Matrix Holdings Limited (1005) AI Stock Analysis

• Market Cap: HK$317.61M
• Dividend Yield: 4.17%
• Average Volume (3M): 30.07K
• 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: 6,800
• 30 Day Avg. Volume: 30,066
• PEG Ratio: -0.01
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 1.21
• P/FCF Ratio: -6.44
• 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: 50 Neutral
• Price Target: HK$0.40 ▼(-9.09% Downside)

Matrix Holdings Limited's overall stock score reflects significant financial challenges, with declining revenues and profitability being the most impactful factors. The technical analysis suggests a bearish trend, and the valuation is affected by the negative P/E ratio, although the dividend yield offers some compensation. The absence of earnings call data and notable corporate events limits additional insights.

Positive Factors

Strong equity position

A high equity ratio provides a durable capital buffer against operating volatility and market shocks. Over the next 2–6 months this structural strength can preserve solvency, support creditor confidence and give management runway to execute restructuring or recovery plans without immediate refinancing pressure.

Manageable leverage

Moderate leverage reduces interest and covenant stress, preserving financial flexibility. Structurally, manageable debt levels improve resilience to cyclical slowdowns in leisure demand, enabling the firm to prioritize operational fixes or targeted investments rather than urgent deleveraging over the next several months.

Historic positive cash flow periods

Demonstrated ability to generate positive operating cash flow historically indicates the business model can be cash-accretive under improved conditions. This suggests that, with cost control or revenue stabilization, cash generation could recover within months, reducing long-term financing reliance if management executes remedial actions.

Negative Factors

Declining revenue and EPS

Sustained declines in top-line and EPS reflect weakening demand or loss of pricing/patronage, reducing scale and operating leverage. Over a multi-month horizon this trend compresses margins, limits reinvestment capability, and raises the risk that structural fixes will be needed to restore growth and profitability.

Negative operating and free cash flow

Recent negative operating and free cash flows signal cash burn and impaired conversion of earnings to liquidity. This durable weakness can force reliance on external funding, asset sales, or dividend cuts, limiting strategic options and increasing refinancing and liquidity risk over the next several months.

Negative margins and unprofitability

Persistently negative EBIT/EBITDA and net margins indicate the core leisure operations are not covering costs. Without structural changes to pricing, cost base, or mix, this undermines long-term cash generation, investor returns and the ability to sustain capital expenditures or dividends over the medium term.

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, which have negatively impacted cash flow and return on equity. While the balance sheet remains relatively stable, the firm's ability to generate cash and profits needs substantial improvement.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	500.63M	456.86M	714.49M	986.09M	1.08B	901.14M
Gross Profit	168.07M	152.37M	308.68M	406.63M	441.98M	351.16M
EBITDA	-188.74M	-218.54M	-36.47M	90.73M	152.23M	48.76M
Net Income	-226.81M	-298.57M	-102.60M	6.23M	55.09M	10.59M
Balance Sheet
Total Assets	721.71M	694.16M	1.03B	1.26B	1.42B	1.37B
Cash, Cash Equivalents and Short-Term Investments	46.09M	57.73M	181.20M	258.96M	164.08M	154.70M
Total Debt	154.75M	77.54M	49.60M	67.58M	85.48M	95.45M
Total Liabilities	270.04M	199.60M	180.13M	227.46M	288.97M	258.70M
Stockholders Equity	464.86M	507.01M	863.73M	1.05B	1.13B	1.12B
Cash Flow
Free Cash Flow	-44.24M	-85.78M	14.17M	196.90M	174.54M	75.50M
Operating Cash Flow	-36.82M	-60.76M	32.22M	229.17M	207.75M	120.24M
Investing Cash Flow	9.77M	-9.58M	-13.87M	-27.30M	-132.33M	-32.90M
Financing Cash Flow	-5.47M	-51.90M	-99.32M	-109.01M	-65.94M	-68.00M

Matrix Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.44 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.45, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.14 is Neutral, neither overbought nor oversold. The STOCH value of 26.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1005.

Matrix Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0869	59 Neutral	HK$477.90M	32.93	1.28%	13.73%	-44.36%	-93.64%
0635	55 Neutral	HK$1.03B	-2.42	-8.58%	9.09%	-39.71%	-74.16%
3830	52 Neutral	HK$64.00M	-7.36	-32.53%	―	-6.48%	-38.10%
1005	50 Neutral	HK$317.61M	-1.40	-37.46%	4.17%	-13.08%	-21.27%
6918	43 Neutral	HK$113.17M	-1.51	-19.89%	―	84.26%	44.41%
0180	41 Neutral	HK$180.61M	-0.90	-10.53%	―	-7.61%	-37.66%

Matrix Holdings Limited Corporate Events

Matrix Holdings Clarifies Former CEO’s 2021 Remuneration in Supplemental Filing

Matrix Holdings Limited has issued a supplemental announcement to its 2021 annual report, clarifying the remuneration details of former chief executive officer Chen Wei Qing, who served as CEO until 15 April 2021 before being re-designated as chief operating officer. The company disclosed that Chen received a total of HK$434,000 in salary and employer retirement scheme contributions during the period he was entitled to CEO remuneration, while confirming that all other information in the 2021 annual report remains unchanged, suggesting the update is a compliance-driven clarification rather than a signal of broader changes to operations or governance.

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 Forms Nomination Committee to Enhance Board Governance

Matrix Holdings Limited has established a Nomination Committee to oversee the selection, appointment, and succession planning of directors, ensuring board diversity and effectiveness. This move is aimed at enhancing the company’s corporate governance by maintaining a balanced and skilled board, which is crucial for aligning with its corporate strategy and improving 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 Change in Nomination Committee

Matrix Holdings Limited, a company incorporated in Bermuda, has announced a change in the composition of its Nomination Committee. Effective October 24, 2025, Ms. Yip Hiu Har, an executive director, has been appointed to the committee, which now consists of five members. This change aligns with amendments to the Corporate Governance Code and aims to enhance the diversity and corporate governance practices of the company.

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, incorporated in Bermuda, has announced the composition of its Board of Directors and their respective roles and functions. The Board includes both executive and independent non-executive directors, with specific members assigned to the Audit, Nomination, and Remuneration Committees. This announcement provides clarity on the governance structure of the company, potentially impacting its operational transparency and decision-making processes.

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.