Universal Technologies Holdings Limited (1026) AI Stock Analysis

• Market Cap: HK$577.02M
• Dividend Yield: N/A
• Average Volume (3M): 31.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 410
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): -0.01
• Shares Outstanding: 5,513,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 31,666
• PEG Ratio: 0.22
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 6.45
• 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: 42 Neutral
• Price Target: HK$0.10 ▼(-5.00% Downside)

The overall stock score reflects significant financial performance challenges, including ongoing losses and declining revenue. Technical analysis indicates bearish momentum, and valuation metrics suggest the stock is overvalued. These factors collectively contribute to a low overall score.

Positive Factors

Recurring Revenue Streams

Recurring revenue from service agreements provides stable cash flow, enhancing financial predictability and supporting long-term business sustainability.

Partnerships in Telecommunications

Strategic partnerships in telecommunications enable market expansion and synergy, strengthening competitive positioning and growth potential.

Stable Operating Cash Flow

Positive operating cash flow amidst losses suggests operational resilience, providing liquidity to support ongoing business activities and investments.

Negative Factors

Declining Revenue Trend

A continuous decline in revenue indicates challenges in maintaining market share and demand, potentially impacting long-term growth and profitability.

Negative Profit Margins

Sustained negative profit margins highlight operational inefficiencies and financial strain, undermining the company's ability to achieve profitability.

Weakening Equity Base

A declining equity base suggests reduced financial stability and resilience, limiting the company's capacity to absorb losses and invest in growth.

Universal Technologies Holdings Limited Business Overview & Revenue Model

Company Description

Universal Technologies Holdings Limited, an investment holding company, primarily engages in the water supply and related services business in the People's Republic of China and internationally. The company operates through Water Supply and Related Services; Properties Investment and Development; and Financial Services segments. The Water Supply and Related Services segment supplies tap water to various districts of Qingyuan City, Guangdong province. The Properties Investment and Development segment develops, leases, and manages land, and commercial and residential properties. The Financial Services segment engages in the provision of corporate finance advisory, asset management, securities brokerage, and margin financing services. The company is also involved in the provision of investment advisory and water quality testing services businesses. Universal Technologies Holdings Limited was incorporated in 2001 and is headquartered in Sheung Wan, Hong Kong.

How the Company Makes Money

Universal Technologies Holdings Limited generates revenue through multiple streams, including the sale of technology hardware and software solutions, consulting services, and ongoing maintenance contracts. A significant portion of its earnings comes from partnerships with key players in the telecommunications and IT sectors, which allows the company to leverage synergies and expand its market reach. Additionally, the company benefits from recurring revenue through service agreements and support contracts that provide stable cash flow over time.

Universal Technologies Holdings Limited Financial Statement Overview

Summary

The company faces ongoing challenges in profitability with continuous negative net income and declining revenue trends. The balance sheet shows moderate leverage, but the equity base has weakened. Cash flow performance is stable but constrained by persistent losses, indicating precarious financial health.

Income Statement

The company exhibits a declining trend in revenue over recent years, with a notable decrease in profitability. The gross profit margin decreased from 14.96% to 8.3% from 2021 to 2024, and the net profit margin remains negative, indicating ongoing losses. Although EBITDA has improved to a positive figure in 2024, EBIT continues to be negative, reflecting operational challenges.

Balance Sheet

The company's balance sheet reflects a stable debt-to-equity ratio of approximately 1.11 in 2024, indicating moderate leverage. However, stockholders' equity has decreased over time, signaling potential concerns about the company's equity base. The equity ratio has fallen from 38.8% in 2020 to 36.5% in 2024, showing a slight decline in the company's financial stability.

Cash Flow

Cash flow metrics show mixed performance, with stable operating cash flow but a decline in free cash flow growth. The operating cash flow to net income ratio is positive, indicating that the company generates cash despite losses. However, the free cash flow to net income ratio suggests limited cash generation relative to losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	331.05M	319.15M	349.00M	368.50M	344.75M
Gross Profit	27.50M	17.77M	29.36M	48.35M	51.53M
EBITDA	39.14M	-61.46M	2.98M	86.45M	71.46M
Net Income	-69.13M	-137.34M	-104.07M	-39.10M	-36.34M
Balance Sheet
Total Assets	1.94B	2.04B	2.52B	2.89B	2.94B
Cash, Cash Equivalents and Short-Term Investments	231.28M	370.69M	564.49M	866.27M	1.14B
Total Debt	784.74M	873.18M	950.33M	1.10B	1.25B
Total Liabilities	1.44B	1.43B	1.44B	1.57B	1.58B
Stockholders Equity	707.78M	799.22M	958.09M	1.12B	1.15B
Cash Flow
Free Cash Flow	118.02M	114.26M	110.30M	95.17M	101.41M
Operating Cash Flow	118.02M	136.91M	148.01M	128.64M	126.26M
Investing Cash Flow	-28.17M	-296.51M	-244.69M	-58.88M	-294.41M
Financing Cash Flow	-84.66M	-166.19M	-94.15M	-442.72M	526.75M

Universal Technologies Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.10
• 50DMA: Positive
• 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:1026, the sentiment is Neutral. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and below the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.53 is Neutral, neither overbought nor oversold. The STOCH value of 39.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1026.

Universal Technologies Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2281	75 Outperform	HK$627.59M	3.14	6.36%	6.03%	4.85%	-4.80%
3768	69 Neutral	HK$761.54M	2.89	4.69%	―	-9.45%	-17.46%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
6136	60 Neutral	HK$1.04B	5.43	2.82%	―	3.04%	6.91%
1129	43 Neutral	HK$192.82M	-0.31	-31.95%	―	-43.38%	-25.63%
1026	42 Neutral	HK$577.02M	-5.38	―	―	―	―
6839	40 Underperform	HK$196.88M	-0.09	-514.90%	―	-5.97%	-50.72%

Universal Technologies Holdings Limited Corporate Events

Universal Technologies Reports Revenue Growth Amid Rising Losses

Universal Technologies Holdings Limited reported a significant revenue increase of 41.41% for the eighteen months ending June 2025, driven by growth in its water supply business and rental income from commercial properties in China. Despite this revenue growth, the company experienced a net loss increase due to higher costs of sales, operating expenses, and administrative costs, leading to a decision not to distribute dividends for the period.

Universal Technologies Schedules Board Meeting for Financial Review

Universal Technologies Holdings Limited has announced a board meeting scheduled for September 30, 2025, to review and approve the company’s financial results for the eighteen months ending June 30, 2025, and to consider a final dividend recommendation. This meeting is significant as it will provide insights into the company’s financial health and potential returns for shareholders, reflecting its strategic positioning and operational performance.