Kingbo Strike Ltd. (1421) AI Stock Analysis

• Market Cap: HK$90.09M
• Dividend Yield: N/A
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: 89.90%
• EPS Growth: 65.64%
• Country: HK
• Employees: 58
• Sector: Technology
• Sector Strength: 93
• Industry: Solar
• EPS (TTM): -0.13
• Shares Outstanding: 166,830,200
• 10 Day Avg. Volume: 2,272,525
• 30 Day Avg. Volume: 1,942,855
• PEG Ratio: N/A
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.65
• 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: HK$0.50
• Price Target Upside: -15.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: HK$0.50 ▼(-15.25%Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and persistent losses. Despite this, the technical analysis shows positive momentum, offering some optimism. However, the poor valuation due to negative earnings further weighs down the score.

Kingbo Strike Ltd. Business Overview & Revenue Model

Company Description

Kingbo Strike Ltd. (1421) is a diversified investment holding company primarily involved in the construction and engineering sectors. The company provides a range of services including electrical and mechanical engineering, as well as building construction. Kingbo Strike Ltd. is committed to delivering high-quality infrastructure projects and technical solutions, catering to both public and private sector clients.

How the Company Makes Money

Kingbo Strike Ltd. generates revenue through its core business activities in the construction and engineering sectors. The company earns money by securing contracts for infrastructure projects, which include electrical and mechanical engineering services and building construction. Revenue is primarily derived from project-based contracts with various clients, including government entities and private companies. The company's earnings are influenced by the number and scale of projects it undertakes, as well as its ability to deliver high-quality services within budget and time constraints. Additionally, strategic partnerships and joint ventures may contribute to its revenue streams by expanding its capabilities and market reach.

Kingbo Strike Ltd. Financial Statement Overview

Summary

Kingbo Strike Ltd. faces considerable financial challenges, characterized by declining revenues, persistent losses, and negative cash flows. Despite a low debt level, profitability and cash flow generation are critical areas needing attention.

Income Statement

Kingbo Strike Ltd. has faced a significant decline in revenue over the past few years, with a notable decrease from 2020 to 2024. The gross profit margin has consistently shrunk, and the company has experienced persistent net losses, with the net profit margin remaining negative. EBIT and EBITDA margins are also negative, indicating operational challenges and inefficiencies.

Balance Sheet

The balance sheet shows a moderate level of stability with a debt-to-equity ratio remaining low, suggesting limited leverage. However, the return on equity is negative due to continuing net losses, indicating poor profitability on shareholder investments. The equity ratio is substantial, reflecting a strong equity base, though asset and equity reductions over time raise concerns.

Cash Flow

Cash flow analysis reveals significant volatility in operating cash flows, with negative trends leading to large outflows in recent years. Free cash flow has been consistently negative, driven by operational losses. The company has struggled to generate sufficient cash from operations to cover capital expenditures.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	160.73M	81.52M	211.61M	380.15M	302.53M
Gross Profit	5.94M	5.44M	22.49M	37.76M	25.08M
EBITDA	-41.52M	-21.41M	-5.46M	6.00M	-57.12M
Net Income	-47.26M	-61.62M	-44.01M	-30.14M	-74.90M
Balance Sheet
Total Assets	227.28M	250.65M	309.25M	426.13M	416.23M
Cash, Cash Equivalents and Short-Term Investments	24.31M	15.25M	42.22M	81.92M	99.82M
Total Debt	5.27M	13.29M	1.83M	1.03M	2.47M
Total Liabilities	75.53M	69.64M	63.16M	81.80M	68.62M
Stockholders Equity	120.34M	152.58M	225.84M	276.39M	288.45M
Cash Flow
Free Cash Flow	-6.25M	-41.70M	5.80M	-10.84M	-30.84M
Operating Cash Flow	-1.22M	-39.76M	6.38M	-10.82M	-30.78M
Investing Cash Flow	-3.47M	-1.76M	-528.00K	183.00K	23.32M
Financing Cash Flow	15.87M	16.89M	-41.40M	-1.45M	-476.00K

Kingbo Strike Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1421, the sentiment is Positive. The current price of 0.59 is above the 20-day moving average (MA) of 0.49, above the 50-day MA of 0.42, and above the 200-day MA of 0.29, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 60.42 is Neutral, neither overbought nor oversold. The STOCH value of 62.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1421.

Kingbo Strike Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	HK$14.24B	5.10	-5.75%	5.29%	9.34%	-42.23%
1421	53 Neutral	HK$90.09M	―	-30.58%	―	89.90%	65.64%
0750	51 Neutral	$680.69M	―	-1.29%	―	0.82%	-154.84%
0712	45 Neutral	€105.99M	―		―	12.64%	-178.64%
0475	43 Neutral	HK$259.61M	―	-212.93%	―	-9.07%	-55.96%
0757	40 Underperform	$325.73M	―	-21.37%	―	-49.43%	-295.51%
8111	36 Underperform	HK$48.40M	―	-72.35%	―	―	-51.39%

Kingbo Strike Ltd. Corporate Events

Prosperity Group Updates on 2023 Share Option Scheme

Prosperity Group International Limited, listed on the Hong Kong Stock Exchange, announced a supplemental update to its annual report for the year ending June 30, 2024, focusing on the 2023 Share Option Scheme. The scheme, adopted on December 15, 2023, allows for the issuance of up to 6,678,112 shares, representing 5.34% of the company’s issued shares. The scheme is valid for 10 years, with specific limits on the number of shares that can be issued to participants within a 12-month period. As of the report date, no options have been granted under the 2023 Scheme, and the remaining life of the scheme is approximately 9 years and 5 months.