Universal Technologies Holdings Limited (1026) AI Stock Analysis

• Market Cap: HK$741.88M
• Dividend Yield: N/A
• Average Volume (3M): 157.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: 3.73%
• EPS Growth: 49.80%
• Country: HK
• Employees: 410
• Sector: Utilities
• Sector Strength: 75
• Industry: Regulated Water
• EPS (TTM): -0.01
• Shares Outstanding: 5,513,000,000
• 10 Day Avg. Volume: 244,200
• 30 Day Avg. Volume: 157,066
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 1

• Rating: 49 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The stock score primarily reflects significant financial challenges, including declining revenue and negative profitability, impacting its valuation. While technical analysis shows some mixed signals, financial performance remains the most significant concern, overshadowing other factors.

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 makes money through a combination of its technology services and investment activities. The primary revenue stream comes from offering IT services, which includes software development, system integration, IT consultancy, and maintenance services to various clients. These services are typically provided on a project basis or through long-term service contracts, generating consistent income for the company. Furthermore, the company may earn returns from its strategic investments in other technology-related businesses, either through dividends, capital appreciation, or the sale of these investments. Partnerships with technology providers and businesses can also contribute to its earnings by expanding its service offerings and client base.

Universal Technologies Holdings Limited Financial Statement Overview

Summary

The company faces ongoing challenges in profitability, with continuous negative net income and declining revenue trends. Despite moderate leverage, the equity base has weakened, and cash flow is constrained by persistent losses, indicating potential risks in financial stability.

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	-163.56M	-60.87M	-71.26M
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	95.16M	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: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.16, and above the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 36.90 is Neutral, neither overbought nor oversold. The STOCH value of 47.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	67 Neutral	$17.80B	18.42	5.29%	3.53%	7.33%	12.21%
1026	49 Neutral	HK$741.88M	―	-9.17%	―	3.73%	49.80%
27K	―	€89.93M	3.56	2.85%	―	―	―
2WI	―	€29.05M	―	-151.78%	―	―	―
1129	49 Neutral	HK$214.95M	―	-33.47%	―	-26.87%	-53.44%
2281	―	HK$661.98M	3.45	6.20%	5.71%	―	―
3768	68 Neutral	HK$740.96M	2.60	5.17%	―	-13.42%	-18.54%

Universal Technologies Holdings Limited Corporate Events

Universal Technologies Explores Major Property Acquisition in PRC

Universal Technologies Holdings Limited has announced a potential acquisition involving the payment of earnest money for property interests in the PRC. The company, through its indirect wholly-owned subsidiary, has entered into a Framework Agreement to acquire certain properties for a consideration of up to RMB260 million. This transaction is subject to due diligence and further negotiations, and it is classified as a discloseable transaction under the Listing Rules. The acquisition, if finalized, could significantly impact the company’s operations and market positioning.

Universal Technologies Announces Auditor Change

Universal Technologies Holdings Limited announced a change in its auditor, with PKF Hong Kong Limited resigning due to a disagreement over audit fees. McMillan Woods (Hong Kong) CPA Limited has been appointed as the new auditor, with the company expressing confidence in their capability and independence. The change is not expected to impact the audit timeline for FY2024-2025, and the company anticipates publishing the audited results by the end of September 2025.

Universal Technologies Holdings Announces Board Composition

Universal Technologies Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The board includes executive directors, a non-executive director, and independent non-executive directors, each serving on various committees such as the audit, remuneration, and nomination committees. This announcement provides clarity on the governance structure of the company, which may influence its strategic decisions and operational efficiency.

Universal Technologies Appoints New Member to Nomination Committee

Universal Technologies Holdings Limited has announced the appointment of Ms. Zhu Fenglian as a member of its Nomination Committee, effective from July 1, 2025. This change aligns with the new amendments to the Listing Rules and Corporate Governance Code, aiming to enhance the committee’s effectiveness and diversity, thereby strengthening the company’s corporate governance practices.