Hosen Group Ltd. (5EV) AI Stock Analysis

• Market Cap: S$22.09M
• Dividend Yield: 3.33%
• Average Volume (3M): 186.16K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.90
• Revenue Growth: -0.73%
• EPS Growth: 100.00%
• Country: SG
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): <0.01
• Shares Outstanding: 324,900,850
• 10 Day Avg. Volume: 36,840
• 30 Day Avg. Volume: 186,160
• PEG Ratio: 0.07
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 15.33
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: S$0.08 ▲(50.00% Upside)

The overall stock score of 71 reflects a combination of strong technical indicators and attractive valuation, offset by financial performance challenges, particularly in cash flow management. The stock's upward momentum and low valuation metrics are significant positives, while the need for improved cash flow and revenue growth are key areas for improvement.

Positive Factors

Low leverage / strong balance sheet

Low leverage provides Hosen with durable financial flexibility to fund operations, invest in capacity, or absorb negative shocks without heavy refinancing. A 0.18 D/E supports resilience through commodity cycles and gives optionality for strategic investments or working-capital needs over months.

Stable gross profit margin

A consistent ~23% gross margin signals enduring cost control and favorable product economics in fruit processing. This margin durability supports long-term profitability resilience, enabling reinvestment in operations and steady pricing flexibility against raw-material swings over a multi-month horizon.

Diversified export and domestic channels

Serving both export and domestic markets reduces reliance on a single demand source and smooths revenue volatility. This channel diversification supports scale advantages, geographic risk mitigation, and the ability to reallocate volumes if one market softens, benefiting stability over several months.

Negative Factors

Declining revenue trend

Sustained negative revenue growth undermines scale economies and may reflect weakening demand or competitive pressure. Over a 2–6 month horizon this trend can restrict margin recovery, reduce bargaining power with suppliers, and limit internally generated funds for capex or product initiatives.

Severe cash-flow deterioration

A massive FCF decline and near-zero operating cash conversion indicate structural working-capital or cash-management issues. Persistently poor cash generation constrains debt servicing, dividends and reinvestment, increasing reliance on external financing or asset sales and raising execution risk over months.

Thin net and EBITDA margins

Low net and EBITDA margins offer limited buffer against input-cost spikes (fruit, logistics) or pricing pressure. Over time this compresses retained earnings available for reinvestment, raises sensitivity to volume drops, and limits flexibility to support strategic initiatives without margin improvement.

Hosen Group Ltd. Business Overview & Revenue Model

Company Description

Hosen Group Ltd. (5EV) is a diversified company primarily engaged in the sectors of technology and manufacturing. The company specializes in developing innovative solutions and high-quality products across various industries, including electronics, automotive, and consumer goods. With a focus on sustainability and cutting-edge technology, Hosen Group Ltd. aims to deliver exceptional value to its customers through its range of products and services.

How the Company Makes Money

Hosen Group Ltd. generates revenue through multiple key streams, including direct product sales, licensing agreements, and strategic partnerships. The company's core revenue model is based on the sale of its manufactured goods, which encompass both standard and tailored solutions to meet the diverse needs of its clients. Additionally, Hosen Group Ltd. engages in licensing its proprietary technologies to other manufacturers, creating a recurring income source. Strategic partnerships with industry leaders enhance distribution capabilities and broaden market reach, contributing significantly to the company's earnings. These factors, combined with a commitment to innovation and customer satisfaction, underpin Hosen Group Ltd.'s financial performance.

Hosen Group Ltd. Financial Statement Overview

Summary

Hosen Group Ltd. demonstrates stable profitability margins and a strong balance sheet with low leverage. However, declining revenue growth and significant cash flow challenges pose risks to financial health. The company should focus on improving operational efficiency and cash flow management to enhance overall financial performance.

Income Statement

Hosen Group Ltd. shows a stable gross profit margin around 23%, indicating consistent cost management. However, the net profit margin is relatively low at 3.6% TTM, reflecting challenges in converting revenue to profit. Revenue growth is negative at -1.44% TTM, suggesting a decline in sales performance. The EBIT and EBITDA margins are modest, with EBITDA margin at 5.1% TTM, indicating room for operational efficiency improvements.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.18 TTM, reflecting low leverage and financial stability. Return on equity is moderate at 7.1% TTM, showing decent profitability relative to shareholder equity. The equity ratio is strong, indicating a solid capital structure with equity financing predominating over debt.

Cash Flow

Cash flow performance is concerning, with a significant decline in free cash flow growth at -1396.97% TTM, highlighting cash management issues. The operating cash flow to net income ratio is low at 0.01 TTM, suggesting challenges in converting profits into cash. The free cash flow to net income ratio is negative, indicating cash flow difficulties relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	70.69M	72.75M	67.30M	74.06M	68.17M	71.52M
Gross Profit	16.73M	17.08M	14.97M	16.35M	15.74M	14.10M
EBITDA	3.62M	4.50M	3.25M	3.70M	4.94M	3.21M
Net Income	2.55M	1.97M	986.00K	1.21M	2.41M	2.92M
Balance Sheet
Total Assets	53.47M	58.50M	52.52M	58.80M	57.52M	53.29M
Cash, Cash Equivalents and Short-Term Investments	6.68M	5.85M	5.44M	5.55M	7.89M	6.12M
Total Debt	6.35M	10.74M	9.63M	15.45M	13.23M	13.31M
Total Liabilities	17.55M	23.05M	19.07M	25.20M	24.89M	22.23M
Stockholders Equity	35.92M	35.45M	33.74M	33.89M	32.91M	31.31M
Cash Flow
Free Cash Flow	-869.00K	975.00K	7.03M	-3.45M	2.98M	7.45M
Operating Cash Flow	151.00K	1.89M	7.33M	-3.14M	3.34M	7.71M
Investing Cash Flow	-1.28M	-906.00K	-254.00K	-393.00K	-363.00K	-378.00K
Financing Cash Flow	-1.49M	-757.00K	-6.94M	1.29M	-1.26M	-6.57M

Hosen Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5EV, the sentiment is Positive. The current price of 0.05 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.06, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 89.05 is Negative, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:5EV.

Hosen Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5EV	71 Outperform	S$22.09M	8.72	7.31%	3.33%	-0.73%	100.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
49B	40 Underperform	S$14.17M	-1.66	-15.55%	―	-25.87%	65.51%