Computer & Technologies Holdings Ltd. (0046) AI Stock Analysis

• Market Cap: HK$378.58M
• Dividend Yield: 7.1%
• Average Volume (3M): 22.52K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.25
• Revenue Growth: -1.26%
• EPS Growth: -10.80%
• Country: HK
• Employees: 337
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.08
• Shares Outstanding: 244,334,380
• 10 Day Avg. Volume: 20,429
• 30 Day Avg. Volume: 22,520
• PEG Ratio: -0.90
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 1.43
• P/FCF Ratio: 9.80
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: HK$1.50 ▼(-3.23% Downside)

The overall stock score of 70 reflects a balance of strong financial performance and attractive valuation, offset by bearish technical indicators. The company's financial health is robust, with low leverage and efficient cash conversion, but recent declines in revenue and cash flow growth need attention. The stock's valuation is appealing, supported by a reasonable P/E ratio and high dividend yield. However, technical analysis suggests caution due to bearish momentum and oversold conditions.

Computer & Technologies Holdings Ltd. Business Overview & Revenue Model

Company Description

Computer & Technologies Holdings Ltd. (0046) is a Hong Kong-based company that specializes in providing information technology solutions and services. The company operates primarily in the sectors of software development, system integration, and IT consultancy. Its core offerings include software applications for enterprise resource planning (ERP), customer relationship management (CRM), and other business management tools designed to enhance operational efficiency for various industries.

How the Company Makes Money

The company generates revenue through multiple streams, including software licensing fees, system integration services, and ongoing maintenance and support contracts. A significant portion of its income derives from custom software development projects tailored to meet specific client requirements. Additionally, Computer & Technologies Holdings Ltd. may engage in partnerships with other technology firms to enhance its service offerings or expand its market reach, thereby contributing to its overall earnings. The company also benefits from recurring revenue through subscription models for its software products, ensuring a steady cash flow from existing clients.

Computer & Technologies Holdings Ltd. Financial Statement Overview

Summary

The company shows strong financial stability with healthy profit margins and low leverage. However, there is a recent dip in revenue growth and a decline in cash flow growth, which needs attention.

Income Statement

The income statement shows stable gross and net profit margins with a recent dip in revenue growth. The gross profit margin for 2024 is approximately 54.85%, and the net profit margin is about 11.13%. Revenue saw a slight decline of 2.84% from 2022 to 2023, indicating challenges in maintaining revenue growth. However, EBIT and EBITDA margins are healthy at 17.08% and 14.67%, respectively, reflecting good operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of approximately 0.04, indicating low leverage. The equity ratio is solid at 74.51%, showcasing robust shareholder equity relative to total assets. ROE for 2024 is at 5.80%, which is moderate, but reflects consistent profitability. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

The cash flow statement indicates solid free cash flow generation with a slight decline in operating cash flow compared to the previous year. The free cash flow to net income ratio is 1.31, demonstrating efficient conversion of earnings to cash. However, free cash flow growth rate is negative at -24.08%, suggesting a need for improvement in cash flow expansion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	253.73M	261.08M	257.50M	268.72M	265.50M	256.26M
Gross Profit	142.38M	143.19M	135.84M	145.00M	152.43M	144.79M
EBITDA	42.45M	63.00M	59.87M	71.38M	71.90M	75.35M
Net Income	29.49M	29.07M	33.35M	47.01M	53.84M	60.13M
Balance Sheet
Total Assets	656.72M	672.61M	654.51M	678.49M	681.30M	667.27M
Cash, Cash Equivalents and Short-Term Investments	329.16M	128.91M	318.35M	313.98M	305.94M	303.01M
Total Debt	17.55M	19.30M	9.16M	12.03M	18.25M	7.04M
Total Liabilities	147.96M	170.35M	148.51M	155.40M	157.67M	151.71M
Stockholders Equity	507.63M	501.09M	504.66M	521.65M	522.14M	513.22M
Cash Flow
Free Cash Flow	46.73M	37.98M	50.02M	59.70M	53.82M	72.72M
Operating Cash Flow	52.75M	44.03M	50.44M	60.64M	56.35M	78.34M
Investing Cash Flow	425.58M	-13.16M	-120.36M	89.71M	-114.01M	37.30M
Financing Cash Flow	-32.01M	-38.99M	-59.90M	-51.88M	-54.97M	-37.57M

Computer & Technologies Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0046, the sentiment is Negative. The current price of 1.55 is below the 20-day moving average (MA) of 1.62, below the 50-day MA of 1.69, and above the 200-day MA of 1.54, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 25.88 is Positive, neither overbought nor oversold. The STOCH value of 12.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0046.

Computer & Technologies Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1900	73 Outperform	HK$584.86M	1.29	20.36%	6.68%	27.05%	842.50%
0046	70 Outperform	HK$378.58M	12.85	5.83%	7.10%	-1.26%	-10.80%
1460	70 Outperform	HK$272.05M	10.58	4.67%	3.39%	5.87%	54.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1985	58 Neutral	HK$390.00M	43.19	4.04%	8.06%	20.83%	-75.45%
1147	53 Neutral	HK$257.66M	21.36	5.44%	1.45%	28.18%	47.50%
1949	46 Neutral	HK$165.12M	―	-83.97%	―	-78.41%	-3511.76%

Computer & Technologies Holdings Ltd. Corporate Events

Computer & Technologies Holdings Ltd. Reports Interim Results with Increased Operational Profit

Computer & Technologies Holdings Ltd. reported its interim results for the six months ending June 30, 2025, showing a slight decrease in revenue from HK$127,567,000 in 2024 to HK$120,225,000 in 2025. Despite the revenue drop, the company managed to increase its profit from operations, reporting HK$17,714,000 compared to HK$14,368,000 in the previous year, indicating improved operational efficiency. The profit for the period attributable to owners of the parent also saw a slight increase, rising to HK$18,595,000 from HK$18,166,000.

Computer & Technologies Holdings Ltd. Declares Interim Dividend for 2025

Computer & Technologies Holdings Ltd. has announced an interim dividend of HKD 0.055 per share for the six months ending June 30, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact investor confidence, reinforcing its stable financial performance in the technology sector.

Computer & Technologies Holdings Ltd. Announces Upcoming Board Meeting

Computer & Technologies Holdings Ltd. has announced a board meeting scheduled for August 15, 2025, to approve the interim results for the period ending June 30, 2025, and to consider the payment of an interim dividend. This meeting will be crucial for stakeholders as it will provide insights into the company’s financial health and potential returns on investment.