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Allied Group (HK:0373)
:0373
Hong Kong Market
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Allied Group (0373) AI Stock Analysis

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HK:0373

Allied Group

(0373)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
HK$3.00
▲(12.36% Upside)
The stock's overall score is primarily influenced by strong technical momentum, despite financial challenges. The reasonable valuation supports the score, but financial performance concerns and lack of dividend yield are notable risks.

Allied Group (0373) vs. iShares MSCI Hong Kong ETF (EWH)

Allied Group Business Overview & Revenue Model

Company DescriptionAllied Group Limited, an investment holding company, engages in the property investment and development, and financial service businesses in Hong Kong, Mainland China, and internationally. The company operates through Investment and Finance, Consumer Finance, Property Development, Property Investment, Property Management, and Elderly Care Services segments. The Investment and Finance segment is involved in the investment activities; and provision of mortgage loan and term loan financing services. The Consumer Finance segment offers consumer SME and other financing products. The Property Development segment engages in the development and sale of properties. The Property Investment segment is involved in the property rental, as well as hotel operations managed by third parties. The Property Management segment provides property management; and cleaning and security guarding. The Elderly Care Services segment elderly care services. The company also offers property holding; securities trading; money lending; consultancy; real estate agency; investment portfolio; corporate; and building management, maintenance, and cleaning services. In addition, it is involved in the medical equipment supplies distribution activities. The company is based in Wan Chai, Hong Kong. Allied Group Limited is a subsidiary of Lee and Lee Trust.
How the Company Makes MoneyAllied Group primarily generates revenue through its diversified business operations. In the financial services sector, the company earns income from investment management fees, advisory fees, and returns on its investment portfolios. In the property development segment, revenue is primarily derived from the sale, leasing, and management of residential and commercial properties. The manufacturing division contributes to the company's earnings by producing and selling industrial products. Additionally, Allied Group benefits from strategic partnerships and joint ventures that enhance its market reach and profitability. The company's diversified approach helps mitigate risks and capitalize on various market opportunities.

Allied Group Financial Statement Overview

Summary
Allied Group faces financial pressures, particularly in maintaining consistent revenue growth and profitability. The balance sheet reflects a leverage-heavy structure, while cash flows suggest operational challenges. To improve financial health, focus should be on enhancing revenue stability, managing debt, and aligning cash flows with profitability.
Income Statement
45
Neutral
The income statement reveals a volatile performance with declining revenue and profitability trends. The most recent year shows a sharp decline in net income, resulting in a negative net profit margin. Despite some periods of positive EBIT margins, the overall trajectory suggests challenges in maintaining stable revenue growth and profitability.
Balance Sheet
60
Neutral
The balance sheet shows a moderate level of stability with a reasonable equity ratio. However, the debt-to-equity ratio indicates a significant leverage, which could pose risks if not managed carefully. The overall equity has been relatively stable, but there is room for improvement in reducing debt levels to enhance financial health.
Cash Flow
35
Negative
Cash flow analysis indicates inconsistency, with periods of negative free cash flow and operating cash flow. The operating cash flow to net income ratio is difficult to assess due to negative net income figures, highlighting a need for better cash management and profitability alignment.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.28B6.46B7.30B8.26B6.02B4.95B
Gross Profit14.28B6.46B4.04B3.63B4.61B4.15B
EBITDA7.28B2.35B1.06B1.15B4.82B4.34B
Net Income1.13B-776.70M-125.40M-1.22B6.69B2.04B
Balance Sheet
Total Assets111.40B113.96B113.82B113.25B120.31B70.34B
Cash, Cash Equivalents and Short-Term Investments19.93B15.14B14.70B20.36B10.90B7.90B
Total Debt9.03B8.68B24.76B24.55B29.50B19.92B
Total Liabilities42.37B48.19B46.42B45.04B46.46B21.37B
Stockholders Equity44.63B42.52B43.54B43.11B46.21B37.02B
Cash Flow
Free Cash Flow5.21B6.79B1.03B12.28B-1.11B2.22B
Operating Cash Flow5.41B7.04B1.24B12.39B-1.00B2.29B
Investing Cash Flow77.30M-1.19B3.38B-4.51B2.55B1.09B
Financing Cash Flow-5.30B-5.19B-1.11B-5.99B490.30M-2.56B

Allied Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.67
Price Trends
50DMA
2.18
Positive
100DMA
1.90
Positive
200DMA
1.68
Positive
Market Momentum
MACD
0.11
Negative
RSI
66.66
Neutral
STOCH
72.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0373, the sentiment is Positive. The current price of 2.67 is above the 20-day moving average (MA) of 2.37, above the 50-day MA of 2.18, and above the 200-day MA of 1.68, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 66.66 is Neutral, neither overbought nor oversold. The STOCH value of 72.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0373.

Allied Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$1.61B2.6112.71%6.23%16.56%110.71%
69
Neutral
HK$6.84B4.577.87%10.73%0.59%-5.95%
68
Neutral
HK$1.41B3.879.89%7.51%1.11%3.98%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
67
Neutral
€7.69B6.485.71%6.58%28.71%
61
Neutral
HK$9.38B8.322.56%99.58%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0373
Allied Group
2.67
1.17
78.00%
HK:3903
Hanhua Financial Holding Co., Ltd. Class H
0.17
-0.09
-34.12%
HK:0086
Sun Hung Kai & Co. Limited
3.95
1.36
52.45%
HK:1601
Zhongguancun Science-Tech Leasing Co. Ltd. Class H
0.86
0.11
14.67%
HK:1905
Haitong Unitrust International Financial Leasing Co., Ltd Class H
0.81
0.12
17.39%
HK:2003
VCREDIT Holdings Limited
3.21
1.24
62.94%

Allied Group Corporate Events

Allied Group’s Conditional Offer for Dragon Mining Shares Remains Unfulfilled
Aug 1, 2025

Allied Group Limited, through its subsidiary Wah Cheong Development (B.V.I.) Limited, has made a conditional voluntary cash offer to acquire all issued shares of Dragon Mining Limited. As of August 1, 2025, the offer has not become unconditional, with the Offeror’s voting power in Dragon Mining at approximately 29.83%. Stakeholders are advised to exercise caution as the offer’s conditions remain unfulfilled, and further announcements will be made regarding the offer’s status.

Allied Group Delays Circular Dispatch for Major Transactions
Jul 11, 2025

Allied Group Limited has announced a delay in the dispatch of a circular related to major transactions, including the formation of a joint venture and the provision of shareholder’s loans. The company has received a waiver from the Stock Exchange of Hong Kong to extend the deadline for dispatching the circular to on or before July 24, 2025, due to the need for additional time to finalize certain information.

Allied Group Announces Dispatch of Response Document for Dragon Mining Acquisition Offer
Jun 23, 2025

Allied Group Limited, Dragon Mining Limited, and Wah Cheong Development (B.V.I.) Limited have jointly announced the dispatch of a response document related to a conditional voluntary cash offer by Morton Securities Limited on behalf of Wah Cheong to acquire all issued shares of Dragon Mining Limited. The response document, issued on 23 June 2025, includes recommendations and advice from the DML Board, Independent Board Committee, and Independent Financial Adviser, urging shareholders to carefully consider the offer. Shareholders and potential investors are advised to exercise caution and consult professional advisers if needed.

Allied Group Announces Delay in Offer Response Document
Jun 16, 2025

Allied Group Limited, along with Dragon Mining Limited and Wah Cheong Development, announced a delay in the despatch of a response document related to an offer, extending the deadline to June 23, 2025. This delay impacts the expected timetable of the offer, with the first closing date now extended to August 8, 2025, and stakeholders are advised to await the response document before making decisions.

Allied Group Announces Offer for Dragon Mining Shares and Strategic Withdrawal
Jun 2, 2025

Allied Group Limited has announced the dispatch of an offer document for a conditional voluntary cash offer by its subsidiary, Wah Cheong Development (B.V.I.) Limited, to acquire all issued shares of Dragon Mining Limited. The offer document outlines the details, terms, and expected timetable of the offer. Additionally, Allied Properties Resources Limited has withdrawn its offer and terminated a possible major transaction for APAC Resources Limited, indicating a strategic shift in their acquisition plans.

Allied Group’s AGM Sees Unanimous Approval of Resolutions
May 29, 2025

Allied Group Limited held its Annual General Meeting on May 29, 2025, where all proposed resolutions were passed with significant shareholder support. Key resolutions included the adoption of the audited financial statements for 2024, the re-election of directors, and the re-appointment of Deloitte Touche Tohmatsu as auditor. Additionally, mandates were granted to the directors for issuing and repurchasing shares, with no restrictions or abstentions reported among shareholders. The meeting underscored the company’s stable governance and shareholder confidence.

Allied Group Announces Conditional Cash Offer for Dragon Mining Shares
May 19, 2025

Allied Group Limited, through its subsidiary Wah Cheong Development (B.V.I.) Limited, has announced a conditional voluntary cash offer to acquire all issued shares of Dragon Mining Limited. The offer is priced at HK$2.60 per share, with a maximum acquisition of 111,218,886 shares, amounting to a total cash requirement of HK$289,169,103.60. The transaction is subject to regulatory approvals and is aimed at consolidating Allied Group’s position in the market.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 10, 2025