Technovator International (1206) AI Stock Analysis

• Market Cap: HK$289.41M
• Dividend Yield: N/A
• Average Volume (3M): 720.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 10.81%
• EPS Growth: -30.55%
• Country: HK
• Employees: 669
• Sector: Industrials
• Sector Strength: 72
• Industry: Hardware, Equipment & Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 782,192,200
• 10 Day Avg. Volume: 584,000
• 30 Day Avg. Volume: 720,533
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -2.43
• 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: 50 Neutral
• Price Target: HK$0.50 ▲(38.89% Upside)

The overall stock score is primarily impacted by the company's financial performance, which shows significant challenges with declining profitability and negative cash flows. Technical analysis indicates a bearish trend, though the stock is oversold, which might present a future opportunity. Valuation metrics are unattractive due to negative earnings and lack of dividends. Without positive earnings call insights or corporate events, the stock remains a high-risk investment.

Positive Factors

Market Position

Technovator's focus on energy efficiency positions it well in the growing market for sustainable building solutions, offering a durable competitive advantage.

Revenue Growth

Consistent revenue growth suggests strong demand for Technovator's products, supporting long-term business expansion and market penetration.

Strategic Partnerships

Strategic partnerships enhance Technovator's market reach and product offerings, contributing to sustainable revenue streams and competitive positioning.

Negative Factors

Profitability Challenges

Ongoing profitability issues indicate operational inefficiencies, which could hinder long-term growth and financial stability if not addressed.

Cash Flow Volatility

Volatile cash flows and negative free cash flow suggest liquidity concerns, potentially limiting the company's ability to invest in growth and innovation.

Declining Margins

Decreasing margins reflect cost management challenges, which may impact profitability and competitive pricing strategies in the long term.

Technovator International Business Overview & Revenue Model

Company Description

Technovator International Limited, together with its subsidiaries, provides smart energy management products, solutions, and integrated services primarily in the People's Republic of China. It operates through three segments: Smart Transportation, Smart Buildings and Complex, and Smart Energy. The Smart Transportation segment offers a series of proprietary software and hardware products, and integrated supervision and control systems for rail transit; and building automation systems for use in rail transit and safety door systems, as well as integrated solutions comprising planning, procurement, installation, commissioning, and aftersales services. The Smart Building and Complex segment provides integrated intelligence and efficiency management services, including integrated energy consumption monitoring, energy-saving consultation, and reformation services, as well as full life-cycle services; and supplies and integrates intelligence systems for buildings. The Smart Energy segment offers regional energy planning, integrated utilization of industrial waste heat recovery, heat pump, independent temperature and humidity control, and variable air rate technologies for energy cascade utilization, as well as optimizes and transforms energy systems; and urban heating network technologies, including distributed variable frequency heating, cooling and heating network balancing, and combined multi-heat sources heating, as well as heating network and source monitoring, and optimal regulation technologies. It also offers digital video urban surveillance systems for multi-level remote surveillance in the finance, electricity, security, road traffic, and railway industries; and fire alarm systems for city authorities and commercial users. The company was formerly known as Technovator Int Private Ltd. and changed its name to Technovator International Limited in September 2011. Technovator International Limited was incorporated in 2005 and is headquartered in Singapore.

How the Company Makes Money

Technovator International generates revenue primarily through the sale of telecommunications equipment and software solutions, which constitute its main revenue streams. The company also earns income from providing ongoing IT support and maintenance services to its clients, ensuring a steady stream of recurring revenue. Additionally, strategic partnerships with key industry players enhance its market reach and offer bundled solutions that attract more customers. By leveraging these partnerships, Technovator is able to expand its service offerings and tap into new markets, further contributing to its overall earnings.

Technovator International Financial Statement Overview

Summary

Technovator International faces significant challenges with declining profitability and negative cash flows. The income statement shows a clear need for operational improvements, while the balance sheet maintains a moderate level of stability. Cash flow issues, if not addressed, may impact the company's ability to finance operations and growth. Strategic measures are essential to improve financial health and investor confidence.

Income Statement

The company displays a declining revenue trend with a negative revenue growth rate in the most recent year. Gross profit margin has decreased significantly over time, reflecting pressure on cost management or pricing strategies. Additionally, the net profit margin is negative, indicating ongoing operational challenges. EBIT and EBITDA margins are also negative, highlighting inefficiencies in core operations.

Balance Sheet

The balance sheet shows a moderately stable financial position with a reasonable debt-to-equity ratio. However, the return on equity has turned negative, reflecting unprofitability. The equity ratio indicates a decent proportion of assets financed by equity, suggesting some level of financial stability.

Cash Flow

Cash flow from operations has been volatile, with the recent year showing zero operating cash flow, which is concerning. Free cash flow has been negative, reflecting potential liquidity issues. The inability to generate consistent positive cash flow hints at underlying operational inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.98B	1.83B	1.84B	1.74B	1.62B	1.74B
Gross Profit	210.19M	145.19M	169.32M	303.43M	317.49M	362.65M
EBITDA	-126.25M	-203.99M	22.59M	143.96M	137.88M	262.10M
Net Income	-202.84M	-265.91M	-100.96M	55.13M	45.31M	130.60M
Balance Sheet
Total Assets	5.30B	5.57B	5.55B	5.29B	4.80B	4.88B
Cash, Cash Equivalents and Short-Term Investments	101.76M	344.69M	363.32M	354.04M	394.20M	587.89M
Total Debt	364.57M	348.50M	288.41M	192.20M	101.87M	217.81M
Total Liabilities	2.67B	2.94B	2.65B	2.29B	1.86B	1.98B
Stockholders Equity	2.61B	2.61B	2.88B	2.98B	2.92B	2.88B
Cash Flow
Free Cash Flow	64.48M	-81.62M	-33.74M	-172.31M	-93.32M	-37.30M
Operating Cash Flow	66.48M	11.64M	72.10M	-44.37M	9.43M	88.73M
Investing Cash Flow	-40.74M	-59.37M	-81.25M	-100.31M	-60.25M	-91.52M
Financing Cash Flow	-38.10M	32.12M	16.36M	92.56M	-104.75M	-51.91M

Technovator International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 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:1206, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.38, and above the 200-day MA of 0.35, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1206.

Technovator International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1480	77 Outperform	HK$276.00M	6.62	5.64%	5.22%	-16.27%	-36.15%
0833	72 Outperform	HK$312.22M	4.60	9.83%	9.09%	0.64%	-26.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0591	60 Neutral	HK$306.06M	16.21	1.03%	―	38.86%	―
0894	54 Neutral	HK$373.87M	39.20	0.63%	0.63%	5.72%	-57.39%
1206	50 Neutral	HK$289.41M	-1.26	-7.49%	―	10.81%	-30.55%
0532	48 Neutral	HK$237.22M	-2.00	-8.12%	―	6.32%	28.39%

Technovator International Corporate Events

Technovator International Secures New 2025 Agreements for Continued Growth

Technovator International Limited has announced new agreements for 2025 to continue its connected transactions with Tongfang Group, ensuring the continuation of business arrangements, sales, and purchases related to intelligent energy-saving products and services. These agreements, which include the Business Arrangements Agreement, Sales Agreement, Purchase Agreement, and Master Agreement, are set for a three-year term starting January 2026, with specified annual financial caps. The continuation of these agreements solidifies Technovator’s operational stability and strategic positioning in the market, while also complying with the Listing Rules due to its connected transactions with Tongfang Group, a major shareholder.

Technovator International Delays Circular Dispatch for Key Agreements

Technovator International Limited has announced a delay in the dispatch of a circular related to the Trust Loan Agreement and the IP Pledge Agreement. The circular, which includes advice from the Independent Board Committee and Somerley Capital Limited, was initially expected to be sent to shareholders by 28 November 2025, but will now be dispatched by 31 December 2025 due to additional time needed for finalization.

Technovator International Delays Circular Dispatch for Key Agreements

Technovator International Limited has announced a delay in the dispatch of a circular related to the Trust Loan Agreement and the IP Pledge Agreement. Originally scheduled for release by October 23, 2025, the circular will now be sent out around November 28, 2025, due to the need for additional time to finalize its content. This delay may impact the approval process of the transactions by the shareholders.

Technovator Secures RMB100 Million Trust Loan

Technovator International Limited, a company incorporated in Singapore, has announced a connected transaction involving a Trust Loan Agreement. Tongfang Energy Saving, a subsidiary, has entered into an agreement with FOTIC to secure a loan of up to RMB100 million for a term of 36 months. This loan is intended to supplement working capital and repay short-term loans. The transaction involves a pledge of intellectual property rights as security and requires shareholder approval due to its size and the involvement of connected parties.