HKC International Holdings Limited (0248) AI Stock Analysis

• Market Cap: HK$44.83M
• Dividend Yield: N/A
• Average Volume (3M): 354.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: -43.22%
• EPS Growth: -34.69%
• Country: HK
• Employees: 109
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): >-0.01
• Shares Outstanding: 1,245,331,200
• 10 Day Avg. Volume: 235,939
• 30 Day Avg. Volume: 354,879
• PEG Ratio: -0.07
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 2.01
• 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$0.04 ▼(-10.00% Downside)

The score is primarily weighed down by weak financial performance driven by a sharp revenue decline and ongoing losses. Technicals also remain soft with the stock below key short- and medium-term moving averages and muted momentum. Valuation is constrained by negative earnings (negative P/E) and no available dividend yield data.

Positive Factors

Solid Equity Base

An equity ratio around 60% combined with moderate debt-to-equity (0.61) provides a durable capital cushion. This lowers solvency risk, preserves borrowing capacity, and gives management time to execute restructuring or product diversification without immediate refinancing pressure.

Gross Margin Improvement

A 37.05% gross margin points to improved product mix or manufacturing efficiency. Sustained higher gross margins can underpin recovery by absorbing SG&A and fixed costs as volumes normalize, improving the chance of long-term profitability if management maintains cost control.

Cash Generation Efficiency

A FCF-to-net-income ratio near 1.0 indicates the business converts reported losses into real cash, reducing immediate reliance on external funding. This cash conversion provides operational flexibility to fund working capital and strategic initiatives during a multi-quarter turnaround.

Negative Factors

Revenue Decline

A ~30% decline in revenue materially erodes scale economics and pricing leverage, increasing per-unit fixed-cost absorption. Persistent top-line contraction constrains reinvestment in R&D, distribution, and new product rollouts, making durable recovery and margin restoration harder.

Negative Profitability

Deep negative net and operating margins indicate the core electronics operations are structurally unprofitable at current volumes and cost structure. Continued losses will depress ROE, limit retained earnings for reinvestment, and may force dilution or increased leverage to sustain operations.

Weakening Cash Flow & Liquidity

A 36.77% drop in free cash flow and a low operating-cash-flow-to-net-income ratio signal rising liquidity strain. Deteriorating cash generation reduces the firm's ability to meet short-term obligations, fund capex, or weather shocks without access to external capital, raising financial risk.

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

The company generates revenue primarily through the sale of its electronic products, particularly LCD televisions, which are sold both domestically and internationally. Key revenue streams include wholesale and retail sales, as well as potential licensing agreements for its technology. Additionally, HKC International Holdings may benefit from partnerships with distributors and retailers to expand its market reach. Fluctuations in consumer demand, competitive pricing strategies, and production costs significantly influence its earnings. The company also explores diversification in its product offerings to enhance revenue generation.

HKC International Holdings Limited Financial Statement Overview

Summary

HKC International Holdings Limited faces significant financial challenges, with declining revenues and persistent losses impacting profitability. While the balance sheet shows moderate leverage and a strong equity base, cash flow management remains a concern. The company needs to address operational inefficiencies and improve revenue generation to enhance financial stability.

Income Statement

The company has experienced a significant decline in revenue, with a 30.39% decrease in the latest year. Gross profit margin improved to 37.05%, but net profit margin remains negative at -31.26%, indicating ongoing profitability challenges. The negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is moderate at 0.61, suggesting manageable leverage. However, the return on equity is negative, reflecting losses and inefficient use of equity. The equity ratio of 60.23% indicates a solid equity base relative to total assets.

Cash Flow

Free cash flow has declined by 36.77%, but the company has managed to maintain a high free cash flow to net income ratio of 0.99, indicating effective cash management despite net losses. The operating cash flow to net income ratio is low, suggesting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.56M	85.56M	176.30M	169.52M	199.10M	217.12M
Gross Profit	31.70M	31.70M	45.37M	28.64M	42.82M	39.74M
EBITDA	-18.23M	-18.26M	-10.37M	-12.78M	2.59M	8.42M
Net Income	-26.75M	-26.75M	-21.97M	-19.57M	-1.94M	4.75M
Balance Sheet
Total Assets	360.88M	360.88M	415.19M	427.50M	380.67M	391.73M
Cash, Cash Equivalents and Short-Term Investments	9.63M	9.63M	26.73M	38.73M	28.81M	25.02M
Total Debt	133.61M	133.61M	159.50M	140.55M	85.61M	88.62M
Total Liabilities	143.48M	143.48M	172.82M	164.17M	99.87M	110.58M
Stockholders Equity	217.40M	217.40M	242.36M	263.33M	280.80M	281.15M
Cash Flow
Free Cash Flow	19.18M	19.18M	-35.59M	-49.77M	-4.79M	-25.08M
Operating Cash Flow	19.31M	19.31M	-34.93M	-49.13M	-4.22M	-24.47M
Investing Cash Flow	-557.00K	-557.00K	20.19M	-7.75M	11.81M	813.00K
Financing Cash Flow	-21.75M	-21.75M	11.23M	60.41M	-15.23M	27.36M

HKC International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0248, the sentiment is Neutral. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 35.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	63 Neutral	HK$127.60M	5.77	3.56%	―	8.78%	160.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8043	60 Neutral	HK$70.40M	20.23	5.29%	―	9.71%	―
8092	59 Neutral	HK$28.69M	13.04	11.90%	6.25%	11.36%	9.52%
0248	46 Neutral	HK$44.83M	-1.36	-14.69%	―	-43.22%	-34.69%
1613	46 Neutral	HK$232.90M	-3.20	-30.44%	―	-58.81%	-10.51%
1087	45 Neutral	HK$229.87M	-5.67	-17.08%	―	-7.93%	45.04%

HKC International Holdings Limited Corporate Events

HKC International Surrenders Director Life Policy to Cut Debt and Boost Liquidity

HKC International Holdings Limited has disclosed that its indirect wholly owned subsidiary, Hong Kong Communications Company Limited, has surrendered a life insurance policy that was taken out in 2017 on the life of a company director, for which the subsidiary was both policyholder and beneficiary. The surrender generated cash proceeds of HK$6.585 million, resulting in an expected pre-tax loss of approximately HK$637,000 based on the policy’s last recorded fair value, but will allow the group to repay bank borrowings secured by the policy and modestly strengthen working capital. Management describes the move as a step to reduce gearing and interest expenses while improving liquidity, with the transaction qualifying as a discloseable transaction under Hong Kong listing rules but involving an independent third-party insurer and no connected person implications for shareholders.

The most recent analyst rating on (HK:0248) stock is a Hold with a HK$0.04 price target. To see the full list of analyst forecasts on HKC International Holdings Limited stock, see the HK:0248 Stock Forecast page.

HKC International Unveils Share Consolidation and HK$21.8 Million Rights Issue Plan

HKC International Holdings Limited plans to restructure its share capital by doubling its authorised share capital from HK$20 million to HK$40 million, consolidating every eight existing HK$0.01 shares into one HK$0.08 consolidated share, and changing the trading board lot size from 4,000 existing shares to 10,000 consolidated shares, all subject to shareholder approval at an extraordinary general meeting. Conditional on these steps, the company will launch a non-underwritten rights issue of up to 77.83 million new shares on the basis of one rights share for every two consolidated shares at HK$0.28 per share, to raise as much as approximately HK$21.8 million before expenses, which could significantly alter its capital base and shareholding structure while potentially providing additional funding for its operations, with participation limited to qualifying shareholders.

The most recent analyst rating on (HK:0248) stock is a Hold with a HK$0.04 price target. To see the full list of analyst forecasts on HKC International Holdings Limited stock, see the HK:0248 Stock Forecast page.

HKC International Holdings Reports Increased Losses in Interim Results

HKC International Holdings Limited reported its interim results for the six months ending September 30, 2025, revealing a significant decrease in revenue from HK$48,130,000 in 2024 to HK$32,358,000 in 2025. The company experienced a loss before taxation of HK$9,244,000, compared to a loss of HK$3,064,000 in the previous year, indicating financial challenges that could impact its market position and stakeholders.

The most recent analyst rating on (HK:0248) stock is a Hold with a HK$0.04 price target. To see the full list of analyst forecasts on HKC International Holdings Limited stock, see the HK:0248 Stock Forecast page.

HKC International Holdings to Review Interim Results

HKC International Holdings Limited has announced that its board of directors will meet on November 28, 2025, to review and approve the unaudited interim results for the six months ending September 30, 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the upcoming period.