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

• Market Cap: HK$237.35M
• Dividend Yield: N/A
• Average Volume (3M): 5.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -59.42%
• EPS Growth: 75.90%
• Country: HK
• Employees: 47
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): >-0.01
• Shares Outstanding: 1,474,232,000
• 10 Day Avg. Volume: 2,004,200
• 30 Day Avg. Volume: 5,049,200
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 50 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 50 reflects significant financial challenges, including declining revenues and negative profit margins, which are the most impactful factors. The technical analysis shows moderate bullish momentum, providing some positive outlook. However, the negative P/E ratio and lack of dividend yield weigh down the valuation score.

Quali-Smart Holdings Ltd. Business Overview & Revenue Model

Company Description

Quali-Smart Holdings Limited, an investment holding company, engages in the manufacture and trading of toys and other products. The company operates through Manufacturing and Sales of Toys; and Financial Services segments. It offers securities brokerage, underwriting, securities margin financing, investment and corporate finance advisory, and asset management services, as well as fund management services. Further, it is involved in the trading and investment of securities, debts, and funds. The company operates in Hong Kong, the United States, Canada, the United Kingdom, France, and rest of western Europe, the People's Republic of China, Taiwan, the central America, Caribbean, Mexico, Australia, New Zealand, Pacific Islands, and internationally. Quali-Smart Holdings Limited was incorporated in 2012 and is headquartered in Tsuen Wan, Hong Kong.

How the Company Makes Money

Quali-Smart Holdings Ltd. generates revenue through multiple streams, primarily by offering technology solutions and services tailored to meet the needs of various industries. The company earns income from software development, IT consulting, and the sale of proprietary technology products. Additionally, Quali-Smart engages in strategic partnerships with other firms to enhance its service offerings and expand its market reach, allowing for collaborative projects that further boost its revenue. The company may also benefit from government contracts and initiatives related to smart city developments, providing another significant avenue for earnings.

Quali-Smart Holdings Ltd. Financial Statement Overview

Summary

Quali-Smart Holdings Ltd. faces significant financial challenges, with declining revenues and negative profit margins. The high debt-to-equity ratio indicates potential financial risk, although the company has managed to improve its free cash flow. Overall, the financial health of the company is concerning, with a need for strategic improvements to enhance profitability and reduce leverage.

Income Statement

Quali-Smart Holdings Ltd. has experienced a significant decline in revenue, with a negative revenue growth rate of -33.65% in the latest year. The company also shows negative profit margins, with a net profit margin of -24.85% and an EBIT margin of -17.75%, indicating ongoing operational challenges. Despite a gross profit margin of 32.64%, the overall profitability remains weak due to high operating expenses.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio of 1.14, suggesting a significant reliance on debt financing, which could pose financial risks. The return on equity is negative at -46.74%, reflecting poor profitability. However, the equity ratio is relatively stable, indicating that a reasonable portion of the company's assets is financed by equity.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 18.44%, which is a positive sign. The operating cash flow to net income ratio is 0.14, indicating that operating cash flow is not sufficient to cover net losses. The free cash flow to net income ratio is nearly 1, suggesting that the company is managing to convert its net income into free cash flow effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	108.42M	71.93M	177.26M	341.80M	448.65M	485.79M
Gross Profit	23.16M	23.48M	28.00M	44.93M	54.44M	71.59M
EBITDA	-23.93M	-5.55M	-59.61M	-50.01M	-75.13M	-7.62M
Net Income	-74.08M	-17.87M	-73.94M	-72.32M	-94.37M	-35.63M
Balance Sheet
Total Assets	202.58M	164.65M	176.55M	243.88M	381.51M	438.84M
Cash, Cash Equivalents and Short-Term Investments	70.60M	84.03M	78.02M	61.95M	60.48M	98.55M
Total Debt	44.74M	43.55M	38.86M	45.26M	74.70M	58.48M
Total Liabilities	156.56M	126.36M	120.38M	117.41M	182.80M	145.76M
Stockholders Equity	45.88M	38.24M	56.11M	126.39M	198.71M	293.08M
Cash Flow
Free Cash Flow	10.07M	11.93M	23.47M	29.42M	-48.28M	12.08M
Operating Cash Flow	9.81M	11.95M	23.68M	35.10M	-42.12M	13.41M
Investing Cash Flow	-34.11M	-36.00M	-19.86M	13.39M	13.20M	-16.02M
Financing Cash Flow	-6.48M	-7.92M	-8.23M	-47.02M	10.21M	-40.55M

Quali-Smart Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 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:1348, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.10, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 69.52 is Neutral, neither overbought nor oversold. The STOCH value of 73.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3830	53 Neutral	HK$74.00M	-10.57	-38.04%	―	-8.50%	4.11%
8545	51 Neutral	HK$47.69M	-22.22	-1.09%	―	-34.70%	-550.00%
1348	50 Neutral	HK$237.35M	―	-37.89%	―	-59.42%	75.90%
6918	48 Neutral	HK$142.40M	-1.87	-21.34%	―	84.26%	44.41%
1005	46 Neutral	HK$385.66M	-1.70	-58.89%	3.92%	-13.08%	-21.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%