Mobi Development Co., Ltd. (0947) AI Stock Analysis

• Market Cap: HK$118.01M
• Dividend Yield: N/A
• Average Volume (3M): 878.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -12.03%
• EPS Growth: -40.38%
• Country: HK
• Employees: 1,333
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.04
• Shares Outstanding: 797,338,100
• 10 Day Avg. Volume: 484,370
• 30 Day Avg. Volume: 878,960
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -1.26
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.15 ▼(-0.67% Downside)

The overall stock score is primarily driven by the company's weak financial performance, characterized by declining revenues, persistent losses, and increased leverage. Technical analysis provides a neutral to slightly bearish outlook, while valuation metrics highlight a poor investment proposition due to negative profitability and lack of dividends. The absence of earnings call data and corporate events further emphasizes the financial challenges faced by the company.

Positive Factors

Business Model Diversification

The diversified revenue streams from direct sales, custom development, and maintenance services provide resilience against market fluctuations and support long-term stability.

Industry Focus

Focusing on mobile application development positions Mobi Development to capitalize on the growing demand for digital solutions, supporting long-term growth.

Employee Base

A substantial employee base indicates the company's capacity to undertake large projects and innovate, which is crucial for sustaining growth in the tech industry.

Negative Factors

Declining Revenue

Negative revenue growth indicates challenges in maintaining sales momentum, which could impact the company's ability to invest in future growth and innovation.

Increased Leverage

Rising leverage and reduced equity weaken financial stability, limiting the company's ability to finance operations and growth initiatives without incurring additional debt.

Inconsistent Cash Flow

Inconsistent cash flow generation poses liquidity risks and challenges in funding operations, potentially hindering the company's ability to sustain long-term growth.

Mobi Development Co., Ltd. Business Overview & Revenue Model

Company Description

MOBI Development Co., Ltd., an investment holding company, researches, designs, develops, manufactures, markets, and sells wireless communication antennas, base station radio frequency subsystems and solutions, and products of coverage extension solutions. Its solutions are used in the components of mobile communication coverage systems, including wireless access systems, as well as antenna, satellite communication, and microwave transmission networks. The company serves network and telecommunication operators, telecommunication equipment manufacturers, wireless network solution providers, and system equipment manufacturers. It has operations in the People's Republic of China, other countries in Asia, Europe, the Americas, and internationally. The company was founded in 1999 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

Mobi Development generates revenue through multiple streams, primarily from direct sales of mobile applications developed for clients and businesses. The company also earns money by offering custom software development services, where it charges clients for tailor-made applications that meet specific business needs. Additionally, Mobi Development may have partnerships with technology firms and digital marketplaces, allowing them to sell or distribute their applications more widely, contributing to their overall earnings. Maintenance and support services for existing applications also provide an ongoing revenue stream, as clients often require updates and technical assistance post-launch.

Mobi Development Co., Ltd. Financial Statement Overview

Summary

Mobi Development Co., Ltd. is facing significant financial challenges across all major financial statements. The income statement reveals declining revenues and persistent losses, the balance sheet shows increased leverage and reduced equity, and the cash flow statement highlights inconsistent cash generation. These factors collectively suggest financial instability and a need for strategic changes to improve financial health.

Income Statement

The company has experienced a significant decline in revenue and profitability over recent years. The gross profit margin and net profit margin have deteriorated, with continuous negative EBIT and net income figures indicating persistent operational challenges. Revenue growth is negative, reflecting declining sales. Overall, the income statement suggests weak performance and financial instability.

Balance Sheet

The balance sheet shows a decreasing equity base and consistent liabilities, indicating rising leverage. The debt-to-equity ratio has increased, and stockholders' equity has significantly declined over the years, affecting the company's financial stability. The equity ratio has also decreased, reflecting reduced asset backing for liabilities. Overall, the balance sheet portrays a weakening financial position.

Cash Flow

Cash flow from operations has been inconsistent, with operating cash flow turning negative in some years. Free cash flow has fluctuated, showing negative values in recent periods. The lack of consistent positive cash flow generation highlights cash management issues. Overall, the cash flow statement indicates challenges in maintaining liquidity and funding operations internally.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	480.16M	515.15M	640.85M	687.00M	661.39M	884.54M
Gross Profit	50.19M	66.93M	96.31M	106.84M	16.81M	199.95M
EBITDA	-90.92M	-90.59M	-20.98M	-93.79M	-230.51M	21.45M
Net Income	-121.77M	-120.53M	-59.20M	-229.76M	-329.70M	-29.81M
Balance Sheet
Total Assets	970.00M	1.05B	1.25B	1.31B	1.56B	1.95B
Cash, Cash Equivalents and Short-Term Investments	161.52M	192.66M	198.67M	174.28M	250.55M	371.93M
Total Debt	131.60M	113.20M	99.76M	44.41M	144.34M	173.35M
Total Liabilities	619.82M	663.51M	743.18M	745.24M	763.25M	822.33M
Stockholders Equity	350.18M	383.37M	504.55M	564.99M	795.64M	1.13B
Cash Flow
Free Cash Flow	-39.09M	-87.05M	-10.56M	27.63M	-130.60M	-8.31M
Operating Cash Flow	-15.84M	-55.16M	17.05M	60.96M	-70.50M	84.51M
Investing Cash Flow	-85.70M	35.72M	-45.49M	-34.50M	-4.89M	-31.28M
Financing Cash Flow	20.50M	9.05M	47.91M	-110.17M	-41.68M	35.52M

Mobi Development Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0947, the sentiment is Neutral. The current price of 0.15 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.17, and above the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.16 is Neutral, neither overbought nor oversold. The STOCH value of 39.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0947.

Mobi Development Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1720	63 Neutral	HK$115.50M	5.05	3.56%	―	8.78%	160.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1617	61 Neutral	HK$174.01M	2.66	7.40%	―	-9.34%	605.26%
1085	58 Neutral	HK$772.90M	-13.08	-3.08%	―	5.24%	-201.60%
1202	52 Neutral	€356.00M	―	-0.09%	―	-23.93%	-109.41%
9963	42 Neutral	HK$115.70M	-1.23	-24.22%	―	-20.95%	-13.14%
0947	41 Neutral	HK$118.01M	-0.90	-29.56%	―	-12.03%	-40.38%