Sterling Group Holdings Limited (1825) AI Stock Analysis

• Market Cap: HK$53.91M
• Dividend Yield: N/A
• Average Volume (3M): 517.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -16.39%
• EPS Growth: 81.31%
• Country: HK
• Employees: 1,254
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.03
• Shares Outstanding: 345,600,000
• 10 Day Avg. Volume: 139,250
• 30 Day Avg. Volume: 517,000
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Sterling Group Holdings Limited's overall stock score is primarily impacted by its financial performance, which reflects significant challenges, including high leverage and declining profitability. The technical analysis suggests some potential for short-term recovery, but the valuation remains unattractive due to negative earnings. The absence of earnings call data and corporate events means these factors do not influence the score.

Sterling Group Holdings Limited Business Overview & Revenue Model

Company Description

Sterling Group Holdings Limited, an investment holding company, manufactures and trades in apparel products in Hong Kong, the United States, the United Kingdom, Italy, and internationally. The company offers outerwear, including jackets, coats, and blazers; bottoms, such as pants, shorts, and skirts; tops comprising shirts, blouses, and tank tops; and other products that include dresses, suits, gowns, scarfs, jumpsuits, sleepwear, masks, and vests. It also manages and licenses trademarks. The company serves international apparel brand customers. Sterling Group Holdings Limited was founded in 1993 and is headquartered in San Po Kong, Hong Kong.

How the Company Makes Money

Sterling Group Holdings Limited generates revenue through multiple streams. The primary revenue sources include management fees from its financial services division, rental income from its real estate holdings, and profits from technology ventures. The company often enters into strategic partnerships with other firms to enhance its market position and expand its service offerings. Additionally, the company capitalizes on market trends by investing in high-growth sectors, allowing it to diversify its income and mitigate risks associated with economic fluctuations.

Sterling Group Holdings Limited Financial Statement Overview

Summary

Sterling Group Holdings Limited faces significant financial challenges, with declining revenues and profitability pressures. The company is highly leveraged, posing financial risks, although recent improvements in cash flow management offer some optimism. Overall, the financial statements reflect a company under financial strain, with a need for strategic improvements to enhance stability and profitability.

Income Statement

Sterling Group Holdings Limited has faced challenges in maintaining revenue growth, with a notable decline of 8.62% in the latest year. The company has struggled with profitability, evidenced by a negative net profit margin of -1.29% and a low EBIT margin of 1.01%. However, the gross profit margin has improved to 18.32%, indicating some efficiency in cost management. Overall, the income statement reflects a company under pressure with limited profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.58, indicating significant leverage and potential financial risk. The return on equity is negative at -20.14%, reflecting challenges in generating returns for shareholders. The equity ratio stands at 12.19%, suggesting a low proportion of equity financing. Overall, the balance sheet highlights financial instability and high leverage.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow growth at 146.48%, signaling better cash management. The operating cash flow to net income ratio is 0.30, indicating some ability to convert income into cash. The free cash flow to net income ratio is nearly 1, suggesting efficient cash generation relative to net income. Despite these improvements, historical volatility in cash flows remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	522.80M	477.73M	571.39M	623.43M	455.97M	371.28M
Gross Profit	92.49M	87.53M	87.40M	107.18M	61.07M	43.85M
EBITDA	16.31M	11.91M	495.00K	45.00M	-28.02M	-14.58M
Net Income	-7.19M	-6.14M	-18.36M	19.93M	-38.85M	-33.25M
Balance Sheet
Total Assets	304.03M	250.25M	321.48M	301.57M	324.24M	384.58M
Cash, Cash Equivalents and Short-Term Investments	22.61M	14.71M	26.96M	20.85M	33.39M	63.85M
Total Debt	121.61M	109.28M	194.10M	151.02M	189.93M	246.62M
Total Liabilities	268.26M	219.75M	294.15M	254.57M	297.39M	327.57M
Stockholders Equity	35.77M	30.50M	27.33M	47.00M	26.84M	57.00M
Cash Flow
Free Cash Flow	25.62M	63.16M	-18.66M	36.47M	17.02M	-15.02M
Operating Cash Flow	26.06M	63.44M	-16.79M	37.91M	19.49M	-13.41M
Investing Cash Flow	585.00K	10.32M	-8.41M	-3.71M	4.10M	-1.71M
Financing Cash Flow	-6.47M	-85.95M	31.38M	-45.96M	-51.81M	30.97M

Sterling Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1825, the sentiment is Neutral. The current price of 0.14 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.15, and above the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.10 is Neutral, neither overbought nor oversold. The STOCH value of 12.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1825.

Sterling Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8507	55 Neutral	HK$224.00M	373.33	3.64%	―	38.70%	―
2223	54 Neutral	HK$201.13M	―	-3.62%	―	-9.34%	-177.30%
0048	53 Neutral	HK$28.54M	0.64	25.65%	―	38.42%	172.61%
1825	46 Neutral	HK$53.91M	―	-21.24%	―	-16.39%	81.31%
1968	40 Underperform	HK$87.68M	-3.11	-11.54%	―	17.91%	20.40%

Sterling Group Holdings Limited Corporate Events

Sterling Group Holdings Reports Unanimous Approval of AGM Resolutions

Sterling Group Holdings Limited announced that all resolutions proposed at their 2025 Annual General Meeting were passed by shareholders. This includes the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting of mandates for share issuance and repurchase. The unanimous approval of these resolutions indicates strong shareholder support and positions the company for continued operational stability and strategic flexibility.

Sterling Group Holdings Appoints New Independent Director

Sterling Group Holdings Limited has announced the appointment of Ms. Wu Jing as an independent non-executive director and a member of the audit committee, effective from September 29, 2025. Ms. Wu brings over 15 years of experience in corporate financing and investment, having held significant roles in various companies. This strategic appointment is expected to enhance the company’s governance and oversight capabilities, potentially strengthening its position in the market.

Sterling Group Holdings Limited Announces Board Composition and Roles

Sterling Group Holdings Limited has announced the composition of its board of directors and their roles within the company. The board consists of both executive and independent non-executive directors, with Ms. Wong Mei Wai Alice serving as the Chairperson. The announcement outlines the membership of the board members in various committees, which include the Audit, Remuneration, and Nomination Committees. This organizational update is significant for stakeholders as it provides clarity on the governance structure and leadership roles within the company.

Sterling Group Holdings Appoints New Independent Director to Strengthen Governance

Sterling Group Holdings Limited has appointed Ms. Wu Jing as an independent non-executive director and a member of the audit committee, effective from September 18, 2025. Ms. Wu brings over 15 years of experience in corporate financing and investment, having held significant roles in various companies. Her appointment allows the company to re-comply with the listing rules of the Hong Kong Stock Exchange, enhancing its governance structure and potentially impacting its market position positively.

Sterling Group Holdings Updates Board Composition and Roles

Sterling Group Holdings Limited has announced the current composition of its board of directors, highlighting the roles and functions of each member. The board consists of both executive and independent non-executive directors, with Ms. Wong Mei Wai Alice serving as the chairperson. The announcement also details the membership of three board committees, indicating the leadership roles within the audit, remuneration, and nomination committees. This update on the board’s structure is crucial for stakeholders to understand the governance framework and decision-making hierarchy within the company.