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Matrix Holdings Limited (HK:1005)
:1005
Hong Kong Market

Matrix Holdings Limited (1005) AI Stock Analysis

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HK

Matrix Holdings Limited

(1005)

Rating:50Neutral
Price Target:
HK$0.50
▼(-20.63%Downside)
Matrix Holdings Limited's overall stock score is 50 due to significant financial performance issues driven by declining revenues and profitability. Technical indicators show bearish momentum, and the valuation is hampered by a negative P/E ratio, despite a decent dividend yield. The lack of earnings call data and notable corporate events provides no additional insights.

Matrix Holdings Limited (1005) vs. iShares MSCI Hong Kong ETF (EWH)

Matrix Holdings Limited Business Overview & Revenue Model

Company DescriptionMatrix 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 MoneyMatrix Holdings Limited generates revenue primarily through the manufacturing and distribution of toys and related products. The company designs, produces, and sells a wide range of toy products, including action figures, collectibles, and educational toys. A significant portion of its income is derived from licensing agreements with well-known entertainment brands, allowing Matrix to produce toys featuring popular characters from movies, television shows, and video games. The company leverages its global distribution network to reach various markets and retail channels, enhancing its sales and profitability. Additionally, partnerships with major retailers and strategic acquisitions contribute to its revenue streams.

Matrix Holdings Limited Financial Statement Overview

Summary
Matrix Holdings Limited faces significant financial challenges due to declining revenues, profitability, and cash flow. Despite a stable balance sheet with manageable debt, the negative profit margins and cash burn indicate severe operational issues.
Income Statement
30
Negative
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
65
Positive
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
40
Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
456.86M714.49M986.09M1.08B901.14M
Gross Profit
152.37M308.68M406.63M441.98M351.16M
EBIT
-271.48M-94.83M39.89M75.57M14.29M
EBITDA
-218.54M-36.47M107.58M152.23M48.76M
Net Income Common Stockholders
-298.57M-102.60M1.83M55.09M7.99M
Balance SheetCash, Cash Equivalents and Short-Term Investments
57.73M181.20M258.96M164.08M154.70M
Total Assets
694.16M1.03B1.26B1.42B1.37B
Total Debt
77.54M49.60M67.58M85.48M95.45M
Net Debt
20.71M-131.60M-191.38M-78.60M-59.25M
Total Liabilities
199.60M180.13M227.46M288.97M258.70M
Stockholders Equity
507.01M863.73M1.05B1.13B1.12B
Cash FlowFree Cash Flow
-85.78M14.17M196.90M174.54M75.50M
Operating Cash Flow
-60.76M32.22M229.17M207.75M120.24M
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 Price0.63
Price Trends
50DMA
0.56
Positive
100DMA
0.59
Positive
200DMA
0.63
Positive
Market Momentum
MACD
0.02
Negative
RSI
74.80
Negative
STOCH
60.78
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 0.63 is above the 20-day moving average (MA) of 0.53, above the 50-day MA of 0.56, and above the 200-day MA of 0.63, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 74.80 is Negative, neither overbought nor oversold. The STOCH value of 60.78 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$6.98B11.412.80%4.24%2.68%-24.94%
50
Neutral
HK$476.41M-43.56%3.97%-36.06%-190.94%
$33.16B3.6724.28%16.43%
$13.98B6.1315.59%7.63%
$79.68M3.3611.10%21.38%
DECL4
€9.11B22.9128.95%5.04%
70
Outperform
HK$1.61B4.1921.87%9.43%11.66%16.73%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1005
Matrix Holdings Limited
0.63
-0.13
-17.11%
CICOF
COSCO SHIPPING Holdings Co
1.75
0.27
18.24%
CRPJF
China Resources Power Holdings Co
2.33
-0.56
-19.38%
PMTYF
Playmates Toys
0.07
0.00
0.00%
DE:CL4
Huazhu Group Ltd
3.00
0.09
3.09%
HK:1979
Ten Pao Group Holdings Limited
1.59
0.51
47.22%

Matrix Holdings Limited Corporate Events

Matrix Holdings Limited Successfully Passes All Resolutions at 2025 AGM
May 15, 2025

Matrix Holdings Limited announced that all resolutions proposed at its 2025 Annual General Meeting were passed by shareholders. The resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. The successful passing of these resolutions reflects strong shareholder support and positions the company for continued stability and growth.

Matrix Holdings Limited Announces AGM and Key Resolutions
Apr 22, 2025

Matrix Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 15, 2025, in Hong Kong. The meeting will address several key agenda items, including the review of audited financial statements for 2024, the declaration of a final dividend, and the re-election of directors. Additionally, shareholders will consider resolutions related to the issuance of additional shares, which could impact the company’s capital structure and market positioning.

Matrix Holdings Limited Reports Significant Financial Losses in 2024
Mar 26, 2025

Matrix Holdings Limited announced its audited consolidated results for the year ending December 31, 2024, revealing a significant decline in financial performance. The company reported a substantial decrease in revenue from HK$714,486,000 in 2023 to HK$456,859,000 in 2024, leading to a gross profit drop from HK$308,680,000 to HK$152,366,000. The overall loss for the year increased to HK$298,731,000, compared to HK$102,940,000 in the previous year, with total comprehensive expense reaching HK$322,639,000. These results indicate a challenging year for the company, impacting its operations and potentially affecting stakeholders.

Matrix Holdings Limited Declares Final Dividend for 2024
Mar 26, 2025

Matrix Holdings Limited announced a final ordinary cash dividend of HKD 0.01 per share for the financial year ending December 31, 2024. The dividend will be paid on June 6, 2025, following shareholder approval on May 15, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and could impact investor sentiment positively.

Matrix Holdings Limited Issues Profit Warning Amid Economic Uncertainty
Mar 18, 2025

Matrix Holdings Limited has issued a profit warning, indicating an expected increase in losses for the year ending December 31, 2024, with projected losses ranging from HK$290 million to HK$310 million, compared to a loss of HK$103 million in 2023. The increase in losses is attributed to decreased revenue due to global economic uncertainty and geopolitical tensions affecting consumer spending, as well as impairment losses on goodwill and other assets. Stakeholders are advised to exercise caution when dealing with the company’s shares.

Matrix Holdings Announces Board Changes Amid Legal Proceedings
Mar 17, 2025

Matrix Holdings Limited announced the resignation of Dr. Loke Yu as an independent non-executive director and chairman of the Audit and Remuneration Committees, effective March 17, 2025, due to his other business commitments. This change comes amid legal proceedings initiated by the Securities and Futures Commission against Dr. Loke and others. The company has appointed Mr. Heng Victor Ja Wei as the new chairman of the Audit and Remuneration Committees, signaling a shift in leadership and potentially impacting the company’s governance and strategic direction.

Matrix Holdings Limited Announces Board Composition
Mar 17, 2025

Matrix Holdings Limited has announced the composition of its Board of Directors, highlighting the roles and functions of its executive and independent non-executive directors. This announcement provides clarity on the governance structure of the company, which may impact its strategic decision-making and stakeholder confidence.

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.