Asia Grocery Distribution Limited (8413) AI Stock Analysis

• Market Cap: HK$116.20M
• Dividend Yield: N/A
• Average Volume (3M): 152.33K
• Price to Earnings (P/E): 111.1
• Beta (1Y): 0.35
• Revenue Growth: 3.44%
• EPS Growth: -43.75%
• Country: HK
• Employees: 70
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): <0.01
• Shares Outstanding: 1,162,000,000
• 10 Day Avg. Volume: 91,000
• 30 Day Avg. Volume: 152,333
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily driven by the company's strong financial performance, characterized by solid cash flows and a stable balance sheet. However, the high P/E ratio suggests overvaluation, and the technical indicators show a lack of momentum, which tempers the overall score.

Positive Factors

Financial Stability

The company's low debt-to-equity ratio and strong equity position provide a secure footing for future growth, ensuring financial resilience.

Cash Generation

Consistent positive cash flow and growth in free cash flow indicate strong cash generation, supporting reinvestment and operational flexibility.

Revenue Growth

Steady revenue growth demonstrates the company's ability to expand its market presence and maintain a reliable supply chain, enhancing long-term prospects.

Negative Factors

Profitability Challenges

Low net profit margins indicate challenges in cost management, which could hinder profitability and limit the company's ability to invest in growth initiatives.

Return on Equity

A low return on equity suggests limited efficiency in generating returns from shareholder investments, potentially affecting investor confidence and capital attraction.

Earnings Growth

Negative EPS growth reflects declining profitability, which may impact the company's ability to sustain growth and meet investor expectations over the long term.

Asia Grocery Distribution Limited Business Overview & Revenue Model

Company Description

Asia Grocery Distribution Limited, an investment holding company, trades in and distributes food and beverage groceries in Hong Kong. The company offers commodities and cereal products, such as rice, wheat flour, noodle products, edible oil, sugar, and salt; and packaged food products, including meat and vegetables in preserved, canned, frozen, and other forms, as well as snacks and pre-packaged food items. It also provides kitchen and hygiene products, including food wrap and food related products, such as cling film, baking sheet, and foil; cleaning products, comprising of detergent, bleach, and liquid soap; other products, consisting of tissue paper, toothpick, and towel; and hygiene products, such as face masks and gloves. In addition, the company offers sauces and condiments; dairy products and eggs; and beverages and wines. Further, the company offers product sourcing, repackaging, quality assurance, warehousing and storage, transportation, and other value-added services. Its customers include restaurants, non-commercial dining establishments, hotels and private clubs, food processing operators, and wholesalers. The company was founded in 1975 and is headquartered in Kowloon, Hong Kong. Asia Grocery Distribution Limited is a subsidiary of Sky Alpha Investments Limited.

How the Company Makes Money

Asia Grocery Distribution Limited generates revenue through the wholesale distribution of grocery products. The company's primary revenue streams include sales to retail grocery stores, restaurants, and other food service providers. By leveraging its network of suppliers, the company is able to buy products at competitive prices and distribute them to its clients at a markup, thus earning a profit. Additionally, the company may have partnerships with specific brands or suppliers, allowing it to offer exclusive products or deals that can enhance its product offerings and attract more business. Factors such as efficient logistics, a broad product range, and strong supplier relationships contribute significantly to the company's earnings.

Asia Grocery Distribution Limited Financial Statement Overview

Summary

Asia Grocery Distribution Limited exhibits a solid financial foundation with steady revenue growth and improving operational efficiency. While profitability margins remain a challenge, the company benefits from a strong equity position and robust cash flows. The balance sheet reflects low leverage and financial stability, providing a secure footing for future growth.

Income Statement

The company has shown a consistent increase in revenue, with a growth rate of 3.44% from 2024 to 2025. Gross profit margins have been improving, reaching 23.6% in 2025. However, the net profit margin is relatively low at 0.35%, indicating challenges in controlling costs or expenses. The EBIT margin improved to 0.84%, reflecting better operational efficiency, but still remains low. Overall, the company is on a positive growth trajectory, but profitability remains an area for improvement.

Balance Sheet

The company maintains a stable financial position with an improving equity ratio of 79.85% in 2025, indicating strong shareholder equity against total assets. The debt-to-equity ratio is low at 0.05, demonstrating conservative leverage. Return on equity is low at 1.06%, suggesting limited returns on shareholder investment. The balance sheet reflects financial stability with a strong equity base but room for improving returns.

Cash Flow

Operating cash flow has been consistently positive, with substantial growth over the years. The free cash flow has grown by 13.51% from 2024 to 2025, indicating the company's ability to generate cash after capital expenditures. The operating cash flow to net income ratio is robust at 22.58, reflecting strong cash generation relative to earnings. Overall, the cash flow statement shows healthy cash generation and liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	295.15M	302.54M	292.48M	286.24M	241.37M	227.71M
Gross Profit	65.97M	71.41M	66.11M	66.81M	58.33M	48.07M
EBITDA	6.37M	10.83M	10.63M	4.51M	6.62M	-8.45M
Net Income	2.15M	1.06M	1.86M	-4.41M	-2.14M	-14.62M
Balance Sheet
Total Assets	128.48M	125.13M	132.30M	135.60M	123.16M	124.06M
Cash, Cash Equivalents and Short-Term Investments	55.38M	60.87M	47.03M	34.98M	29.80M	38.44M
Total Debt	10.18M	4.76M	13.62M	19.79M	8.47M	8.04M
Total Liabilities	29.71M	25.20M	33.43M	38.60M	21.75M	20.51M
Stockholders Equity	98.77M	99.93M	98.87M	97.01M	101.42M	103.55M
Cash Flow
Free Cash Flow	28.46M	21.58M	19.01M	10.74M	-4.79M	-12.48M
Operating Cash Flow	28.96M	23.94M	19.51M	14.05M	-2.52M	-10.62M
Investing Cash Flow	-2.70M	-2.78M	-419.00K	-3.70M	-1.78M	-1.85M
Financing Cash Flow	-7.46M	-7.36M	-7.05M	-5.17M	-4.34M	-3.10M

Asia Grocery Distribution Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 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:8413, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.05 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8413.

Asia Grocery Distribution Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1587	71 Outperform	HK$408.00M	8.90	8.56%	3.75%	3.24%	47.81%
1705	64 Neutral	HK$180.00M	10.11	11.39%	12.22%	-3.08%	-47.02%
Sector *	62 Neutral	$20.51B	14.76	-3.31%	3.19%	1.94%	-10.37%
8413	62 Neutral	HK$116.20M	111.11	1.07%	―	3.44%	-43.75%
0677	58 Neutral	HK$594.09M	29.49	-1.12%	6.57%	0.32%	-113.51%
0060	49 Neutral	HK$118.42M	―	-3.55%	―	-11.83%	2.55%
8491	39 Underperform	HK$191.33M	―	-14.15%	―	-2.25%	58.33%