| Valuation method | Value, HK$ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 0.69 | 6760 |
Evershine Group Holdings Limited is a Hong Kong-based conglomerate with a highly diversified business portfolio spanning multiple sectors across Greater China and Turkey. The company operates through several distinct segments including chrome ore trading, property development and investment, money lending services, mobile application development, cemetery operations, and fashion garment retail. Founded in 1997 and headquartered in Wan Chai, Hong Kong, Evershine demonstrates a unique conglomerate structure that combines traditional industrial activities with emerging digital services. The company's property segment engages in building construction and property leasing, while its technology division focuses on mobile game development and application publishing. Evershine's geographic reach extends to mainland China, Hong Kong, and Turkey, providing some regional diversification. This diversified approach positions Evershine as a multifaceted industrial conglomerate operating at the intersection of traditional commodities, real estate, financial services, and digital technology sectors in Asian markets.
Evershine Group presents significant investment risks based on its FY2019 financial performance. The company reported a substantial net loss of HKD 93.08 million despite generating HKD 3.44 million in revenue, indicating severe operational challenges and potential structural issues. Negative operating cash flow of HKD 4.20 million combined with high total debt of HKD 179.75 million raises serious liquidity concerns. The company's extremely diversified but seemingly unrelated business segments may indicate a lack of strategic focus, while the negative earnings per share of HKD -0.0516 and absence of dividend payments further diminish investment appeal. The low beta of 0.445 suggests some defensive characteristics, but the overall financial health appears precarious, making this a high-risk investment proposition suitable only for speculative investors comfortable with significant potential losses.
Evershine Group operates in a challenging competitive position due to its extremely diversified but seemingly disconnected business portfolio. The company lacks clear competitive advantages in any single segment, competing against specialized players in each industry. In property development, it faces established Hong Kong and Chinese real estate giants with superior scale and expertise. In chrome ore trading, it competes with commodity trading specialists with stronger global networks. The mobile gaming segment pits Evershine against well-funded tech companies with deeper technological capabilities and larger user bases. The cemetery business faces competition from specialized funeral service providers with established reputations. The company's main potential advantage lies in its conglomerate structure, which could provide diversification benefits, but this appears theoretical given the poor financial performance across segments. The lack of scale in any individual business line, combined with negative cash flows and high debt levels, severely limits Evershine's ability to compete effectively against focused competitors in any of its operating segments. The company's geographic spread across Hong Kong, China, and Turkey adds operational complexity without demonstrating clear strategic benefits.