Shenglong Splendecor International Limited (8481) AI Stock Analysis

• Market Cap: HK$149.58M
• Dividend Yield: N/A
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 2.9
• Beta (1Y): -0.02
• Revenue Growth: 6.62%
• EPS Growth: 72.58%
• Country: HK
• Employees: 396
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.11
• Shares Outstanding: 490,420,000
• 10 Day Avg. Volume: 2,738,500
• 30 Day Avg. Volume: 1,696,500
• PEG Ratio: -0.37
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.79
• 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: 62 Neutral
• Price Target: HK$0.50 ▲(66.67%Upside)

The stock score is primarily influenced by strong financial performance with revenue growth and profitability. However, the bearish technical indicators signal potential short-term risks. The low P/E ratio suggests a relative undervaluation, providing potential upside for investors willing to take on the associated risks.

Shenglong Splendecor International Limited Business Overview & Revenue Model

Company Description

Shenglong Splendecor International Limited, an investment holding company, manufactures and sells decorative printing materials. The company offers decorative papers, melamine impregnated papers, finish foil papers, PVC furniture films, and PVC flooring films. It also manufactures and sells craft pictures. The company's products are used in furniture, cabinets, framework, door panels, fireproof boards, melamine boards, chipboards, density boards, and floorboards. It sells its products under the Splendecor brand in the People's Republic of China, Pakistan, India, the Republic of Turkey, the United Arab Emirates, and internationally. The company was founded in 1993 and is based in Central, Hong Kong.

How the Company Makes Money

Shenglong 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

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
540.54M	585.65M	540.54M	448.80M	494.96M	368.91M
	Gross Profit
156.09M	190.35M	156.09M	101.95M	94.41M	84.16M
	EBIT
43.25M	67.94M	43.25M	21.80M	22.14M	16.37M
	EBITDA
71.78M	113.84M	79.03M	50.83M	43.78M	33.55M
	Net Income Common Stockholders
28.35M	47.51M	28.35M	12.06M	13.60M	9.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
84.45M	55.62M	84.45M	10.28M	25.09M	14.84M
	Total Assets
694.07M	874.92M	694.07M	580.96M	593.95M	501.05M
	Total Debt
251.44M	381.04M	251.44M	217.02M	190.58M	139.00M
	Net Debt
166.99M	325.41M	166.99M	206.74M	177.50M	124.16M
	Total Liabilities
438.53M	596.09M	438.53M	353.80M	378.56M	299.65M
	Stockholders Equity
255.54M	278.83M	255.54M	227.16M	215.39M	201.40M
Cash Flow		Free Cash Flow
-5.52M	-113.39M	49.92M	-64.08M	-33.04M	-7.95M
	Operating Cash Flow
-1.44M	57.40M	72.95M	-9.97M	30.83M	27.18M
	Investing Cash Flow
-4.08M	-173.21M	-29.82M	-9.74M	-75.98M	-42.30M
	Financing Cash Flow
25.59M	94.21M	24.19M	16.87M	43.24M	13.76M

Shenglong Splendecor International Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8481, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.39, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 30.67 is Neutral, neither overbought nor oversold. The STOCH value of 2.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8481.

Shenglong Splendecor International Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8481	62 Neutral	HK$149.58M	2.85	17.83%	―	6.62%	72.58%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%
PCFBF		$1.29B	10.06	7.27%	7.22%	―	―
XNGIF		$284.70M	6.49	4.28%	12.94%	―	―
3318	51 Neutral	HK$1.93B	97.28	0.59%	―	-21.05%	-87.68%
3S5		€1.34B	―	-6.64%	2.65%	―	―
3316	71 Outperform	HK$6.66B	11.24	36.29%	10.46%	25.93%	8.97%