KuangChi Science Limited (0439) AI Stock Analysis

• Market Cap: HK$800.40M
• Dividend Yield: N/A
• Average Volume (3M): 301.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: -9.17%
• EPS Growth: -547.06%
• Country: HK
• Employees: 179
• Sector: Industrials
• Sector Strength: 90
• Industry: Aerospace & Defense
• EPS (TTM): -0.08
• Shares Outstanding: 615,692,900
• 10 Day Avg. Volume: 281,840
• 30 Day Avg. Volume: 301,876
• PEG Ratio: 0.28
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.96
• 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: 41 Neutral
• Price Target: ―

KuangChi Science Limited's overall stock score is significantly impacted by its poor financial performance and technical indicators. Persistent losses and negative cash flows are the primary concerns, alongside bearish technical signals. The valuation remains unattractive with a negative P/E ratio and no dividend yield. Strategic improvements are necessary to address these challenges.

KuangChi Science Limited Business Overview & Revenue Model

Company Description

KuangChi Science Limited, an investment holding company, engages in the research and development, manufacture, and sale of future technology products in the People's Republic of China, Hong Kong, the Middle East, and internationally. The company provides KC-PH2, a police smart helmet; and KC N901 Smart Helmet for traffic police bayonet, hospitals, airport/rail transit/bus, pedestrian zone, scenic spots and parks, and office buildings. It also offers various software products, including KcGBS, a streaming media server that provides stream forwarding services; KcFace, a face dynamic comparison engine; and License Plate Recognition that support the recognition of various types of motor vehicle license plates. Further, the company provides administrative services and holds properties. The company was formerly known as Climax International Company Limited and changed its name to KuangChi Science Limited in July 2014. KuangChi Science Limited was incorporated in 1992 and is headquartered in Causeway Bay, Hong Kong. KuangChi Science Limited is a subsidiary of New Horizon Wireless Technology Limited.

How the Company Makes Money

KuangChi Science Limited generates revenue primarily through the sale and licensing of its advanced technology products and solutions. Key revenue streams include the commercialization of metamaterials used in telecommunications and aerospace applications, as well as the deployment of smart city solutions that enhance urban infrastructure. The company also engages in strategic partnerships and collaborations with other technology firms and governmental bodies, which contribute to its earnings by expanding its market reach and developing joint projects that leverage its technological expertise.

KuangChi Science Limited Financial Statement Overview

Summary

KuangChi Science Limited faces significant profitability issues as evidenced by negative margins and declining revenue. The balance sheet is sound with low leverage, but persistent losses are eroding equity. Cash flow challenges highlight potential liquidity risks and operational inefficiencies. The company needs strategic adjustments to improve revenue growth and operational efficiency.

Income Statement

The company's income statement shows significant challenges with profitability. Both the gross profit margin and net profit margin are negative, indicating the company is not covering its expenses with revenues. Revenue has declined from the previous year, and EBIT and EBITDA margins are also negative, signaling operational inefficiencies.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating financial stability. The equity ratio is high, suggesting the company relies more on equity than debt to finance its assets. However, the return on equity is negative due to consistent net losses.

Cash Flow

Cash flow analysis reveals concerns with cash generation, as both operating and free cash flows have been negative or zero, reflecting challenges in generating cash from operations and covering capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
75.51M	83.14M	52.52M	113.97M	99.48M
	Gross Profit
20.74M	14.68M	10.83M	41.73M	38.58M
	EBIT
-53.39M	-9.59M	-54.57M	-41.73M	-49.15M
	EBITDA
-74.79M	-4.51M	-61.82M	-29.28M	-25.02M
	Net Income Common Stockholders
-47.43M	-7.29M	-87.35M	-53.52M	-77.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
152.56M	263.55M	164.96M	318.68M	147.81M
	Total Assets
3.20B	1.83B	1.98B	2.77B	2.84B
	Total Debt
90.49M	115.50M	141.74M	178.95M	497.97M
	Net Debt
-56.77M	-142.57M	-21.21M	-118.24M	350.16M
	Total Liabilities
474.25M	334.40M	362.69M	545.67M	904.76M
	Stockholders Equity
2.73B	1.49B	1.62B	2.22B	1.94B
Cash Flow		Free Cash Flow
0.00	-52.68M	-92.82M	82.82M	-10.62M
	Operating Cash Flow
-80.87M	-43.59M	-77.91M	105.22M	3.40M
	Investing Cash Flow
0.00	43.10M	-104.25M	369.21M	-64.92M
	Financing Cash Flow
0.00	-22.38M	-23.79M	-325.97M	-42.38M

KuangChi Science Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0439, the sentiment is Negative. The current price of 1.3 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.37, and below the 200-day MA of 1.57, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.07 is Neutral, neither overbought nor oversold. The STOCH value of 18.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0439.

KuangChi Science Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0788	79 Outperform	$193.58B	17.73	5.39%	0.40%	2.02%	7.93%
0388	76 Outperform	HK$531.99B	37.54	27.96%	2.37%	19.20%	24.01%
0763	74 Outperform	$159.37B	13.19	11.39%	2.93%	-2.65%	-14.96%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
0861	43 Neutral	$5.02B	―	-4.20%	0.70%	-10.06%	86.09%
0147	42 Neutral	HK$1.16B	―		―	―	―
0439	41 Neutral	HK$800.40M	―	-2.25%	―	-9.17%	-547.06%

KuangChi Science Limited Corporate Events

KuangChi Science Limited Releases 2024 Annual Report Online

KuangChi Science Limited has announced the availability of its 2024 Annual Report on its website and the Hong Kong Stock Exchange’s website. The company encourages shareholders to access the report online to stay informed about corporate communications. Shareholders who prefer printed versions can request them through the company’s branch share registrar. This move underscores the company’s commitment to transparency and efficient communication with its stakeholders.

KuangChi Science Limited Releases 2024 Annual Report Online

KuangChi Science Limited has announced the availability of its 2024 Annual Report in both English and Chinese on its website and the Hong Kong Stock Exchange’s website. The company is encouraging non-registered holders to access these documents online but offers the option to receive printed versions upon request. This move reflects the company’s commitment to providing accessible corporate communications to its stakeholders, potentially enhancing transparency and engagement with its investors.

KuangChi Science’s Controlling Shareholder Sells Major Stake

KuangChi Science Limited announced that its controlling shareholder, New Horizon Wireless Communication Limited, has sold 178,550,936 shares, representing approximately 29% of the company’s total issued shares, to an independent third-party investor. This transaction significantly reduces the controlling shareholder’s stake, impacting the company’s shareholding structure while maintaining Dr. Liu Ruopeng’s position as a substantial shareholder through indirect interests.

KuangChi Science Reports Increased Losses Amid Rising R&D Costs

KuangChi Science Limited announced its audited consolidated financial results for the year ended December 31, 2024, reporting a decrease in revenue from HK$83,139,000 in 2023 to HK$75,514,000 in 2024. Despite an increase in gross profit and other income, the company faced a significant operating loss due to higher research and development expenses, leading to a net loss of HK$47,427,000 for the year. This financial performance reflects challenges in cost management and market conditions, impacting the company’s profitability and stakeholder interests.

KuangChi Science Limited Announces Change in Share Registrar

KuangChi Science Limited has announced a change in its Hong Kong share registrar and transfer office, effective from April 1, 2025. The new registrar will be Tricor Investor Services Limited, and all applications for registration of share transfers should be directed to them from this date. This change may streamline the company’s share management processes and potentially impact shareholder interactions.