CCT Fortis Holdings Limited (0138) AI Stock Analysis

• Market Cap: HK$121.58M
• Dividend Yield: N/A
• Average Volume (3M): 244.16K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.08
• Revenue Growth: -19.75%
• EPS Growth: 31.54%
• Country: HK
• Employees: 187
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -0.13
• Shares Outstanding: 1,599,675,400
• 10 Day Avg. Volume: 47,532
• 30 Day Avg. Volume: 244,155
• PEG Ratio: <0.01
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -1.08
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.09 ▲(46.67% Upside)

The score is primarily constrained by poor financial performance (declining revenues, persistent losses, high leverage, and negative free cash flow). Technicals provide some support with the price above major moving averages, but mixed momentum indicators and weak earnings-based valuation keep the overall score low.

Positive Factors

Diversified revenue mix

The business earns recurring rental income, fee-based asset management revenue, and opportunistic capital gains. This mix spreads revenue sources across stable rentals and fee income, reducing reliance on any single stream and supporting mid-term resilience through property cycles.

Rental income from prime properties

Rental cash flows from prime-location commercial and residential assets are structurally more stable, supporting predictable operating cash inflows. Longer leases and location-driven demand provide durable revenue visibility and help sustain operations and maintenance funding over months.

Substantial asset base

A large asset base provides collateral and optionality: assets can be monetized, re-leased, or used as security for financing. This underpins the company’s ability to support rental income and execute transactions, offering structural capacity to pursue portfolio adjustments.

Negative Factors

Declining revenue and negative margins

Sustained revenue declines combined with negative gross and net margins indicate structural profitability problems. This undermines the company’s ability to cover fixed costs, reinvest in assets, or restore profitability without strategic operational improvements or portfolio changes.

High leverage and weakening equity ratios

Elevated leverage and falling equity ratios increase refinancing and liquidity risk, limiting financial flexibility. In a high-debt position the firm faces greater interest burden and reduced shock absorption, making it more vulnerable to adverse market or cash-flow events.

Negative free cash flow and weak cash generation

Persistent negative free cash flow and weak operating cash generation constrain the company’s ability to service debt, fund capex, or support distributions without external financing. Ongoing cash shortfalls can force asset sales or fresh funding, pressuring strategic execution.

CCT Fortis Holdings Limited Business Overview & Revenue Model

Company Description

CCT Fortis Holdings Limited, an investment holding company, invests in, develops, and trades in real estate properties. The company operates through Property Investment and Holding; Securities Business; Ferrari Dealership Business; Maserati Importership Business; Classic Cars Trading and Logistics; Investment in Classic Cars; Film Operations; Stage Audio, Lighting, and Engineering Operations; and Other Operations segments. Its property portfolio comprises residential properties, retail properties, commercial and industrial properties, and car parks. The company also invests in and holds properties; holds and trades in securities, financial assets, and treasury products; sells and distributes Ferrari cars, and provides after-sales services; imports and distributes Maserati cars and provides after-sale services; acquires, trades in, and sells classic cars, as well as offers car logistic services; and produces, invests in, and distributes films. In addition, it sells and leases audio and lighting equipment; provides technical and engineering services and metal construction work for stage performance events. Further, the company engages in the multimedia and magazine publication businesses; invests in collectible precision devices; operates a classic car service center; and offers classic car restoration and maintenance, and artist management services. It operates in Mainland China, Hong Kong, Macau, and internationally. The company was formerly known as CCT Telecom Holdings Limited. CCT Fortis Holdings Limited is headquartered in Sha Tin, Hong Kong.

How the Company Makes Money

CCT Fortis Holdings generates revenue primarily through rental income from its property investments, which include commercial and residential properties in prime locations. Additionally, the company earns money from asset management fees for managing investment portfolios on behalf of clients. It also benefits from capital gains realized from the sale of real estate assets. Key partnerships with local and international investors enhance its investment capabilities, while strategic alliances in infrastructure projects contribute to its revenue streams. The company's diversified approach allows it to minimize risks and maximize returns across its various business segments.

CCT Fortis Holdings Limited Financial Statement Overview

Summary

CCT Fortis Holdings Limited is facing significant financial challenges. The income statement shows declining revenues and persistent losses, with negative profit margins. The balance sheet reveals high leverage and decreasing equity ratios, while cash flow issues are evident with negative free cash flow and insufficient operating cash flows to support net income.

Income Statement

The company's income statement shows declining revenue over the years with a significant decrease from 2019 to 2024. Gross profit margin and net profit margin have been negative, indicating profitability challenges. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Revenue growth rate has been negative, suggesting a downward trend in business performance.

Balance Sheet

The balance sheet highlights a high debt-to-equity ratio, indicating considerable leverage which could pose financial risk. The return on equity is negative due to consistent net losses, and the equity ratio has declined over the years, showing weakened financial stability. However, the company maintains a substantial level of total assets.

Cash Flow

The cash flow statement reveals negative free cash flow, indicating potential liquidity issues. Operating cash flow has been insufficient to cover net income, suggesting cash flow challenges. Free cash flow growth has been negative, highlighting ongoing cash management difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	516.00M	578.00M	765.00M	812.00M	731.00M	505.00M
Gross Profit	112.00M	132.00M	172.00M	103.00M	121.00M	54.00M
EBITDA	-137.00M	-138.00M	-365.00M	-305.00M	-369.00M	-526.00M
Net Income	-440.00M	-396.00M	-577.00M	-465.00M	-517.00M	-689.00M
Balance Sheet
Total Assets	2.63B	2.79B	2.84B	3.34B	4.05B	4.48B
Cash, Cash Equivalents and Short-Term Investments	114.00M	130.00M	132.00M	119.00M	393.00M	673.00M
Total Debt	1.63B	1.57B	1.56B	1.74B	2.02B	1.97B
Total Liabilities	2.17B	2.11B	2.11B	2.17B	2.42B	2.33B
Stockholders Equity	462.00M	672.00M	731.00M	1.17B	1.62B	2.14B
Cash Flow
Free Cash Flow	-223.00M	-145.00M	-72.00M	-20.00M	-65.00M	-80.00M
Operating Cash Flow	-215.00M	-140.00M	-38.00M	1.00M	-23.00M	-66.00M
Investing Cash Flow	130.00M	152.00M	81.00M	343.00M	5.00M	49.00M
Financing Cash Flow	73.00M	-14.00M	-30.00M	-368.00M	27.00M	-6.00M

CCT Fortis Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 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:0138, the sentiment is Positive. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.08, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 58.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0138.

CCT Fortis Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0689	68 Neutral	HK$119.51M	11.11	2.38%	―	3.32%	37.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0862	48 Neutral	HK$184.44M	-3.15	-33.36%	―	-25.59%	0.69%
0138	46 Neutral	HK$121.58M	-0.27	-65.19%	―	-19.75%	31.54%
8269	46 Neutral	HK$427.55M	-127.63	-41.21%	―	8.75%	87.90%
0630	44 Neutral	HK$280.59M	10.69	52.14%	―	29.77%	1646.67%

CCT Fortis Holdings Limited Corporate Events

CCT Fortis Unveils Capital Reorganisation and Restructuring of 2025 Convertible Bonds

CCT Fortis Holdings Limited has proposed a capital reorganisation involving a 10‑for‑1 share consolidation, followed by a reduction in the par value of each consolidated share from HK$1.00 to HK$0.10, and a corresponding change in trading board lot size from 2,000 existing shares to 5,000 adjusted shares to increase the value of each board lot. The company has also agreed with bondholders to amend the terms of its 2025 convertible bonds by extending the maturity date by two years to 2027, raising the conversion price to HK$0.45 per share, reducing the coupon to zero from 2026, and converting all accrued interest into on-demand, zero‑interest shareholder loans, moves that collectively aim to streamline the capital structure and manage refinancing risk, subject to regulatory approvals and shareholder safeguards under Hong Kong listing rules.

The most recent analyst rating on (HK:0138) stock is a Sell with a HK$0.07 price target. To see the full list of analyst forecasts on CCT Fortis Holdings Limited stock, see the HK:0138 Stock Forecast page.

CCT Fortis Sells 95% Stake in Subsidiary for HK$17.1 Million

CCT Fortis Holdings Limited has agreed to dispose of a 95% stake in a subsidiary, referred to as the Target Company, for HK$17.1 million to Entex International Holding Limited, with completion having taken place on 31 December 2025. The consideration, settled in cash within 30 days of completion, was set following arm’s length negotiations and benchmarked against an independent valuation of HK$17.9 million, and the board considers the terms fair and reasonable; as a result of the transaction, the Target Company will cease to be a subsidiary and its results will no longer be consolidated into the group’s financial statements, constituting a discloseable transaction under Hong Kong listing rules.

The most recent analyst rating on (HK:0138) stock is a Sell with a HK$0.07 price target. To see the full list of analyst forecasts on CCT Fortis Holdings Limited stock, see the HK:0138 Stock Forecast page.

CCT Fortis Holdings Implements Strategic Measures to Address Financial Concerns

CCT Fortis Holdings Limited has announced several strategic measures to address a disclaimer of opinion in its annual report. These measures include the disposal of a property for HK$82 million, ongoing discussions for potential divestments, and negotiations with lenders for loan renewals and covenant waivers. Additionally, the company is exploring new financing opportunities and has invested in a film project to generate additional cash inflows. Cost control measures have also been implemented, including staff reductions, to optimize operational efficiency.