HKC International Holdings Limited (0248) AI Stock Analysis

• Market Cap: HK$32.38M
• Dividend Yield: N/A
• Average Volume (3M): 451.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -29.35%
• EPS Growth: -15.98%
• Country: HK
• Employees: 109
• Sector: Real Estate
• Sector Strength: 53
• Industry: Communication Equipment
• EPS (TTM): -0.02
• Shares Outstanding: 1,245,331,200
• 10 Day Avg. Volume: 1,289,634
• 30 Day Avg. Volume: 451,268
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.40
• 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

• Rating: 42 Neutral
• Price Target: ―

HKC International Holdings Limited's overall stock score is primarily influenced by its financial struggles. The company faces challenges in achieving profitability and generating cash flows, which significantly impacts its financial performance score. Technical analysis reflects weak market momentum, adding to the negative outlook. The valuation indicates potential undervaluation, but the negative P/E ratio highlights significant risks. Overall, the stock is rated low due to these combined factors, suggesting caution for potential investors.

HKC International Holdings Limited Business Overview & Revenue Model

Company Description

HKC International Holdings Limited, an investment holding company, provides information communication technology solutions in Hong Kong, Mainland China, Singapore, and other countries in South East Asia. The company distributes and sells mobile phones and other electronic products, and Internet of Things solutions. It also provides smart living solutions, including smart display user interface, home energy consumption information, waste management information, home health and wellness information, and building management systems, as well as video door phone with smart visitor panel and face recognition, and access control using QR code and face recognition. In addition, it offers carrot home solutions; smart nursing homes; smart campus solutions; library management and asset management solutions, as well as real time location tracking systems; and UVC disinfection and sterilizer products. Further, the company distributes and retails digital cameras and other related accessories; and provides smart lock, mirror, and washroom solutions. Additionally, it is involved in the property investment activities; and provision of maintenance, installation, repairs, and smart systems construction services. The company was founded in 1970 and is based in Wong Chuk Hang, Hong Kong.

How the Company Makes Money

HKC International Holdings Limited generates revenue through multiple streams that align with its business segments. The Telecommunications segment provides income from the sale and distribution of mobile phones and telecommunication-related products. The IT Solutions segment contributes by offering IT consultancy, system integration, and managed services, which help businesses optimize their operations and improve efficiency. Additionally, the Property Investments segment generates rental income from the properties owned by the company. Key factors contributing to the company's earnings include maintaining strategic partnerships with technology vendors, expanding its customer base, and leveraging its property assets to ensure stable rental income.

HKC International Holdings Limited Financial Statement Overview

Summary

The company faces significant challenges in profitability and cash flow management with declining revenue trends, negative net profit margins, and negative cash flows. Despite a stable equity position, the increase in the debt-to-equity ratio and negative return on equity indicate financial struggles. The company needs to focus on improving profitability and cash generation.

Income Statement

The income statement shows a declining revenue trend over the years, with a negative revenue growth rate of -3.39% from 2023 to 2024. The gross profit margin improved from 16.89% in 2023 to 25.74% in 2024, but the company continues to face challenges with its net profit margin remaining negative at -12.46% in 2024. EBIT and EBITDA margins also indicate operational struggles with negative EBITDA margins. The company needs to address profitability issues to improve its financial health.

Balance Sheet

The balance sheet reveals a stable equity position with an equity ratio of 58.37% in 2024, indicating good financial leverage management. However, the debt-to-equity ratio has increased to 0.66, reflecting a rise in total debt levels. Return on Equity (ROE) is negative due to consistent net losses, highlighting a need for improving returns on shareholder investments.

Cash Flow

Cash flow analysis shows a concerning trend with negative operating cash flow and free cash flow in 2024. The free cash flow to net income ratio is unfavorable, and the company has not achieved positive cash flow from operations over the past few years. Free cash flow growth rate is slightly improved but remains negative. The company needs to enhance its cash generating capabilities to support operations and growth.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	122.91M	176.30M	169.52M	199.10M	217.12M	232.24M
Gross Profit	44.04M	45.37M	28.64M	42.82M	39.74M	40.36M
EBITDA	-15.40M	-10.37M	-12.57M	2.87M	8.68M	-18.25M
Net Income	-24.38M	-21.97M	-19.57M	-1.94M	4.75M	-23.03M
Balance Sheet
Total Assets	385.43M	415.19M	427.50M	380.67M	391.73M	357.69M
Cash, Cash Equivalents and Short-Term Investments	16.11M	26.73M	38.73M	28.81M	25.02M	19.77M
Total Debt	132.49M	159.50M	140.55M	85.61M	88.62M	65.90M
Total Liabilities	145.96M	172.82M	164.17M	99.87M	110.58M	83.11M
Stockholders Equity	239.47M	242.36M	263.33M	280.80M	281.15M	274.58M
Cash Flow
Free Cash Flow	30.34M	-35.59M	-49.77M	-4.79M	-25.08M	-761.00K
Operating Cash Flow	31.01M	-34.93M	-49.13M	-4.22M	-24.47M	-297.00K
Investing Cash Flow	20.25M	20.19M	-7.75M	11.81M	813.00K	-464.00K
Financing Cash Flow	-37.82M	11.23M	60.41M	-15.23M	27.36M	-8.22M

HKC International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0248, the sentiment is Positive. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.98 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0248.

HKC International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1720	61 Neutral	HK$114.40M	5.71	3.16%	―	6.07%	136.36%
Sector *	59 Neutral	C$1.23B	0.83	-8.20%	5.16%	9.89%	-25.14%
8092	58 Neutral	HK$43.50M	21.36	10.68%	4.25%	-15.78%	-46.15%
8043	54 Neutral	HK$54.40M	650.00	0.19%	―	-1.15%	-90.91%
1087	49 Neutral	HK$85.95M	―	-27.09%	―	-18.41%	2.73%
1613	46 Neutral	HK$121.16M	―	-29.38%	―	108.35%	58.07%
0248	42 Neutral	HK$32.38M	―	-11.64%	―	-29.35%	-15.98%