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Shenglong Splendecor International Limited (HK:8481)
:8481
Hong Kong Market

Shenglong Splendecor International Limited (8481) AI Stock Analysis

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HK

Shenglong Splendecor International Limited

(8481)

Rating:72Outperform
Price Target:
HK$0.50
▼(-16.67%Downside)
The overall stock score reflects strong revenue growth and an attractive valuation with a low P/E ratio. However, caution is advised due to rising debt levels and potential liquidity concerns, alongside technical indicators signaling overbought conditions.

Shenglong Splendecor International Limited (8481) vs. iShares MSCI Hong Kong ETF (EWH)

Shenglong Splendecor International Limited Business Overview & Revenue Model

Company DescriptionShenglong Splendecor International Limited (8481) is a company engaged in the design, development, and manufacturing of decorative surface materials. The company specializes in offering a variety of products such as melamine faced boards, decorative papers, and other related items that are widely used in the furniture and interior design industries. Their products are known for their quality and innovative designs, catering to a global clientele seeking aesthetic and functional surface solutions.
How the Company Makes MoneyShenglong Splendecor International Limited generates revenue primarily through the sale of its decorative surface materials. The company's key revenue streams include direct sales to manufacturers in the furniture and interior design sectors, as well as distribution agreements with partners who further supply these products to retailers and end-users. Significant factors contributing to its earnings include its ability to maintain high product quality, its innovation in decorative designs, and its strategic partnerships with major manufacturers and distributors globally. The company's focus on sustainable production processes and its reputation for reliability and quality also play pivotal roles in its revenue generation strategy.

Shenglong Splendecor International Limited Financial Statement Overview

Summary
The company has shown strong revenue growth and improved profitability margins. However, rising debt levels and negative free cash flow pose potential risks, indicating a need for improved cash management and careful monitoring of leverage.
Income Statement
75
Positive
The company has demonstrated strong revenue growth, increasing from HKD 368.9 million in 2020 to HKD 585.6 million in 2024, with a CAGR of approximately 12%. The gross profit margin improved significantly from 22.8% in 2020 to 32.5% in 2024, indicating better cost management. The net profit margin increased from 2.5% to 8.1% over the same period, reflecting enhanced profitability. However, EBIT and EBITDA margins, although improved, remain relatively moderate.
Balance Sheet
65
Positive
The company has maintained a stable equity ratio, with stockholders' equity increasing from HKD 201.4 million in 2020 to HKD 278.8 million in 2024. However, the debt-to-equity ratio has risen from 0.69 in 2020 to 1.37 in 2024, indicating higher leverage, which could pose financial risks. Return on equity improved from 4.6% in 2020 to 17% in 2024, demonstrating better profitability for shareholders.
Cash Flow
55
Neutral
Operating cash flow has been positive but volatile, with a high of HKD 72.9 million in 2023. Free cash flow, however, turned negative in 2024 due to significant capital expenditures, indicating potential cash flow management issues. The operating cash flow to net income ratio has been generally healthy, but the free cash flow to net income ratio highlights potential liquidity challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue540.54M585.65M540.54M448.80M494.96M368.91M
Gross Profit156.09M190.35M156.09M101.95M94.41M84.16M
EBITDA71.78M113.84M79.03M50.83M43.78M33.55M
Net Income28.35M47.51M28.35M12.06M13.60M9.27M
Balance Sheet
Total Assets694.07M874.92M694.07M580.96M593.95M501.05M
Cash, Cash Equivalents and Short-Term Investments84.45M55.62M84.45M10.28M25.09M14.84M
Total Debt251.44M381.04M251.44M217.02M190.58M139.00M
Total Liabilities438.53M596.09M438.53M353.80M378.56M299.65M
Stockholders Equity255.54M278.83M255.54M227.16M215.39M201.40M
Cash Flow
Free Cash Flow-5.52M-113.39M49.92M-64.08M-33.04M-7.95M
Operating Cash Flow-1.44M57.40M72.95M-9.97M30.83M27.18M
Investing Cash Flow-4.08M-173.21M-29.82M-9.74M-75.98M-42.30M
Financing Cash Flow25.59M94.21M24.19M16.87M43.24M13.76M

Shenglong Splendecor International Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.60
Price Trends
50DMA
0.44
Positive
100DMA
0.37
Positive
200DMA
0.37
Positive
Market Momentum
MACD
0.04
Negative
RSI
67.74
Neutral
STOCH
88.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8481, the sentiment is Positive. The current price of 0.6 is above the 20-day moving average (MA) of 0.44, above the 50-day MA of 0.44, and above the 200-day MA of 0.37, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 67.74 is Neutral, neither overbought nor oversold. The STOCH value of 88.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8481.

Shenglong Splendecor International Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
HK$294.25M5.6117.83%6.62%72.58%
58
Neutral
HK$16.70B4.48-5.92%5.25%-3.57%-61.41%
58
Neutral
HK$200.00M5.073.30%5.50%-0.02%
55
Neutral
HK$119.25M1.14
10.19%-91.08%
55
Neutral
HK$119.25M1.14
10.19%-91.08%
50
Neutral
HK$55.62M24.710.44%11.02%79.24%
45
Neutral
HK$267.36M10.8613.05%-2.96%
45
Neutral
HK$267.36M10.8613.05%-2.96%
23
Underperform
HK$162.16M-2832.88%-49.37%-930.65%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8481
Shenglong Splendecor International Limited
0.60
0.10
20.00%
HK:0794
Come Sure Group (Holdings) Ltd.
0.17
-0.03
-15.00%
HK:0731
C&D Newin Paper & Pulp Corporation Limited
0.19
0.03
18.75%
HK:0731
C&D Newin Paper & Pulp Corporation Limited
0.19
0.03
18.75%
HK:3363
Zhengye International Holdings Co., Ltd.
0.41
-0.02
-4.65%
HK:1822
China Wood International Holding Co., Limited
0.14
-0.16
-53.33%
HK:1822
China Wood International Holding Co., Limited
0.14
-0.16
-53.33%
HK:1580
Da Sen Holdings Group Ltd
0.15
0.02
15.38%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025