InvesTech Holdings Limited (1087) AI Stock Analysis

• Market Cap: HK$311.83M
• Dividend Yield: N/A
• Average Volume (3M): 945.00K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.61
• Revenue Growth: -7.93%
• EPS Growth: 45.04%
• Country: HK
• Employees: 323
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.08
• Shares Outstanding: 199,888,000
• 10 Day Avg. Volume: 785,600
• 30 Day Avg. Volume: 945,001
• PEG Ratio: -0.09
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 12.14
• 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: HK$0.50
• Price Target Upside: -67.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: HK$0.50 ▼(-67.11% Downside)

The overall stock score is primarily influenced by the company's financial performance challenges, including declining revenues and profitability, which are partially offset by improved cash flow management. The technical analysis indicates strong bullish momentum, but the high RSI suggests potential overbought conditions. Valuation remains a concern due to negative earnings and lack of dividends.

InvesTech Holdings Limited Business Overview & Revenue Model

Company Description

InvesTech Holdings Limited, an investment holding company, engages in the network system integration, professional network services, and mobile software platform businesses. The company's network system integration services comprise enterprise Internet architecture, high-speed IP bearer network architecture, data center and storage program, optical transmission network, wireless coverage program, application delivery program, security interconnection and access monitoring program, and network management program. Its professional network services include network system services comprising preparation, planning, design, implementation, operation, maintenance, and optimization; network planning, design, and project management services; and network system maintenance services, such as network operation and maintenance, management and security, hosting, evaluation, consultation and performance test, design and integration, etc. The company also offers smart office software solutions; and rents network equipment. It operates in Mainland China, Vietnam, Hong Kong, the United States, and internationally. The company was formerly known as HL Technology Group Limited and changed its name to InvesTech Holdings Limited in June 2016. InvesTech Holdings Limited was founded in 1997 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

InvesTech Holdings Limited generates revenue through several key streams. The primary source of income comes from its network system integration services, where the company designs, implements, and manages IT infrastructure projects for clients. This includes the sale and installation of hardware and software, which provides an additional revenue stream. The company also offers network professional services such as consulting, technical support, and maintenance, which help in building long-term relationships with clients and ensuring recurring revenue. InvesTech leverages strategic partnerships with technology vendors to enhance its service offerings and expand its market reach. These partnerships are crucial in securing competitive technology solutions and remain a significant factor in the company's ability to generate earnings.

InvesTech Holdings Limited Financial Statement Overview

Summary

InvesTech Holdings Limited is facing challenges with declining revenues and profitability, as reflected in the negative margins and net losses. The balance sheet shows increased leverage, which could be a concern if profitability does not improve. On a positive note, the cash flow situation has improved, with positive free cash flow indicating better cash management. The company needs to focus on improving operational efficiency and revenue growth to enhance its financial health.

Income Statement

The company has experienced declining revenues over the past year, with a significant drop in gross profit margin from 12.42% to 12.32%. The net profit margin is negative, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. The revenue growth rate is negative, showing a decrease in sales compared to the previous year.

Balance Sheet

The debt-to-equity ratio has increased, indicating higher leverage, which could pose a risk if not managed properly. The return on equity is negative due to net losses, but the equity ratio remains stable at around 31.15%, suggesting a moderate level of financial stability.

Cash Flow

The company has improved its free cash flow position, turning positive from a negative position last year, which is a positive sign. The operating cash flow to net income ratio is positive, indicating better cash generation relative to net losses. However, the free cash flow to net income ratio is still low, suggesting limited cash flow relative to the losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	485.99M	466.03M	561.01M	556.68M	484.60M	469.12M
Gross Profit	63.95M	57.43M	69.70M	85.37M	57.11M	51.27M
EBITDA	-2.68M	-8.41M	5.71M	2.56M	7.85M	-1.92M
Net Income	-37.19M	-63.55M	-41.23M	-35.88M	-16.85M	-83.05M
Balance Sheet
Total Assets	683.93M	682.02M	746.40M	746.41M	655.43M	720.47M
Cash, Cash Equivalents and Short-Term Investments	32.67M	87.52M	84.43M	74.16M	70.33M	90.18M
Total Debt	229.35M	229.60M	232.63M	94.54M	70.94M	54.86M
Total Liabilities	485.81M	469.61M	479.57M	426.32M	326.13M	299.93M
Stockholders Equity	198.12M	212.41M	266.83M	309.24M	322.75M	371.10M
Cash Flow
Free Cash Flow	-9.48M	4.64M	-37.53M	-36.04M	-10.55M	19.27M
Operating Cash Flow	-6.99M	7.64M	-36.91M	-35.24M	-8.71M	19.92M
Investing Cash Flow	1.95M	3.28M	-20.41M	-24.91M	-6.46M	24.70M
Financing Cash Flow	-18.64M	-3.04M	73.99M	63.16M	-4.87M	-15.85M

InvesTech Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1087, the sentiment is Positive. The current price of 1.52 is above the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.23, and above the 200-day MA of 0.57, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 57.27 is Neutral, neither overbought nor oversold. The STOCH value of 72.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1087.

InvesTech Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1617	59 Neutral	HK$187.02M	2.86	7.40%	―	-9.34%	605.26%
1087	55 Neutral	HK$311.83M	―	-17.08%	―	-7.93%	45.04%
0948	45 Neutral	HK$87.32M	―	-816.71%	―	-57.93%	-414.86%
8487	45 Neutral	HK$103.62M	―	-18.66%	―	5.89%	41.89%
1613	41 Neutral	HK$97.38M	―	-29.38%	―	86.85%	-36.65%
9963	39 Underperform	HK$92.30M	―	-24.22%	―	-20.95%	-13.14%

InvesTech Holdings Limited Corporate Events

InvesTech Holdings Announces Changes to Nomination Committee

InvesTech Holdings Limited has announced a change in the composition of its Nomination Committee, effective from June 30, 2025. Ms. Tin Yat Yu, Carol, an executive Director and vice-chairman, has been appointed as a member, joining one executive director and three independent non-executive directors. This change reflects the company’s commitment to diversity, as the committee now includes directors of different genders.

InvesTech Holdings Limited Announces Board Composition and Roles

InvesTech Holdings Limited has announced the composition of its board of directors, which includes seven members with varying roles such as executive, non-executive, and independent non-executive directors. The announcement details the specific roles and committee memberships of each director, highlighting the company’s governance structure and leadership organization.

InvesTech Holdings Forms Nomination Committee to Enhance Board Governance

InvesTech Holdings Limited has established a Nomination Committee to oversee the structure, size, and composition of its Board of Directors. The Committee is tasked with identifying qualified individuals for board membership, assessing the independence of non-executive directors, and making recommendations on board appointments and succession planning. This initiative reflects the company’s commitment to maintaining a competitive edge and ensuring effective leadership aligned with market needs.

InvesTech Holdings Announces Executive Resignation

InvesTech Holdings Limited announced the resignation of Ms. Wang Fang from her roles as an executive director and vice chief executive officer, effective June 24, 2025, due to her other business commitments. The company expressed gratitude for her contributions, and Ms. Wang confirmed no disagreements with the board or issues needing shareholder attention.

InvesTech Holdings Limited Announces Board Composition and Committee Roles

InvesTech Holdings Limited has announced the composition of its board of directors, which includes seven members with specific roles and functions. The board comprises executive, non-executive, and independent non-executive directors, with Chan Sek Keung, Ringo serving as the Chairman and CEO. The announcement also details the membership of four board committees, highlighting the leadership and participation of each director in these committees.

InvesTech Holdings Appoints Zhou Yi as Executive Director

InvesTech Holdings Limited has appointed Mr. Zhou Yi as an executive director effective June 16, 2025. Mr. Zhou brings over 20 years of experience in digital logistics packaging services and has held significant roles in the China Packaging Federation. His appointment is expected to enhance the company’s strategic positioning in the industry, leveraging his expertise and leadership in digital and technological services.

InvesTech Holdings Limited Announces Board Composition and Committee Roles

InvesTech Holdings Limited has announced the composition of its Board of Directors, which includes seven members with roles spanning executive, non-executive, and independent non-executive positions. The company has also detailed the membership of its four Board committees, highlighting the leadership and participation of each director in these committees. This announcement provides clarity on the governance structure of InvesTech Holdings Limited, potentially impacting its strategic decision-making and operational oversight.

InvesTech Holdings Reports Unanimous Approval of AGM Resolutions

InvesTech Holdings Limited announced the successful passing of all resolutions at its Annual General Meeting held on June 13, 2025. The resolutions included the adoption of financial statements, re-election of directors, and granting of mandates to the board for share allotment and repurchase. The unanimous support from shareholders, with 100% of votes in favor, demonstrates strong confidence in the company’s leadership and strategic direction.

InvesTech Holdings Limited Announces Annual General Meeting and Key Resolutions

InvesTech Holdings Limited has announced its annual general meeting scheduled for June 13, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the company’s audited financial statements for 2024, re-election of directors, and the re-appointment of BDO Limited as the company’s auditor. Additionally, the board will seek authorization to manage share allotments and issue options, which could impact the company’s capital structure and shareholder value.