Sunright Limited (S71) AI Stock Analysis

• Market Cap: S$27.02M
• Dividend Yield: N/A
• Average Volume (3M): 62.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -11.04%
• EPS Growth: -360.44%
• Country: SG
• Employees: 2,104
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.02
• Shares Outstanding: 122,806,000
• 10 Day Avg. Volume: 54,830
• 30 Day Avg. Volume: 62,970
• PEG Ratio: 0.01
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 25.49
• 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: 46 Neutral
• Price Target: S$0.20 ▼(-10.91% Downside)

Sunright Limited's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company faces significant challenges with declining revenues, negative profitability, and weak cash flow generation. Technical analysis indicates bearish momentum, with the stock trading below key moving averages. Additionally, the valuation is unattractive due to a negative P/E ratio and low dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Strong Gross Margin

A strong gross margin indicates efficient cost management and pricing power, which can sustain profitability even amid revenue challenges.

Manageable Leverage

Manageable leverage suggests financial stability, allowing the company to invest in growth opportunities without excessive debt burden.

Innovation and R&D

Continuous R&D investment supports product innovation, potentially increasing market share and driving long-term revenue growth.

Negative Factors

Declining Revenue

Declining revenue trends can limit growth potential and impact the company's ability to invest in future initiatives.

Negative Profitability

Negative profitability indicates operational inefficiencies and challenges in converting sales into profits, affecting long-term financial health.

Weak Cash Flow

Weak cash flow generation limits the company's ability to fund operations, invest in growth, and meet financial obligations.

Sunright Limited Business Overview & Revenue Model

Company Description

Sunright Limited (S71) is a dynamic company operating primarily in the solar energy sector. The company specializes in the development, manufacturing, and distribution of solar energy solutions, including photovoltaic panels and related technology. With a commitment to sustainability and innovation, Sunright Limited aims to provide high-efficiency solar products that cater to both residential and commercial markets, contributing to the global transition towards renewable energy sources.

How the Company Makes Money

Sunright Limited generates revenue through multiple streams, primarily by selling its solar panels and related products to distributors, installers, and end consumers. The company also offers installation services for its solar solutions, which adds to its revenue. Additionally, Sunright Limited may engage in partnerships with larger energy companies and government agencies to participate in joint ventures or projects that promote renewable energy initiatives, thus providing further financial returns. These partnerships often include long-term contracts that secure a steady income flow. The company's commitment to research and development also allows it to innovate and introduce new products, which can lead to increased market share and revenue growth.

Sunright Limited Financial Statement Overview

Summary

Sunright Limited faces challenges across its financial statements, with declining revenues and profitability issues impacting the income statement. The balance sheet shows manageable leverage but suffers from negative returns on equity. Cash flow generation is weak, with significant declines in free cash flow. While the company maintains a strong gross margin, overall financial health is compromised by declining revenues, negative profitability, and weak cash flow performance.

Income Statement

Sunright Limited's income statement shows a declining revenue trend with a negative revenue growth rate of -6.47% in the latest year. The gross profit margin remains strong at 86.46%, indicating efficient cost management. However, the net profit margin is negative at -7.57%, reflecting profitability challenges. The EBIT margin is also negative, suggesting operational inefficiencies. Overall, while the company maintains a high gross margin, declining revenues and negative net margins are concerning.

Balance Sheet

The balance sheet of Sunright Limited reveals a moderate debt-to-equity ratio of 0.26, indicating manageable leverage. However, the return on equity is negative at -8.42%, pointing to inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets. While leverage is under control, the negative ROE is a significant weakness.

Cash Flow

Sunright Limited's cash flow statement shows a significant decline in free cash flow growth at -63.31%, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is 0.22, indicating limited cash flow relative to net income. The free cash flow to net income ratio is 0.16, suggesting challenges in converting profits into free cash flow. Overall, the cash flow position is weak, with declining free cash flow and limited cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	76.97M	76.97M	82.03M	88.31M	100.72M	111.40M
Gross Profit	66.55M	66.55M	68.69M	71.43M	79.08M	80.73M
EBITDA	10.24M	10.24M	19.88M	11.15M	15.68M	25.13M
Net Income	-5.83M	-5.83M	2.23M	-3.11M	-3.98M	1.31M
Balance Sheet
Total Assets	158.92M	158.92M	172.16M	176.13M	168.61M	173.56M
Cash, Cash Equivalents and Short-Term Investments	87.64M	87.64M	99.64M	92.19M	78.42M	98.30M
Total Debt	18.09M	18.09M	26.00M	31.69M	13.12M	9.33M
Total Liabilities	36.29M	36.29M	44.95M	49.55M	32.52M	29.30M
Stockholders Equity	69.24M	69.24M	73.88M	72.27M	77.98M	84.08M
Cash Flow
Free Cash Flow	1.04M	1.04M	7.52M	-6.17M	-19.61M	-522.00K
Operating Cash Flow	6.64M	6.64M	12.53M	7.92M	9.53M	13.58M
Investing Cash Flow	2.74M	2.74M	-13.82M	-19.92M	2.87M	-16.09M
Financing Cash Flow	-9.88M	-9.88M	-8.61M	17.27M	408.00K	-6.06M

Sunright Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S71, the sentiment is Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.22, and above the 200-day MA of 0.20, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.08 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:S71.

Sunright Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BIX	54 Neutral	S$39.17M	29.49	2.00%	26.09%	4.89%	―
S71	46 Neutral	S$27.02M	-4.64	-8.14%	―	-11.04%	-360.44%