Ocean One Holding Ltd. (8476) AI Stock Analysis

• Market Cap: HK$1.06B
• Dividend Yield: 1.05%
• Average Volume (3M): 112.87K
• Price to Earnings (P/E): 25.5
• Beta (1Y): -0.29
• Revenue Growth: -8.84%
• EPS Growth: -6.59%
• Country: HK
• Employees: 15
• Sector: Real Estate
• Sector Strength: 70
• Industry: Packaged Foods
• EPS (TTM): 0.08
• Shares Outstanding: 280,000,000
• 10 Day Avg. Volume: 82,400
• 30 Day Avg. Volume: 112,866
• PEG Ratio: 0.10
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.96
• 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: 80 Outperform
• Price Target: ―

Ocean One Holding Ltd. demonstrates strong financial health with excellent profitability and a solid balance sheet. The positive technical indicators support a bullish trend, although the lack of additional momentum indicators limits full analysis. Valuation metrics indicate a fair pricing relative to the market. The main concerns are slowing revenue growth and declining free cash flow. With a focus on growth and cash flow management, the company is well-positioned but needs to address these concerns to maintain its strong performance.

Ocean One Holding Ltd. Business Overview & Revenue Model

Company Description

Ocean One Holding Ltd. (8476) is a seafood product distributor based in Hong Kong. The company specializes in the import and wholesale of a wide range of frozen seafood products, including prawns, scallops, fish, and other shellfish. Ocean One Holding serves as a key intermediary between global seafood suppliers and local retailers, restaurants, and other food service providers.

How the Company Makes Money

Ocean One Holding Ltd. generates revenue primarily through the import and distribution of frozen seafood products. The company sources its products from a network of international suppliers and sells them to a diverse customer base, including supermarkets, restaurants, and catering companies in Hong Kong. Revenue is earned through the markup applied to the wholesale prices of these seafood products. The company may also benefit from economies of scale in procurement and distribution, enhancing its profitability. Additionally, Ocean One Holding may engage in strategic partnerships with suppliers to secure competitive pricing and exclusive distribution rights, which can further bolster its revenue streams.

Ocean One Holding Ltd. Financial Statement Overview

Summary

Ocean One Holding Ltd. is financially robust, with strong profitability and an excellent balance sheet. The company showcases solid margin management and a low-risk capital structure. However, the slowing revenue growth and the decline in free cash flow growth are areas of concern that need to be addressed.

Income Statement

Ocean One Holding Ltd. exhibits solid profitability with a strong gross profit margin of approximately 14.5% in the latest annual report. Despite a slight decline in total revenue by 1.8% from the previous year, the company maintains robust net and EBIT margins of 8.9% and 10.1%, respectively, indicating efficient cost management. However, the revenue growth trajectory has shown signs of slowing, which could be a concern for future top-line expansion.

Balance Sheet

The company has a healthy balance sheet with a low debt-to-equity ratio of 0.004, reflecting minimal leverage and a strong equity position. The equity ratio stands at 95.2%, highlighting the company's reliance on equity over debt to finance assets. A return on equity of 15.6% underlines effective utilization of shareholder funds to generate profits.

Cash Flow

Ocean One Holding Ltd. demonstrates strong cash flow management with a free cash flow to net income ratio of 0.86, indicating effective conversion of earnings into cash. The operating cash flow to net income ratio of 0.90 further supports the company's efficient cash generation capabilities. However, free cash flow decreased by 13.8% year-over-year, suggesting a need to monitor cash flow trends closely.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
414.98M	458.73M	467.35M	408.62M	327.75M	323.67M
	Gross Profit
66.04M	66.56M	78.74M	64.67M	48.67M	42.23M
	EBIT
45.65M	46.27M	59.07M	45.80M	32.55M	23.87M
	EBITDA
47.35M	53.56M	62.32M	49.16M	35.88M	24.67M
	Net Income Common Stockholders
39.24M	40.77M	50.15M	37.41M	27.35M	18.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
114.93M	104.91M	79.37M	48.77M	35.59M	16.23M
	Total Assets
286.51M	274.53M	250.13M	207.02M	178.80M	152.06M
	Total Debt
571.00K	1.13M	2.17M	867.00K	2.51M	5.18M
	Net Debt
-19.36M	-103.78M	-57.20M	-47.90M	-33.08M	-11.05M
	Total Liabilities
16.32M	13.13M	18.30M	16.11M	18.29M	12.73M
	Stockholders Equity
270.18M	261.39M	231.83M	190.92M	160.51M	139.33M
Cash Flow		Free Cash Flow
35.65M	35.00M	40.60M	21.86M	28.22M	16.97M
	Operating Cash Flow
37.87M	36.50M	40.79M	22.52M	28.68M	17.41M
	Investing Cash Flow
-46.08M	21.35M	-19.98M	-629.00K	-397.00K	-304.00K
	Financing Cash Flow
-12.33M	-12.31M	-10.20M	-8.71M	-8.91M	-21.73M

Ocean One Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8476, the sentiment is Positive. The current price of 3.8 is above the 20-day moving average (MA) of 3.69, above the 50-day MA of 3.28, and above the 200-day MA of 2.69, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 73.62 is Negative, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8476.

Ocean One Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8476	80 Outperform	HK$1.06B	25.52	15.07%	1.05%	-8.84%	-6.59%
6823	75 Outperform	$86.41B	17.04	13.76%	8.11%	1.23%	1.58%
1830	73 Outperform	HK$2.89B	9.95	58.52%	19.65%	-9.98%	-12.36%
3816	69 Neutral	HK$183.00M	11.78	2.85%	2.62%	13.26%	-18.81%
Sector *	61 Neutral	$2.83B	10.89	0.41%	9.34%	5.96%	-21.31%
1443	58 Neutral	HK$98.80M	12.67	5.22%	3.95%	1.74%	-46.43%
3666	34 Underperform	HK$66.39M	―		―	-31.70%	-85.40%