Edvance International Holdings Ltd. (1410) AI Stock Analysis

• Market Cap: HK$522.19M
• Dividend Yield: N/A
• Average Volume (3M): 156.67K
• Price to Earnings (P/E): 3.4
• Beta (1Y): -0.12
• Revenue Growth: 9.58%
• EPS Growth: 48.41%
• Country: HK
• Employees: 121
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.03
• Shares Outstanding: 1,004,217,000
• 10 Day Avg. Volume: 227,000
• 30 Day Avg. Volume: 156,666
• PEG Ratio: -0.58
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 3.69
• 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: 72 Outperform
• Price Target: HK$0.58 ▲(1.23% Upside)
• Action: Upgraded Date: 01/29/26
• Date: Action: Upgraded 01/29/26

The score is driven primarily by solid financial resilience (strong cash conversion and improved leverage) and supportive technical momentum (price above all major moving averages with positive MACD). This is tempered by multi-year margin and ROE compression and only moderate valuation support from a mid-range P/E without dividend yield.

Positive Factors

Strong free cash flow conversion

Very strong free cash flow growth and a ~99% FCF-to-net income ratio show durable cash conversion. Reliable cash generation enhances the firm's ability to fund operations, pay down debt, and invest in product or platform improvements over multiple quarters.

Improved leverage and balance sheet

Debt-to-equity materially improved, reflecting lower leverage and greater financial flexibility. A stronger balance sheet reduces interest burden and refinancing risk, enabling sustained investment, opportunistic M&A, or resilience through economic cycles over the medium term.

Consistent revenue growth

Steady top-line expansion indicates persistent market demand and product traction. Continued revenue growth supports scale, potential operating leverage, and the ability to fund margin-recovery initiatives, making revenue trends a durable underpinning for performance.

Negative Factors

Gross margin compression

A multi-year decline in gross margin signals structural cost pressure or pricing erosion in core offerings. Sustained margin compression reduces operating flexibility, forces harder cost cuts or price increases, and limits long-term profitability unless business model changes are made.

Net margin erosion

Net margin has contracted substantially, leaving limited earnings retention and a thin buffer against revenue shocks. Persistently low net profitability constrains reinvestment, dividend potential, and the firm's ability to rebuild returns without operational or strategic shifts.

Return on equity deterioration

ROE has roughly halved over several years, indicating reduced efficiency in converting equity into returns. This deterioration reflects weakening profitability relative to capital and may signal intensified competition or execution challenges that impair long-term shareholder value creation.

Edvance International Holdings Ltd. Business Overview & Revenue Model

Company Description

Edvance International Holdings Limited, an investment holding company, distributes cybersecurity products and services in the People's Republic of China, Hong Kong, Mongolia, Macau, and Singapore. It operates through Cybersecurity Products Business, Cybersecurity Services Business, and Financial Services and Investment Business segments. The Cybersecurity Products Business segment engages in the procurement of network security, system security, and application and data security products. The Cybersecurity Services Business segment provides technical implementation, and maintenance and support services to customers. The Financial Services and Investment Business segment offers financial services to customers, as well as engages in the venture investment and securities trading. It also provides online marketing and multimedia production, and information technology services. The company was founded in 2002 and is headquartered in Central, Hong Kong. Edvance International Holdings Limited is a subsidiary of Success Vision International Group Limited.

How the Company Makes Money

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Edvance International Holdings Ltd. Financial Statement Overview

Summary

Strong cash-flow quality (free cash flow up 65.12% and ~98.74% FCF-to-net income) and improved leverage (debt-to-equity down to 0.20) support the score. Offsetting this, profitability has weakened over time, with gross margin falling to 19.25% and net margin to 3.34%, alongside a lower ROE (13.16%).

Income Statement

Edvance International Holdings Ltd. has shown a consistent revenue growth rate over the years, with a 5.39% increase in the latest period. However, the gross profit margin has decreased from 30.14% in 2021 to 19.25% in 2025, indicating pressure on cost management. The net profit margin has also declined from 8.46% in 2021 to 3.34% in 2025, reflecting challenges in maintaining profitability. Despite these challenges, the company has managed to improve its EBIT and EBITDA margins compared to the previous year.

Balance Sheet

The company's debt-to-equity ratio has improved significantly from 0.87 in 2023 to 0.20 in 2025, indicating better leverage management. The return on equity has decreased from 24.84% in 2021 to 13.16% in 2025, suggesting a decline in profitability relative to shareholders' equity. The equity ratio has remained stable, reflecting a consistent capital structure.

Cash Flow

The free cash flow growth rate has been strong, with a 65.12% increase in the latest period, indicating improved cash generation capabilities. The operating cash flow to net income ratio has improved, suggesting better cash conversion from earnings. The free cash flow to net income ratio is high at 98.74%, indicating efficient cash flow management.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	763.54M	734.35M	625.37M	577.49M	525.38M	410.50M
Gross Profit	139.61M	141.39M	136.99M	137.20M	128.28M	123.71M
EBITDA	72.31M	53.56M	58.80M	-1.60M	23.25M	54.20M
Net Income	51.72M	24.55M	29.71M	-27.48M	22.79M	34.74M
Balance Sheet
Total Assets	908.49M	894.22M	907.48M	648.73M	540.34M	384.87M
Cash, Cash Equivalents and Short-Term Investments	153.13M	133.57M	101.38M	68.69M	53.53M	86.40M
Total Debt	31.58M	37.99M	106.63M	117.12M	71.47M	40.44M
Total Liabilities	696.07M	707.70M	743.19M	511.49M	375.73M	240.69M
Stockholders Equity	212.42M	186.51M	161.78M	133.91M	160.02M	139.86M
Cash Flow
Free Cash Flow	35.67M	65.57M	7.20M	13.08M	-15.84M	26.00M
Operating Cash Flow	36.62M	66.41M	13.81M	23.09M	19.95M	34.92M
Investing Cash Flow	35.25M	32.89M	-4.50M	-11.37M	-60.96M	-16.82M
Financing Cash Flow	-32.63M	-72.89M	-20.66M	6.13M	17.10M	-18.28M

Edvance International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.57
• 50DMA: Negative
• 100DMA: Negative
• 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:1410, the sentiment is Positive. The current price of 0.57 is above the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.62, and above the 200-day MA of 0.40, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 49.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1410.

Edvance International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1410	72 Outperform	HK$522.19M	3.43	27.72%	―	9.58%	48.41%
8017	69 Neutral	HK$997.50M	9.81	35.42%	―	146.18%	1617.05%
8062	63 Neutral	HK$108.00M	14.79	2.44%	8.40%	-29.38%	-104.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0818	54 Neutral	HK$1.24B	-3.52	1.98%	―	-17.23%	-6.20%
8420	42 Neutral	HK$37.29M	-8.08	-8.00%	―	52.39%	-14.75%
8613	40 Underperform	HK$59.76M	-1.62	808.97%	―	-43.10%	-5.98%