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

• Market Cap: HK$224.08M
• Dividend Yield: N/A
• Average Volume (3M): 5.79M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: -61.76%
• EPS Growth: 75.15%
• 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: 13,394,800
• 30 Day Avg. Volume: 5,793,666
• PEG Ratio: 0.07
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 7.91
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.15 ▲(7.86% Upside)

Quali-Smart Holdings Ltd. has a low overall stock score due to significant financial challenges, including declining revenues and negative profit margins. While there is some positive technical momentum, the valuation remains unattractive with a negative P/E ratio. The absence of earnings call data and corporate events further limits the assessment of future prospects.

Positive Factors

Cash Generation Ability

The positive growth in free cash flow indicates that the company is improving its ability to generate cash, which can support operations and reduce reliance on external financing.

Revenue Streams

Diverse revenue streams from smart technology and partnerships enhance financial resilience and position the company for sustainable growth.

Renewable Energy Investment

Investment in renewable energy aligns with global sustainability trends, potentially offering long-term growth and government incentives.

Negative Factors

Declining Revenue

The decline in revenue indicates challenges in maintaining market share and competitiveness, which could impact long-term financial stability.

High Debt Levels

Significant reliance on debt financing increases financial risk and may limit strategic flexibility, affecting long-term sustainability.

Negative Profit Margins

Ongoing negative profit margins highlight operational inefficiencies and challenge the company's ability to achieve profitability in the near term.

Quali-Smart Holdings Ltd. Business Overview & Revenue Model

Company Description

Quali-Smart Holdings Ltd. (1348) is a diversified holding company primarily engaged in the manufacturing and distribution of smart technology solutions. The company operates in various sectors, including electronics, telecommunications, and renewable energy. Its core products and services encompass smart home devices, energy-efficient technologies, and integrated telecommunications solutions designed to enhance connectivity and sustainability for consumers and businesses alike.

How the Company Makes Money

Quali-Smart Holdings Ltd. generates revenue through multiple streams, including the sale of smart home devices and technology solutions, which account for a significant portion of its earnings. The company also earns revenue from partnerships with telecommunications providers, offering integrated systems and services that enhance network efficiency. Additionally, Quali-Smart invests in renewable energy projects, generating income through energy sales and government incentives. The combination of product sales, service contracts, and strategic partnerships positions the company for sustainable financial growth.

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	41.46M	71.93M	177.26M	341.80M	448.65M	485.79M
Gross Profit	15.78M	23.48M	28.00M	44.93M	54.44M	71.59M
EBITDA	-7.09M	-5.55M	-59.61M	-50.01M	-75.13M	-7.62M
Net Income	-18.43M	-17.87M	-73.94M	-72.32M	-94.37M	-35.63M
Balance Sheet
Total Assets	67.65M	164.65M	176.55M	243.88M	381.51M	438.84M
Cash, Cash Equivalents and Short-Term Investments	44.19M	84.03M	78.02M	61.95M	60.48M	98.55M
Total Debt	27.41M	43.55M	38.86M	45.26M	74.70M	58.48M
Total Liabilities	40.20M	126.36M	120.38M	117.41M	182.80M	145.76M
Stockholders Equity	27.45M	38.24M	56.11M	126.39M	198.71M	293.08M
Cash Flow
Free Cash Flow	18.36M	11.93M	23.47M	29.42M	-48.28M	12.08M
Operating Cash Flow	18.40M	11.95M	23.68M	35.10M	-42.12M	13.41M
Investing Cash Flow	-13.76M	-36.00M	-19.86M	13.39M	13.20M	-16.02M
Financing Cash Flow	-19.16M	-7.92M	-8.23M	-47.02M	10.21M	-40.55M

Quali-Smart Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.14 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.15, and above the 200-day MA of 0.10, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 14.53 is Positive, 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
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3830	53 Neutral	HK$64.00M	-9.20	-32.53%	―	-6.48%	-38.10%
1005	50 Neutral	HK$362.98M	-1.60	-37.46%	4.17%	-13.08%	-21.27%
8545	50 Neutral	HK$45.31M	-18.57	-1.26%	―	0.47%	-195.45%
1348	46 Neutral	HK$224.08M	-11.76	-50.25%	―	-61.76%	75.15%
6918	43 Neutral	HK$117.67M	-1.63	-19.89%	―	84.26%	44.41%
0765	40 Neutral	HK$147.12M	-7.67	-36.17%	―	-13.96%	64.58%

Quali-Smart Holdings Ltd. Corporate Events

Quali-Smart Holdings Ltd. Announces Potential Major Stake Sale

Quali-Smart Holdings Ltd. has announced a potential transaction involving the sale of a majority stake in the company. The company’s chairman, along with other major shareholders, has entered into a memorandum of understanding with Yael Capital Management Limited, an independent third party, for the possible sale of approximately 51.70% of the company’s issued share capital. This transaction could significantly impact the company’s ownership structure and market positioning, depending on the outcome of further negotiations and due diligence.

Quali-Smart Holdings Reports Significant Revenue Decline Amidst Industry Challenges

Quali-Smart Holdings Ltd. reported a significant decline in revenue for the six months ended September 30, 2025, with a 52.3% decrease compared to the previous year. The Toys Division saw a major drop in orders from key customers, while the Financial Services Division experienced reduced income from investment advisory and brokerage activities. The company recorded a net loss of approximately HK$10.9 million, with notable decreases in revenue and gross profit from both divisions. Despite cost-cutting measures, including reduced administrative and finance costs, the Board decided not to distribute an interim dividend.

Quali-Smart Holdings Ltd. Schedules Board Meeting for Interim Results and Dividend Consideration

Quali-Smart Holdings Ltd. has announced a board meeting scheduled for November 27, 2025, to approve the unaudited interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential dividend distribution, impacting investor sentiment and market positioning.

Quali-Smart Holdings Secures Unanimous Approval at AGM

Quali-Smart Holdings Limited, a company incorporated in the Cayman Islands, announced the successful passing of all resolutions at its Annual General Meeting (AGM) held on September 29, 2025. The resolutions included the re-election of directors, approval of financial statements, and amendments to the company’s articles of association. The unanimous support from shareholders, with all votes cast in favor, underscores strong stakeholder confidence and positions the company for continued strategic governance and operational advancements.