Soon Lian Holdings Limited (5MD) AI Stock Analysis

• Market Cap: S$29.16M
• Dividend Yield: 1.15%
• Average Volume (3M): 107.91K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 1.24
• Revenue Growth: 33.55%
• EPS Growth: 2595.24%
• Country: SG
• Employees: 109
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 0.02
• Shares Outstanding: 108,000,000
• 10 Day Avg. Volume: 215,970
• 30 Day Avg. Volume: 107,910
• PEG Ratio: -0.02
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 3.86
• 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: 73 Outperform
• Price Target: S$0.50 ▲(92.31% Upside)

Soon Lian Holdings Limited scores well due to its strong valuation metrics, indicating potential undervaluation. Financial performance is solid, with strong revenue growth and profitability, though cash flow management needs improvement. Technical analysis shows mixed signals, with positive momentum but potential oversold conditions. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

The company shows a positive revenue growth rate of 6.42% in the TTM, indicating a recovery from previous declines and expanding market reach.

Market Position

Diversification across metal manufacturing sectors allows Soon Lian Holdings to cater to a wide range of clients, enhancing market presence and reducing sector-specific risks.

Balance Sheet Health

Low leverage with a debt-to-equity ratio of 0.14 indicates strong financial stability, providing flexibility for future investments and growth.

Negative Factors

Cash Flow Challenges

The decline in free cash flow growth suggests potential liquidity issues, which could limit the company's ability to invest in growth opportunities or manage debt.

Operational Efficiency

Decreasing EBIT and EBITDA margins indicate challenges in maintaining operational efficiency, which could impact long-term profitability if not addressed.

Cash Flow to Net Income Ratio

A low operating cash flow to net income ratio highlights potential cash generation issues, which may affect the company's ability to sustain operations and fund growth.

Soon Lian Holdings Limited Business Overview & Revenue Model

Company Description

Soon Lian Holdings Limited (5MD) is a diversified company based in Singapore, primarily engaged in the manufacturing and distribution of various metal products, including precision metal components and products for the construction, automotive, and electronics industries. The company operates through several subsidiaries that focus on different segments of the metal manufacturing sector, enabling it to cater to a wide range of clients and markets both domestically and internationally.

How the Company Makes Money

Soon Lian Holdings generates revenue through multiple streams, primarily from the sale of its manufactured metal products to various industries. The company focuses on precision engineering and offers custom metal fabrication services, which allows it to charge premium prices for specialized products. Key revenue streams include direct sales to clients in the construction and automotive sectors, as well as contracts with electronics manufacturers. Additionally, Soon Lian Holdings has established partnerships with key players in the construction and automotive industries, which not only provides a steady flow of orders but also enhances its market presence. The company may also benefit from economies of scale through its manufacturing operations, further improving profit margins.

Soon Lian Holdings Limited Financial Statement Overview

Summary

Soon Lian Holdings Limited demonstrates strong revenue growth and profitability, with a solid balance sheet characterized by low leverage and high return on equity. However, cash flow management appears to be a challenge, with significant declines in free cash flow growth. The company should focus on improving operational efficiencies and cash flow generation to sustain its financial health.

Income Statement

Soon Lian Holdings Limited shows a positive revenue growth rate of 6.42% in the TTM, indicating a recovery from previous declines. The gross profit margin is healthy at 19.46%, though slightly lower than the previous year. Net profit margin is stable at 7.52%, reflecting consistent profitability. However, the EBIT and EBITDA margins have slightly decreased, suggesting some operational efficiency challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.14, indicating a strong balance sheet with low leverage. Return on equity is robust at 13.75%, showcasing effective use of equity to generate profits. The equity ratio stands at 60.71%, reflecting a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

There is a significant decline in free cash flow growth by 80.23% in the TTM, which is a concern. The operating cash flow to net income ratio is low at 0.06, indicating potential cash flow challenges. However, the free cash flow to net income ratio remains reasonable at 37.61%, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	81.33M	71.52M	58.13M	71.47M	53.58M	33.43M
Gross Profit	15.82M	15.13M	3.72M	18.77M	13.72M	4.70M
EBITDA	9.11M	8.98M	-1.65M	11.27M	8.70M	852.00K
Net Income	6.12M	5.79M	-4.53M	7.56M	6.22M	411.00K
Balance Sheet
Total Assets	74.95M	73.09M	65.29M	88.55M	60.86M	50.42M
Cash, Cash Equivalents and Short-Term Investments	12.03M	9.92M	7.69M	5.15M	7.31M	6.01M
Total Debt	6.32M	6.80M	10.60M	9.89M	9.63M	12.13M
Total Liabilities	29.44M	29.62M	27.38M	45.72M	24.25M	20.27M
Stockholders Equity	45.51M	43.48M	37.91M	42.82M	36.61M	30.15M
Cash Flow
Free Cash Flow	586.00K	5.34M	15.45M	-10.40M	4.12M	2.56M
Operating Cash Flow	1.56M	7.03M	16.25M	-9.72M	4.47M	2.77M
Investing Cash Flow	-1.42M	-1.63M	-706.00K	-646.00K	-325.00K	529.00K
Financing Cash Flow	-1.17M	-3.16M	-13.00M	8.22M	-2.85M	-379.00K

Soon Lian Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5MD, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.27, and above the 200-day MA of 0.20, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.05 is Neutral, neither overbought nor oversold. The STOCH value of 19.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:5MD.

Soon Lian Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5MD	73 Outperform	S$29.16M	4.77	14.32%	1.15%	33.55%	2595.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%