Veson Holdings Limited (1399) AI Stock Analysis

• Market Cap: HK$215.82M
• Dividend Yield: N/A
• Average Volume (3M): 87.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• 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: 66,200
• 30 Day Avg. Volume: 87,666
• PEG Ratio: 0.10
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.04
• P/FCF Ratio: 0.86
• 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: 48 Neutral
• Price Target: HK$0.19 ▼(-1.58% Downside)

Veson Holdings Limited's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and profitability. Technical analysis indicates a bearish trend, while valuation concerns are highlighted by a negative P/E ratio. The absence of a dividend yield further detracts from the stock's appeal. Improvements in cash flow provide a positive note, but historical volatility remains a risk.

Positive Factors

Cash Flow Improvement

Positive free cash flow indicates improved liquidity management and better cash generation from operations, enhancing financial stability.

Operational Resilience

Maintaining a positive EBITDA margin despite revenue declines shows operational resilience, highlighting effective cost management.

Diversified Revenue Streams

Diversified revenue streams through strategic partnerships and real estate ventures enhance stability and reduce dependency on a single income source.

Negative Factors

Declining Revenue

Declining revenue impacts the company's ability to grow and invest in future opportunities, posing a challenge to long-term financial health.

Profitability Challenges

Negative EBIT and net income reflect profitability challenges, which can hinder reinvestment and shareholder returns over time.

Negative Equity Returns

Negative return on equity indicates poor shareholder value creation, affecting investor confidence and long-term capital raising ability.

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 through multiple channels, primarily by engaging in investment activities that yield returns on capital. The company's key revenue streams include capital gains from trading activities, income generated from its real estate investments, and management fees associated with its asset management services. Additionally, Veson Holdings may benefit from strategic partnerships with financial institutions and other investment entities, which enhance its market reach and provide access to a broader array of investment opportunities. The company also focuses on identifying high-potential investments, which can lead to significant returns, thereby contributing to its overall earnings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.09B	5.34B	6.15B	6.36B	7.09B	6.22B
Gross Profit	305.77M	370.36M	418.78M	452.96M	512.76M	390.29M
EBITDA	116.22M	163.99M	205.60M	192.18M	214.32M	65.69M
Net Income	-24.74M	-11.98M	20.11M	24.04M	42.18M	-52.68M
Balance Sheet
Total Assets	4.10B	4.37B	4.87B	5.04B	5.58B	4.64B
Cash, Cash Equivalents and Short-Term Investments	148.71M	332.96M	133.82M	200.94M	226.69M	211.29M
Total Debt	1.13B	1.23B	1.31B	1.20B	1.20B	943.28M
Total Liabilities	3.03B	3.28B	3.78B	3.97B	4.52B	3.62B
Stockholders Equity	1.06B	1.07B	1.09B	1.07B	1.06B	1.01B
Cash Flow
Free Cash Flow	124.64M	221.45M	-130.50M	-251.24M	-5.83M	-740.94M
Operating Cash Flow	156.34M	256.00M	-102.10M	-177.85M	152.87M	-345.13M
Investing Cash Flow	-22.25M	89.23M	-11.66M	224.81M	-392.91M	-160.58M
Financing Cash Flow	-143.51M	-140.59M	42.05M	-58.82M	252.22M	306.15M

Veson Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 0.19 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.20, and below the 200-day MA of 0.19, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 53.35 is Neutral, neither overbought nor oversold. The STOCH value of 25.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	74 Outperform	HK$1.21B	2.50	9.11%	6.40%	13.14%	-28.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1710	63 Neutral	HK$223.00M	11.32	5.04%	7.47%	4.01%	―
1729	57 Neutral	HK$30.11B	50.88	32.21%	0.17%	―	―
1750	52 Neutral	HK$172.80M	32.00	3.18%	―	5.80%	57.89%
1399	48 Neutral	HK$215.82M	-5.99	-2.96%	―	-11.18%	-180.05%
3919	44 Neutral	HK$41.47M	-5.26	-2.29%	―	5.07%	-87.31%

Veson Holdings Limited Corporate Events

Veson Holdings Renews Connected-Party Lease for Fuzhou Facilities

Veson Holdings Limited has renewed a one-year lease agreement under which its indirect wholly owned subsidiary Scud Electronics will continue to rent factory, office and warehouse premises from Scud Stock, a company 70% owned by Veson’s controlling shareholder, Mr. Fang. The new lease, running from 1 January 2026 to 31 December 2026, covers approximately 48,037 square metres in Mawei District, Fuzhou, at an annual rental of RMB9.61 million, slightly lower than the previous year’s rent, and is treated as a continuing connected transaction subject to reporting, announcement and annual review requirements under Hong Kong’s listing rules, underscoring ongoing related-party oversight for shareholders while securing continuity of production and office operations for the group.

The most recent analyst rating on (HK:1399) stock is a Hold with a HK$0.19 price target. To see the full list of analyst forecasts on Veson Holdings Limited stock, see the HK:1399 Stock Forecast page.

Veson Holdings Renews Connected-Party Lease with Scud Stock for 2026

Veson Holdings Limited has renewed a one-year lease agreement under which its indirect wholly owned subsidiary Scud Battery will continue to lease industrial and office premises in Fuzhou, Fujian to Scud Stock from 1 January 2026 to 31 December 2026, at an annual rent of approximately RMB7.48 million. As Scud Stock is 70% owned by the company’s controlling shareholder, the transaction is classified as a continuing connected transaction under Hong Kong listing rules, triggering reporting, announcement and annual review requirements but not higher approval thresholds, thereby formalising the ongoing related-party rental arrangement without materially changing its commercial terms or scale.

The most recent analyst rating on (HK:1399) stock is a Hold with a HK$0.19 price target. To see the full list of analyst forecasts on Veson Holdings Limited stock, see the HK:1399 Stock Forecast page.