Imperium Technology Group Limited (0776) AI Stock Analysis

• Market Cap: HK$492.68M
• Dividend Yield: N/A
• Average Volume (3M): 2.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -15.28%
• EPS Growth: 71.04%
• Country: HK
• Employees: 137
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.06
• Shares Outstanding: 447,891,700
• 10 Day Avg. Volume: 1,096,570
• 30 Day Avg. Volume: 2,033,490
• PEG Ratio: 0.46
• Price to Book (P/B): -7.52
• Price to Sales (P/S): 26.56
• P/FCF Ratio: -60.34
• 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: 41 Neutral
• Price Target: HK$1.00 ▼(-21.26% Downside)

The score is driven primarily by very weak financial performance, including steep revenue decline, ongoing losses, negative equity, and weak cash generation. Technical indicators add downside bias due to the stock trading below major moving averages with a negative MACD, while valuation remains constrained by negative earnings and the absence of dividend yield data.

Positive Factors

Improved gross margin

An improved gross margin to 39.4% indicates the company can extract higher value from sales via pricing or mix shifts. Sustainably higher gross margins provide buffer for SG&A and restructuring, enabling a clearer path to recover operating profitability if revenue stabilizes.

Lean workforce

A relatively small headcount (137 employees) suggests lower fixed operating costs and greater agility. This structural cost base can allow management to scale expenses with revenue recovery, preserve cash runway, and implement focused turnaround actions over several quarters.

Low systematic volatility

A low beta (~0.48) implies the business has historically exhibited less sensitivity to market swings. Structurally lower volatility can reduce refinancing and market-pressure risks during a turnaround, giving management more time to execute strategic fixes without severe market-driven funding stress.

Negative Factors

Steep revenue decline

A >70% revenue contraction over four years signals significant loss of market position, demand or distribution. Persisting top-line decline erodes scale economics and pricing leverage, making margin recovery and coverage of fixed costs materially harder without structural business changes.

Negative equity / solvency risk

Deeply negative equity reflects accumulated losses and indicates solvency strain. It constrains access to new debt or equity, raises the likelihood of covenant breaches, and limits strategic options; a capital restructuring or injection is likely required to restore long-term financial flexibility.

No operating cash generation

Lack of positive operating cash flow and persistent negative FCF undermines liquidity and the ability to fund capex or working capital internally. Over several months this increases reliance on external financing, elevates default risk, and constrains investments needed to drive a sustainable recovery.

Imperium Technology Group Limited Business Overview & Revenue Model

Company Description

Imperium Technology Group Limited, an investment holding company, manufactures and sells household furnishing products and accessories. The company operates through six segments: Game Publishing, Cloud Computing and Data Storage, Esports, Household Products, Property Investment, and Money Lending. It produces stainless steel home furnishing products for kitchens and bathrooms; and offers diversified financial products, including personal loans, home mortgages, equity financing and mortgage, and corporate finance. The company is also involved in cryptocurrency mining and rental of machines to customers to engage in cryptocurrency mining; and participating in esports competitions, streaming and marketing events, and merchandise sales. In addition, it invests in properties; and designs and develops mobile and computer games in Hong Kong, the People's Republic of China, East and South Asia, and internationally. The company was formerly known as Imperium Group Global Holdings Limited and changed its name to Imperium Technology Group Limited in July 2021. Imperium Technology Group Limited was founded in 1999 and is based in Kwun Tong, Hong Kong. Imperium Technology Group Limited is a subsidiary of Diamond State Holdings Limited.

How the Company Makes Money

Imperium Technology Group Limited generates revenue through multiple streams, primarily by offering a range of technology solutions and services. The company's key revenue sources include software licensing, IT consulting services, and the sale of hardware products. Additionally, the company may engage in long-term contracts and partnerships with enterprises and government agencies, which provide a stable income base. Furthermore, strategic collaborations with other technology firms can enhance its product offerings and expand its market reach, contributing to overall earnings.

Imperium Technology Group Limited Financial Statement Overview

Summary

Financial statements indicate severe weakness: revenues have fallen sharply (186.36M in 2020 to 51.51M in 2024), profitability remains negative (net loss of 43.19M in 2024 with negative EBIT/EBITDA margins), the balance sheet shows negative equity (-181.87M) implying elevated solvency risk, and operating/free cash flow is not positive (0 in 2024) with a history of negative free cash flow.

Income Statement

The company has experienced a significant decline in revenue over recent years, with a revenue decrease from 186.36M in 2020 to 51.51M in 2024. The gross profit margin improved to 39.4% in 2024 but has been inconsistent historically. Net profit margins remain negative, indicating unprofitability, with a net income loss of 43.19M in 2024. EBIT and EBITDA margins are also negative, further highlighting operational challenges.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity of -181.87M in 2024, indicating insolvency risk. The debt-to-equity ratio is not meaningful due to negative equity, and total debt has consistently exceeded total assets. The equity ratio is negative, suggesting high financial leverage and potential liquidity issues.

Cash Flow

Cash flow analysis shows a lack of positive operating cash flow, with operating and free cash flows at zero in 2024. Historical cash flows indicate persistent negative free cash flow, and the company is unable to generate sufficient cash from operations to cover capital expenditures, posing significant liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.96M	51.51M	72.56M	133.10M	161.12M	186.36M
Gross Profit	19.66M	20.29M	10.64M	20.42M	19.21M	10.41M
EBITDA	13.17M	-10.80M	-67.91M	-119.74M	-54.45M	-52.33M
Net Income	-27.18M	-43.20M	-127.73M	-180.35M	-99.03M	-80.21M
Balance Sheet
Total Assets	90.83M	87.16M	100.93M	246.42M	288.49M	223.77M
Cash, Cash Equivalents and Short-Term Investments	39.27M	17.98M	10.19M	42.76M	43.03M	55.15M
Total Debt	219.39M	219.85M	305.90M	282.14M	213.45M	188.61M
Total Liabilities	263.76M	266.41M	353.74M	374.73M	300.93M	268.96M
Stockholders Equity	-175.28M	-181.87M	-252.58M	-124.01M	-14.65M	-48.75M
Cash Flow
Free Cash Flow	-9.05M	-22.67M	-51.61M	-65.79M	-102.25M	-38.34M
Operating Cash Flow	-7.58M	-19.73M	-51.43M	-23.92M	-54.26M	-2.63M
Investing Cash Flow	2.58M	1.21M	-5.43M	-48.44M	-46.05M	-46.28M
Financing Cash Flow	14.09M	13.66M	23.65M	63.38M	85.95M	42.02M

Imperium Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0776, the sentiment is Negative. The current price of 1.27 is above the 20-day moving average (MA) of 1.18, above the 50-day MA of 1.21, and below the 200-day MA of 1.35, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0776.

Imperium Technology Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1418	73 Outperform	HK$355.25M	3.45	10.72%	7.76%	-1.05%	-2.97%
0229	69 Neutral	HK$471.25M	9.26	7.53%	12.90%	-12.47%	-26.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6822	51 Neutral	HK$287.00M	-12.73	-4.25%	9.76%	8.85%	-18.82%
2222	48 Neutral	HK$339.87M	-4.42	-2.05%	―	-4.69%	-123.25%
0684	44 Neutral	HK$189.84M	-2.23	-11.32%	31.48%	4.60%	-9.42%
0776	41 Neutral	HK$492.68M	-10.29	―	―	-15.28%	71.04%

Imperium Technology Group Limited Corporate Events

Imperium Technology Group Announces Board Composition and Roles

Imperium Technology Group Limited has announced the composition of its board of directors and their roles within the company. The board consists of both executive and independent non-executive directors, with specific members assigned to the Audit, Remuneration, and Nomination Committees. This announcement highlights the company’s governance structure, which is crucial for its operational oversight and strategic decision-making.

The most recent analyst rating on (HK:0776) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Imperium Technology Group Limited stock, see the HK:0776 Stock Forecast page.

Imperium Technology Group Announces Key Changes in Financial Year and Board Composition

Imperium Technology Group Limited has announced several key changes, including the alteration of its financial year-end date from December 31 to March 31, effective immediately. This strategic decision aims to optimize resource allocation and avoid peak reporting season conflicts. Additionally, the company has announced the resignation of Ms. Han Pingping as an independent non-executive director and changes in the composition of its board committees, reflecting ongoing adjustments in its governance structure.

The most recent analyst rating on (HK:0776) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Imperium Technology Group Limited stock, see the HK:0776 Stock Forecast page.

Imperium Technology Group Resolves High Shareholding Concentration

Imperium Technology Group Limited has addressed its previously high shareholding concentration by providing an updated analysis of its shareholding structure as of August 4, 2025. The analysis reveals a more diversified shareholding distribution, with significant portions held by individual and corporate shareholders, enhancing transparency and potentially impacting investor confidence.

The most recent analyst rating on (HK:0776) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Imperium Technology Group Limited stock, see the HK:0776 Stock Forecast page.

Imperium Technology Group Partners with Guanghe Xingyun for AI Comic-Drama Development

Imperium Technology Group Limited has entered into a memorandum of understanding with Guanghe Xingyun to develop AI-generated comic-dramas based on the NOVA Esports Club, which is owned by the Group. This collaboration aims to leverage AI technology to enhance production efficiency and reduce costs, while promoting the NOVA Esports brand and driving growth for the company’s business. The partnership is expected to reshape the IP industry landscape by integrating human creativity with AI, potentially creating a market worth hundreds of billions.

The most recent analyst rating on (HK:0776) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Imperium Technology Group Limited stock, see the HK:0776 Stock Forecast page.

Imperium Technology Completes Successful Share Placement

Imperium Technology Group Limited has successfully completed the placing of 74,648,500 new shares, raising approximately HK$62.35 million in net proceeds. The funds will be used to support existing businesses, invest in AI technologies, and explore financial investments in the biotechnology and healthcare sectors, impacting the company’s market positioning and operational capabilities.

The most recent analyst rating on (HK:0776) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Imperium Technology Group Limited stock, see the HK:0776 Stock Forecast page.