Azeus Systems Holdings Ltd. (BBW) AI Stock Analysis

• Market Cap: S$355.50M
• Dividend Yield: 5.55%
• Average Volume (3M): 6.50K
• Price to Earnings (P/E): 12.5
• Beta (1Y): -0.02
• Revenue Growth: 32.76%
• EPS Growth: 54.96%
• Country: SG
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.27
• Shares Outstanding: 29,999,992
• 10 Day Avg. Volume: 9,910
• 30 Day Avg. Volume: 6,503
• PEG Ratio: -0.18
• Price to Book (P/B): 8.81
• Price to Sales (P/S): 4.16
• P/FCF Ratio: 10.15
• 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: 69 Neutral
• Price Target: S$13.50 ▲(13.92% Upside)

Azeus Systems Holdings Ltd. demonstrates strong financial performance, with robust growth and profitability metrics. However, the technical analysis indicates bearish momentum, which could pose short-term risks. The valuation is reasonable, with an attractive dividend yield. Overall, the stock is positioned well financially, but technical indicators suggest caution.

Positive Factors

Revenue Growth

The remarkable revenue growth rate indicates strong market demand and effective business strategies, positioning the company for continued expansion.

Profitability

High profit margins reflect efficient cost management and strong pricing power, contributing to sustainable profitability and competitive advantage.

Cash Generation

Strong cash generation enhances financial flexibility, enabling strategic investments and providing a buffer against economic downturns.

Negative Factors

Stock Price Performance

Bearish momentum may reflect market concerns, potentially affecting investor sentiment and capital raising capabilities despite strong fundamentals.

Market Sentiment

Negative technical indicators suggest potential short-term volatility, which could impact investor confidence and stock liquidity.

Stock Price Decline

A significant stock price decline may signal market skepticism, potentially affecting future capital raising and investor relations.

Azeus Systems Holdings Ltd. Business Overview & Revenue Model

Company Description

Azeus Systems Holdings Ltd. is a technology company based in Hong Kong that specializes in providing IT solutions and services. The company operates primarily in the software development sector, offering a range of products that include customized software solutions, mobile applications, and enterprise resource planning (ERP) systems. Azeus is known for its commitment to delivering innovative technology solutions that cater to various industries, including government, healthcare, and education.

How the Company Makes Money

Azeus Systems Holdings Ltd. generates revenue through several key streams. The primary source of income comes from the sale of software licenses and custom software development projects, which cater to the specific needs of their clients. Additionally, the company earns revenue through maintenance and support services for its software products, ensuring that clients receive ongoing assistance and updates. Azeus also benefits from consulting services, helping clients optimize their IT infrastructure and strategies. Significant partnerships with governmental agencies and large enterprises further contribute to its earnings, as these relationships often lead to long-term contracts and recurring revenue opportunities.

Azeus Systems Holdings Ltd. Financial Statement Overview

Summary

Azeus Systems Holdings Ltd. exhibits outstanding financial performance across all verticals. The income statement reflects strong growth and high profitability, the balance sheet indicates financial stability with low leverage, and the cash flow statement shows robust cash generation. The company's financial health is strong, with efficient operations and effective capital management, positioning it well for future growth and stability.

Income Statement

Azeus Systems Holdings Ltd. demonstrates exceptional performance in its income statement metrics. The company has achieved a remarkable revenue growth rate of 555.28% in the latest year, indicating strong expansion. Gross profit margin stands at 76.63%, and net profit margin is at 35.16%, both of which are impressive and reflect high profitability. EBIT and EBITDA margins are also robust at 41.22% and 42.76%, respectively, showcasing efficient operational management. Overall, the income statement reveals strong growth and profitability.

Balance Sheet

The balance sheet of Azeus Systems Holdings Ltd. is solid, with a low debt-to-equity ratio of 0.11, indicating conservative leverage and financial stability. The return on equity is exceptionally high at 74.51%, reflecting efficient use of equity capital to generate profits. The equity ratio is approximately 50.74%, suggesting a healthy balance between equity and total assets. Overall, the balance sheet indicates a strong financial position with low leverage and high returns.

Cash Flow

The cash flow statement shows strong performance, with a significant free cash flow growth rate of 665.99%, highlighting substantial cash generation capabilities. The operating cash flow to net income ratio is 1.15, indicating that operating cash flows are well-aligned with net income. The free cash flow to net income ratio is 0.98, demonstrating efficient conversion of net income into free cash flow. Overall, the cash flow metrics reflect robust cash generation and efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	81.93M	474.80M	328.94M	252.91M	217.66M	30.81M
Gross Profit	62.81M	363.85M	233.51M	182.06M	157.60M	21.25M
EBITDA	34.47M	203.03M	100.69M	59.85M	57.39M	3.97M
Net Income	28.86M	166.95M	84.99M	50.54M	48.45M	4.09M
Balance Sheet
Total Assets	441.49M	441.49M	323.32M	254.37M	259.54M	38.43M
Cash, Cash Equivalents and Short-Term Investments	270.30M	270.30M	183.38M	103.26M	198.66M	27.04M
Total Debt	24.96M	24.96M	25.04M	3.16M	4.00M	1.60M
Total Liabilities	217.42M	217.42M	164.11M	120.89M	104.85M	17.82M
Stockholders Equity	224.06M	224.06M	159.20M	133.47M	154.69M	20.60M
Cash Flow
Free Cash Flow	33.79M	194.38M	96.47M	34.57M	57.42M	13.36M
Operating Cash Flow	34.41M	197.91M	102.31M	35.69M	58.05M	13.42M
Investing Cash Flow	-626.28K	-203.00K	-4.22M	-902.00K	-588.00K	-66.10K
Financing Cash Flow	-28.88M	-110.59M	-56.53M	-118.50M	-17.91M	-2.05M

Azeus Systems Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:BBW, the sentiment is Negative. The current price of 11.85 is below the 20-day moving average (MA) of 11.98, below the 50-day MA of 13.62, and below the 200-day MA of 13.54, indicating a bearish trend. The MACD of -0.51 indicates Negative momentum. The RSI at 38.80 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:BBW.

Azeus Systems Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8AZ	72 Outperform	S$490.09M	12.26	12.72%	17.32%	-50.75%	-61.46%
BBW	69 Neutral	S$355.50M	12.55	70.97%	5.55%	32.76%	54.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JLB	61 Neutral	S$317.24M	32.58	7.60%	0.32%	47.45%	51.05%
MZH	56 Neutral	S$404.07M	31.00	3.50%	1.11%	22.66%	83.49%
AWX	52 Neutral	S$579.75M	42.53	2.87%	―	4.60%	―

Azeus Systems Holdings Ltd. Corporate Events

Azeus Systems Updates on Hong Kong Government Recordkeeping Project

Azeus Systems Holdings Ltd has provided an update on its Central Electronic Recordkeeping System (CERKS) project for the Hong Kong SAR Government, initially valued at HK$1.02 billion. The project, which has entered its deployment phase, is progressing on schedule, though the number of users is expected to be lower than initially projected, potentially impacting revenue from license fees. However, the possibility of additional government agencies adopting the system could offset this variance, with final user numbers to be confirmed by September 2026.