InvesTech Holdings Limited (1087) AI Stock Analysis

• Market Cap: HK$207.88M
• Dividend Yield: N/A
• Average Volume (3M): 945.00K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.36
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$1.00 ▼(-3.85% Downside)

The overall stock score of 45 reflects significant challenges in financial performance, with declining revenues and profitability, and increased leverage. Technical analysis indicates bearish momentum, and the valuation is unattractive due to negative earnings and lack of dividends. The absence of earnings call data and corporate events further limits positive influences on the score.

Positive Factors

Cash Flow Improvement

Improved cash flow management enhances financial stability, allowing the company to invest in growth opportunities and manage debt more effectively.

Strategic Partnerships

Strategic partnerships with technology vendors strengthen InvesTech's service offerings, expanding market reach and securing competitive advantages.

Recurring Revenue

Recurring revenue from professional services provides financial stability and predictability, supporting long-term business sustainability.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or competitive positioning, potentially impacting long-term growth and profitability.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and financial strain, which can hinder the company's ability to reinvest in growth.

Increased Leverage

Higher leverage increases financial risk, potentially limiting the company's flexibility to respond to market changes and invest in growth.

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 asset management fees charged for managing investment portfolios on behalf of clients, which are typically calculated as a percentage of assets under management (AUM). Additionally, the company earns performance fees based on the returns generated for its clients, incentivizing the company to maximize investment performance. Furthermore, InvesTech may derive income from advisory fees for providing strategic investment advice and financial consultancy services. The company's technology investments can also contribute to revenue through licensing agreements or partnerships with tech firms, enabling them to monetize their proprietary technologies. Strategic partnerships with financial institutions and other investment firms further enhance revenue opportunities by expanding the company's market reach and enabling collaborative investment initiatives.

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: Negative
• Last Price: 1.04
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1.04 is below the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.29, and above the 200-day MA of 0.79, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 33.98 is Neutral, neither overbought nor oversold. The STOCH value of 30.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	61 Neutral	HK$165.88M	2.54	7.40%	―	-9.34%	605.26%
9963	49 Neutral	HK$249.60M	-2.88	-24.22%	―	-20.95%	-13.14%
1087	45 Neutral	HK$207.88M	-5.17	-17.08%	―	-7.93%	45.04%
8487	45 Neutral	HK$55.47M	-3.57	-18.66%	―	5.89%	41.89%
0948	44 Neutral	HK$87.15M	-0.38	―	―	145.86%	-569.50%
1613	41 Neutral	HK$238.28M	-3.19	-30.44%	―	-58.81%	-10.51%

InvesTech Holdings Limited Corporate Events

InvesTech Holdings Announces Executive Director Resignation

InvesTech Holdings Limited announced the resignation of Mr. Zhou Yi as an executive director, effective from October 31, 2025, due to his other business commitments. The company expressed gratitude for Mr. Zhou’s contributions and confirmed there are no disagreements or issues related to his departure that need to be communicated to shareholders or the Hong Kong Stock Exchange.

InvesTech Holdings Updates Board Composition

InvesTech Holdings Limited has announced the composition of its board of directors, which includes six members with a mix of executive, non-executive, and independent non-executive directors. The announcement details the roles and committee memberships of each director, highlighting the leadership structure within the company. This update reflects the company’s governance framework and could impact its strategic decision-making and oversight, potentially influencing stakeholder confidence and market perception.