Hitech Group Australia Limited (HIT) AI Stock Analysis

• Market Cap: AU$69.58M
• Dividend Yield: 6.08%
• Average Volume (3M): 21.95K
• Price to Earnings (P/E): 10.2
• Beta (1Y): -0.45
• Revenue Growth: -5.61%
• EPS Growth: 16.01%
• Country: AU
• Employees: 16
• Sector: Technology
• Sector Strength: 87
• Industry: Staffing & Employment Services
• EPS (TTM): 0.16
• Shares Outstanding: 42,300,000
• 10 Day Avg. Volume: 30,094
• 30 Day Avg. Volume: 21,946
• PEG Ratio: 0.73
• Price to Book (P/B): 9.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.61
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: AU$2.00 ▲(21.95%Upside)

Hitech Group Australia Limited scores well due to its strong financial performance, characterized by consistent profitability and robust cash flow. The technical analysis reflects a balanced market sentiment with slight bullish momentum, while the valuation indicates potential undervaluation with an appealing dividend yield. These factors combined suggest a solid investment opportunity.

Hitech Group Australia Limited Business Overview & Revenue Model

Company Description

Hitech Group Australia Limited (HIT) is an Australian-based company specializing in technology-driven solutions within the information technology and recruitment sectors. The company offers a range of services, including IT contracting, permanent recruitment, and consulting services to various industries. Hitech Group is known for its expertise in providing tailored recruitment solutions for both private and public sectors, addressing the specific needs of its clients by leveraging its extensive network and industry knowledge.

How the Company Makes Money

Hitech Group Australia Limited generates revenue primarily through its recruitment and IT contracting services. The company earns income by placing skilled professionals in temporary and permanent positions and charging fees for these placements. Additionally, Hitech Group benefits from consulting contracts where it provides expert advice and solutions to enhance clients' IT capabilities. Strong relationships with both clients seeking talent and candidates seeking employment are crucial to maintaining a steady flow of business. The company's earnings are further bolstered through strategic partnerships and long-term contracts with key clients across various sectors, which provide a stable and recurring revenue stream.

Hitech Group Australia Limited Financial Statement Overview

Summary

Hitech Group Australia Limited demonstrates strong financial health with consistent profitability and robust cash flow. The company has maintained stability in its balance sheet with low leverage and effective cash management. Despite minor fluctuations in revenue and equity ratios, the company's financial performance remains solid.

Income Statement

Hitech Group Australia Limited has shown healthy revenue growth with a significant increase from 2019 to 2024. Gross profit margins have remained stable, and the company has maintained a strong EBIT margin, indicating efficient cost management. The net profit margin is also strong, reflecting consistent profitability. While revenue decreased in 2024 compared to 2023, overall margins have improved, showcasing resilience in operations.

Balance Sheet

The company maintains a strong balance sheet with high equity relative to debt, reflected in a low debt-to-equity ratio. Equity has grown over the years, contributing to a stable financial position. However, the equity ratio fluctuates, indicating some variability in asset financing. Overall, the balance sheet reflects financial stability with manageable liabilities.

Cash Flow

Operating cash flow has been robust, consistently covering net income, which indicates strong cash generation ability. Free cash flow has shown growth, enabling the company to maintain liquidity and invest in growth opportunities. The consistent positive free cash flow to net income ratio suggests healthy cash management practices.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	63.89M	63.45M	74.36M	62.98M	42.05M	33.36M
Gross Profit	13.00M	12.81M	10.99M	9.30M	7.06M	6.11M
EBITDA	9.32M	8.59M	7.35M	6.51M	5.00M	4.21M
Net Income	6.81M	6.03M	5.44M	4.40M	3.64M	3.34M
Balance Sheet
Total Assets	16.92M	17.27M	15.36M	12.97M	11.10M	11.13M
Cash, Cash Equivalents and Short-Term Investments	9.71M	12.11M	10.58M	10.01M	6.61M	7.61M
Total Debt	625.73K	1.35M	2.42M	148.57K	250.47K	408.08K
Total Liabilities	6.17M	7.85M	7.75M	5.54M	4.79M	4.14M
Stockholders Equity	10.75M	9.42M	7.61M	7.43M	6.32M	6.99M
Cash Flow
Free Cash Flow	4.44M	6.42M	6.18M	7.47M	2.68M	5.47M
Operating Cash Flow	4.70M	6.46M	6.19M	7.49M	2.88M	5.72M
Investing Cash Flow	-259.86K	-35.77K	-76.45K	-59.22K	-225.64K	-265.04K
Financing Cash Flow	-4.90M	-4.90M	-5.54M	-4.03M	-3.65M	-3.77M

Hitech Group Australia Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.64
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HIT, the sentiment is Neutral. The current price of 1.64 is below the 20-day moving average (MA) of 1.66, above the 50-day MA of 1.63, and below the 200-day MA of 1.79, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 35.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:HIT.

Hitech Group Australia Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIT	75 Outperform	AU$69.58M	10.22	71.98%	6.08%	-5.61%	16.01%
ASH	67 Neutral	AU$25.20M	11.51	6.96%	9.14%	-7.92%	-61.32%
IGN	60 Neutral	€21.37M	20.83	13.66%	2.69%	-7.76%	―
PPE	52 Neutral	AU$78.26M	18.92	-2.93%	3.28%	-3.90%	-142.61%
Sector *	50 Neutral	AU$1.49B	1.75	-28.24%	3.26%	16.24%	-7.89%
AD1	46 Neutral	AU$7.32M	―	-245.01%	―	-17.50%	66.33%
HMI	45 Neutral	AU$7.65M	―	-79.98%	―	19.94%	58.99%

Hitech Group Australia Limited Corporate Events

Hitech Group Australia Limited Announces Dividend Distribution

Hitech Group Australia Limited has announced a new dividend distribution for shareholders, with a payment of AUD 0.05000000 per share. The dividend, related to the six-month period ending on December 31, 2024, will be paid on March 20, 2025. This decision reflects the company’s ongoing commitment to delivering value to its shareholders and may influence investor perceptions positively.

HiTech Group Reports Strong H1 FY2025 Results Amid Growing ICT Demand

HiTech Group Australia Limited reported a strong financial performance for the first half of FY2025, with a 14% increase in net profit before tax and an 8% rise in EBITDA. The company attributes its growth to the robust demand for ICT talent and services, supported by its strategic positioning and strong financial standing. HiTech’s inclusion on key Federal Government supplier panels and its efficient operations with leading margins and zero debt place it well for continued growth, including regional expansion and targeted acquisitions.

HiTech Group Australia Reports Strong Half-Year Financial Performance

HiTech Group Australia Limited reported a 2% increase in revenues to $34,783,470 for the half-year ending December 31, 2024, alongside a significant 29% rise in net profit after tax attributable to members, totaling $3,441,827. The company announced an interim dividend of 5 cents per share, fully franked, maintaining the same rate as the previous period, reflecting its stable financial performance and commitment to shareholder returns.