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

• Market Cap: HK$106.14M
• Dividend Yield: N/A
• Average Volume (3M): 824.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -53.52%
• EPS Growth: -12.78%
• Country: HK
• Employees: 47
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Leisure
• EPS (TTM): >-0.01
• Shares Outstanding: 1,474,232,000
• 10 Day Avg. Volume: 316,400
• 30 Day Avg. Volume: 824,400
• PEG Ratio: 3.48
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.25
• 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 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 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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	177.26M	341.80M	448.65M	485.79M	413.30M
Gross Profit	28.00M	44.93M	54.44M	71.59M	64.64M
EBITDA	-59.61M	-50.01M	-75.13M	-7.62M	-39.65M
Net Income	-73.94M	-72.32M	-94.37M	-35.63M	-87.66M
Balance Sheet
Total Assets	176.55M	243.88M	381.51M	438.84M	477.78M
Cash, Cash Equivalents and Short-Term Investments	78.02M	61.95M	60.48M	98.55M	122.36M
Total Debt	38.86M	45.26M	74.70M	58.48M	100.69M
Total Liabilities	120.38M	117.41M	182.80M	145.76M	166.89M
Stockholders Equity	56.11M	126.39M	198.71M	293.08M	310.89M
Cash Flow
Free Cash Flow	23.47M	29.42M	-48.28M	12.08M	-39.47M
Operating Cash Flow	23.68M	35.10M	-42.12M	13.41M	-38.75M
Investing Cash Flow	-19.86M	13.39M	13.20M	-16.02M	4.71M
Financing Cash Flow	-8.23M	-47.02M	10.21M	-40.55M	-46.26M

Quali-Smart Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• 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 Positive. The current price of 0.07 is above 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 bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 82.35 is Negative, 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
Sector *	62 Neutral	$16.91B	10.88	-7.01%	2.97%	1.73%	-25.16%
1348	58 Neutral	HK$106.14M	―	-37.89%	―	-53.52%	-12.78%
8545	55 Neutral	HK$44.12M	17.27	-1.08%	―	-34.70%	-550.00%
3830	48 Neutral	HK$71.00M	―	-18.04%	―	1.11%	36.36%
1005	44 Neutral	HK$374.32M	―	-43.56%	5.05%	-36.06%	-190.94%
6918	39 Underperform	HK$71.82M	―	-19.60%	―	64.02%	42.01%
0765	―	HK$147.12M	―	-55.75%	―	―	―