Safety Godown Co., Ltd. (0237) AI Stock Analysis

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Safety Godown Co., Ltd.

(0237)

Rating:50Neutral

Price Target:―

Safety Godown Co., Ltd. maintains a strong equity position and revenue growth, but persistent net losses and declining profitability are significant concerns. Weak technical indicators and a negative P/E ratio further challenge the stock's attractiveness, though the robust dividend yield offers some compensation. Overall, the company's financial stability is overshadowed by its need to improve profitability and regain positive market sentiment.

Safety Godown Co., Ltd. (0237) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap

HK$769.50M

Dividend Yield3.95%

Average Volume (3M)20.55K

Price to Earnings (P/E)―

Beta (1Y)0.16

Revenue Growth8.19%

EPS Growth32.85%

CountryHK

Employees35

SectorReal Estate

Sector Strength64

IndustryReal Estate - Services

Share Statistics

EPS (TTM)-0.17

Shares Outstanding405,000,000

10 Day Avg. Volume15,000

30 Day Avg. Volume20,553

Financial Highlights & Ratios

PEG Ratio0.11

Price to Book (P/B)0.19

Price to Sales (P/S)0.00

P/FCF Ratio28.19

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Safety Godown Co., Ltd. Business Overview & Revenue Model

Company DescriptionSafety Godown Co., Ltd. (0237) is a Hong Kong-based company primarily engaged in the business of warehousing and property investment. The company operates in two main segments: the godown operation and property investment. Its core services include providing storage and handling services for a wide range of goods, alongside investment and leasing of industrial and commercial properties to generate rental income.

How the Company Makes MoneySafety Godown Co., Ltd. generates revenue through its dual business model consisting of godown operations and property investment. The godown operation segment involves providing warehousing services, where the company charges clients for the storage and handling of various types of goods. The property investment segment contributes to the company's revenue by leasing out industrial and commercial properties, earning rental income. Significant factors contributing to its earnings include the strategic locations of its properties and the demand for storage solutions in the region. The company may also engage in partnerships or investments that enhance its property portfolio and service offerings, although specific details on such partnerships are null.

Safety Godown Co., Ltd. Financial Statement Overview

Summary

Safety Godown Co., Ltd. demonstrates strong revenue growth and a robust balance sheet with no debt, reflecting financial stability. However, persistent net losses and profitability challenges pose significant risks. The company needs to focus on improving its net profit margins to enhance overall financial health and market competitiveness.

Income Statement

Neutral

The company has shown revenue growth of 20.24% from 2023 to 2024 and improving EBIT and EBITDA margins at 56.89% and 70.27%, respectively. However, the company is facing challenges with profitability, as indicated by the negative net profit margin of -69.20% in 2024. This persisting net loss is a significant concern for the financial health of the company.

Balance Sheet

Positive

The company maintains a strong equity position with an equity ratio of 95.89% and no debt, indicating financial stability and low leverage risk. However, the negative net income affects the ROE, which remains negative, highlighting profitability issues despite strong asset management.

Cash Flow

Neutral

There is a modest increase in free cash flow from 2023 to 2024, with a growth rate of 1.77%. The operating cash flow to net income ratio is positive, indicating healthy operating cash flow despite net losses. However, the free cash flow to net income ratio is negative due to the consistent net losses, suggesting that profitability remains a key challenge.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
207.09M	177.19M	147.35M	123.25M	110.09M	137.93M
	Gross Profit
178.06M	123.22M	96.88M	69.89M	64.18M	93.51M
	EBIT
185.81M	100.82M	76.63M	52.34M	48.06M	74.92M
	EBITDA
130.24M	124.52M	102.45M	77.40M	70.59M	94.24M
	Net Income Common Stockholders
-70.72M	-122.65M	-188.29M	-84.54M	-147.58M	-292.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
215.18M	1.04B	961.26M	947.31M	1.09B	1.04B
	Total Assets
4.33B	4.05B	4.06B	4.18B	4.47B	4.66B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-215.18M	-18.28M	-99.31M	-139.17M	-247.97M	-161.87M
	Total Liabilities
133.75M	166.22M	155.46M	147.82M	143.61M	138.79M
	Stockholders Equity
4.20B	3.88B	3.90B	4.03B	4.32B	4.52B
Cash Flow		Free Cash Flow
26.58M	62.30M	61.22M	60.25M	60.97M	36.72M
	Operating Cash Flow
33.77M	77.27M	72.12M	69.66M	80.60M	54.35M
	Investing Cash Flow
-12.19M	-136.07M	-263.22M	-114.30M	263.47M	187.91M
	Financing Cash Flow
-28.59M	-22.23M	-32.24M	-210.04M	-48.49M	-145.47M

Safety Godown Co., Ltd. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.90

Price Trends

50DMA

1.88

Negative

100DMA

1.87

Negative

200DMA

1.87

Negative

Market Momentum

MACD

>-0.01

Positive

RSI

48.34

Neutral

STOCH

12.12

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0237, the sentiment is Negative. The current price of 1.9 is above the 20-day moving average (MA) of 1.86, above the 50-day MA of 1.88, and above the 200-day MA of 1.87, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 12.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0237.

Safety Godown Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0113	76 Outperform	$2.66B	10.33	7.44%	9.38%	-12.74%	-17.17%
0016	71 Outperform	$236.02B	13.55	2.88%	4.84%	20.91%	-29.29%
0083	70 Outperform	$73.20B	19.25	2.17%	7.24%	-30.38%	-43.73%
0012	68 Neutral	$117.65B	18.68	1.94%	7.78%	-7.64%	-32.01%
Sector *	60 Neutral	$2.76B	10.33	0.49%	8507.90%	5.95%	-17.56%
0237	50 Neutral	HK$769.50M	―	-1.81%	3.95%	8.19%	32.85%
0017	46 Neutral	$11.88B	―	-10.34%	10.65%	-56.64%	-3398.20%

* Real Estate Sector Average

Performance Comparison

HK:0237

Safety Godown Co., Ltd.

1.90

0.07

3.83%

HK:0113

Dickson Concepts (International)

6.88

2.35

52.01%

HK:0083

Sino Land Co

8.00

-0.29

-3.46%

HK:0017

New World Development

4.72

-4.38

-48.13%

HK:0016

Sun Hung Kai Properties

81.45

8.06

10.97%

HK:0012

Henderson Land Development Co

24.30

0.82

3.51%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.