IRC (1029) AI Stock Analysis

• Market Cap: $779.55M
• Dividend Yield: N/A
• Average Volume (3M): 623.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 2.05%
• EPS Growth: 27.51%
• Country: HK
• Employees: 1,670
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.62
• Shares Outstanding: 1,277,948,600
• 10 Day Avg. Volume: 1,116,682
• 30 Day Avg. Volume: 623,689
• PEG Ratio: 0.55
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 4.43
• P/FCF Ratio: -50.81
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 3.46
• Enterprise Value/Gross Profit: 79.34
• Enterprise Value/Ebitda: 69.11
• 1Y Price Target: $0.47
• Price Target Upside: -23.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: HK$0.50 ▼(-18.03% Downside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues and negative profitability. Technical analysis indicates a bearish trend with neutral momentum, while valuation is hindered by a negative P/E ratio and lack of dividend yield. These factors collectively suggest caution for potential investors.

IRC Business Overview & Revenue Model

Company Description

IRC (1029) is a company primarily engaged in the development and production of innovative technology solutions, focusing on sectors such as information technology, telecommunications, and software development. The company specializes in creating advanced software applications and infrastructure that enhance connectivity and efficiency for businesses and consumers alike.

How the Company Makes Money

IRC generates revenue through multiple streams, including the sale of proprietary software solutions, licensing agreements, and ongoing support services. The company offers subscription-based models for its software products, ensuring a steady income from its user base. Additionally, IRC partners with key industry players to integrate their technologies, which generates revenue through joint ventures and collaborative projects. Strategic alliances with telecommunications companies and IT service providers further enhance IRC's market reach and profitability.

IRC Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues, negative profitability, and cash flow issues. Despite a stable equity position and reduced leverage, the negative cash flow and profitability metrics indicate operational inefficiencies and potential liquidity risks.

Income Statement

The income statement shows a concerning trend with declining revenues and profitability. Revenue decreased from $278.76M in 2022 to $221.16M in 2024, marking a negative growth trajectory. The gross profit margin remains relatively high at 81.4% in 2024, but the net profit margin is negative due to consistent net losses, with a net income of -$20.49M in 2024. The EBIT and EBITDA margins have also deteriorated, indicating operational challenges.

Balance Sheet

The balance sheet reflects a stable equity position with stockholders' equity at $316.14M in 2024. The debt-to-equity ratio improved to 0.14, indicating reduced leverage. However, the equity ratio decreased to 70.9%, suggesting a decline in asset efficiency. The return on equity is negative due to net losses, highlighting profitability concerns.

Cash Flow

Cash flow analysis reveals significant challenges, with operating cash flow turning negative at -$1.91M in 2024. Free cash flow also declined sharply to -$19.26M, indicating cash management issues. The free cash flow to net income ratio is negative, reflecting poor cash conversion efficiency. These factors suggest liquidity risks and operational inefficiencies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	221.16M	252.99M	278.76M	371.28M	224.59M
Gross Profit	180.10M	196.55M	255.08M	344.26M	195.77M
EBITDA	9.18M	-118.30M	46.89M	163.91M	71.13M
Net Income	-20.49M	-156.81M	-87.84M	134.07M	100.55M
Balance Sheet
Total Assets	445.83M	451.04M	593.95M	709.15M	681.12M
Cash, Cash Equivalents and Short-Term Investments	60.73M	56.56M	37.03M	52.13M	20.38M
Total Debt	44.93M	67.38M	78.25M	116.29M	209.30M
Total Liabilities	130.45M	162.06M	145.68M	192.77M	298.83M
Stockholders Equity	316.14M	289.62M	448.61M	516.83M	382.71M
Cash Flow
Free Cash Flow	-19.26M	15.57M	17.29M	151.89M	58.16M
Operating Cash Flow	-1.91M	55.26M	31.74M	165.10M	63.97M
Investing Cash Flow	-15.88M	-15.06M	-14.12M	-13.75M	-1.08M
Financing Cash Flow	16.14M	-19.25M	-30.54M	-119.90M	-45.47M

IRC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1029, the sentiment is Negative. The current price of 0.61 is below the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.66, and below the 200-day MA of 0.76, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.24 is Neutral, neither overbought nor oversold. The STOCH value of 14.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1029.

IRC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3939	66 Neutral	HK$38.99B	38.52	36.46%	1.25%	31.24%	58.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1091	54 Neutral	HK$2.20B	―	-14.35%	―	-31.35%	-71.37%
0433	49 Neutral	HK$1.22B	―	-4702.63%	―	0.41%	83.35%
1029	47 Neutral	$779.55M	―	-44.33%	―	2.05%	27.51%
1370	47 Neutral	HK$408.83M	―	-41.19%	―	-6.51%	41.00%
0159	36 Underperform	HK$1.00B	―	-7.49%	―	―	-164.29%

IRC Corporate Events

IRC Company Sells Stake in Joint Venture for $4.5 Million

IRC Company has announced the disposal of a 46% equity interest in a joint venture company, with the transaction valued at approximately US$4.5 million. This strategic move, executed through an Equity Transfer Agreement, will see IRC’s wholly-owned subsidiary relinquish its stake, potentially impacting its market positioning and operational focus.

IRC Limited Updates Nomination Committee Terms to Enhance Governance

IRC Limited, a company incorporated in Hong Kong, has updated the terms of reference for its Nomination Committee to align with best practices in corporate governance. The updated terms emphasize the Committee’s role in compliance with the Corporate Governance Code and outline the composition, responsibilities, and procedures for the Committee, including the requirement for a majority of independent non-executive directors and gender diversity among its members.

IRC Limited Announces AGM Results and Share Consolidation

IRC Limited announced the successful passing of all proposed resolutions at its Annual General Meeting held on June 25, 2025. The Share Consolidation will become effective on June 27, 2025, resulting in a change in the board lot size for trading shares on the Stock Exchange from 2,000 existing shares to 4,000 consolidated shares. This consolidation and change in board lot size are expected to streamline trading operations and potentially impact shareholder value.

IRC Limited Announces 2025 Annual General Meeting and Key Resolutions

IRC Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 25, 2025, in Hong Kong. The meeting will address several key resolutions, including the approval of financial statements, reappointment of auditors, re-election of directors, and authorization for the board to fix directors’ remuneration. Additionally, shareholders will consider a resolution to allow the company to repurchase up to 10% of its shares, subject to certain conditions. This announcement highlights IRC Limited’s focus on maintaining robust governance and shareholder engagement while potentially enhancing shareholder value through share repurchases.

IRC Proposes Share Consolidation and Change in Board Lot Size

IRC, a company incorporated in Hong Kong, has announced a proposed share consolidation where every ten existing shares will be consolidated into one consolidated share. This move aims to streamline the company’s share structure and is contingent upon shareholder approval at the upcoming AGM. Additionally, the board lot size for trading on the Stock Exchange will change from 2,000 existing shares to 4,000 consolidated shares, potentially impacting trading dynamics and shareholder value.