ICO Group Limited (1460) AI Stock Analysis

• Market Cap: HK$200.97M
• Dividend Yield: 4.37%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.52
• Revenue Growth: 7.39%
• EPS Growth: 142.61%
• Country: HK
• Employees: 338
• Sector: Technology
• Sector Strength: 79
• Industry: Information Technology Services
• EPS (TTM): 0.03
• Shares Outstanding: 877,590,330
• 10 Day Avg. Volume: 2,920,920
• 30 Day Avg. Volume: 1,074,866
• PEG Ratio: 0.56
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.67
• 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

• Rating: 78 Outperform
• Price Target: ―

ICO Group Limited's strong financial performance and attractive valuation are key strengths, providing a solid foundation for future growth. The positive technical indicators reflect strong market sentiment, further enhancing the stock's attractiveness. However, attention to improving operating cash flow is necessary to maintain liquidity and support ongoing operations.

ICO Group Limited Business Overview & Revenue Model

Company Description

ICO Group Limited, an investment holding company, provides IT application services to institutions and enterprises in Hong Kong and internationally. It operates through IT Application and Solution Development Services, IT Infrastructure Solutions Services, IT Secondment Services, IT Maintenance and Support Services, and Property Leasing and E-commerce Business segments. The company engages in the design and implementation of IT applications; and procurement of third-party hardware and software. It also provides IT infrastructure solutions; and sells IT infrastructure solution-related hardware and software. In addition, the company offers IT secondment, maintenance, and support services; and property leasing and online trading platform services. It serves various industries, such as banking, finance and insurance, government departments, exchanges and regulatory bodies, telecommunication, distribution and retail, logistics and media, universities and schools, construction, manufacturing, and others. The company was founded in 1992 and is headquartered in Kowloon, Hong Kong.

How the Company Makes Money

ICO Group Limited generates revenue through multiple streams. The primary source of income is from the provision of IT services, which includes fees from system integration, customization, and software development projects. The company's IT infrastructure and maintenance services segment also contributes significantly to its earnings by providing ongoing support and maintenance contracts to clients. Additionally, the secondment services segment, which involves the placement of IT professionals in client organizations, adds to the revenue. The company's financial performance is further bolstered by strategic partnerships with technology providers and a strong customer base spanning various sectors.

ICO Group Limited Financial Statement Overview

Summary

ICO Group Limited demonstrates solid financial health with consistent revenue growth and effective cost management. The balance sheet reflects a strong equity position and low leverage, minimizing financial risk. Cash flow from operations needs attention to ensure continued liquidity. The company is well-positioned for future growth with a focus on maintaining profitability and financial stability.

Income Statement

ICO Group Limited shows a consistent revenue growth trajectory with a significant increase from 2023 to 2024. The gross profit margin improved slightly from 19.8% in 2023 to 19% in 2024. The EBIT margin decreased from 5.1% in 2023 to 3.5% in 2024, indicating pressure on operating efficiency. The net profit margin increased from 1.2% in 2023 to 1.6% in 2024, suggesting improved cost control and profitability. Overall, the company has demonstrated stable growth with some operational challenges.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 56.3% in 2024, providing a solid financial foundation. The debt-to-equity ratio remains low at 0.12, indicating conservative leverage usage. Return on equity slightly improved from 2.1% in 2023 to 3.1% in 2024, reflecting enhanced profitability. The balance sheet is robust, with a focus on equity financing and low debt levels, minimizing financial risk.

Cash Flow

Operating cash flow decreased from 2023 to 2024, but the company managed to improve free cash flow substantially, showcasing effective capital expenditure management. The free cash flow to net income ratio is strong, indicating good cash conversion. However, the decline in operating cash flow may pose challenges for future liquidity if not addressed. Overall, cash flow management is decent, with room for improvement in operating cash generation.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.06B	1.08B	877.32M	712.45M	637.34M	606.29M
	Gross Profit
219.38M	209.45M	173.74M	131.03M	110.28M	117.57M
	EBIT
37.40M	37.22M	44.75M	31.88M	45.13M	27.56M
	EBITDA
43.67M	53.94M	40.56M	37.46M	29.00M	93.73M
	Net Income Common Stockholders
24.45M	16.69M	10.97M	8.12M	8.10M	70.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
298.68M	306.62M	216.92M	107.42M	106.81M	46.56M
	Total Assets
960.55M	954.51M	865.14M	777.45M	701.27M	573.34M
	Total Debt
62.98M	62.55M	57.58M	59.56M	22.44M	22.87M
	Net Debt
-104.19M	-88.08M	-159.34M	-47.86M	-84.37M	-22.50M
	Total Liabilities
361.73M	389.27M	314.84M	222.73M	196.10M	123.61M
	Stockholders Equity
573.08M	537.70M	530.99M	530.98M	483.63M	442.03M
Cash Flow		Free Cash Flow
68.97M	93.61M	121.01M	-40.08M	48.12M	9.63M
	Operating Cash Flow
68.90M	96.42M	121.40M	-39.91M	48.97M	10.40M
	Investing Cash Flow
-53.76M	-83.29M	1.44M	10.97M	-5.80M	-476.00K
	Financing Cash Flow
-20.69M	-13.81M	-12.81M	30.89M	16.86M	-17.54M

ICO Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.23
• 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:1460, the sentiment is Positive. The current price of 0.23 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.22, and above the 200-day MA of 0.19, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.81 is Neutral, neither overbought nor oversold. The STOCH value of 72.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1460.

ICO Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1460	78 Outperform	HK$200.97M	8.21	4.42%	4.37%	7.39%	142.61%
Sector *	62 Neutral	$11.80B	10.10	-7.47%	2.99%	7.37%	-8.16%
CHNVF		$405.50M	―	-16.87%	―	―	―
CREQF		$219.26M	―	-5.26%	―	―	―
PTEXF		$239.33M	11.75	4.99%	6.97%	―	―
8100	61 Neutral	HK$76.45M	35.83	1.61%	1.16%	29.97%	―
8208	60 Neutral	HK$22.32M	10.33	9.31%	―	7.40%	―