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Auto Italia Holdings Ltd. (HK:0720)
:0720

Auto Italia Holdings (0720) AI Stock Analysis

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HK

Auto Italia Holdings

(OTC:0720)

Rating:47Neutral
Price Target:
HK$0.00
▼(-100.00%Downside)
Auto Italia Holdings' overall stock score is primarily impacted by its financial performance, which is under stress due to inconsistent revenue and high leverage. Technical analysis indicates bearish momentum, further lowering confidence. Valuation concerns arise from a negative P/E ratio and lack of dividend yield, contributing to a low overall score.

Auto Italia Holdings (0720) vs. iShares MSCI Hong Kong ETF (EWH)

Auto Italia Holdings Business Overview & Revenue Model

Company DescriptionAuto Italia Holdings Limited, an investment holding company, engages in the financial investments and services, life sciences investment, and property investment businesses in Hong Kong and Macau. It operates in two segments, Financial Investments and Services; and Property Investment. The company invests in securities; and provides financing and corporate finance services. It also engages in property holding activities and life science investment business. The company was formerly known as Wo Kee Hong (Holdings) Limited and changed its name to Auto Italia Holdings Limited in September 2012. Auto Italia Holdings Limited was incorporated in 1989 and is based in Central, Hong Kong.
How the Company Makes MoneyAuto Italia Holdings generates revenue primarily through the sale and distribution of luxury vehicles, particularly Italian brands, in the Hong Kong and Macau regions. A significant portion of its income comes from after-sales services, including maintenance, repair, and spare parts sales, which provide a steady revenue stream post-vehicle sale. Additionally, the company benefits from strategic alliances and partnerships with automotive manufacturers, allowing them to access exclusive distribution rights and potentially favorable financial terms. The company's financial performance is also influenced by its ability to adapt to market trends and consumer preferences in the premium automotive sector.

Auto Italia Holdings Financial Statement Overview

Summary
The company's financial performance is under stress with inconsistent revenue growth and significant leverage. A strong gross profit margin is overshadowed by a negative net profit margin and high debt levels, indicating operational and financial management challenges.
Income Statement
35
Negative
The company has shown inconsistent revenue growth with a recent decline in total revenue from the previous year. The gross profit margin remains strong at 100% due to a unique accounting setup, but profitability is a concern with a negative net profit margin of -326% in the latest year. Operating profits are minimal, and EBITDA is negative, indicating operational inefficiencies.
Balance Sheet
45
Neutral
The balance sheet reveals a high debt-to-equity ratio of 0.93, which indicates significant leverage. The equity ratio stands at 26.7%, showing a stable capital structure, but the return on equity is negative due to consistent net losses, which reflects poorly on shareholder returns.
Cash Flow
50
Neutral
Cash flow analysis shows a positive free cash flow growth rate, albeit from a low base. Operating cash flow has improved, and the operating cash flow to net income ratio is positive, suggesting better cash management. However, free cash flow remains low compared to net income, indicating limited cash reserves for expansion or debt repayment.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue31.32M47.50M28.14M24.69M5.04M
Gross Profit20.50M29.04M22.85M20.24M-78.43M
EBITDA-60.00M-174.78M-72.79M13.56M-13.81M
Net Income-102.14M-179.28M-63.41M-7.14M-89.05M
Balance Sheet
Total Assets797.21M628.54M782.26M902.31M534.73M
Cash, Cash Equivalents and Short-Term Investments34.08M36.68M58.78M39.27M72.51M
Total Debt487.27M397.18M372.75M388.23M89.63M
Total Liabilities529.70M417.26M391.34M407.26M131.69M
Stockholders Equity212.59M164.63M322.06M391.66M403.03M
Cash Flow
Free Cash Flow226.00K-5.19M-9.48M45.57M113.69M
Operating Cash Flow8.24M-4.42M-9.37M45.94M119.76M
Investing Cash Flow-2.44M-6.88M-1.60M6.55M-246.77M
Financing Cash Flow-9.25M-14.34M18.23M-85.93M50.71M

Auto Italia Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.16
Price Trends
50DMA
0.17
Negative
100DMA
0.18
Negative
200DMA
0.18
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
41.06
Neutral
STOCH
46.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0720, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.17, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.06 is Neutral, neither overbought nor oversold. The STOCH value of 46.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0720.

Auto Italia Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$862.78M7.039.14%7.41%13.57%-11.39%
67
Neutral
HK$716.80M11.877.83%1.96%-32.15%
61
Neutral
HK$624.16M17.455.41%-4.12%-38.34%
56
Neutral
HK$24.56B3.85-2.03%6.52%-0.31%-67.70%
51
Neutral
HK$1.84B17.731.19%9.80%-32.35%-81.02%
50
Neutral
HK$826.20M-7.11%5.88%8.19%32.85%
47
Neutral
$986.99M-53.98%-34.06%43.07%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0720
Auto Italia Holdings
0.16
0.01
9.59%
HK:1502
Financial Street Property Co. Limited Class H
2.37
0.29
13.94%
HK:2215
Dexin Services Group Ltd.
0.77
-0.93
-54.71%
HK:0237
Safety Godown Co., Ltd.
2.04
0.08
4.08%
HK:6093
Hevol Services Group Co. Limited
1.27
-0.18
-12.41%
HK:0798
China Electronics Optics Valley Union Holding Co., Ltd.
0.26
-0.04
-13.33%

Auto Italia Holdings Corporate Events

Auto Italia Holdings Announces Nomination Committee Changes
Jun 30, 2025

Auto Italia Holdings Limited, a company incorporated in Bermuda, has announced a change in the composition of its Nomination Committee. Ms. Hang Qingli, a non-executive director, will join the committee effective July 1, 2025, expanding the committee to five members. This change reflects the company’s ongoing efforts to strengthen its governance structure and enhance decision-making processes.

Auto Italia Holdings Announces New Board Structure
Jun 30, 2025

Auto Italia Holdings Limited has announced changes to its board of directors, effective from July 1, 2025. The new board structure includes Mr. Chong Tin Lung Benny as the Executive Chairman and CEO, along with other executive, non-executive, and independent non-executive directors. These changes are expected to enhance the company’s governance and strategic direction, potentially impacting its market positioning and stakeholder relations positively.

Auto Italia Holdings Secures Four Utility Model Patents to Boost NEV Business
May 26, 2025

Auto Italia Holdings Limited has announced the acquisition of four utility model patents granted by the China National Intellectual Property Administration. These patents, particularly the Truck Partition Structure, are expected to enhance the company’s NEV business by improving vehicle safety, adaptability, and market competitiveness. The innovative designs align with smart and green logistics trends and may influence industry standards, potentially expanding the company’s market share and strengthening its intellectual property portfolio.

Auto Italia Holdings AGM Resolutions Passed Unanimously
May 16, 2025

Auto Italia Holdings Limited announced the results of its Annual General Meeting held on May 16, 2025. All proposed resolutions were passed unanimously, including the re-election of directors, the re-appointment of Deloitte Touche Tohmatsu as independent auditor, and the granting of mandates to the directors for share allotment and buyback. This unanimous approval reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility.

Auto Italia Holdings to Cease Maserati Dealership in China
Apr 28, 2025

Auto Italia Holdings Limited has announced its decision to cease its Maserati dealership business in the PRC by June 2025. This decision follows a period of financial losses and declining revenue from the dealership, attributed to a challenging post-pandemic economic environment, increased competition from new energy vehicles, and aggressive pricing strategies in the market. Despite the cessation, the company believes this move will not materially affect its overall business operations or financial position, as the Maserati dealership accounted for a small portion of its total assets and revenue.

Auto Italia Holdings Announces AGM and Key Resolutions
Apr 14, 2025

Auto Italia Holdings Limited has announced its upcoming annual general meeting (AGM) scheduled for May 16, 2025, in Hong Kong. The AGM will address several key resolutions including the re-election of directors, re-appointment of auditors, and authorization for the board to manage the company’s share capital. These decisions are crucial for the company’s governance and operational strategies moving forward.

Auto Italia Holdings Announces Change in Substantial Shareholder Structure
Apr 10, 2025

Auto Italia Holdings Limited has announced a change in the shareholding structure of its substantial shareholder, VMS Investment Group Limited. Previously owned by Ms. Mak Siu Hang Viola, VMSIG is now wholly-owned by Mr. Chong Tin Lung Benny, the executive Director, executive chairman, and CEO of the company, as part of a family arrangement. This transfer increases Mr. Chong’s interest in the company to approximately 26.77% of the total issued shares. The company believes this change will not materially impact its control and management.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 10, 2025