Quali-Smart Holdings Ltd. (1348) AI Stock Analysis

• Market Cap: HK$101.72M
• Dividend Yield: N/A
• Average Volume (3M): 833.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -53.52%
• EPS Growth: -12.78%
• Country: HK
• Employees: 47
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Leisure
• EPS (TTM): >-0.01
• Shares Outstanding: 1,474,232,000
• 10 Day Avg. Volume: 1,571,800
• 30 Day Avg. Volume: 833,066
• PEG Ratio: 0.08
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.41
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ―

Quali-Smart Holdings Ltd. scores 58, reflecting significant financial challenges, including declining revenue and persistent losses. While technical indicators show positive momentum, the negative P/E ratio and lack of dividend yield are valuation concerns. Improvements in cash flow provide a silver lining, but operational efficiencies and revenue stabilization are necessary for a better outlook.

Quali-Smart Holdings Ltd. Business Overview & Revenue Model

Company Description

Quali-Smart Holdings Ltd. (1348) is a company involved in the manufacturing and sale of toys and related products. The company operates within the consumer goods sector, primarily focusing on the design, development, and distribution of a wide range of toys, including electronic toys and traditional toys for children. Quali-Smart Holdings Ltd. is committed to delivering high-quality and innovative products to meet the evolving demands of the global toy market.

How the Company Makes Money

Quali-Smart Holdings Ltd. generates revenue primarily through the manufacturing and sale of toys. The company designs and develops various toy products and sells them to wholesalers, retailers, and distributors, who then sell these products to end consumers. A significant portion of the company's revenue comes from its ability to produce a wide array of toys that appeal to different age groups and preferences. Additionally, the company may engage in partnerships and licensing agreements with well-known brands to expand its product offerings and capitalize on popular franchises, thereby enhancing its market presence and potential earnings. The company's revenue streams are largely dependent on consumer trends, seasonal demand, and the overall health of the retail sector.

Quali-Smart Holdings Ltd. Financial Statement Overview

Summary

Quai-Smart Holdings Ltd. is facing financial challenges with declining revenues and persistent losses. Despite improvements in cash flow, concerns about leverage and equity reductions persist. Addressing operational inefficiencies and stabilizing revenue are crucial for financial health.

Income Statement

The company has been facing a consistent decline in total revenue, with a significant drop of nearly 48.1% from 2023 to 2024. Gross profit margin has decreased from 13.15% to 15.8% due to reduced revenue, but the net profit margin remains negative, indicating ongoing losses. EBIT and EBITDA margins have also been negative, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio has slightly increased, indicating higher leverage. The equity ratio dropped to 31.8% as equity decreased, suggesting financial stability concerns. However, the company maintains a healthy cash position relative to its debt, which is a positive sign.

Cash Flow

Operating cash flow improved significantly, turning positive in 2024. Free cash flow also improved, and the free cash flow to net income ratio turned favorable, indicating better cash management despite negative net income. However, historical volatility in cash flows suggests potential concerns.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
108.42M	177.26M	341.80M	448.65M	485.79M	413.30M
	Gross Profit
23.16M	28.00M	44.93M	54.44M	71.59M	64.64M
	EBIT
-28.13M	-23.81M	-26.39M	-36.53M	-14.56M	-21.36M
	EBITDA
-23.93M	-59.61M	-50.01M	-75.13M	-7.62M	-39.65M
	Net Income Common Stockholders
-74.08M	-73.94M	-72.32M	-94.37M	-35.63M	-87.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
70.60M	78.02M	61.95M	60.48M	98.55M	122.36M
	Total Assets
202.58M	176.55M	243.88M	381.51M	438.84M	477.78M
	Total Debt
44.74M	38.86M	45.26M	74.70M	58.48M	100.69M
	Net Debt
9.08M	-18.68M	-16.69M	14.22M	-20.72M	-21.67M
	Total Liabilities
156.56M	120.38M	117.41M	182.80M	145.76M	166.89M
	Stockholders Equity
45.88M	56.11M	126.39M	198.71M	293.08M	310.89M
Cash Flow		Free Cash Flow
10.07M	23.47M	29.42M	-48.28M	12.08M	-39.47M
	Operating Cash Flow
9.81M	23.68M	35.10M	-42.12M	13.41M	-38.75M
	Investing Cash Flow
-33.51M	-19.86M	13.39M	13.20M	-16.02M	4.71M
	Financing Cash Flow
-8.31M	-8.23M	-47.02M	10.21M	-40.55M	-46.26M

Quali-Smart Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1348, the sentiment is Neutral. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 82.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1348.

Quali-Smart Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0669	80 Outperform	$154.87B	17.67	18.52%	2.79%	6.13%	14.88%
2318	72 Outperform	$992.23B	6.79		7.45%	11.71%	37.04%
0992	70 Outperform	$111.27B	10.19	23.76%	3.79%	18.03%	71.00%
2382	65 Neutral	$68.43B	23.28	11.45%	0.85%	18.80%	142.93%
Sector *	62 Neutral	$6.76B	11.06	2.80%	6.66%	2.68%	-24.89%
1348	58 Neutral	HK$101.72M	―	-89.34%	―	-53.52%	-12.78%