Sterling Group Holdings Limited (1825) AI Stock Analysis

• Market Cap: HK$55.30M
• Dividend Yield: N/A
• Average Volume (3M): 546.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• 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: 898,000
• 30 Day Avg. Volume: 546,666
• 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: 1

• Rating: 53 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Sterling Group Holdings Limited's overall stock score reflects significant financial challenges, with high leverage and declining profitability. However, positive technical indicators suggest some short-term bullish momentum. The negative P/E ratio and lack of dividend yield weigh heavily on the valuation, limiting the stock's attractiveness.

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: Positive
• Last Price: 0.16
• 50DMA: Positive
• 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:1825, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.12, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 60.91 is Neutral, neither overbought nor oversold. The STOCH value of 71.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2223	55 Neutral	94.12M	-7.12	0.00%	―	-9.34%	-177.30%
1825	53 Neutral	HK$55.30M	―	-21.24%	―	-16.39%	81.31%
0048	53 Neutral	29.59M	0.67	15.29%	―	38.42%	172.61%
8507	51 Neutral	73.60M	122.67	3.55%	―	38.70%	0.00%
1968	50 Neutral	104.32M	-3.70	-14.52%	―	17.91%	20.40%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Sterling Group Holdings Limited Corporate Events

Sterling Group Holdings Announces 2025 AGM Details

Sterling Group Holdings Limited has announced the details of its 2025 Annual General Meeting, scheduled for September 29, 2025, in Hong Kong. Key resolutions include the adoption of audited financial statements, re-election of directors, re-appointment of auditors, and authorization for the board to manage share allotments. These decisions are crucial for maintaining corporate governance and ensuring strategic growth, impacting stakeholders by potentially influencing the company’s market positioning and operational strategies.

Sterling Group Announces Key Administrative Changes

Sterling Group Holdings Limited has announced a change in key personnel, with Mr. Wong Sai Hung resigning from his roles as company secretary, authorized representative, and process agent, effective July 11, 2025. Mr. Wong leaves without any disagreements with the board, and the company expresses gratitude for his contributions. Mr. Chow Yun Cheung, a seasoned professional with over 20 years of experience in accounting, corporate finance, and compliance, has been appointed to fill these roles, signaling a smooth transition in the company’s administrative functions.

Sterling Group Holdings Reports Decreased Revenue but Improved Net Loss for 2025

Sterling Group Holdings Limited reported its audited annual results for the year ended 31 March 2025, showing a decrease in revenue from HK$571,391 thousand in 2024 to HK$477,728 thousand in 2025. The company experienced a net loss of HK$6,143 thousand, an improvement from the previous year’s loss of HK$18,360 thousand. Despite the decline in revenue, the gross profit margin increased to 18.3% from 16.1%. The results reflect ongoing challenges in managing costs and credit losses, impacting the company’s financial performance and stakeholder interests.

Sterling Group Faces Loan Covenant Breach with HSBC

Sterling Group Holdings Limited announced a breach of financial covenants under its loan facilities with HSBC, which constitutes an event of default. The company is in discussions with the lender, who currently has no plans to demand immediate repayment of the outstanding HK$68.0 million. Sterling Group is seeking waivers from the lender, but the process will take time due to internal procedures.

Sterling Group Holdings Limited Forms Nomination Committee to Enhance Governance

Sterling Group Holdings Limited has announced the establishment of a Nomination Committee, as resolved by its board of directors. The committee will consist of at least three members, with a majority being independent non-executive directors, and will include at least one director of a different gender. This move is likely to enhance the company’s governance structure and ensure a diverse and independent oversight in its nomination processes, potentially impacting its operational transparency and stakeholder confidence.

Sterling Group Faces Board Compliance Challenge After Director Resignation

Sterling Group Holdings Limited announced the resignation of Mr. Chow Yun Cheung as an independent non-executive director, effective June 20, 2025, to focus on other business commitments. This resignation results in non-compliance with Hong Kong Stock Exchange listing rules, as the company now lacks the required number of independent non-executive directors on its board and audit committee. Sterling Group is actively seeking suitable candidates to fill these vacancies within the next three months.

Sterling Group Holdings Limited Announces Board Composition and Roles

Sterling Group Holdings Limited has announced the composition of its board of directors and the roles and functions of each member. The board comprises both executive and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This announcement highlights the company’s commitment to maintaining a structured governance framework, which is crucial for its operational efficiency and stakeholder confidence.

Sterling Group Holdings Schedules Board Meeting for Fiscal Year Results

Sterling Group Holdings Limited has announced a board meeting scheduled for June 30, 2025, to discuss and approve the final results for the fiscal year ending March 31, 2025. The meeting will also consider the payment of a final dividend, which could impact shareholder returns and reflect the company’s financial health.