HS Holdings Co.,Ltd. (8699) AI Stock Analysis

• Market Cap: ¥42.30B
• Dividend Yield: 0.94%
• Average Volume (3M): 110.79K
• Price to Earnings (P/E): 2.5
• Beta (1Y): 0.34
• Revenue Growth: 16.02%
• EPS Growth: 20.35%
• Country: JP
• Employees: 530
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Capital Markets
• EPS (TTM): 121.62
• Shares Outstanding: 40,953,500
• 10 Day Avg. Volume: 111,110
• 30 Day Avg. Volume: 110,793
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,232.00
• Price Target Upside: 15.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,232.00 ▲(15.46% Upside)

HS Holdings Co., Ltd. receives a strong overall score driven by its robust technical analysis and attractive valuation. The stock's positive price trend and low P/E ratio suggest potential for appreciation. Financial performance is stable but highlights areas for improvement, particularly in revenue growth and operational efficiency. The absence of earnings call and corporate events data did not impact the score.

HS Holdings Co.,Ltd. Business Overview & Revenue Model

Company Description

HS Holdings Co., Ltd. (8699) is a diversified investment holding company based in Hong Kong, primarily engaged in various sectors including financial services, real estate, and technology. The company focuses on strategic investments that offer growth potential and stable returns, leveraging its expertise to manage a portfolio of businesses across these industries. HS Holdings aims to create long-term value for its shareholders through careful selection of investment opportunities and active management of its subsidiaries.

How the Company Makes Money

HS Holdings generates revenue through multiple streams, including dividends from its equity investments in subsidiaries, rental income from its real estate holdings, and fees from financial advisory services offered to clients. The company's revenue model relies on its ability to identify and invest in high-potential companies and projects, which are expected to yield solid returns over time. Additionally, HS Holdings may enter into strategic partnerships with other firms to enhance its operational capabilities and expand its market reach, further contributing to its earnings. The diversification of its investment portfolio helps mitigate risks and ensures a more stable income flow.

HS Holdings Co.,Ltd. Financial Statement Overview

Summary

HS Holdings Co., Ltd. exhibits a mixed financial performance. The income statement reflects profitability but highlights challenges in revenue growth and operational efficiency. The balance sheet is strong, with low leverage and high equity, indicating financial stability. Cash flow performance is improving, although there are inefficiencies in cash conversion. Overall, the company is financially stable but needs to address revenue and operational challenges to enhance its financial health.

Income Statement

The income statement shows a mixed performance. The gross profit margin for the latest period is 21.0%, indicating reasonable profitability. However, the company experienced a significant decline in revenue from the previous year, with a revenue growth rate of -25.0%. The net profit margin stands at 32.0%, which is strong, but the negative EBIT margin of -2.8% highlights operational challenges. Overall, the company demonstrates profitability but faces revenue and operational efficiency issues.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.02, indicating minimal leverage and financial stability. The return on equity is strong at 14.0%, reflecting efficient use of equity to generate profits. Additionally, the equity ratio is high at 74.9%, suggesting a solid financial structure with a significant proportion of assets financed by equity. Overall, the balance sheet reveals a strong financial position with low leverage and high equity.

Cash Flow

The cash flow statement shows improvement in free cash flow, with a positive free cash flow of 2,711 million yen, compared to a negative figure in the previous year. The operating cash flow to net income ratio is 0.37, indicating moderate cash generation relative to net income. However, the free cash flow to net income ratio is 0.22, suggesting some inefficiencies in converting income into cash. Overall, cash flow performance is improving but still faces challenges in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.74B	37.84B	49.66B	77.70B	61.76B	58.15B
Gross Profit	22.16B	36.99B	16.73B	47.96B	35.56B	25.90B
EBITDA	71.00M	71.00M	6.29B	27.45B	19.20B	11.71B
Net Income	12.10B	12.10B	9.46B	11.37B	6.54B	-3.02B
Balance Sheet
Total Assets	115.33B	115.33B	98.77B	621.73B	577.45B	499.59B
Cash, Cash Equivalents and Short-Term Investments	18.05B	18.05B	18.40B	149.69B	88.14B	92.32B
Total Debt	1.31B	1.31B	1.14B	78.04B	63.64B	54.48B
Total Liabilities	28.63B	28.63B	26.36B	540.32B	503.02B	428.25B
Stockholders Equity	86.37B	86.37B	71.87B	59.63B	52.54B	54.58B
Cash Flow
Free Cash Flow	0.00	2.71B	-26.63B	15.12B	-7.47B	74.81B
Operating Cash Flow	0.00	4.53B	-25.59B	18.50B	-4.79B	77.64B
Investing Cash Flow	0.00	-6.05B	-8.10B	-17.94B	-7.66B	-8.70B
Financing Cash Flow	0.00	-287.00M	12.13B	2.58B	-1.72B	-14.75B

HS Holdings Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1067.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8699, the sentiment is Neutral. The current price of 1067 is below the 20-day moving average (MA) of 1074.05, below the 50-day MA of 1081.54, and above the 200-day MA of 939.76, indicating a neutral trend. The MACD of -3.32 indicates Positive momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 23.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8699.

HS Holdings Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8699	74 Outperform	¥42.30B	2.52		0.94%	16.02%	20.35%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
896	―	€188.59M	16.34	4.96%	―	―	―
8707	78 Outperform	¥63.30B	8.94		5.46%	5.08%	17.07%
8704	73 Outperform	¥29.88B	6.72		3.18%	20.01%	19.98%
8614	71 Outperform	¥38.18B	14.04		5.51%	11.72%	158.52%
8708	69 Neutral	¥44.36B	17.87		6.72%	0.74%	-5.46%