KuangChi Science Limited (0439) AI Stock Analysis

• Market Cap: HK$640.32M
• Dividend Yield: N/A
• Average Volume (3M): 911.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.04
• Revenue Growth: -5.59%
• EPS Growth: -1071.43%
• Country: HK
• Employees: 131
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$1.00 ▼(-15.25% Downside)

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

Low leverage / strong balance sheet

A low debt-to-equity profile provides durable financial stability and reduces refinancing and default risk. Over 2-6 months this supports the firm's ability to fund operations, negotiate contracts, and absorb cyclical revenue shocks without urgent deleveraging.

High equity ratio

A high equity ratio indicates conservative capital structure and long-term funding flexibility. This reduces interest burden and refinancing pressure, preserving optionality to invest in product development or fulfill multi-period aerospace contracts as revenues stabilize.

Lean workforce

A relatively small employee base suggests a lean operating model and lower fixed overhead. Over the medium term this can help preserve margins if revenue growth remains muted and allows management to allocate scarce cash toward strategic R&D or contract execution.

Negative Factors

Negative profitability and margins

Persistent negative gross and net margins signal structural issues in pricing, cost control, or revenue mix. Over months these losses erode equity, limit reinvestment capacity, and undermine the firm's ability to sustain operations or compete for long-term aerospace contracts.

Weak cash generation

Negative operating and free cash flow constrain liquidity and force reliance on external financing or equity issuance. This undermines the company's capacity to fund capex, R&D, or meet contract milestones—key for durable competitiveness in aerospace.

Declining revenue trend

Year-over-year revenue decline indicates weakening market traction or contract transitions. Over 2-6 months, falling top-line pressures margins, reduces scale benefits, and raises execution risk on long-cycle aerospace projects absent a clear revenue recovery plan.

KuangChi Science Limited Business Overview & Revenue Model

Company Description

Genesis Scale Holdings Ltd. operates as an investment holding company. The firm engages in the research and development, and manufacturing of innovative products for future technology business, and provision of other innovative technology service solution. It operates in two principal geographical areas: the PRC and Hong Kong. The company was founded in January 1992 and is headquartered in Hong Kong.

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: 1.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 1.18 is above the 20-day moving average (MA) of 1.11, below the 50-day MA of 1.19, and below the 200-day MA of 1.34, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 26.05 is Positive, neither overbought nor oversold. The STOCH value of 3.70 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
1756	74 Outperform	HK$744.00M	1.50	11.13%	―	13.88%	1.52%
0232	68 Neutral	HK$1.60B	14.10	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	59 Neutral	HK$761.68M	-2.15	-89.45%	―	12.16%	-16700.00%
1725	49 Neutral	HK$525.54M	-2.19	-98.45%	―	-32.75%	38.59%
0439	47 Neutral	HK$640.32M	-14.94	-1.99%	―	-5.59%	-1071.43%

KuangChi Science Limited Corporate Events

KuangChi Science Rebrands as Genesis Scale Holdings With New Name, Ticker Short Name and Website

Genesis Scale Holdings Limited has officially changed its English name from KuangChi Science Limited to Genesis Scale Holdings Limited and adopted a new Chinese name, following shareholder approval at a special general meeting and subsequent registration in Bermuda and Hong Kong. In parallel with the name change, the company will alter its stock short names on the Hong Kong Stock Exchange to “GENESIS SCALE” in English and a corresponding new Chinese short name, while keeping its stock code 00439 unchanged, and will migrate its corporate website to a new domain, signalling a full-scale rebranding that may reshape its market identity and investor recognition without affecting existing trading arrangements.

The most recent analyst rating on (HK:0439) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on KuangChi Science Limited stock, see the HK:0439 Stock Forecast page.

KuangChi Science Warns Investors as PRC Court Upholds Judgment Against Subsidiary

KuangChi Science Limited has updated investors on a legal proceeding involving one of its subsidiaries, noting that in mid-December 2025 it received a civil ruling on a retrial from a PRC High Court, which upheld an earlier second-instance judgment handed down by the Intermediate People’s Court of Dongguan in Guangdong Province. The board is working with PRC legal counsel to analyse the retrial decision, determine any financial impact on the group, and decide whether accounting provisions or additional disclosures are required under Hong Kong listing and accounting rules, while cautioning shareholders and potential investors to exercise care when dealing in the company’s shares pending further announcements.

The most recent analyst rating on (HK:0439) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on KuangChi Science Limited stock, see the HK:0439 Stock Forecast page.

KuangChi Science Limited Announces Board and Committee Changes

KuangChi Science Limited has announced several changes to its board of directors and committee compositions. Dr. Wong Kai Kit, previously an independent non-executive director, has been re-designated as a non-executive director, effective December 9, 2025. This move is part of the company’s compliance with listing rules and reflects its ongoing commitment to align its governance structure with industry standards.

The most recent analyst rating on (HK:0439) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on KuangChi Science Limited stock, see the HK:0439 Stock Forecast page.

KuangChi Science Limited Announces Board Composition and Committee Roles

KuangChi Science Limited has announced the composition of its board of directors and their roles within the company. The board includes a mix of executive, non-executive, and independent non-executive directors, with Dr. Zhang Yangyang serving as Chairman and Dr. Liu Weiwen as Chief Executive Officer. The announcement also details the membership of the board’s three committees: Audit, Nomination, and Remuneration, highlighting the leadership roles within these groups. This information provides stakeholders with a clear view of the company’s governance structure, which is crucial for understanding its strategic direction and operational oversight.

The most recent analyst rating on (HK:0439) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on KuangChi Science Limited stock, see the HK:0439 Stock Forecast page.

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.

The most recent analyst rating on (HK:0439) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on KuangChi Science Limited stock, see the HK:0439 Stock Forecast page.

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.

The most recent analyst rating on (HK:0439) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on KuangChi Science Limited stock, see the HK:0439 Stock Forecast page.

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.

The most recent analyst rating on (HK:0439) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on KuangChi Science Limited stock, see the HK:0439 Stock Forecast page.