Star Group Company Limited (1560) AI Stock Analysis

• Market Cap: HK$83.39M
• Dividend Yield: N/A
• Average Volume (3M): 29.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -52.37%
• EPS Growth: 15.93%
• Country: HK
• Employees: 116
• Sector: Industrials
• Sector Strength: 72
• Industry: Real Estate - Development
• EPS (TTM): -0.03
• Shares Outstanding: 641,498,000
• 10 Day Avg. Volume: 22,000
• 30 Day Avg. Volume: 29,333
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 0.10
• 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

• Rating: 41 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is significantly impacted by the company's poor financial performance, characterized by declining revenues, negative profit margins, and high financial leverage. Technical analysis indicates a bearish trend with neutral momentum indicators. Valuation is also a concern due to negative earnings and the absence of a dividend yield. These factors collectively result in a low overall stock score.

Star Group Company Limited Business Overview & Revenue Model

Company Description

Star Group Company Limited (1560) is a diversified enterprise primarily engaged in the manufacturing and distribution of various consumer products. The company operates across multiple sectors including electronics, household goods, and personal care, offering a wide range of core products designed to enhance everyday living. With a commitment to innovation and quality, Star Group aims to cater to both domestic and international markets, ensuring a strong presence in the competitive landscape.

How the Company Makes Money

Star Group Company Limited generates revenue through multiple streams, primarily from the sale of its manufactured products in various sectors. The company's core revenue model is based on direct sales to retailers and wholesalers, as well as online sales through e-commerce platforms. Additionally, the company engages in strategic partnerships with distributors and retailers, which helps expand its market reach and brand visibility. Key revenue streams include consumer electronics, home appliances, and personal care products, all of which contribute significantly to the company's overall earnings. Moreover, the company invests in research and development to innovate its product offerings, which can lead to increased sales and customer loyalty.

Star Group Company Limited Financial Statement Overview

Summary

Star Group Company Limited is facing substantial financial challenges. The income statement shows declining revenues and profitability, with negative profit margins and operational losses. The balance sheet reveals high financial leverage and decreasing equity, raising concerns about financial stability. Cash flow analysis highlights negative free cash flow and declining operating cash flow, pointing to liquidity issues. Overall, the company needs to address its operational inefficiencies and financial leverage to improve its financial health.

Income Statement

The company has experienced a significant decline in revenue and profitability. Gross Profit Margin and Net Profit Margin are negative due to high operational losses. Revenue has decreased from the previous year, indicating a downward trajectory. EBIT and EBITDA margins are also negative, reflecting substantial operational challenges.

Balance Sheet

The company's financial leverage is high, as indicated by a Debt-to-Equity Ratio greater than 1. The Equity Ratio has been decreasing, reflecting a decreasing proportion of equity in the company's capital structure. Return on Equity is negative, which suggests inefficiency in generating returns from shareholders' equity. The financial stability is concerning due to high liabilities relative to assets.

Cash Flow

The company exhibits negative Free Cash Flow and a significant decline in Operating Cash Flow. The Operating Cash Flow to Net Income Ratio is not calculable due to negative net income. Free Cash Flow growth has also been negative, indicating poor cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	744.48M	1.13B	1.24B	1.70B	78.44M	105.78M
Gross Profit	-148.65M	-276.86M	-123.00K	610.10M	62.69M	70.93M
EBITDA	-275.28M	-428.15M	-105.63M	409.19M	-14.66M	-7.23M
Net Income	-406.36M	-605.03M	-294.60M	329.93M	-37.13M	306.94M
Balance Sheet
Total Assets	2.37B	2.48B	4.02B	5.11B	5.30B	4.13B
Cash, Cash Equivalents and Short-Term Investments	11.04M	28.86M	49.50M	68.27M	129.01M	91.05M
Total Debt	1.38B	1.42B	2.30B	2.97B	3.50B	2.49B
Total Liabilities	1.58B	1.68B	2.61B	3.39B	3.92B	2.72B
Stockholders Equity	802.98M	817.54M	1.43B	1.73B	1.39B	1.42B
Cash Flow
Free Cash Flow	513.74M	1.02B	845.71M	802.14M	-873.13M	-115.38M
Operating Cash Flow	514.58M	1.02B	846.44M	806.92M	-871.56M	-114.68M
Investing Cash Flow	-21.32M	-9.29M	63.16M	-130.08M	11.47M	930.50M
Financing Cash Flow	-502.94M	-1.03B	-919.73M	-711.77M	901.51M	-848.14M

Star Group Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1560, the sentiment is Positive. The current price of 0.13 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.13, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.77 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1560.

Star Group Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0456	―	HK$106.35M	―	-37.65%	―	-54.13%	24.72%
1560	―	HK$83.39M	―	-40.52%	―	-52.37%	15.93%
0755	―	HK$70.53M	―	-61.82%	―	-46.78%	3.78%
0106	―	HK$86.60M	―	―	―	-81.13%	-71.68%

Star Group Company Limited Corporate Events

Star Group Asia Limited Announces Supplemental Information on Subsidiary Disposal

Star Group Asia Limited, a company incorporated in the Cayman Islands, has announced a supplemental disclosure regarding the disposal of one of its subsidiaries. The announcement provides additional information on the identity of the ultimate beneficial owner of the purchaser, Fortune Peace Holdings Limited, which is a Hong Kong-based investment holding company. The purchaser is owned by Mr. Ng Wing Chiu Raymond, Mr. Choi Chi Wan, and Soong Tze Man. The directors of Star Group Asia Limited have confirmed that the purchaser and its ultimate beneficial owners are independent third parties.

Star Group Asia Limited Reports Improved Interim Financial Performance Despite Revenue Decline

Star Group Asia Limited reported its interim results for the six months ending June 30, 2025, showing a significant reduction in revenue to HK$129,328,000 from HK$517,921,000 in the previous year. Despite a gross profit of HK$46,938,000, the company experienced a loss of HK$18,058,000 for the period, although this was an improvement from the HK$217,045,000 loss in the previous year. The results indicate challenges in the company’s financial performance, but also show some positive changes, such as gains from financial assets and a reduction in selling and administrative expenses.

Star Group Asia Limited Announces Subsidiary Disposal

Star Group Asia Limited, through its subsidiary Star Finance (BVI) Limited, has entered into a sale and purchase agreement to dispose of a subsidiary for HK$14,560,000. This transaction is classified as a discloseable transaction under Hong Kong’s Listing Rules, requiring notification and announcement. The completion of the sale is conditional upon certain terms, and the consideration amount is subject to adjustments based on the net asset value of the target company at completion.

Star Group Asia Limited Announces Upcoming Board Meeting

Star Group Asia Limited, incorporated in the Cayman Islands, has announced a board meeting scheduled for August 28, 2025. The meeting will address various matters, including the approval of unaudited interim results for the first half of 2025, potential interim dividend recommendations, and other business transactions.