South China Holdings Company Limited (0413) AI Stock Analysis

• Market Cap: HK$441.42M
• Dividend Yield: N/A
• Average Volume (3M): 617.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: 1.26%
• EPS Growth: 64.00%
• Country: HK
• Employees: 8,502
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): >-0.01
• Shares Outstanding: 13,221,302,000
• 10 Day Avg. Volume: 1,209,442
• 30 Day Avg. Volume: 617,306
• PEG Ratio: -6.89
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 1.22
• 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: 53 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The stock's overall score reflects a cautious optimism due to improving financial performance and positive technical indicators. However, significant risks remain due to declining revenue and high debt levels. The lack of earnings call data and corporate events limits additional insights.

South China Holdings Company Limited Business Overview & Revenue Model

Company Description

South China Holdings Company Limited (0413) is a diversified investment holding company based in Hong Kong. The company operates in multiple sectors, including trading and manufacturing, property investment, and development. Its core products and services encompass a wide range of consumer and industrial goods, as well as property-related ventures.

How the Company Makes Money

South China Holdings Company Limited generates revenue through its diverse business operations across several sectors. In its trading and manufacturing segment, the company earns money by producing and selling various consumer and industrial products. The property investment and development division contributes to the company's earnings through the rental income from its property portfolio and the sale of developed properties. Additionally, the company may engage in strategic partnerships and joint ventures to enhance its business operations and revenue streams. However, specific details on significant partnerships or other contributing factors are not available.

South China Holdings Company Limited Financial Statement Overview

Summary

The company is showing signs of recovery with improved cash flow and a return to profitability in 2024. However, declining revenue and high debt levels remain significant challenges, impacting overall financial health.

Income Statement

The company shows a declining revenue trend over the recent years, with a significant drop from 2019 to 2024. Gross profit margin was stable around 14-16%, but net profit margin has been inconsistent, fluctuating from a high of 13.5% in 2019 to recent losses. The EBIT and EBITDA margins have been relatively stable but are not strong enough to offset the revenue decline. Recent years show a turnaround with a positive net income in 2024, indicating a potential recovery.

Balance Sheet

The balance sheet indicates a relatively high level of debt, with a debt-to-equity ratio that has improved slightly over the years. The equity ratio has remained stable, suggesting a balanced approach to asset funding. However, the return on equity is weak, showing limited profitability relative to shareholder equity. The company’s asset base has decreased, which could indicate divestments or impairments.

Cash Flow

The company has demonstrated improved operating cash flow over recent periods, moving from negative to positive figures. Free cash flow has also improved significantly from 2020 onwards, indicating better cash management and potential for reinvestment or debt reduction. The operating cash flow to net income ratio suggests efficient cash generation from operations despite previous losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.95B	3.23B	2.89B	3.81B	4.72B	4.09B
Gross Profit	386.38M	475.84M	479.36M	586.37M	525.85M	526.15M
EBITDA	267.14M	398.07M	342.41M	426.94M	391.52M	445.89M
Net Income	-11.93M	696.00K	-31.85M	74.73M	30.85M	69.78M
Balance Sheet
Total Assets	13.03B	12.97B	13.26B	13.54B	15.61B	14.86B
Cash, Cash Equivalents and Short-Term Investments	396.70M	628.16M	544.32M	450.63M	629.04M	597.21M
Total Debt	4.37B	4.00B	4.75B	4.54B	5.60B	5.24B
Total Liabilities	6.81B	6.85B	6.97B	7.05B	8.72B	8.18B
Stockholders Equity	5.90B	5.83B	6.00B	6.16B	6.55B	6.36B
Cash Flow
Free Cash Flow	346.20M	409.93M	105.55M	488.41M	-163.73M	-115.37M
Operating Cash Flow	388.74M	442.44M	124.53M	528.80M	-115.79M	-76.97M
Investing Cash Flow	-37.70M	-17.35M	57.55M	274.80M	-49.12M	-48.51M
Financing Cash Flow	-375.20M	-345.94M	-79.09M	-1.12B	58.19M	-335.31M

South China Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0413, the sentiment is Positive. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0413.

South China Holdings Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0114	73 Outperform	HK$344.56M	10.48	5.68%	10.34%	-1.07%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0413	53 Neutral	HK$441.42M	―	-0.20%	―	1.26%	64.00%
1005	47 Neutral	HK$351.63M	-1.55	-37.46%	3.85%	-13.08%	-21.27%
0361	47 Neutral	HK$525.33M	―	-7.42%	―	-5.36%	-63.16%
0180	43 Neutral	HK$198.67M	―	-10.53%	―	-7.61%	-37.66%
0381	41 Neutral	HK$269.93M	-0.90	-41.64%	―	19.25%	-263.84%

South China Holdings Company Limited Corporate Events

South China Holdings Clarifies New Tenancy Agreements

South China Holdings Company Limited announced the termination of existing tenancy agreements and the initiation of new ones for its subsidiaries, effective from August 2025 to August 2028. These transactions, involving Mr. Ng’s associates, are classified as one-off connected transactions and are subject to reporting and announcement requirements under Hong Kong’s Listing Rules, but are exempt from circular and independent shareholders’ approval.

South China Holdings Reports Interim Loss Amid Revenue Decline

South China Holdings Company Limited reported its unaudited interim results for the six months ending June 30, 2025. The company experienced a decrease in revenue from HK$1,168,503,000 in 2024 to HK$891,682,000 in 2025, resulting in a gross profit of HK$62,610,000. Despite other income and gains, the company reported a loss before tax of HK$65,646,000, with a total loss for the period amounting to HK$89,996,000. The financial results indicate ongoing challenges, impacting the company’s profitability and potentially affecting its market position.

South China Holdings Announces Board Meeting for Interim Results

South China Holdings Company Limited has announced a board meeting scheduled for August 20, 2025, to approve the interim results for the first half of the year and to consider the payment of an interim dividend. This announcement indicates the company’s ongoing financial evaluation and potential shareholder returns, reflecting its operational focus and commitment to transparency with stakeholders.