QPL International Holdings (0243) AI Stock Analysis

• Market Cap: HK$131.67M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 0.4
• Beta (1Y): 0.97
• Revenue Growth: 8.26%
• EPS Growth: N/A
• Country: HK
• Employees: 706
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.25
• Shares Outstanding: 346,490,540
• 10 Day Avg. Volume: 717,674
• 30 Day Avg. Volume: 1,040,629
• PEG Ratio: 0.50
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 5.09
• 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: 54 Neutral
• Price Target: HK$0.39 ▲(6.22% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is held back primarily by weak profitability and cash-flow deterioration despite revenue growth and low leverage. Technicals are supportive (price above key moving averages with positive MACD and moderate RSI), and valuation appears inexpensive on P/E, but fundamentals remain the key constraint.

Positive Factors

Strong gross margin

A 52.4% gross margin indicates the company captures meaningful value between procurement and resale, reflecting favorable supplier terms or product mix. This margin provides a durable buffer against input cost swings and supports long-term profitability if operating efficiency improves.

Conservative capital structure

Low leverage gives the company financial flexibility to fund working capital and absorb cyclical shocks common in electronics distribution. A conservative balance sheet reduces refinancing risk and supports investment in inventory and supplier relationships over the medium term.

Consistent revenue growth

Modest but positive revenue growth signals steady demand for components and the company's ability to retain or expand customer relationships. For a distributor, sustained top-line growth supports scale advantages, supplier access, and the potential to leverage fixed costs over time.

Negative Factors

Negative net and operating profitability

Ongoing negative EBIT/EBITDA and a negative net margin indicate the core operations and overhead exceed gross profits. Persisting operational losses undermine retained earnings, constrain reinvestment, and suggest structural inefficiencies that must be addressed to convert high gross margins into sustainable net profits.

Weak cash conversion

Severely negative FCF growth and an operating cash flow to net income ratio of 0.10 show earnings are not translating into cash. For a distribution business dependent on inventory and supplier credit, poor cash conversion raises working capital strain and increases funding needs over months to years.

Negative return on equity

A negative ROE signals management is not generating positive returns on shareholders' capital. If ROE remains below zero, it constrains the company's ability to attract equity investment, limits dividend capacity, and indicates deeper profit-generation or capital allocation problems.

QPL International Holdings Business Overview & Revenue Model

Company Description

QPL International Holdings Limited, an investment holding company, manufactures and sells integrated circuit leadframes, heatsinks, stiffeners, and related products for semiconductor industry companies. Its products include small outline integrated circuits, quad flat packages, thin quad flat packages, plastic dual in line packages, plastic leaded chip carriers, lead on chips, and thermal enhanced products, as well as HD-BU, HDL, and quad flat non-lead package products. The company also trades in securities; and invests in properties, as well as provides financial assistance and advance services. It primarily serves customers in the United States, Hong Kong, Europe, the People's Republic of China, the Philippines, Malaysia, Singapore, and Thailand. The company was founded in 1982 and is headquartered in Tsuen Wan, Hong Kong.

How the Company Makes Money

QPL International Holdings (0243) primarily makes money by selling electronic components and related products to customers (e.g., electronics manufacturers and design houses), earning revenue based on the invoiced value of goods delivered. Key revenue stream: (1) Distribution/trading margin—QPL purchases components from suppliers and resells them at a markup; gross profit depends on pricing, product mix, supplier terms, and inventory management. Common contributing factors in this model include demand for specific components, the company’s ability to secure supply, and working-capital execution (inventory turns, credit terms). Information on additional revenue streams (e.g., design services, OEM/EMS activities, licensing, or other segments), named strategic partnerships, and the relative contribution of each stream is null.

QPL International Holdings Financial Statement Overview

Summary

Mixed fundamentals: modest revenue growth (+5.94%) and strong gross margin (52.42%) are offset by negative profitability (net margin -0.35% with negative EBIT/EBITDA margins) and weak cash generation (free cash flow growth -204.89%, low operating cash flow to net income at 0.10). Balance sheet leverage is conservative (debt-to-equity 0.18), but ROE is negative (-0.33%).

Income Statement

QPL International Holdings has shown a mixed performance in its income statement. The company experienced a revenue growth of 5.94% in the most recent year, indicating a positive trend. However, the net profit margin remains negative at -0.35%, reflecting ongoing profitability challenges. The gross profit margin is relatively strong at 52.42%, suggesting efficient production processes. Despite these strengths, the negative EBIT and EBITDA margins highlight operational inefficiencies that need addressing.

Balance Sheet

The balance sheet of QPL International Holdings shows a stable financial position with a debt-to-equity ratio of 0.18, indicating low leverage and a conservative capital structure. However, the return on equity is negative at -0.33%, which is a concern for shareholder returns. The equity ratio stands at a healthy level, suggesting a strong asset base relative to liabilities.

Cash Flow

The cash flow statement reveals some challenges, with a significant decline in free cash flow growth at -204.89%. The operating cash flow to net income ratio is low at 0.10, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio is relatively high at 0.72, suggesting some ability to generate cash despite net losses.

Breakdown	Apr 2024	Apr 2023	Apr 2022	Apr 2021	Apr 2021
Income Statement
Total Revenue	301.45M	262.70M	312.93M	488.05M	368.32M
Gross Profit	158.01M	49.29M	158.77M	86.75M	206.86M
EBITDA	-2.67M	-46.91M	-9.90M	34.21M	9.13M
Net Income	-1.06M	-61.39M	-34.32M	10.10M	-12.21M
Balance Sheet
Total Assets	465.07M	461.29M	529.76M	629.62M	611.21M
Cash, Cash Equivalents and Short-Term Investments	144.23M	121.12M	150.90M	177.17M	248.75M
Total Debt	58.76M	52.34M	58.77M	113.58M	124.59M
Total Liabilities	141.97M	136.82M	142.33M	219.12M	219.29M
Stockholders Equity	323.10M	324.46M	387.44M	410.50M	391.92M
Cash Flow
Free Cash Flow	10.17M	-1.31M	26.04M	-68.18M	-16.14M
Operating Cash Flow	14.16M	2.94M	34.79M	-51.42M	-8.25M
Investing Cash Flow	703.00K	-3.63M	-8.28M	-48.34M	-16.18M
Financing Cash Flow	4.69M	-10.72M	-43.12M	-4.48M	57.24M

QPL International Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0243, the sentiment is Positive. The current price of 0.37 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.40, and above the 200-day MA of 0.36, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.46 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0243.

QPL International Holdings 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%
1967	57 Neutral	HK$115.50M	47.44	-2.54%	―	-6.45%	-596.43%
0243	54 Neutral	HK$131.67M	0.40	19.55%	―	8.26%	―
1912	46 Neutral	HK$49.42M	-0.45	-42.14%	―	―	―
1679	45 Neutral	HK$107.91M	-3.94	55.50%	―	37.63%	56.51%
8490	41 Neutral	HK$59.97M	-1.39	-47.29%	―	-26.02%	-4977.27%