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Apex Ace Holding Ltd. (HK:6036)
:6036
Hong Kong Market

Apex Ace Holding Ltd. (6036) AI Stock Analysis

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HK

Apex Ace Holding Ltd.

(6036)

Rating:48Neutral
Price Target:
Apex Ace Holding Ltd. presents a mixed financial outlook with strong revenue growth but challenges in profitability and cash flow. The technical indicators suggest a bearish trend with oversold conditions, while the high P/E ratio indicates potential overvaluation. These factors collectively result in a moderate overall score, emphasizing the need for improvements in profitability and cash flow to enhance financial stability.

Apex Ace Holding Ltd. (6036) vs. iShares MSCI Hong Kong ETF (EWH)

Apex Ace Holding Ltd. Business Overview & Revenue Model

Company DescriptionApex Ace Holding Ltd. (6036) is a company primarily engaged in the distribution of semiconductors and other electronic components. The company operates within the technology and electronics sectors, providing a variety of products essential for the production of consumer electronics, industrial electronics, and telecommunications equipment. Apex Ace Holding Ltd. focuses on maintaining a comprehensive inventory and supplying high-quality components to manufacturers and other clients across different industries.
How the Company Makes MoneyApex Ace Holding Ltd. generates revenue primarily through the sale and distribution of semiconductors and electronic components. The company's revenue model is based on maintaining partnerships with key suppliers and manufacturers, allowing it to offer a wide range of products to its customers. These products are sold to electronics manufacturers, who integrate them into their own products or systems. Apex Ace Holding Ltd.'s earnings are significantly influenced by market demand for electronic components, technological advances in the electronics sector, and its ability to efficiently manage supply chains and inventory. The company may also engage in value-added services, such as providing technical support or custom solutions for specific client needs, further enhancing its revenue streams.

Apex Ace Holding Ltd. Financial Statement Overview

Summary
Apex Ace Holding Ltd. shows significant revenue growth and improving profitability metrics. However, challenges persist in profitability and cash flow generation, with high leverage posing potential risks. Stability is observed in the equity ratio, suggesting a stable asset base. Improving cash flow and profitability margins will be crucial for financial health.
Income Statement
65
Positive
The company shows a positive revenue growth of 20.6% in 2024, indicating strong sales performance. Gross profit margin improved slightly to 5.8% from the previous year's 6.5%. However, net profit margin remains low at 0.2%, showing a significant improvement from a negative net income in 2023. EBIT and EBITDA margins are improving, but they are still relatively low at 1.2% and 1.6%, respectively, suggesting that profitability is still a challenge.
Balance Sheet
60
Neutral
The debt-to-equity ratio is high at 2.3, indicating significant leverage and potential financial risk. However, the company maintains a reasonable equity ratio of 22.4%, suggesting a stable asset base. ROE improved to 2.3%, a positive sign of growing profitability, but it remains low, reflecting challenges in generating returns on equity.
Cash Flow
50
Neutral
Cash flow from operations has improved from a significant negative in 2023 to break-even in 2024, but free cash flow remains minimal. The lack of positive free cash flow indicates potential challenges in funding operations internally. The ratio of operating cash flow to net income is challenging to calculate due to minimal cash flow, suggesting operational cash constraints.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.05B2.53B2.69B2.64B1.76B
Gross Profit
177.71M164.00M114.88M226.07M139.03M
EBIT
35.72M24.95M-13.97M75.43M28.54M
EBITDA
49.45M43.62M-2.02M42.88M16.85M
Net Income Common Stockholders
6.72M-16.16M-33.04M16.62M121.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
141.70M96.52M99.56M143.74M95.04M
Total Assets
1.29B1.35B1.01B1.09B1.03B
Total Debt
672.45M828.16M508.51M539.77M479.70M
Net Debt
530.75M741.99M408.95M396.03M384.66M
Total Liabilities
968.70M1.03B670.88M753.77M707.03M
Stockholders Equity
289.31M280.62M311.16M304.83M293.41M
Cash FlowFree Cash Flow
0.00-280.65M25.83M1.73M-238.20M
Operating Cash Flow
0.00-279.55M27.83M3.57M-229.37M
Investing Cash Flow
0.00-1.73M-15.16M-1.84M-8.83M
Financing Cash Flow
0.00278.63M-64.45M46.16M121.01M

Apex Ace Holding Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.44
Price Trends
50DMA
0.47
Negative
100DMA
0.59
Negative
200DMA
0.58
Negative
Market Momentum
MACD
-0.02
Negative
RSI
43.11
Neutral
STOCH
76.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6036, the sentiment is Negative. The current price of 0.44 is below the 20-day moving average (MA) of 0.45, below the 50-day MA of 0.47, and below the 200-day MA of 0.58, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 43.11 is Neutral, neither overbought nor oversold. The STOCH value of 76.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6036.

Apex Ace Holding Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$137.03B23.1622.73%2.92%0.94%-32.06%
76
Outperform
$38.72B10.618.59%5.60%20.21%23.24%
62
Neutral
$11.96B10.09-7.50%3.10%7.33%-8.11%
48
Neutral
HK$467.67M69.052.38%20.64%
44
Neutral
€1.93B7.16-3.47%-5.61%-197.33%
39
Underperform
$31.26M-132.74%-28.11%25.96%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6036
Apex Ace Holding Ltd.
0.44
-0.02
-4.35%
HK:2028
Jolimark Holdings
0.05
-0.03
-40.70%
HK:0873
Shimao Services Holdings Limited
0.78
-0.07
-8.24%
HK:1929
Chow Tai Fook Jewellery Group
12.72
4.38
52.43%
HK:2380
China Power International Development
3.12
-0.49
-13.50%

Apex Ace Holding Ltd. Corporate Events

Apex Ace Holding Limited Announces 2025 AGM and Key Resolutions
Apr 25, 2025

Apex Ace Holding Limited has announced its upcoming annual general meeting scheduled for May 21, 2025, where shareholders will consider adopting the audited financial statements for the year ended December 31, 2024. The meeting will also address the re-election of directors, the authorization of the board to fix directors’ remuneration, the re-appointment of the company’s independent auditor, and a resolution granting the board a mandate to repurchase up to 10% of the company’s issued shares.

Apex Ace Holding Ltd. Announces Changes in Nomination Committee
Apr 1, 2025

Apex Ace Holding Limited, a company incorporated in the Cayman Islands, has announced changes in the composition of its Nomination Committee. Effective from April 1, 2025, Ms. Lo Yuen Lai, an executive director, and Mr. Cheung Hung Kwong, an independent non-executive director, have been appointed as members of the Nomination Committee. This change reflects the company’s ongoing efforts to strengthen its governance structure.

Apex Ace Holding Ltd. Announces New Board Composition
Apr 1, 2025

Apex Ace Holding Limited has announced the composition of its board of directors effective April 1, 2025. The board comprises executive directors, non-executive directors, and independent non-executive directors, with Mr. Lee Bing Kwong serving as Chairman and CEO. The board has also established three committees: Audit, Remuneration, and Nomination, with specific directors assigned to each committee.

Apex Ace Holding Limited Reports Financial Turnaround in 2024
Mar 28, 2025

Apex Ace Holding Limited reported a significant financial turnaround for the year ended December 31, 2024, with a revenue increase of 20.6% to approximately HK$3,051.9 million and a net profit of HK$6.7 million, compared to a net loss in the previous year. This financial improvement reflects the company’s strengthened market position and operational efficiency, potentially enhancing stakeholder confidence and industry competitiveness.

Apex Ace Holding Limited Issues Positive Profit Alert for FY2024
Mar 19, 2025

Apex Ace Holding Limited has announced a positive profit alert, expecting a net profit ranging from HK$1.0 million to HK$5.0 million for the fiscal year 2024, a significant turnaround from the HK$16.2 million net loss recorded in 2023. This improvement is attributed to increased gross profit from better sales performance and higher other income, despite rising selling expenses and finance costs, indicating a positive shift in the company’s financial health.

Apex Ace Holding Schedules Board Meeting to Approve 2024 Financial Results
Mar 18, 2025

Apex Ace Holding Limited has announced a board meeting scheduled for March 28, 2025, to discuss and approve the audited consolidated financial results for the year ending December 31, 2024. The meeting will also consider the recommendation for the payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.

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.