EPI (Holdings) Limited (0689) AI Stock Analysis

• Market Cap: HK$111.46M
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.46
• Revenue Growth: 3.32%
• EPS Growth: 37.29%
• Country: HK
• Employees: 24
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.02
• Shares Outstanding: 619,243,900
• 10 Day Avg. Volume: 1,181,641
• 30 Day Avg. Volume: 1,497,846
• PEG Ratio: 0.05
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.01
• P/FCF Ratio: 0.04
• 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: 68 Neutral
• Price Target: HK$0.19 ▲(5.56% Upside)

EPI (Holdings) Limited scores a 68, driven by strong technical indicators and a fair valuation. The company's financial stability is a positive, but profitability challenges weigh on the overall score. The absence of earnings call data and corporate events means the score is primarily influenced by financial performance, technical analysis, and valuation.

Positive Factors

Balance Sheet Strength

Extremely high equity ratio and negligible leverage provide a durable financial cushion, lowering refinancing and insolvency risk. This balance sheet strength supports the company's ability to fund capex, weather property cycles, pursue strategic investments, and sustain operations over the medium term.

Cash Generation Quality

Strong operating cash flow and a high free-cash-flow-to-net-income ratio indicate efficient cash conversion and resilient liquidity. This cash generation supports reinvestment, working capital needs, and opportunistic transactions even while reported net profits are weak, underpinning long-term viability.

Diversified Business Model

Multiple revenue streams across property, asset management and financial services reduce concentration risk and smooth income volatility. Structural diversification plus partnerships enhances deal flow and fee-generating opportunities, supporting steadier revenue and adaptability over a multi-quarter horizon.

Negative Factors

Negative Profitability

A negative net margin signals the business is not consistently converting revenues into shareholder returns. Sustained losses erode retained earnings and constrain capital allocation, limiting investments and dividends. Without structural margin improvement, equity returns will remain pressure-tested.

Revenue Decline

Top-line contraction across a diversified holding company reduces scale benefits and bargaining power, pressuring margins and cash available for reinvestment. If revenue trends persist, strategic flexibility and ability to pursue growth initiatives or partnerships will be materially constrained over coming quarters.

Weak Return on Equity

A negative ROE despite a strong equity base indicates the group is failing to generate adequate returns on capital employed. Persistently low or negative ROE undermines shareholder value creation, making it harder to justify reinvestment and increasing pressure to restructure operations or refocus capital allocation.

EPI (Holdings) Limited Business Overview & Revenue Model

Company Description

EPI (Holdings) Limited, an investment holding company, engages in the exploration and production of petroleum in Argentina, Hong Kong, and the People's Republic of China. The company primarily holds an interest in the Chañares Herrados concession located in the Cuyana Basin, Mendoza Province of Argentina. It also engages in money lending, and securities investment and management activities, as well as sale of energy. The company was formerly known as Great Wall Cybertech Limited and changed its name to EPI (Holdings) Limited in September 2006. EPI (Holdings) Limited is based in Wan Chai, Hong Kong.

How the Company Makes Money

EPI (Holdings) Limited generates revenue through multiple streams, primarily from its investments in real estate properties and financial services. The company earns income from rental yields and property appreciation within its real estate portfolio. Additionally, EPI capitalizes on financial services by offering investment management and advisory services, which contribute to its overall revenue. Strategic partnerships with local and international firms enhance its market presence and create opportunities for joint ventures, further boosting earnings potential. The company's focus on diversifying its investments across sectors allows it to mitigate risks and ensure a steady income flow, contributing to its financial stability and growth.

EPI (Holdings) Limited Financial Statement Overview

Summary

EPI (Holdings) Limited demonstrates financial stability with strong equity and low debt levels. However, the company faces profitability challenges, as evidenced by declining revenue and negative net profits. Cash flow generation remains robust, supporting operational needs despite the earnings decline. The company should focus on improving operational efficiency to enhance profitability.

Income Statement

The company experienced a decline in revenue from 2023 to 2024, with a modest Gross Profit Margin of 22.96% in 2024. The Net Profit Margin turned negative at -0.24% in the same period, indicating challenges in maintaining profitability. Despite a positive EBITDA Margin of 40.31% in 2024, the EBIT Margin fell to 6.36%, reflecting operational inefficiencies.

Balance Sheet

EPI (Holdings) Limited shows a strong equity position with an Equity Ratio of 90.77% in 2024, suggesting financial stability. The company maintains a low Debt-to-Equity Ratio of 0.01, indicating minimal leverage. However, Return on Equity remains negative at -0.05% in 2024, pointing to underperformance in generating returns for shareholders.

Cash Flow

The Free Cash Flow decreased from 2023 to 2024, but the Operating Cash Flow remained positive, indicating strong cash generation capabilities relative to Net Income with a ratio of 195.43. The Free Cash Flow to Net Income Ratio is high at 130.20, showing efficiency in converting net income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.01M	82.69M	83.08M	45.10M	24.82M	42.45M
Gross Profit	20.36M	19.96M	22.50M	31.15M	23.43M	30.69M
EBITDA	35.57M	33.34M	48.73M	-33.20M	-29.86M	10.16M
Net Income	9.88M	-198.00K	21.50M	-46.75M	-29.37M	8.52M
Balance Sheet
Total Assets	471.83M	436.98M	445.10M	433.69M	442.92M	475.76M
Cash, Cash Equivalents and Short-Term Investments	220.43M	198.66M	174.73M	118.61M	246.25M	161.94M
Total Debt	3.91M	2.31M	3.92M	2.73M	4.39M	2.77M
Total Liabilities	43.33M	40.14M	41.64M	57.38M	16.93M	16.27M
Stockholders Equity	428.51M	396.85M	403.45M	376.31M	425.99M	459.88M
Cash Flow
Free Cash Flow	20.21M	25.80M	53.36M	-9.16M	39.41M	18.16M
Operating Cash Flow	32.99M	38.69M	83.16M	20.60M	65.91M	19.20M
Investing Cash Flow	-12.77M	-5.25M	1.11M	-125.01M	-7.35M	27.24M
Financing Cash Flow	-812.00K	-1.73M	-1.74M	-1.62M	-1.44M	-4.76M

EPI (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.18
• 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:0689, the sentiment is Neutral. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.19, and above the 200-day MA of 0.16, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 15.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0689.

EPI (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0689	68 Neutral	HK$111.46M	11.11	2.38%	―	3.32%	37.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0862	48 Neutral	HK$313.94M	-5.59	-33.36%	―	-25.59%	0.69%
0138	46 Neutral	HK$108.78M	-0.25	-65.19%	―	-19.75%	31.54%
8269	46 Neutral	HK$400.83M	-118.42	-41.21%	―	8.75%	87.90%
0202	39 Underperform	HK$729.44M	200.00	0.60%	―	―	―

EPI (Holdings) Limited Corporate Events

EPI (Holdings) Plans HK$198 Million Best-Effort Rights Issue to Boost Capital Base

EPI (Holdings) Limited has proposed a rights issue to raise up to approximately HK$198.2 million before expenses by offering two rights shares for every one existing share held by qualifying shareholders at a subscription price of HK$0.16 per rights share, which could result in the issuance of up to 1,238,487,808 new shares. The rights issue will be underwritten on a best-effort, non-fully underwritten basis, may be scaled down if undersubscribed, and will proceed regardless of the final subscription level, subject to conditions and independent shareholders’ approval by poll under Hong Kong Listing Rules, underscoring both the company’s push to strengthen its capital base and the need for minority investor consent given the potential increase of more than 50% in issued share capital.

The most recent analyst rating on (HK:0689) stock is a Hold with a HK$0.20 price target. To see the full list of analyst forecasts on EPI (Holdings) Limited stock, see the HK:0689 Stock Forecast page.

EPI (Holdings) Lends NZD1.65 Million in Secured Six-Month Loan via New Zealand Unit

EPI (Holdings) Limited, through its indirect wholly owned New Zealand subsidiary EPI ESG Investment (New Zealand) Limited, is expanding its investment and financing activities by deploying internal resources into secured lending as part of its broader capital allocation approach. The group uses this platform to provide interest-bearing, collateralised credit facilities, reflecting its role as an investment-oriented company with exposure to the New Zealand market. The company announced that its New Zealand subsidiary has entered into a loan agreement with an independent third party, providing a NZD1.65 million (approximately HK$7.43 million) loan facility for six months at 8% per annum, secured by a first mortgage over land and properties in Massey, Auckland. Funded entirely by internal resources, the transaction meets the thresholds for a disclosable transaction under Hong Kong listing rules, underscoring the growing significance of such lending activities in the group’s operations and signalling an incremental shift toward income-generating, asset-backed financing that may enhance returns while maintaining collateral protection for shareholders.

The most recent analyst rating on (HK:0689) stock is a Hold with a HK$0.21 price target. To see the full list of analyst forecasts on EPI (Holdings) Limited stock, see the HK:0689 Stock Forecast page.

EPI (Holdings) Provides NZD1.95 Million Loan Through New Zealand Subsidiary

EPI (Holdings) Limited has announced that its New Zealand subsidiary has entered into a loan agreement to provide NZD1.95 million (approximately HKD8.775 million) to an independent third party. Secured by a first mortgage on property in Auckland, this six-month loan at 8% annual interest reflects the company’s strategic move to utilize internal resources effectively, fulfilling disclosure requirements under Hong Kong Stock Exchange regulations.

The most recent analyst rating on (HK:0689) stock is a Hold with a HK$0.21 price target. To see the full list of analyst forecasts on EPI (Holdings) Limited stock, see the HK:0689 Stock Forecast page.

EPI (Holdings) Limited Announces New Loan Agreement

EPI (Holdings) Limited, through its indirect wholly-owned New Zealand subsidiary, has entered into a new loan agreement, Loan Agreement B, with Borrower B, Mortgagor B, and a Guarantor, providing a loan facility of NZD759,000 for a 12-month term. This follows a previous agreement, Loan Agreement A, with Borrower A, for a loan of NZD700,000 over six months. These transactions are aggregated under the Listing Rules due to their connection through a common ultimate shareholder, classifying them as a discloseable transaction due to the percentage ratios involved.

EPI (Holdings) Limited Announces NZD2 Million Loan Facility

EPI (Holdings) Limited announced a disclosable transaction involving its New Zealand subsidiary, which has entered into a loan agreement with Sequoia Development Limited. The loan facility amounts to NZD2,000,000 with a 12-month term and an 8% annual interest rate, secured by a mortgage on properties in Auckland. This transaction is significant as it exceeds 5% of applicable percentage ratios under the Listing Rules, necessitating notification and announcement requirements. The loan will be funded by the company’s internal resources, potentially enhancing EPI’s financial position and market presence in the ESG investment sector.

EPI (Holdings) Limited Announces NZD1.44 Million Loan Facility

EPI (Holdings) Limited, through its indirect wholly-owned New Zealand subsidiary, has entered into a loan agreement with Ignition International Design Company Limited, secured by a mortgage on properties in Auckland, New Zealand. The loan facility, amounting to NZD1,440,000 with an 8% annual interest rate, is considered a discloseable transaction under Hong Kong’s Listing Rules and will be funded by the company’s internal resources.