Matrix Holdings Limited (1005) AI Stock Analysis

• Market Cap: HK$385.66M
• Dividend Yield: 3.92%
• Average Volume (3M): 24.02K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.46
• Revenue Growth: -13.08%
• EPS Growth: -21.27%
• Country: HK
• Employees: 2,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -0.02
• Shares Outstanding: 756,203,300
• 10 Day Avg. Volume: 12,800
• 30 Day Avg. Volume: 24,020
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: -1.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$0.50 ▼(-1.96% Downside)

Matrix Holdings Limited's overall stock score is primarily impacted by its poor financial performance, with significant declines in revenue and profitability. Technical analysis provides some short-term bullish signals, but the overbought RSI suggests caution. The valuation is unattractive due to negative earnings, despite a decent dividend yield.

Matrix Holdings Limited Business Overview & Revenue Model

Company Description

Matrix Holdings Limited, an investment holding company, manufactures and trades in toys and LED lighting products. It offers plastic, die-cast, and plush toys. The company also engages in the purchase and trading of toys; trading of lighting products; import and wholesale distribution of toys, and sale of accessories connected with its products; and provision of management services. It has operations in the People's Republic of China, the United States, Europe, Canada, Mexico, South America, Australia, New Zealand, and internationally. The company was founded in 1979 and is headquartered in Tsim Sha Tsui, Hong Kong. Matrix Holdings Limited is a subsidiary of Smart Forest Limited.

How the Company Makes Money

Matrix Holdings generates revenue through several key streams, including the sale of electronic components and related products to both domestic and international markets. The company has established partnerships with various manufacturers and distributors, allowing it to expand its market reach and enhance its product offerings. Additionally, Matrix Holdings benefits from economies of scale in production, which helps to reduce costs and improve profit margins. The company's revenue model is primarily based on direct sales, but it also explores opportunities in joint ventures and collaborations that can lead to new product developments and market expansions.

Matrix Holdings Limited Financial Statement Overview

Summary

Matrix Holdings Limited faces significant financial challenges, primarily due to declining revenues and profitability. The negative cash flow and return on equity are concerning, although the balance sheet shows relative stability.

Income Statement

Matrix Holdings Limited has experienced a significant decline in revenue and profitability over the past few years. The company's gross profit margin has decreased, and both EBIT and EBITDA margins have turned negative in the most recent year, indicating operational challenges. The substantial negative net profit margin highlights a severe downturn in profitability.

Balance Sheet

The company maintains a relatively strong equity position, with a high equity ratio suggesting financial stability. However, the declining return on equity due to negative net income is concerning. The debt-to-equity ratio is moderate, indicating manageable leverage levels, but the overall financial health is impacted by declining profitability.

Cash Flow

Matrix Holdings Limited's cash flow situation has deteriorated, with negative operating and free cash flows in the most recent period. The operating cash flow to net income ratio is negative, reflecting cash burn. Despite past periods of positive cash flow, the recent negative trend raises concerns about cash generation capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	456.86M	714.49M	986.09M	1.08B	901.14M
Gross Profit	152.37M	308.68M	406.63M	441.98M	351.16M
EBITDA	-218.54M	-36.47M	107.58M	152.23M	48.76M
Net Income	-298.57M	-102.60M	1.83M	55.09M	7.99M
Balance Sheet
Total Assets	694.16M	1.03B	1.26B	1.42B	1.37B
Cash, Cash Equivalents and Short-Term Investments	57.73M	181.20M	258.96M	164.08M	154.70M
Total Debt	77.54M	49.60M	67.58M	85.48M	95.45M
Total Liabilities	199.60M	180.13M	227.46M	288.97M	258.70M
Stockholders Equity	507.01M	863.73M	1.05B	1.13B	1.12B
Cash Flow
Free Cash Flow	-85.78M	14.17M	196.90M	174.54M	75.50M
Operating Cash Flow	-60.76M	32.22M	229.17M	207.75M	120.24M
Investing Cash Flow	-9.58M	-13.87M	-27.30M	-132.33M	-32.90M
Financing Cash Flow	-51.90M	-99.32M	-109.01M	-65.94M	-68.00M

Matrix Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.51
• 50DMA: Positive
• 100DMA: Positive
• 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:1005, the sentiment is Positive. The current price of 0.51 is above the 20-day moving average (MA) of 0.49, above the 50-day MA of 0.46, and below the 200-day MA of 0.54, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.69 is Neutral, neither overbought nor oversold. The STOCH value of 53.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1005.

Matrix Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0869	63 Neutral	HK$672.60M	46.34	10.96%	12.28%	-44.36%	-93.64%
3830	53 Neutral	HK$74.00M	-10.57	-38.04%	―	-8.50%	4.11%
0635	53 Neutral	HK$1.08B	-2.51	―	8.65%	-39.71%	-74.16%
6918	48 Neutral	HK$142.40M	-1.87	-21.34%	―	84.26%	44.41%
1005	46 Neutral	HK$385.66M	―	-37.46%	3.92%	-13.08%	-21.27%
0180	41 Neutral	HK$203.43M	-1.00	-9.72%	―	-7.61%	-37.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Matrix Holdings Limited Corporate Events

Matrix Holdings Limited Reports Improved Interim Financial Results Amid Challenges

Matrix Holdings Limited reported its unaudited condensed consolidated interim results for the first half of 2025, showing a revenue increase to HK$238,025,000 from HK$194,250,000 in the same period of 2024. Despite the revenue growth, the company experienced a loss before tax of HK$11,644,000, a significant improvement from the HK$84,423,000 loss in the previous year. The comprehensive loss for the period was HK$35,326,000, compared to HK$95,644,000 in 2024, indicating a reduction in losses. The results reflect a challenging period with improvements in gross profit and reductions in distribution, selling, and administrative costs, which may impact the company’s future financial stability and stakeholder confidence.

The most recent analyst rating on (HK:1005) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Matrix Holdings Limited stock, see the HK:1005 Stock Forecast page.

Matrix Holdings Limited Announces Interim Dividend

Matrix Holdings Limited has announced an interim cash dividend of HKD 0.01 per share for the six months ending June 30, 2025. The dividend will be paid on September 26, 2025, with the ex-dividend date set for September 10, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (HK:1005) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Matrix Holdings Limited stock, see the HK:1005 Stock Forecast page.

Matrix Holdings Limited Appoints New Executive Director

Matrix Holdings Limited has appointed Mr. Cheng Kin Cheong as an executive director effective from August 25, 2025. Mr. Cheng, who has been with the company since 2022, brings experience in quality assurance and strategic business development. His appointment aligns with the company’s nomination and board diversity policies, and he is the son of the company’s chairman, Mr. Cheng Yung Pun. The board has expressed a warm welcome to Mr. Cheng, indicating a strategic move to strengthen its leadership team.

The most recent analyst rating on (HK:1005) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Matrix Holdings Limited stock, see the HK:1005 Stock Forecast page.

Matrix Holdings Limited Announces Board Composition and Roles

Matrix Holdings Limited, a company incorporated in Bermuda, has announced the composition of its Board of Directors and their roles within the company. The Board includes both executive and independent non-executive directors, with specific members serving on the Audit, Nomination, and Remuneration Committees. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic decision-making and stakeholder engagement.

The most recent analyst rating on (HK:1005) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Matrix Holdings Limited stock, see the HK:1005 Stock Forecast page.

Matrix Holdings Reports Significant Reduction in Losses for H1 2025

Matrix Holdings Limited has announced a significant reduction in its losses for the first half of 2025, with expected losses ranging from HK$10 million to HK$15 million, compared to HK$84.5 million in the same period last year. This improvement is attributed to increased revenue from expanded market penetration in the US and decreased administrative and distribution expenses due to cost-saving measures, reflecting the company’s strategic efforts to streamline operations and improve financial performance.

The most recent analyst rating on (HK:1005) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Matrix Holdings Limited stock, see the HK:1005 Stock Forecast page.

Matrix Holdings to Review Interim Results and Dividend Prospects

Matrix Holdings Limited has announced that its board of directors will meet on August 26, 2025, to review and approve the unaudited consolidated interim results for the first half of the year ending June 30, 2025. The board will also consider the possibility of declaring an interim dividend, with further details to be announced post-meeting. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.