Simplicity Holding Ltd. (8367) AI Stock Analysis

• Market Cap: HK$16.64M
• Dividend Yield: N/A
• Average Volume (3M): 240.85K
• Price to Earnings (P/E): 1.6
• Beta (1Y): -0.52
• Revenue Growth: 6.44%
• EPS Growth: -294.12%
• Country: HK
• Employees: 116
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.14
• Shares Outstanding: 69,049,990
• 10 Day Avg. Volume: 88,260
• 30 Day Avg. Volume: 240,853
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 108.33% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by significant financial challenges, including negative profit margins and poor cash flow management. Technical indicators suggest a bearish trend, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low stock score.

Simplicity Holding Ltd. Business Overview & Revenue Model

Company Description

Simplicity Holding Limited, an investment holding company, operates casual dining full service restaurants in Hong Kong. It also engages in the property investment activities. As of March 31, 2022, the company operates 7 restaurants under the Marsino, Grand Avenue, and Baba Nyonya brands. In addition, it operates drug vending machines. The company was founded in 2003 and is headquartered in Kwai Chung, Hong Kong. Simplicity Holding Limited is a subsidiary of Marvel Jumbo Limited.

How the Company Makes Money

Simplicity Holding Ltd. generates revenue through multiple streams including the management of its investment portfolio, which consists of equity stakes in various companies across its sectors of interest. The company earns income from dividends, capital gains on asset disposals, and interest from financing activities. Additionally, it may engage in partnerships with other firms to co-develop products or services, thereby sharing in the revenue generated from these collaborations. The company's ability to identify and invest in high-growth opportunities contributes significantly to its earnings.

Simplicity Holding Ltd. Financial Statement Overview

Summary

Simplicity Holding Ltd. faces significant financial challenges, particularly in profitability and cash flow management. While there is some revenue growth, the company struggles with negative profit margins and declining cash flow. The balance sheet shows moderate leverage but poor returns on equity. Overall, the company needs to focus on improving profitability and cash flow to enhance financial health.

Income Statement

The company has shown some revenue growth with an 8.29% increase in the latest year, indicating potential recovery. However, profitability metrics are concerning, with a negative net profit margin of -21.33% and a negative EBIT margin of -20.44%. The gross profit margin is relatively low at 29.87%, suggesting challenges in cost management. Overall, while there is revenue growth, the company struggles with profitability.

Balance Sheet

The debt-to-equity ratio has improved from previous years but remains moderate at 0.82, indicating manageable leverage. However, the return on equity is negative at -118.90%, reflecting poor profitability relative to shareholder equity. The equity ratio is not explicitly calculated, but the balance sheet shows a need for improved financial stability.

Cash Flow

The cash flow situation is challenging, with a significant decline in free cash flow growth at -91.10%. The operating cash flow to net income ratio is low at 0.27, indicating limited cash generation from operations relative to net income. The free cash flow to net income ratio is also low at 0.07, suggesting cash flow issues despite revenue growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.28M	97.76M	91.85M	68.70M	85.58M	97.42M
Gross Profit	19.68M	29.20M	26.40M	1.36M	6.58M	4.15M
EBITDA	18.91M	-9.36M	20.27M	-23.80M	19.63M	35.26M
Net Income	6.32M	-20.85M	8.25M	-36.69M	4.01M	8.59M
Balance Sheet
Total Assets	85.39M	74.09M	69.71M	85.23M	96.79M	100.16M
Cash, Cash Equivalents and Short-Term Investments	15.46M	7.14M	11.48M	17.72M	31.90M	12.81M
Total Debt	20.94M	14.30M	16.16M	25.36M	23.49M	49.98M
Total Liabilities	61.83M	56.59M	35.27M	69.80M	54.00M	61.41M
Stockholders Equity	23.59M	17.54M	34.48M	15.46M	42.82M	38.79M
Cash Flow
Free Cash Flow	10.42M	927.00K	5.79M	4.63M	929.00K	8.73M
Operating Cash Flow	13.75M	12.68M	9.13M	4.65M	976.00K	8.96M
Investing Cash Flow	1.56M	-10.88M	-2.11M	-8.31M	45.61M	14.75M
Financing Cash Flow	-12.32M	-3.60M	-14.02M	-12.70M	-27.52M	-13.89M

Simplicity Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8367, the sentiment is Neutral. The current price of 0.24 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.26, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 48.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8367.

Simplicity Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8096	50 Neutral	HK$31.38M	-5.17	-37.63%	―	-19.25%	65.38%
8432	47 Neutral	HK$31.31M	-1.75	-302.54%	―	-6.46%	-3042.86%
8367	40 Underperform	HK$16.64M	1.62	-80.18%	―	6.44%	-294.12%
8475	38 Underperform	HK$4.70M	―	-164.64%	―	―	―
8493	26 Underperform	HK$12.77M	-0.29	―	―	-77.80%	-586.04%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%