Shenglong Splendecor International Limited (8481) AI Stock Analysis

• Market Cap: HK$205.98M
• Dividend Yield: N/A
• Average Volume (3M): 3.33K
• Price to Earnings (P/E): 3.4
• Beta (1Y): -0.27
• Revenue Growth: 3.98%
• EPS Growth: 54.49%
• Country: HK
• Employees: 396
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.05
• Shares Outstanding: 490,420,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 3,333
• PEG Ratio: 0.04
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -1.24
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: HK$0.39 ▼(-6.67% Downside)

The overall stock score is primarily influenced by strong financial performance, despite concerns over rising debt and negative free cash flow. The technical analysis indicates a bearish trend, with the stock being oversold. The valuation suggests the stock is undervalued, which could present a buying opportunity if financial risks are managed.

Positive Factors

Revenue Growth

Consistent revenue growth with a CAGR of approximately 12% indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Profitability Margins

Improved gross profit margins reflect better cost management and pricing power, enhancing the company's ability to generate sustainable profits.

Return on Equity

Higher return on equity indicates efficient use of shareholder capital, enhancing investor confidence and supporting long-term value creation.

Negative Factors

Rising Debt Levels

Increased leverage may pose financial risks, limiting financial flexibility and potentially impacting the company's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow suggests potential liquidity challenges, which could constrain the company's ability to fund operations and strategic initiatives.

Volatile Operating Cash Flow

Volatility in operating cash flow may indicate inconsistent cash generation, affecting the company's ability to maintain stable financial health.

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 products to wholesalers, retailers, and directly to consumers. The company earns money by establishing strategic partnerships with various distributors and retailers to broaden its market reach. Additionally, it may engage in custom design services for larger clients in the hospitality and commercial sectors, creating tailored products that meet specific project requirements. Key revenue streams also include international sales, which are bolstered by the company's participation in trade shows and exhibitions to showcase new products and attract potential buyers.

Shenglong Splendecor International Limited Financial Statement Overview

Summary

Shenglong Splendecor International Limited shows strong revenue growth and improved profitability margins. However, rising debt levels and negative free cash flow in the latest year suggest potential financial risks and liquidity challenges.

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	595.53M	585.65M	540.54M	448.80M	494.96M	368.91M
Gross Profit	215.94M	190.35M	156.09M	101.95M	94.41M	84.16M
EBITDA	124.53M	113.84M	79.03M	50.83M	43.78M	33.55M
Net Income	52.33M	47.51M	28.35M	12.06M	13.60M	9.27M
Balance Sheet
Total Assets	965.35M	874.92M	694.07M	580.96M	593.95M	501.05M
Cash, Cash Equivalents and Short-Term Investments	54.28M	55.62M	84.45M	10.28M	25.09M	14.84M
Total Debt	469.13M	381.04M	251.44M	217.02M	190.58M	139.00M
Total Liabilities	674.16M	596.09M	438.53M	353.80M	378.56M	299.65M
Stockholders Equity	291.19M	278.83M	255.54M	227.16M	215.39M	201.40M
Cash Flow
Free Cash Flow	-99.14M	-113.39M	49.92M	-64.08M	-33.04M	-7.95M
Operating Cash Flow	96.53M	57.40M	72.95M	-9.97M	30.83M	27.18M
Investing Cash Flow	-203.21M	-173.21M	-29.82M	-9.74M	-75.98M	-42.30M
Financing Cash Flow	85.98M	94.21M	24.19M	16.87M	43.24M	13.76M

Shenglong Splendecor International Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.42
• 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:8481, the sentiment is Negative. The current price of 0.42 is below the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.48, and below the 200-day MA of 0.44, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 39.95 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, 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
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
8481	59 Neutral	HK$205.98M	3.44	18.61%	―	3.98%	54.49%
1822	56 Neutral	HK$148.03M	1.15	-17.27%	―	-17.96%	-95.06%
0731	50 Neutral	HK$301.31M	17.46	11.34%	―	-9.44%	―
0794	49 Neutral	HK$66.22M	15.38	0.85%	―	-5.06%	―
3363	48 Neutral	HK$175.00M	6.82	2.13%	6.11%	0.80%	81.27%
1580	47 Neutral	HK$207.08M	-34.36	-395.28%	―	-35.61%	89.32%