Veson Holdings Limited (1399) AI Stock Analysis

• Market Cap: HK$198.38M
• Dividend Yield: N/A
• Average Volume (3M): 132.33K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.14
• Revenue Growth: -11.18%
• EPS Growth: -180.05%
• Country: HK
• Employees: 2,406
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.01
• Shares Outstanding: 1,090,001,200
• 10 Day Avg. Volume: 83,200
• 30 Day Avg. Volume: 132,333
• 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: 1

• Rating: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Veson Holdings Limited's overall stock score is primarily impacted by its weak financial performance and poor valuation. The company's declining revenues and profitability, along with a negative P/E ratio, are significant concerns. Technical analysis indicates bearish momentum, further weighing on the stock's outlook. Improvements in cash flow provide a slight positive, but overall, the stock faces significant challenges.

Veson Holdings Limited Business Overview & Revenue Model

Company Description

Veson Holdings Limited, an investment holding company, engages in the research, development, manufacture, and sale of lithium-ion battery modules and related accessories for mobile phones, notebooks, tablets, and digital electronic appliances in the People's Republic of China. The company operates through Original Design Manufacturing Business, Bare Battery Cell Business, and Others segments. It offers power banks; motive batteries and related accessories for branded mobile phones, notebooks, tablets, and EV manufacturers; power management modules; smart wearable device batteries and related accessories; and lithium-ion bare battery cells, as well as chargers and network terminal products. The company also provides corporate management services. It markets its products through distributors, agents, retailers, and e-commerce. The company was formerly known as SCUD Group Limited and changed its name to Veson Holdings Limited in November 2020. Veson Holdings Limited was founded in 1997 and is headquartered in Causeway Bay, Hong Kong.

How the Company Makes Money

Veson Holdings Limited generates revenue primarily through its investment management services, where it earns management fees based on the assets under management (AUM) from clients. Additionally, the company may receive performance fees tied to the returns generated for its investors. The revenue model is supported by strategic partnerships with financial institutions and tech companies, allowing Veson to leverage technology in its service delivery, which can reduce operational costs and improve client engagement. The company's real estate ventures also contribute to its earnings through rental income and property appreciation, further diversifying its revenue streams.

Veson Holdings Limited Financial Statement Overview

Summary

Veson Holdings Limited faces challenges with declining revenues and profitability, impacting its income statement performance. The balance sheet remains moderately leveraged, but recent losses have affected equity returns. Cash flow improvements are a positive development, but historical volatility poses a risk. Overall, the company needs to address revenue growth and profitability to enhance financial stability.

Income Statement

Veson Holdings Limited has experienced a decline in revenue over the past two years, with a notable decrease from 2022 to 2023. The company has struggled with profitability, as indicated by negative EBIT and net income in the latest period. Gross profit margins have also decreased, reflecting challenges in maintaining cost efficiency. Despite these issues, the company has managed to maintain a positive EBITDA margin, suggesting some operational resilience.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. However, the equity ratio has slightly declined, suggesting increased reliance on liabilities. Return on equity has been negative recently due to net losses, which is a concern for shareholders. The company maintains a reasonable level of cash and short-term investments, providing some liquidity cushion.

Cash Flow

Cash flow analysis reveals an improvement in free cash flow, turning positive in the latest period, which is a positive sign for liquidity management. Operating cash flow has also improved significantly, indicating better cash generation from core operations. However, the historical volatility in cash flows suggests potential risks in maintaining consistent cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.34B	6.15B	6.36B	7.09B	6.22B
Gross Profit	370.36M	418.78M	452.96M	512.76M	390.29M
EBITDA	163.99M	205.60M	192.18M	214.32M	65.69M
Net Income	-11.98M	20.11M	24.04M	42.18M	-52.68M
Balance Sheet
Total Assets	4.37B	4.87B	5.04B	5.58B	4.64B
Cash, Cash Equivalents and Short-Term Investments	332.96M	133.82M	200.94M	226.69M	211.29M
Total Debt	1.23B	1.31B	1.20B	1.20B	943.28M
Total Liabilities	3.28B	3.78B	3.97B	4.52B	3.62B
Stockholders Equity	1.07B	1.09B	1.07B	1.06B	1.01B
Cash Flow
Free Cash Flow	221.45M	-130.50M	-251.24M	-5.83M	-740.94M
Operating Cash Flow	256.00M	-102.10M	-177.85M	152.87M	-345.13M
Investing Cash Flow	89.23M	-11.66M	224.81M	-392.91M	-160.58M
Financing Cash Flow	-140.59M	42.05M	-58.82M	252.22M	306.15M

Veson Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1399, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.19, and below the 200-day MA of 0.19, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.05 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1399.

Veson Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0842	67 Neutral	2.41B	5.18	12.32%	6.55%	13.14%	-28.26%
1729	66 Neutral	30.44B	53.90	25.53%	0.19%	―	―
1710	54 Neutral	216.00M	10.96	2.05%	8.33%	4.01%	―
1750	50 Neutral	90.00M	16.67	―	―	5.80%	57.89%
1399	46 Neutral	HK$198.38M	4.70	-2.96%	―	-11.18%	-180.05%
3919	44 Neutral	33.05M	-4.19	-2.22%	―	5.07%	-87.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Veson Holdings Limited Corporate Events

Veson Holdings Issues Profit Warning Amid Rising Costs

Veson Holdings Limited has issued a profit warning, indicating a preliminary consolidated net loss of approximately RMB14.5 million for the first half of 2025, compared to a net profit of RMB5.5 million in the same period of 2024. Despite a 5% increase in sales volume of its ODM battery products, the company faced a decline in revenue due to lower selling prices and a significant rise in administrative expenses, which include employee benefits and R&D costs. The management views these expenses as investments for long-term growth in industrial design and AI applications.

Veson Holdings Schedules Board Meeting for Interim Results

Veson Holdings Limited, listed on the Hong Kong Stock Exchange, has announced an upcoming board meeting scheduled for August 29, 2025. The meeting will focus on approving the interim results for the first half of 2025, considering the payment of an interim dividend, and addressing any other business matters. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, with potential implications for its financial performance and dividend policy.