Sanbase Corporation Limited (8501) AI Stock Analysis

• Market Cap: HK$87.10M
• Dividend Yield: N/A
• Average Volume (3M): 13.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: -47.50%
• EPS Growth: -335.68%
• Country: HK
• Employees: 68
• Sector: Industrials
• Sector Strength: 90
• Industry: Consulting Services
• EPS (TTM): >-0.01
• Shares Outstanding: 200,000,000
• 10 Day Avg. Volume: 29,000
• 30 Day Avg. Volume: 13,333
• PEG Ratio: -0.72
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.24
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: ―

Sanbase Corporation Limited shows a mixed picture. While the company struggles with declining revenue and profitability, it benefits from a strong balance sheet and robust cash flows. Technical indicators show some positive momentum, but valuation remains a significant concern. The stock score reflects the need for improved profitability and revenue growth to enhance overall performance.

Sanbase Corporation Limited Business Overview & Revenue Model

Company Description

Sanbase Corporation Limited (8501) is a company that specializes in interior fit-out management, primarily serving the commercial sector. Its services include the comprehensive management of interior design, project planning, and renovation works for office spaces. The company is recognized for delivering tailored solutions that align with clients' strategic business objectives and aesthetics.

How the Company Makes Money

Sanbase Corporation Limited generates revenue primarily through its interior fit-out management services. The company earns money by offering a range of services that include project management, design consultancy, and construction management for interior renovation projects. Key revenue streams include fees from design and project management services, as well as income from executing fit-out contracts. Sanbase may also partner with various suppliers and subcontractors to deliver comprehensive solutions that meet client needs, thus contributing to its earnings. The company's ability to secure contracts with businesses looking to optimize their office environments significantly impacts its financial performance.

Sanbase Corporation Limited Financial Statement Overview

Summary

Sanbase Corporation Limited faces challenges in revenue and profitability with a declining income statement performance. The company maintains a strong balance sheet with low leverage and a healthy cash flow position, indicating resilience in cash generation despite operational difficulties. The focus should be on improving revenue growth and profitability to enhance financial stability.

Income Statement

Sanbase Corporation Limited has experienced significant fluctuations in revenue and profitability over the past few years. The gross profit margin has decreased to 5.76% in 2024 from 6.46% in 2023, indicating reduced profitability. The net profit margin turned negative, with net income falling to -1.37 million from 1.04 million, showcasing a challenging financial year. The revenue growth rate from 2023 to 2024 was -17.26%, reflecting a decline in sales. Additionally, the EBIT and EBITDA margins have decreased, highlighting operational challenges.

Balance Sheet

The balance sheet reveals a stable equity position with a debt-to-equity ratio of 0.03. The equity ratio remains strong at 51.40%, indicating a solid capital structure. Return on equity has turned negative due to the net loss, but the company maintains a low level of total debt, suggesting limited financial leverage and reduced risk from debt obligations.

Cash Flow

Sanbase Corporation Limited shows a robust cash flow position with a significant improvement in free cash flow, from -6.65 million in 2023 to 34.49 million in 2024. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also favorable, showing healthy cash flows despite reported net losses.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	373.36M	428.08M	517.60M	413.12M	481.29M	638.03M
Gross Profit	15.07M	24.66M	33.43M	22.74M	25.85M	65.07M
EBITDA	-15.19M	4.45M	7.94M	-2.20M	4.04M	32.31M
Net Income	-14.80M	-1.37M	1.04M	-5.74M	397.00K	16.22M
Balance Sheet
Total Assets	247.60M	266.36M	334.48M	287.04M	265.41M	370.86M
Cash, Cash Equivalents and Short-Term Investments	128.28M	139.64M	109.70M	119.78M	112.49M	120.32M
Total Debt	2.92M	4.12M	2.02M	3.57M	5.48M	4.99M
Total Liabilities	104.00M	122.38M	189.78M	144.89M	116.20M	218.65M
Stockholders Equity	134.88M	136.93M	137.63M	136.86M	142.48M	141.79M
Cash Flow
Free Cash Flow	-1.71M	34.49M	-6.65M	10.54M	414.00K	41.56M
Operating Cash Flow	-1.64M	34.57M	-6.48M	11.63M	628.00K	42.08M
Investing Cash Flow	-71.00K	-78.00K	-173.00K	-1.09M	-1.49M	-5.81M
Financing Cash Flow	-2.89M	-4.20M	-2.89M	-3.32M	-7.20M	-21.81M

Sanbase Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8501, the sentiment is Positive. The current price of 0.44 is above the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.32, and above the 200-day MA of 0.31, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 89.22 is Negative, neither overbought nor oversold. The STOCH value of 74.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8501.

Sanbase Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3828	73 Outperform	HK$626.80M	4.45	11.13%	16.28%	11.80%	37.53%
Sector *	65 Neutral	$10.86B	15.57	5.28%	1.92%	3.13%	-27.76%
0732	62 Neutral	$3.80B	12.76	3.20%	8.20%	14.45%	15.04%
8483	60 Neutral	HK$130.40M	14.89	-1.51%	5.75%	-17.42%	-105.21%
8501	59 Neutral	HK$87.10M	―	-2.95%	―	-47.50%	-335.68%
8411	51 Neutral	HK$74.78M	―	-5.25%	26.67%	-25.44%	41.67%
1968	45 Neutral	HK$66.56M	―	-13.54%	―	31.79%	7.61%