Cirtek Holdings Limited (1433) AI Stock Analysis

• Market Cap: HK$192.00M
• Dividend Yield: 7.89%
• Average Volume (3M): 856.67K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.56
• Revenue Growth: 14.30%
• EPS Growth: 125.41%
• Country: HK
• Employees: 1,424
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.01
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 665,000
• 30 Day Avg. Volume: 856,666
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 1.61
• 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: 70 Outperform
• Price Target: HK$0.11 ▲(14.00% Upside)

The stock's strong valuation, characterized by a low P/E ratio and high dividend yield, is a significant positive factor. Financial performance is solid, with strong revenue growth but concerns about cash flow sustainability. Technical indicators show positive momentum but also suggest the stock may be overbought.

Positive Factors

Revenue Growth

The robust revenue growth indicates a strong market position and effective expansion strategies, which can drive long-term business success and competitiveness in the semiconductor industry.

Profitability Improvement

Improved profitability through efficient cost management enhances the company's ability to reinvest in growth opportunities and sustain competitive advantages in the market.

Solid Balance Sheet

A strong balance sheet with moderate leverage provides financial stability and flexibility, enabling the company to navigate industry challenges and invest in future growth.

Negative Factors

Cash Flow Concerns

The absence of cash flow metrics raises concerns about the company's ability to generate cash, which is crucial for sustaining operations and funding strategic initiatives.

Net Profit Margin

Although improving, the net profit margin indicates potential challenges in maximizing profitability, which could impact long-term financial performance if not addressed.

Cash Management Challenges

Lack of clarity on cash flow management may hinder the company's ability to effectively allocate resources and pursue growth opportunities, affecting long-term sustainability.

Cirtek Holdings Limited Business Overview & Revenue Model

Company Description

Cirtek Holdings Limited, an investment holding company, manufactures and sells printing products in Hong Kong, Mainland China, Bangladesh, Vietnam, the United States, and internationally. The company offers apparel labels and trim products, such as hang tags, woven and printed labels, and heat transfer products. The company was founded in 1991 and is based in Lai Chi Kok, Hong Kong. Cirtek Holdings Limited is a subsidiary of Charming International Limited.

How the Company Makes Money

Cirtek Holdings Limited generates revenue through the production and sale of semiconductor products, primarily serving clients in the telecommunications and consumer electronics industries. The company has a diversified revenue model that includes direct sales to original equipment manufacturers (OEMs) and contract manufacturing services for various technology firms. Key revenue streams include the sale of RF products, integrated circuits, and testing services. Cirtek also benefits from strategic partnerships with leading technology companies, which help to secure long-term contracts and enhance its market presence. Additionally, the company's focus on research and development allows it to innovate and expand its product offerings, thus driving growth and profitability.

Cirtek Holdings Limited Financial Statement Overview

Summary

Cirtek Holdings Limited shows strong revenue growth and improving profitability, with a solid balance sheet marked by moderate leverage. However, the absence of cash flow data in the recent period raises concerns about cash management.

Income Statement

Cirtek Holdings Limited demonstrated strong revenue growth of 47.97% in 2024, indicating a robust upward trajectory. The gross profit margin improved to 49.10%, showcasing efficient cost management. However, the net profit margin, while improving to 11.22%, still reflects room for profitability enhancements. EBIT and EBITDA margins also showed significant recovery, suggesting better operational performance.

Balance Sheet

The company maintains a healthy equity ratio of 54.37%, reflecting a strong equity base. The debt-to-equity ratio of 0.28 indicates moderate leverage, which is manageable. However, the return on equity of 25.15% suggests effective use of equity to generate income, yet there's potential to optimize further.

Cash Flow

Cash flow statements reveal no operating or free cash flow in 2024, suggesting potential cash management challenges. Historical data indicates fluctuating cash flow, with a significant free cash flow growth in previous years. The absence of cash flow metrics for 2024 raises concerns about cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	544.71M	551.05M	372.31M	408.57M	362.51M	259.31M
Gross Profit	268.06M	270.62M	162.55M	173.46M	158.01M	130.20M
EBITDA	82.58M	89.45M	15.32M	48.68M	50.58M	39.51M
Net Income	54.91M	61.86M	-25.68M	12.56M	14.98M	1.65M
Balance Sheet
Total Assets	435.71M	452.43M	369.43M	395.07M	401.03M	361.69M
Cash, Cash Equivalents and Short-Term Investments	76.22M	68.52M	34.16M	62.33M	102.10M	114.74M
Total Debt	59.66M	67.67M	48.18M	51.07M	46.15M	54.61M
Total Liabilities	193.39M	206.50M	174.39M	155.81M	150.74M	124.82M
Stockholders Equity	242.31M	245.93M	195.03M	239.26M	249.67M	236.13M
Cash Flow
Free Cash Flow	46.82M	59.64M	-10.86M	-6.54M	6.37M	2.83M
Operating Cash Flow	78.59M	81.56M	21.25M	46.52M	42.55M	26.15M
Investing Cash Flow	-34.78M	-13.37M	-31.13M	-58.83M	-35.63M	-21.79M
Financing Cash Flow	-21.99M	-27.93M	-21.05M	-11.73M	-19.43M	71.92M

Cirtek Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1433, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.09, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 77.17 is Negative, neither overbought nor oversold. The STOCH value of 140.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1433.

Cirtek Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1433	70 Outperform	HK$192.00M	3.49	23.94%	7.89%	14.30%	125.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0294	52 Neutral	HK$171.60M	-2.11	-8.49%	2.08%	-6.96%	-32.24%
8471	47 Neutral	HK$114.02M	-12.92	-17.00%	―	24.72%	78.31%
0844	46 Neutral	HK$281.77M	-10.34	-10.34%	―	-5.02%	-323.85%
1388	45 Neutral	HK$152.07M	-0.44	-18.57%	―	-6.47%	-118.56%
0311	40 Underperform	HK$236.81M	-1.28	-14.53%	―	0.34%	-47.98%

Cirtek Holdings Limited Corporate Events

Cirtek Holdings Limited Announces Auditor Change to PwC

Cirtek Holdings Limited, a company incorporated in the Cayman Islands, has announced a change in its auditing firm. Ernst & Young (EY) has resigned as the auditor due to a disagreement over the audit fee for the financial year ending December 31, 2025, which was influenced by increased audit work related to the company’s overseas operations. The company has appointed PricewaterhouseCoopers (PwC) as the new auditor, citing PwC’s competitive proposal and capability to help achieve cost control and reduce overall operating expenses. The change is not expected to significantly impact the company’s annual audit for FY2025.