K&P International Holdings Ltd. (0675) AI Stock Analysis

• Market Cap: HK$101.46M
• Dividend Yield: 14.63%
• Average Volume (3M): 24.93K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.09
• Revenue Growth: -6.48%
• EPS Growth: 74.69%
• Country: HK
• Employees: 698
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.02
• Shares Outstanding: 267,004,800
• 10 Day Avg. Volume: 32,600
• 30 Day Avg. Volume: 24,933
• PEG Ratio: 0.20
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 280.33
• 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: 45 Neutral
• Price Target: HK$0.50 ▲(21.95% Upside)

K&P International Holdings Ltd. is facing significant financial and technical challenges. The declining financial performance, coupled with bearish technical indicators, suggests caution. The high dividend yield is a positive aspect but may not be sustainable given the negative earnings. Investors should be wary of the company's ability to improve its financial health and market position.

Positive Factors

Low Leverage

Low leverage indicates financial prudence, providing the company with greater flexibility to navigate financial challenges and invest in growth opportunities without the burden of high debt obligations.

Product Innovation

Emphasizing product innovation positions the company to better meet market demands and maintain competitiveness, potentially driving long-term revenue growth and market share expansion.

Strategic Partnerships

Strategic partnerships enhance market reach and operational efficiency, supporting sustainable growth by leveraging shared resources and expertise across the supply chain.

Negative Factors

Declining Revenue

A declining revenue trend suggests difficulties in sustaining market demand and competitive positioning, potentially impacting long-term profitability and business viability.

Cash Flow Challenges

Zero operating cash flow raises concerns about liquidity and the company's ability to fund operations and growth without relying on external financing, posing risks to financial stability.

Profitability Issues

Persistent profitability issues reflect operational challenges, which may hinder the company's ability to reinvest in business growth and improve shareholder value over the long term.

K&P International Holdings Ltd. Business Overview & Revenue Model

Company Description

K & P International Holdings Limited, an investment holding company, manufactures and sells precision parts and components. Its precision parts and components include keypads, synthetic rubber and plastic components and parts, and liquid crystal displays. The company also offers management and administrative services; and holds properties. It has operations in Hong Kong, Mainland China, Japan and other Asian countries, North America, South America, Europe, and internationally. The company was founded in 1985 and is headquartered in Kwai Chung, Hong Kong.

How the Company Makes Money

K&P International Holdings Ltd. generates revenue through multiple streams, including the sale of manufactured goods, trading activities, and strategic investments in various industries. The company's core revenue comes from its manufacturing operations, where it produces and sells consumer electronics and textile products. Additionally, K&P engages in trading activities, importing and exporting goods across international markets. The company has established partnerships with various suppliers and distributors, enhancing its market reach and operational efficiency. Key factors contributing to its earnings include effective supply chain management, a focus on product innovation, and the ability to adapt to changing consumer preferences.

K&P International Holdings Ltd. Financial Statement Overview

Summary

K&P International Holdings Ltd. faces multiple financial challenges. The declining revenue and profitability margins, coupled with a reduction in cash flow generation, present risks to the company's financial stability. While the balance sheet reflects low leverage, the deterioration in asset and equity levels suggests caution. The company needs to address operational inefficiencies and explore strategies to enhance revenue and cash flow.

Income Statement

K&P International Holdings Ltd. has shown a declining revenue trend, with a significant drop since 2020. The gross profit margin for 2024 is approximately 20.6%, but the company has experienced negative EBIT and net profit margins, indicating operational inefficiencies and profitability issues. The revenue growth rate is negative, which highlights the company's challenge in maintaining sales levels.

Balance Sheet

The company's debt-to-equity ratio is low, suggesting conservative leverage, but the declining equity over the years raises concerns. The equity ratio is strong, reflecting a solid proportion of equity in asset financing. However, the decreasing total assets and stockholders' equity over time indicate potential stability risks.

Cash Flow

K&P's cash flow metrics indicate significant challenges. The operating cash flow has recently dropped to zero, impacting the company's ability to generate free cash flow. This decline raises concerns about liquidity and the company's capacity to fund operations and growth without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	168.21M	176.43M	185.79M	272.10M	418.20M	341.76M
Gross Profit	36.04M	36.31M	25.65M	55.32M	106.74M	105.84M
EBITDA	2.23M	3.88M	-13.12M	15.30M	86.67M	90.66M
Net Income	-3.23M	-9.06M	-26.10M	-503.04K	63.30M	66.91M
Balance Sheet
Total Assets	327.15M	330.14M	383.67M	436.91M	531.05M	486.67M
Cash, Cash Equivalents and Short-Term Investments	79.16M	67.17M	100.36M	90.54M	113.65M	101.56M
Total Debt	8.11M	3.12M	7.43M	5.29M	18.92M	12.29M
Total Liabilities	80.07M	74.39M	83.91M	86.66M	136.30M	136.27M
Stockholders Equity	247.08M	255.75M	299.76M	350.25M	394.75M	350.39M
Cash Flow
Free Cash Flow	9.60M	428.60K	30.00M	48.30M	31.37M	47.77M
Operating Cash Flow	10.09M	2.39M	34.55M	49.53M	35.40M	50.32M
Investing Cash Flow	50.39M	48.83M	-9.97M	19.51M	-29.32M	-19.52M
Financing Cash Flow	-33.11M	-30.99M	-19.23M	-51.84M	-24.07M	-14.16M

K&P International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0675, the sentiment is Negative. The current price of 0.41 is above the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.39, and above the 200-day MA of 0.38, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.87 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0675.

K&P International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8070	68 Neutral	HK$152.00M	8.62	16.11%	―	25.67%	-6.77%
9918	64 Neutral	HK$108.00M	1.52	35.49%	―	-6.19%	283.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0889	55 Neutral	HK$116.80M	-2.77	-5.46%	―	-17.44%	-66.75%
0675	45 Neutral	HK$101.46M	-31.82	-1.26%	14.63%	-6.48%	74.69%
2363	43 Neutral	HK$62.29M	19.30	―	―	53.37%	-75.77%
0515	38 Underperform	HK$49.40M	-0.65	―	―	-84.61%	-14.10%