Shenglong Splendecor International Limited (8481) AI Stock Analysis

• Market Cap: HK$294.25M
• Dividend Yield: N/A
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): 5.6
• Beta (1Y): -0.01
• Revenue Growth: 6.62%
• EPS Growth: 72.58%
• Country: HK
• Employees: 396
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.11
• Shares Outstanding: 490,420,000
• 10 Day Avg. Volume: 438,000
• 30 Day Avg. Volume: 1,631,666
• 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: 72 Outperform
• 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 Business Overview & Revenue Model

Company Description

Shenglong 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 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
EBITDA	71.78M	113.84M	79.03M	50.83M	43.78M	33.55M
Net Income	28.35M	47.51M	28.35M	12.06M	13.60M	9.27M
Balance Sheet
Total Assets	694.07M	874.92M	694.07M	580.96M	593.95M	501.05M
Cash, Cash Equivalents and Short-Term Investments	84.45M	55.62M	84.45M	10.28M	25.09M	14.84M
Total Debt	251.44M	381.04M	251.44M	217.02M	190.58M	139.00M
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: Positive
• Last Price: 0.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8481	72 Outperform	HK$294.25M	5.61	17.83%	―	6.62%	72.58%
Sector *	58 Neutral	HK$16.70B	4.48	-5.92%	5.25%	-3.57%	-61.41%
3363	58 Neutral	HK$200.00M	5.07	3.30%	5.50%	-0.02%	―
1822	55 Neutral	HK$119.25M	1.14		―	10.19%	-91.08%
1822	55 Neutral	HK$119.25M	1.14		―	10.19%	-91.08%
0794	50 Neutral	HK$55.62M	24.71	0.44%	―	11.02%	79.24%
0731	45 Neutral	HK$267.36M	10.86	13.05%	―	-2.96%	―
0731	45 Neutral	HK$267.36M	10.86	13.05%	―	-2.96%	―
1580	23 Underperform	HK$162.16M	―	-2832.88%	―	-49.37%	-930.65%