Sanergy Group Ltd. (2459) AI Stock Analysis

• Market Cap: HK$237.69M
• Dividend Yield: N/A
• Average Volume (3M): 5.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: -20.20%
• EPS Growth: -33.73%
• Country: HK
• Employees: 188
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -0.06
• Shares Outstanding: 1,710,000,000
• 10 Day Avg. Volume: 4,967,229
• 30 Day Avg. Volume: 5,473,976
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -3.03
• 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

• Rating: 44 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Sanergy Group Ltd.'s overall stock score is primarily impacted by its poor financial performance, with significant declines in revenue and profitability. The technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively contribute to a low overall score.

Sanergy Group Ltd. Business Overview & Revenue Model

Company Description

Sanergy Group Limited manufactures and sells UHP graphite electrodes worldwide. Its products have applications in the automotive, infrastructure, construction, appliance, machinery, equipment, and transportation industries. The company is based in Wan Chai, Hong Kong. Sanergy Group Limited operates as a subsidiary of Otautahi Capital Inc.

How the Company Makes Money

Sanergy generates revenue through multiple streams, including the operation of its sanitation facilities, which charge users a fee for access to clean and safe toilets. Additionally, the company monetizes the waste collected from these facilities by converting it into organic fertilizer and renewable energy, which are then sold to agricultural businesses and energy companies. Significant partnerships with local governments and NGOs also contribute to its funding, enabling the expansion of its services and enhancing its capacity to generate income through waste management contracts and subsidies.

Sanergy Group Ltd. Financial Statement Overview

Summary

Sanergy Group Ltd. faces significant financial challenges with declining revenue, profitability, and cash flow. The balance sheet shows moderate leverage, but negative returns and cash flow issues raise concerns about financial stability and operational efficiency.

Income Statement

Sanergy Group Ltd. has experienced a significant decline in revenue and profitability over the past few years. The gross profit margin has turned negative, indicating cost issues, and the net profit margin has also deteriorated. Revenue has decreased significantly, and EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the return on equity has turned negative due to recent losses, and the equity ratio has decreased, indicating reduced financial stability.

Cash Flow

Cash flow analysis reveals negative free cash flow and operating cash flow, highlighting liquidity challenges. The free cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The company needs to improve cash generation to support operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.63M	56.95M	72.29M	115.52M	108.69M	108.54M
Gross Profit	-6.66M	-17.25M	841.00K	26.03M	22.83M	16.51M
EBITDA	-17.36M	-30.93M	-9.78M	17.81M	14.68M	6.25M
Net Income	-36.28M	-40.98M	-15.48M	7.50M	4.39M	4.19M
Balance Sheet
Total Assets	176.92M	173.97M	226.05M	205.85M	222.86M	209.57M
Cash, Cash Equivalents and Short-Term Investments	8.50M	10.94M	31.16M	11.68M	15.14M	12.69M
Total Debt	29.10M	31.28M	39.83M	31.97M	21.05M	8.62M
Total Liabilities	72.51M	68.22M	77.56M	72.93M	87.87M	76.36M
Stockholders Equity	104.41M	105.75M	148.49M	132.92M	134.99M	133.21M
Cash Flow
Free Cash Flow	-12.48M	-8.85M	-15.36M	738.00K	-274.00K	-10.96M
Operating Cash Flow	-8.56M	-3.14M	-6.09M	4.27M	6.28M	22.00M
Investing Cash Flow	-9.34M	-11.13M	-15.03M	-5.96M	-15.67M	-42.91M
Financing Cash Flow	7.06M	-3.87M	38.44M	-1.32M	12.38M	16.38M

Sanergy Group Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2459, the sentiment is Negative. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.14, and below the 200-day MA of 0.16, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 32.08 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2459.

Sanergy Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1938	74 Outperform	HK$444.90M	1.58	17.16%	―	-13.26%	63.38%
1203	71 Outperform	HK$834.99M	5.25	7.50%	3.76%	16.92%	146.69%
6890	64 Neutral	HK$227.34M	5.21	10.59%	―	-20.52%	-68.47%
1090	53 Neutral	HK$1.16B	-2.59	-16.40%	―	-8.38%	-86.16%
2459	44 Neutral	HK$237.69M	―	-30.61%	―	-20.20%	-33.73%
2738	41 Neutral	HK$171.00M	-0.26	-21.57%	―	-49.77%	-1095.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Sanergy Group Ltd. Corporate Events

Sanergy Group Announces Results of Rights Issue

Sanergy Group Limited, a company incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, announced the results of its Rights Issue, which aimed to issue up to 570 million new shares. As of the latest acceptance deadline, approximately 61.2% of the offered Rights Shares were subscribed, leaving 221,398,397 shares unsubscribed. The company has arranged for these unsubscribed shares to be placed with new investors, with any premium gained from this placement to be distributed to existing shareholders who did not take action, on a pro-rata basis. This strategic move is expected to impact the company’s capital structure and provide insights into shareholder engagement.

Sanergy Group Clarifies Rights Issue Details

Sanergy Group Limited, a company incorporated in the Cayman Islands, announced a clarification regarding its Rights Issue, Placing, and Change in Board Lot Size. The company clarified that it has not conducted any rights issue or specific mandate placing within the last 12 months, and the Rights Issue will not significantly increase the number of issued shares or market capitalization. This announcement ensures that the Rights Issue is not subject to shareholders’ approval under the Listing Rules, maintaining the company’s compliance and operational transparency.

Sanergy Group Ltd. Announces Rights Issue and Board Lot Size Change

Sanergy Group Ltd. has announced a proposed rights issue to raise approximately HK$45.6 million by issuing up to 570 million rights shares at a subscription price of HK$0.08 per share. This initiative is aimed at generating net proceeds of about HK$44.5 million, which will be available only to qualifying shareholders. Additionally, the company plans to change the board lot size for trading on the Stock Exchange from 2,000 shares to 20,000 shares, effective July 29, 2025. These strategic moves are expected to enhance the company’s financial flexibility and improve trading efficiency.

Sanergy Group Limited Successfully Passes All Resolutions at 2025 AGM

Sanergy Group Limited, a company incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, held its Annual General Meeting on May 19, 2025. During the meeting, all proposed ordinary resolutions were passed by shareholders, including the re-election of directors and the authorization for the board to fix directors’ remuneration and appoint auditors. The approval of these resolutions indicates strong shareholder support and positions the company for continued governance and operational stability.