Steve Leung Design Group Limited (2262) AI Stock Analysis

Steve Leung Design Group Limited

(HKEX:2262)

Select Model

Rating:48.1Neutral

Price Target:HKD 0.32▼(-0.92% Downside)

Action:reiterated

Date:08/19/26

The overall score reflects mid-tier but improving financials supported by deleveraging and a return to profitability, weighed down by a weak technical picture with the share price in a clear downtrend and deeply oversold, and a demanding valuation with a high P/E and no dividend, leaving limited margin of safety despite the recovery trajectory.

Positive Factors

Profitability recoveryThe return to profitability and renewed revenue growth indicate that the group has regained operating traction after a weaker period. If maintained, improved operating performance can strengthen internal funding capacity and provide a firmer base for project-led expansion over the next several quarters.

Negative Factors

Thin earnings powerDespite the return to profit, the group retains limited earnings cushion relative to revenue. Thin margins leave less room to absorb project execution pressures or cost changes, and they constrain the amount of revenue growth that can translate into durable bottom-line and shareholder returns.

Steve Leung Design Group Limited (2262) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 370.95M
Dividend Yield: ―
Average Volume (3M): 750.86K
Price to Earnings (P/E): 31.3
Beta (1Y): 0.45
Revenue Growth: 4.28%
EPS Growth: 25.30%
Country: Hong Kong
Employees: 393
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Steve Leung Design Group Limited Business Overview & Revenue Model

Company Description

Steve Leung Design Group Limited is a prominent architectural and interior design firm that delivers its services across mainland China, Hong Kong, and various international locations. The company's operations are segmented into three core areas: Int...

How the Company Makes Money

The group primarily makes money by charging fees for design-related professional services and by earning income from delivering interior fit-out and related project works. Key revenue streams typically include: 1) Design consultancy fees: Revenue is...

Steve Leung Design Group Limited Financial Statement Overview

Summary

Financial performance is mid-tier: income, balance sheet, and cash flow scores (48, 62, and 55) show a recovery to modest profitability, deleveraging, and positive cash generation, but with thin margins, low returns on equity, and structurally weaker cash and asset levels than in prior strong years.

Income Statement

48Neutral

Balance Sheet

62Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	414.80M	422.70M	367.69M	355.80M	381.00M	455.04M
Gross Profit	163.43M	161.14M	146.82M	139.03M	139.25M	188.90M
EBITDA	41.83M	40.82M	38.84M	13.19M	-19.89M	49.82M
Net Income	11.92M	11.19M	1.80M	-18.84M	-62.44M	2.94M
Balance Sheet
Total Assets	507.27M	517.81M	497.35M	497.86M	523.08M	649.84M
Cash, Cash Equivalents and Short-Term Investments	148.95M	153.47M	140.88M	148.89M	153.34M	276.96M
Total Debt	39.33M	46.56M	61.70M	75.27M	71.16M	66.20M
Total Liabilities	167.80M	187.49M	183.29M	181.80M	183.88M	171.96M
Stockholders Equity	329.36M	319.42M	303.27M	304.54M	326.42M	466.92M
Cash Flow
Free Cash Flow	48.38M	42.89M	27.43M	20.56M	-40.03M	60.96M
Operating Cash Flow	50.78M	44.31M	29.99M	21.72M	-35.21M	66.83M
Investing Cash Flow	1.70M	2.67M	-2.11M	-671.00K	26.47M	-29.33M
Financing Cash Flow	-23.50M	-39.48M	-34.64M	-24.42M	-75.81M	-69.90M

Steve Leung Design Group Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price0.33

Price Trends

50DMA0.38Negative

100DMA0.46Negative

200DMA0.61Negative

Market Momentum

MACD-0.02Negative

RSI0.42Positive

STOCH50.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2262, the sentiment is Negative. The current price of 0.33 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.38, and below the 200-day MA of 0.61, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 0.42 is Positive, 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 Negative sentiment for HK:2262.

Steve Leung Design Group Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

HK:2262 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:0240	84Outperform	HKD 1.73B	3.76	15.72%	12.19%	-12.79%	-0.62%
HK:8411	76Outperform	HKD 159.52M	13.24	26.35%	5.63%	126.12%	―
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HK:2221	57Neutral	HKD 142.92M	-2.18	-16.86%	―	-20.67%	37.35%
HK:2262	48Neutral	HKD 370.96M	31.25	3.68%	―	4.28%	25.30%
HK:0896	47Neutral	HKD 316.56M	-0.35	-31.01%	―	-22.33%	-203.23%
HK:0406	34Underperform	HKD 216.84M	-1.07	-15.28%	―	13.50%	-106.11%

* Industrials Sector Average

Performance Comparison

HK:2262 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:2262	Steve Leung Design Group Limited	0.33	-0.78	-70.45%
HK:0240	Build King Holdings	1.39	-0.01	-0.43%
HK:0896	Hanison Construction Holdings	0.29	0.05	19.43%
HK:0406	Yau Lee Holdings Limited	0.49	-0.20	-29.29%
HK:2221	New Concepts Holdings Ltd	0.61	-0.38	-38.38%
HK:8411	K W Nelson Interior Design and Contracting Group Limited	0.16	0.09	138.81%

Steve Leung Design Group Limited Corporate Events

Steve Leung Design Group narrows revenue dip but boosts interim profit

Aug 11, 2026

Steve Leung Design Group reported unaudited interim revenue of HK$186.7 million for the six months to 30 June 2026, down slightly from HK$194.6 million a year earlier, while profit attributable to equity owners improved to HK$2.3 million and basic ea...

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: Aug 06, 2026

Steve Leung Design Group Limited AI Stock Analysis