SenseTime Group, Inc. Class B (0020) AI Stock Analysis

• Market Cap: HK$99.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.01B
• Price to Earnings (P/E): ―
• Beta (1Y): 2.70
• Revenue Growth: 17.96%
• EPS Growth: 46.64%
• Country: HK
• Employees: 3,756
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.04
• Shares Outstanding: 39,810,004,000
• 10 Day Avg. Volume: 795,657,744
• 30 Day Avg. Volume: 1,006,383,683
• PEG Ratio: 0.31
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 12.38
• P/FCF Ratio: -9.61
• 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: HK$3.00
• Price Target Upside: 35.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$2.00 ▼(-9.91% Downside)

SenseTime Group's overall stock score is primarily impacted by its financial performance and technical analysis. The company's financial challenges, including negative profit margins and cash flows, are significant concerns. Technical indicators suggest bearish momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strong demand for SenseTime's AI solutions, suggesting the company's products are gaining traction across its target markets.

Strong Equity Position

A strong equity position with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities without excessive debt burden.

AI Market Expansion

As a leader in AI, SenseTime is well-positioned to capitalize on the expanding AI market, driving long-term growth through innovation and sector diversification.

Negative Factors

Profitability Issues

Significant losses and negative profit margins indicate ongoing operational challenges, which may hinder long-term financial sustainability and investor confidence.

Negative Cash Flow

Negative cash flow suggests that the company is not generating sufficient cash from its operations, which could limit its ability to fund growth initiatives and meet financial obligations.

Operational Challenges

Negative EBIT and EBITDA margins highlight inefficiencies in operations, which could impact the company's ability to achieve profitability and sustain growth over the long term.

SenseTime Group, Inc. Class B Business Overview & Revenue Model

Company Description

SenseTime Group Inc., an investment holding company, engages in developing and selling artificial intelligence software platforms in the People's Republic of China, Northeast Asia, Southeast Asia, and internationally. The company offers SenseFoundry Enterprise Platform to facilitate and accelerate the digital transformation of enterprise customers; SenseFoundry Platform for smart cities; SenseME that enables various IoT devices to facilitate perceptial intelligence and content enhancement; SenseMARS, a software platform that serves as the key enabling technology for the Metaverse applications; SenseCare Smart Health Platform, a high-performance diagnostic and treatment assistance solution; and SenseAuto Platform that provides automobile companies with advanced driver assistance systems and smart cabin systems, as well as AI-as-a-Service. Further, it provides management consulting services; system integration and software development services; and AI technology consulting and IC design services, as well as engages in wholesale and retail activities. The company also provides advertisement publishing services; sells cultural products; engages in equity investments activity; and sells software and hardware products. It serves various industries, including commercial space management, residential property management, urban management, manufacturing, infrastructure, transportation, mobile devices and applications, healthcare, and automobiles. The company was incorporated in 2014 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

SenseTime generates revenue primarily through the licensing of its AI technologies and software solutions to businesses and government entities. Key revenue streams include providing AI-powered products and services in sectors like public safety, transportation, and healthcare. The company also partners with various enterprises to integrate its AI capabilities into their existing systems, further driving income through project-based engagements and long-term contracts. Additionally, SenseTime's collaborations with academic institutions and research organizations help enhance its technology offerings, contributing to its competitive edge and revenue growth.

SenseTime Group, Inc. Class B Financial Statement Overview

Summary

SenseTime Group shows revenue growth but struggles with profitability, as indicated by negative profit margins and cash flow metrics. The balance sheet is strong in equity, but ongoing losses threaten financial stability.

Income Statement

The company's revenue grew from HK$3.41 billion in 2023 to HK$3.77 billion in 2024, showing a moderate growth rate of 10.8%. However, profitability metrics remain a concern, with a negative gross profit margin of 42.9% and a net profit margin of -113.4%, indicating significant losses. EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet reveals a relatively strong equity position with a debt-to-equity ratio of 0.26, indicating low leverage. The equity ratio stands at 67.8%, showing a significant proportion of assets financed by equity. However, the company has consistently incurred losses, which could strain equity over time.

Cash Flow

The company reports a negative free cash flow, exacerbated by increasing capital expenditures. The operating cash flow to net income ratio is negative, reflecting cash outflows from operations. Free cash flow to net income ratio is also negative, suggesting insufficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.39B	3.77B	3.41B	3.81B	4.70B	3.45B
Gross Profit	1.76B	1.62B	1.50B	2.54B	3.28B	2.43B
EBITDA	-2.12B	-3.64B	-5.11B	-2.91B	-16.45B	-11.64B
Net Income	-3.30B	-4.28B	-6.44B	-6.04B	-17.18B	-12.16B
Balance Sheet
Total Assets	35.58B	34.60B	32.89B	37.43B	36.94B	38.48B
Cash, Cash Equivalents and Short-Term Investments	12.96B	12.56B	11.05B	14.81B	21.79B	17.32B
Total Debt	8.38B	6.12B	4.76B	3.52B	723.80M	3.22B
Total Liabilities	13.11B	10.96B	9.73B	8.41B	4.96B	59.41B
Stockholders Equity	22.28B	23.46B	23.16B	28.97B	31.89B	-21.07B
Cash Flow
Free Cash Flow	-2.72B	-4.86B	-4.75B	-8.25B	-3.75B	-2.53B
Operating Cash Flow	-1.04B	-3.93B	-3.23B	-3.08B	-2.49B	-1.23B
Investing Cash Flow	-1.03B	-2.80B	3.46B	-9.30B	-1.55B	-7.07B
Financing Cash Flow	5.70B	6.26B	1.08B	3.33B	9.38B	13.19B

SenseTime Group, Inc. Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0020, the sentiment is Positive. The current price of 2.22 is above the 20-day moving average (MA) of 2.16, above the 50-day MA of 2.17, and above the 200-day MA of 1.88, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 71.50 is Negative, neither overbought nor oversold. The STOCH value of 92.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0020.

SenseTime Group, Inc. Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1675	61 Neutral	HK$7.59B	17.40	6.90%	3.47%	-17.90%	56.67%
3896	51 Neutral	HK$26.24B	-21.30	-15.92%	―	23.96%	55.68%
0268	50 Neutral	HK$51.26B	-2,097.10	-0.26%	―	9.71%	84.42%
9600	47 Neutral	HK$198.20M	-1.80	-14.03%	―	15.44%	10.57%
0909	43 Neutral	HK$6.33B	-94.97	-1.31%	3.10%	-17.48%	83.80%
0020	41 Neutral	HK$99.85B	-24.48	-14.61%	―	17.96%	46.64%

SenseTime Group, Inc. Class B Corporate Events

SenseTime Raises HK$3.1 Billion in Share Placing to Accelerate AI Infrastructure and Generative AI Push

SenseTime Group Inc. has completed the placing of 1.75 billion new Class B shares under its general mandate at HK$1.80 per share, raising net proceeds of about HK$3.146 billion. The shares, representing roughly 4.3% of the enlarged share capital, were placed with no fewer than six independent institutional investors, none of whom became a substantial shareholder, reinforcing the company’s capital base without concentrating ownership. SenseTime plans to allocate 30% of the funds to develop its core AI businesses, including scaling its SenseCore AI infrastructure, building a native AI cloud, and accelerating the adoption and optimization of domestic GPU chips to reduce costs, improve performance and support large-scale commercial deployment of domestic computing power. Another 30% will support R&D and commercialization of generative AI and its multimodal large models, with investment across data, systems, model architectures and applications to strengthen its product ecosystem and expand penetration into key verticals such as AIGC, finance and public services, underscoring an aggressive push to consolidate its position in China’s rapidly evolving AI market.

The most recent analyst rating on (HK:0020) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on SenseTime Group, Inc. Class B stock, see the HK:0020 Stock Forecast page.

SenseTime Group Inc. Announces Placement of New Class B Shares to Accelerate Growth

SenseTime Group Inc. has announced the placement of 1,750,000,000 new Class B shares under a general mandate, priced at HK$1.80 per share, reflecting discounts compared to recent trading prices. This placement aims to raise approximately HK$3,146 million in net proceeds, supporting the company’s expansion and operational objectives without requiring additional shareholder approval. While the placement strengthens the company’s financial position, the completion is contingent on several conditions, urging investors to exercise caution.

The most recent analyst rating on (HK:0020) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on SenseTime Group, Inc. Class B stock, see the HK:0020 Stock Forecast page.

SenseTime Grants Over 112 Million RSUs to Employees

SenseTime Group Inc. announced the grant of 112,361,291 restricted share units (RSUs) under its 2022 RSU Scheme to employee participants. These RSUs represent approximately 0.29% of the company’s total issued shares and are subject to performance targets and a clawback mechanism. The vesting period ranges from 12 to 49 months, with the first vesting date being no less than 12 months from the grant date. This move is aimed at aligning employee incentives with company performance and ensuring compliance with company policies.

The most recent analyst rating on (HK:0020) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on SenseTime Group, Inc. Class B stock, see the HK:0020 Stock Forecast page.