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

• Market Cap: HK$54.40B
• Dividend Yield: N/A
• Average Volume (3M): 269.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.55
• Revenue Growth: 9.01%
• EPS Growth: 36.12%
• Country: HK
• Employees: 3,756
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Application
• EPS (TTM): -0.14
• Shares Outstanding: 36,393,336,000
• 10 Day Avg. Volume: 360,080,588
• 30 Day Avg. Volume: 269,592,297
• PEG Ratio: -0.06
• Price to Book (P/B): -5.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -45.63
• 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$7.38
• Price Target Upside: 423.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 46 Neutral
• Price Target: HK$1.50 ▲(6.38%Upside)

The stock score is primarily driven by the company's financial challenges, reflected in its weak profitability and cash flow metrics. While the balance sheet is relatively strong, the negative valuation and technical signals further weigh on the score. Without positive earnings call data or corporate events to offset these issues, the stock remains under pressure.

Positive Factors

Financial Stability

Substantial cash reserves of RMB13 billion will keep the company well-funded to navigate its loss-making phase.

Market Position

SenseTime ranked top 3 in China GenAI revenue with approximately 13% share, indicating strong market positioning.

Revenue Growth

The company projects a rapid revenue growth at a 28% CAGR driven by 37% CAGR in GenAI revenue led by multimodal applications.

Negative Factors

Earnings Performance

Total revenue was up by 11% YoY to RMB3.77 billion, falling below the consensus estimate of RMB4.50 billion.

Net Loss

Adjusted net loss narrowed by 21% YoY to RMB4.25 billion but was worse than the consensus net loss estimate of RMB3.53 billion.

R&D Investment

Greater-than-expected R&D investment in AI contributed to a larger net loss than anticipated.

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 sale of AI software products and related services. Its key revenue streams include licensing fees from its proprietary AI technologies, project-based revenues from custom AI solutions, and partnerships with hardware manufacturers to integrate AI capabilities into consumer electronics and security systems. Additionally, SenseTime collaborates with governments and enterprises to implement smart city initiatives, contributing to its income. Strategic alliances and collaborations with technology companies and research institutions further bolster its market presence and drive growth in its various business segments.

SenseTime Group, Inc. Class B Financial Statement Overview

Summary

SenseTime Group shows revenue growth but faces significant challenges in profitability and cash flow. The negative gross and net profit margins, coupled with negative cash flow, highlight ongoing financial difficulties despite a strong equity position.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.77B	3.41B	3.81B	4.70B	3.45B
	Gross Profit
1.62B	1.50B	2.54B	3.28B	2.43B
	EBIT
-4.53B	-6.65B	-3.51B	-2.82B	-1.80B
	EBITDA
-3.64B	-5.11B	-4.54B	-16.45B	-11.64B
	Net Income Common Stockholders
-4.28B	-6.44B	-6.09B	-17.18B	-12.16B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.56B	11.05B	14.81B	21.79B	17.32B
	Total Assets
34.60B	32.89B	37.43B	36.94B	38.48B
	Total Debt
6.12B	4.76B	3.52B	723.80M	1.39B
	Net Debt
-2.77B	-4.66B	-4.45B	-15.81B	-10.04B
	Total Liabilities
10.96B	9.73B	8.41B	4.96B	59.41B
	Stockholders Equity
23.46B	23.16B	28.97B	31.89B	-21.07B
Cash Flow		Free Cash Flow
-4.86B	-4.75B	-8.25B	-3.75B	-2.53B
	Operating Cash Flow
-3.93B	-3.23B	-3.08B	-2.49B	-1.23B
	Investing Cash Flow
-2.80B	3.46B	-9.30B	-1.55B	-7.07B
	Financing Cash Flow
6.26B	1.08B	3.33B	9.38B	13.19B

SenseTime Group, Inc. Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0020, the sentiment is Negative. The current price of 1.41 is below the 20-day moving average (MA) of 1.41, below the 50-day MA of 1.44, and below the 200-day MA of 1.50, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.76 is Neutral, neither overbought nor oversold. The STOCH value of 66.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
0020	46 Neutral	HK$54.40B	―	-18.38%	―	9.01%	36.12%
TCTZF		$591.73B	20.87	21.25%	0.87%	―	―
MPNGF		$109.75B	19.10	23.82%	―	―	―
XIACF		$178.79B	39.80	14.98%	―	―	―
9618	84 Outperform	HK$413.30B	8.13	19.79%	22.77%	7.67%	90.63%
9988	81 Outperform	HK$2.19T	15.06	13.02%	2.74%	3.92%	27.80%

SenseTime Group, Inc. Class B Corporate Events

SenseTime Group Inc. Announces Annual General Meeting and Key Resolutions

SenseTime Group Inc. has announced its annual general meeting scheduled for June 26, 2025, in Hong Kong. Key agenda items include the election and re-election of directors, authorization for the board to fix directors’ remuneration, and granting mandates for share purchases and the issuance of Class B shares. These resolutions are aimed at strengthening the company’s governance and providing flexibility in capital management, potentially impacting its market operations and shareholder value.

The most recent analyst rating on (HK:0020) stock is a Buy with a HK$2.14 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 Announces Key Board Appointments

SenseTime Group Inc. has announced several changes to its board of directors, including the appointment of Mr. Chiu Duncan as an independent non-executive director and the proposed appointment of Mr. Yang Fan and Mr. Wang Zheng as executive directors. These changes are part of the company’s efforts to strengthen its leadership and comply with listing rules, potentially impacting its strategic direction and governance structure.

The most recent analyst rating on (HK:0020) stock is a Buy with a HK$1.80 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 Updates Board of Directors

SenseTime Group Inc. has announced the updated list of its board of directors and their respective roles, effective from May 30, 2025. This update reflects the company’s commitment to strong governance and strategic leadership, potentially impacting its operational strategies and reinforcing its position in the AI industry.

The most recent analyst rating on (HK:0020) stock is a Buy with a HK$1.80 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 311 Million RSUs to Boost Performance

SenseTime Group Inc. announced the grant of 311,333,631 restricted share units (RSUs) under its 2022 RSU Scheme to eligible employees and service providers. This move, which represents approximately 0.84% of the company’s total issued shares, is aimed at incentivizing performance and aligning interests with stakeholders. The RSUs have a vesting period ranging from 13 to 50 months and are subject to performance targets and a clawback mechanism to ensure compliance and performance alignment.

SenseTime Reports Revenue Growth and AI Advancements in 2024

SenseTime Group, Inc. announced its financial results for the year ended December 31, 2024, reporting a 10.8% increase in revenue and a significant reduction in losses compared to the previous year. The company highlighted its strategic focus on AI infrastructure and large models, achieving industry-leading performance with its SenseNova model, which surpassed GPT 4-Turbo. The advancements in AI technology have led to a substantial decline in model costs, driving growth in applications, particularly in productivity and interactive tools, with increased customer engagement and willingness to pay.

SenseTime Faces Temporary Non-Compliance Following Director Resignation

SenseTime Group Inc. announced the resignation of Mr. Li Wei as an independent non-executive director, effective March 15, 2025, due to other commitments. This resignation results in temporary non-compliance with Hong Kong Stock Exchange listing rules regarding board composition. The company is actively seeking a suitable replacement to restore compliance within three months, ensuring continued adherence to regulatory standards.

SenseTime Announces New Board Composition for 2025

SenseTime Group Inc. has announced the composition of its board of directors effective March 15, 2025, which includes a mix of executive, non-executive, and independent non-executive directors. This announcement highlights the company’s commitment to strong governance and diverse leadership, which may enhance its strategic decision-making and industry positioning.