KuangChi Science Limited (0439) AI Stock Analysis

• Market Cap: HK$769.62M
• Dividend Yield: N/A
• Average Volume (3M): 911.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.02
• Revenue Growth: -5.59%
• EPS Growth: -1071.43%
• Country: HK
• Employees: 179
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): <0.01
• Shares Outstanding: 615,692,900
• 10 Day Avg. Volume: 686,570
• 30 Day Avg. Volume: 911,756
• PEG Ratio: -0.05
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 16.96
• P/FCF Ratio: -13.55
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$1.50 ▲(20.97% Upside)

The overall stock score is primarily impacted by significant financial performance challenges, including negative profitability and cash flow issues. Technical analysis shows mixed signals with short-term bullish momentum but longer-term bearish trends. Valuation is weak due to negative earnings and no dividend yield.

Positive Factors

Business Model Diversification

KuangChi Science's diversified revenue model across aerospace, AI, and smart city projects provides resilience against sector-specific downturns.

Strong Balance Sheet

A low reliance on debt enhances financial stability and provides flexibility for future investments and growth initiatives.

Market Position in Innovative Tech

KuangChi's focus on cutting-edge technologies positions it well in high-growth sectors, potentially leading to significant market opportunities.

Negative Factors

Negative Profitability

Persistent negative margins indicate operational inefficiencies, which could hinder long-term sustainability and growth potential.

Declining Revenue

A decline in revenue suggests potential challenges in market demand or competitive pressures, impacting future growth prospects.

Cash Flow Challenges

Inability to generate positive cash flow from operations limits the company's capacity to invest in growth and manage financial obligations.

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 through multiple streams, primarily by providing high-tech products and solutions in the fields of aerospace and artificial intelligence. Its revenue model includes sales of proprietary technologies and systems to government entities and private enterprises, as well as offering consultancy services for technology integration in smart city projects. Additionally, the company may engage in strategic partnerships with key industry players, which enhance its market reach and can lead to joint ventures or co-development agreements that further generate income. Research grants and funding from governmental and international organizations for innovative projects also contribute to its financial growth.

KuangChi Science Limited Financial Statement Overview

Summary

KuangChi Science Limited faces significant profitability issues with 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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.14M	75.51M	83.14M	52.52M	113.97M	99.48M
Gross Profit	22.11M	20.74M	14.68M	10.83M	41.73M	38.58M
EBITDA	-65.72M	-74.79M	-4.51M	-61.82M	-29.28M	-25.02M
Net Income	-40.38M	-47.43M	-7.29M	-67.91M	-40.61M	-78.33M
Balance Sheet
Total Assets	2.95B	3.20B	1.83B	1.98B	2.77B	2.84B
Cash, Cash Equivalents and Short-Term Investments	84.52M	152.56M	263.55M	164.96M	318.68M	150.76M
Total Debt	110.93M	90.49M	115.50M	141.74M	178.95M	497.97M
Total Liabilities	454.60M	474.25M	334.40M	362.69M	545.67M	904.76M
Stockholders Equity	2.49B	2.73B	1.49B	1.62B	2.22B	1.94B
Cash Flow
Free Cash Flow	-86.81M	-94.51M	-52.68M	-92.82M	82.82M	-10.62M
Operating Cash Flow	-71.22M	-80.87M	-43.59M	-77.91M	105.22M	3.40M
Investing Cash Flow	167.01M	162.66M	43.10M	-104.25M	369.21M	-64.92M
Financing Cash Flow	4.12M	-21.65M	-22.38M	-23.79M	-325.97M	-42.38M

KuangChi Science Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.24 is below the 20-day moving average (MA) of 1.27, below the 50-day MA of 1.29, and below the 200-day MA of 1.42, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 25.87 is Neutral, 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
1756	74 Outperform	HK$756.00M	1.57	11.13%	―	13.88%	1.52%
0232	68 Neutral	HK$1.37B	11.39	3.91%	3.60%	20.53%	28.42%
2377	66 Neutral	HK$817.07M	3.14	8.32%	4.69%	8.09%	30.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1463	52 Neutral	HK$732.93M	-2.19	-89.45%	―	12.16%	-16700.00%
0439	47 Neutral	HK$769.62M	-18.90	-1.99%	―	-5.59%	-1071.43%
1725	41 Neutral	HK$483.26M	-1.90	-98.45%	―	-32.75%	38.59%

KuangChi Science Limited Corporate Events

KuangChi Science Limited Sells KCT Shares for RMB186 Million

KuangChi Science Limited has announced the sale of 3,893,724 KCT shares on the Shenzhen Stock Exchange, generating net proceeds of RMB186.0 million. This transaction, classified as a discloseable transaction under the Listing Rules, is expected to result in a gain of RMB30.3 million for the company, enhancing its financial position and providing funds for refinancing and general working capital.

KuangChi Science Limited Rebrands as Genesis Scale Holdings

KuangChi Science Limited, a company incorporated in Bermuda, announced the results of its Special General Meeting held on December 1, 2025. During the meeting, shareholders approved a special resolution to change the company’s English name to ‘Genesis Scale Holdings Limited’ and adopt a new Chinese name. This change reflects a strategic rebranding effort, potentially signaling a shift in market focus or operational strategy.

KuangChi Science Limited Proposes Name Change and New Share Option Scheme

KuangChi Science Limited has announced a special general meeting to consider changing its name to Genesis Scale Holdings Limited, pending approval from the Registrar of Companies in Bermuda. Additionally, the company seeks to adopt a new share option scheme, subject to the approval of the Hong Kong Stock Exchange, which aims to enhance shareholder value and provide incentives for eligible participants.

KuangChi Science Limited Proposes Name Change to Genesis Scale Holdings

KuangChi Science Limited has proposed to change its English name to Genesis Scale Holdings Limited and adopt a new Chinese name. This change aims to provide a fresh corporate image that supports future business development. The name change is subject to shareholder approval and regulatory consent in Bermuda. The change will not affect shareholder rights, and existing share certificates will remain valid.

KuangChi Science Limited Proposes New Share Option Scheme

KuangChi Science Limited has announced the expiration of its 2012 Share Option Scheme, which was adopted on July 31, 2012, and expired on July 30, 2022. In response, the company proposes to adopt a New Share Option Scheme to provide incentives for participants contributing to the company’s growth. This proposal is subject to shareholder approval and the necessary permissions from the Stock Exchange. The new scheme aims to continue motivating and rewarding participants, aligning with the company’s strategic goals.

KuangChi Science Limited Announces Executive Leadership Changes

KuangChi Science Limited has announced a change in its executive directors, with Dr. Liu Ruopeng, Dr. Luan Lin, and Dr. Ji Chunlin resigning to focus on other business commitments. The company has appointed Dr. Liu Weiwen, the current CEO, and Mr. Lin Ge as new executive directors, effective from September 10, 2025. This leadership change is part of the company’s ongoing management restructuring, which may impact its strategic direction and operational focus.

KuangChi Science Limited Announces Board Composition and Committee Membership

KuangChi Science Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The company has also detailed the membership of its board committees, which are the Audit Committee, Nomination Committee, and Remuneration Committee. This announcement provides clarity on the leadership structure and governance of KuangChi Science Limited, potentially impacting its strategic direction and stakeholder engagement.