withstand economic downturns and limiting strategic flexibility.

AL Group Limited Business Overview & Revenue Model

Company Description

Basic House New Life Group Limited, an investment holding company, provides interior design and fit out solutions services in Hong Kong. The company operates through Design and Fit Out Services; and Securities Investment segments. It offers pre-lease, interior design and planning, project management, contracting, repair and maintenance, and after sales services. The company also invests in equity securities; engages in the provision of money lending business; and provides design and fit out consultancy services. It offers its services to business owners and residential property owners/tenants. The company was formerly known as AL Group Limited and changed its name to Basic House New Life Group Limited in December 2024. Basic House New Life Group Limited was founded in 1999 and is based in Kwun Tong, Hong Kong.

How the Company Makes Money

AL Group Limited generates revenue through multiple key streams, including the sale of technology solutions and services, consulting fees, and strategic partnerships with other firms. The company's core revenue comes from its manufacturing segment, where it produces and sells high-tech equipment and components. Additionally, AL Group engages in logistics services, offering supply chain management solutions that drive operational efficiencies for its clients. The company also benefits from consulting services, providing expertise to businesses seeking to implement advanced technologies. Strategic partnerships with other technology firms enhance its product offerings and market reach, contributing significantly to its overall earnings.

AL Group Limited Financial Statement Overview

Summary

AL Group Limited faces significant financial challenges with declining revenues, persistent losses, and high leverage. The negative equity and lack of positive cash flow generation highlight substantial risks to financial health and stability.

Income Statement

The company shows declining revenue from 2022 to 2024. Gross profit margin improved from negative in 2023 to a small positive in 2024. However, the net profit margin remains negative, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The company has negative stockholders' equity in 2024, indicating potential solvency issues. The debt-to-equity ratio is not calculable due to negative equity, but high total liabilities relative to assets suggest high leverage. This poses a risk to financial stability.

Cash Flow

Cash flow from operations is zero in 2024, and free cash flow is also zero, indicating challenges in generating cash. There is no growth in free cash flow, and the company is not converting its net income into operating cash flow, which is a concern for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.32M	65.67M	63.81M	140.06M	109.45M	67.08M
Gross Profit	1.03M	1.74M	-4.92M	15.31M	17.62M	15.14M
EBITDA	-20.40M	-6.38M	-12.17M	-16.14M	-34.94M	-33.28M
Net Income	-21.00M	-11.26M	-15.86M	-17.92M	-32.32M	-38.04M
Balance Sheet
Total Assets	123.28M	100.17M	52.79M	54.74M	65.50M	85.64M
Cash, Cash Equivalents and Short-Term Investments	80.92M	65.57M	32.83M	12.21M	28.02M	25.01M
Total Debt	125.28M	81.25M	32.63M	16.06M	16.23M	65.74M
Total Liabilities	148.66M	110.89M	53.09M	70.31M	63.76M	111.62M
Stockholders Equity	-25.36M	-10.87M	6.00K	8.95M	23.33M	-14.39M
Cash Flow
Free Cash Flow	-53.48M	-15.73M	802.00K	-18.90M	-11.54M	-2.64M
Operating Cash Flow	-53.20M	-15.40M	846.00K	-17.77M	-10.44M	-1.50M
Investing Cash Flow	1.07M	-1.17M	-12.09M	-318.00K	4.50M	-129.00K
Financing Cash Flow	90.73M	43.96M	25.21M	2.93M	8.66M	4.22M

AL Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8360, the sentiment is Negative. The current price of 0.21 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.28, and below the 200-day MA of 0.42, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 32.16 is Neutral, neither overbought nor oversold. The STOCH value of -2.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8360.

AL Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1420	74 Outperform	HK$224.89M	3.20	11.37%	―	20.41%	188.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1757	56 Neutral	HK$756.00M	700.00	1.30%	―	78.48%	-33.33%
1707	41 Neutral	HK$63.84M	-4.13	-9.58%	―	3.97%	14.02%
8360	41 Neutral	HK$93.67M	-4.46	―	―	42.39%	-123.37%
1559	39 Underperform	HK$149.53M	-1.52	-46.27%	―	-63.83%	36.12%