Hitech Group Australia Limited (HIT) AI Stock Analysis

• Market Cap: AU$75.51M
• Dividend Yield: 5.6%
• Average Volume (3M): 18.89K
• Price to Earnings (P/E): 11.1
• Beta (1Y): -0.45
• Revenue Growth: -5.61%
• EPS Growth: 16.01%
• Country: AU
• Employees: 16
• Sector: Technology
• Sector Strength: 91
• Industry: Staffing & Employment Services
• EPS (TTM): 0.08
• Shares Outstanding: 42,300,000
• 10 Day Avg. Volume: 20,280
• 30 Day Avg. Volume: 18,888
• PEG Ratio: 0.69
• Price to Book (P/B): 6.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.21
• 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: AU$2.00
• Price Target Upside: 12.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: AU$2.00 ▲(12.36%Upside)

Hitech Group Australia Limited exhibits strong financial health with consistent profitability, robust cash flow, and low leverage, which are significant strengths. The valuation is considered reasonable with a good dividend yield, enhancing its attractiveness. However, technical indicators suggest a lack of strong momentum, which slightly dampens the overall outlook.

Hitech Group Australia Limited Business Overview & Revenue Model

Company Description

HiTech Group Australia Limited provides recruitment services for permanent and contract staff to the information and communications technology (ICT) industry in public and private sectors in Australia. Its ICT contracting services include the provision of ICT professionals for temporary and other non-permanent staffing needs of clients for specific projects. The company also offers personnel services to other sectors, such as office administration, sales and marketing, and finance; and digital services to government departments to initiate and complete digital transformation projects. It serves telco, finance, healthcare, consulting, IT, and FMCG industries, as well as federal and state governments. HiTech Group Australia Limited was incorporated in 1993 and is based in Sydney, Australia.

How the Company Makes Money

Hitech Group Australia Limited generates revenue primarily through its recruitment services, where it earns fees for successfully placing candidates in various ICT roles. These fees can be one-time payments for direct placements or ongoing fees for contract and temporary staffing arrangements. The company's revenue is bolstered by its strong relationships with a broad range of clients, including government agencies and leading corporations, ensuring a steady demand for its recruitment services. Additionally, HIT may engage in strategic partnerships or alliances that enhance its service offerings and market reach, further contributing to its earnings.

Hitech Group Australia Limited Financial Statement Overview

Summary

Hitech Group Australia Limited exhibits strong financial health with consistent profitability and robust cash flow. The company maintains stability in its balance sheet with low leverage and effectively generates cash flow to support operations and investments. While there are minor fluctuations in revenue and equity ratios, the overall 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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	63.45M	74.36M	62.98M	42.05M	33.36M
Gross Profit	12.81M	10.99M	9.30M	7.06M	6.11M
EBITDA	8.59M	7.35M	6.51M	5.00M	4.21M
Net Income	6.03M	5.44M	4.40M	3.64M	3.34M
Balance Sheet
Total Assets	17.27M	15.36M	12.97M	11.10M	11.13M
Cash, Cash Equivalents and Short-Term Investments	12.11M	10.58M	10.01M	6.61M	7.61M
Total Debt	1.35M	2.42M	148.57K	250.47K	408.08K
Total Liabilities	7.85M	7.75M	5.54M	4.79M	4.14M
Stockholders Equity	9.42M	7.61M	7.43M	6.32M	6.99M
Cash Flow
Free Cash Flow	6.42M	6.18M	7.47M	2.68M	5.47M
Operating Cash Flow	6.46M	6.19M	7.49M	2.88M	5.72M
Investing Cash Flow	-35.77K	-76.45K	-59.22K	-225.64K	-265.04K
Financing Cash Flow	-4.90M	-5.54M	-4.03M	-3.65M	-3.77M

Hitech Group Australia Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HIT, the sentiment is Positive. The current price of 1.78 is above the 20-day moving average (MA) of 1.63, above the 50-day MA of 1.64, and above the 200-day MA of 1.77, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 75.68 is Negative, neither overbought nor oversold. The STOCH value of 71.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	73 Outperform	AU$75.51M	11.09	71.98%	5.60%	-5.61%	16.01%
ASH	65 Neutral	AU$24.48M	11.18	6.96%	6.12%	-7.92%	-61.32%
Sector *	63 Neutral	$34.72B	5.19	-11.20%	1.67%	5.59%	-16.73%
C4R	―	$14.15M	74.99	13.66%	3.18%	―	―
PPE	57 Neutral	AU$74.45M	18.92	-2.93%	3.28%	-3.90%	-142.61%
AD1	46 Neutral	AU$7.32M	―	-245.01%	―	-17.50%	66.33%
HMI	45 Neutral	AU$6.91M	―	-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.