C-Link Squared Limited (1463) AI Stock Analysis

• Market Cap: HK$718.56M
• Dividend Yield: N/A
• Average Volume (3M): 211.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: 12.16%
• EPS Growth: -16700.00%
• Country: HK
• Employees: 191
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.10
• Shares Outstanding: 2,874,251,500
• 10 Day Avg. Volume: 79,000
• 30 Day Avg. Volume: 211,133
• PEG Ratio: -0.08
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 5.31
• P/FCF Ratio: 25.29
• 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: 59 Neutral
• Price Target: HK$0.29 ▲(12.69% Upside)

The score is primarily held back by declining revenue and ongoing losses, despite a strong equity-heavy balance sheet and improved 2024 free cash flow. Technicals are mildly supportive with price above key moving averages and positive MACD, but valuation remains unattractive due to the negative P/E and lack of dividend data.

Positive Factors

Equity-heavy balance sheet

A 93.2% equity ratio signals very low leverage and strong solvency, giving the company durable financial flexibility. This supports funding of capex, R&D, or customer service needs without reliance on costly debt, improving resilience to sector shocks over months.

Positive free cash flow

Turning free cash flow positive after 2023 shows improved cash conversion and operational discipline. Sustainable FCF supports reinvestment, servicing working capital and reducing external funding needs, strengthening long-term operational independence if maintained.

Diversified revenue streams & telecom partnerships

Multiple product lines (hardware, software, services, consulting) plus telecom partnerships provide structural revenue diversification and distribution leverage. Recurring service contracts and bundling with partners can stabilize revenue and support cross-sell opportunities over the medium term.

Negative Factors

Consecutive revenue declines

Two years of declining revenue indicate persistent demand or competitive challenges. Sustained top-line contraction reduces scale, pressures gross margins and operating leverage, and limits capacity to invest in product development or sales, weakening long-term competitiveness.

Persistent negative profitability

Ongoing net losses and negative operating margins point to structural cost or pricing issues. Without durable margin improvement, the company risks depleting reserves, cannot generate shareholder returns, and may struggle to finance growth or maintain partnerships over time.

Volatile cash flow and earnings

Volatile free cash flow growth and extreme EPS swings signal unreliable earnings and cash generation, complicating planning and capital allocation. Persistent volatility raises financing costs and execution risk, undermining confidence in sustained operational improvement.

C-Link Squared Limited Business Overview & Revenue Model

Company Description

C-Link Squared Limited, an investment holding company, provides outsourced document management services in Malaysia, Singapore, and the People's Republic of China. The company offers electronic document delivery; document print and mail fulfillment; MICR cheque print and mail fulfillment; medical ID card print and mail fulfillment; and document imaging and scanning services. It also provides software applications and enterprise software solutions; streamline output management, streamline electronic document warehouse, and streamline document management systems; and outsourced insurance risk analysis and insurance marketing services. The company was founded in 2000 and is headquartered in Petaling Jaya, Malaysia.

How the Company Makes Money

C-Link Squared Limited generates revenue primarily through the sale of its networking hardware and software solutions, which are designed to meet the needs of a diverse clientele. The company also offers service contracts for ongoing maintenance and support, which provide a steady stream of income. Additionally, C-Link Squared has established partnerships with key players in the telecommunications sector, allowing it to leverage joint marketing efforts and bundled service offerings, further enhancing its revenue potential. The company’s consulting services, which focus on optimizing network performance and infrastructure, contribute to its earnings by providing customized solutions that address specific client needs.

C-Link Squared Limited Financial Statement Overview

Summary

Mixed fundamentals: a strong balance sheet with very high equity ratio and improving leverage supports stability, and free cash flow turned positive in 2024. However, revenues have declined for two consecutive years and profitability remains negative with weak/negative operating margins.

Income Statement

The company has shown a decline in revenue from 2022 to 2024, with a negative revenue growth rate of -8.5% in 2023 and -8.6% in 2024. Gross profit margin has been relatively stable, but the net profit margin has been negative in recent years, indicating challenges in profitability. The EBIT and EBITDA margins have also been negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 93.2% in 2024, indicating financial stability. The debt-to-equity ratio has improved over the years, reflecting reduced leverage. However, the return on equity has been negative due to consistent net losses, which is a concern for investors.

Cash Flow

The company has improved its free cash flow from negative in 2023 to positive in 2024, indicating better cash management. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion. However, the free cash flow growth rate has been volatile, which could pose risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.12M	96.99M	93.76M	105.68M	111.90M	76.72M
Gross Profit	18.60M	24.33M	22.91M	23.45M	26.63M	19.18M
EBITDA	-102.16M	-18.23M	1.06M	5.91M	12.76M	4.07M
Net Income	-105.20M	-21.43M	-4.25M	-807.00K	2.73M	-5.07M
Balance Sheet
Total Assets	142.85M	311.66M	103.62M	111.76M	117.16M	106.32M
Cash, Cash Equivalents and Short-Term Investments	55.51M	59.72M	43.88M	54.95M	69.28M	45.03M
Total Debt	3.66M	5.24M	7.57M	13.46M	16.48M	18.82M
Total Liabilities	14.61M	16.49M	17.78M	23.90M	29.29M	25.40M
Stockholders Equity	123.76M	290.49M	81.22M	84.56M	85.15M	80.92M
Cash Flow
Free Cash Flow	18.32M	20.37M	-5.17M	-11.62M	24.95M	-21.46M
Operating Cash Flow	18.65M	23.01M	-631.00K	5.12M	25.44M	-19.41M
Investing Cash Flow	16.90M	-1.34M	-1.41M	27.64M	-16.29M	-30.09M
Financing Cash Flow	0.00	-3.42M	-7.12M	-3.30M	-3.31M	38.19M

C-Link Squared Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1463, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.26, and above the 200-day MA of 0.25, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.31 is Neutral, neither overbought nor oversold. The STOCH value of 3.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1463.

C-Link Squared Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1260	71 Outperform	HK$500.88M	7.23	4.54%	―	24.87%	―
1631	68 Neutral	HK$119.04M	24.60	5.97%	―	-13.63%	-30.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1463	59 Neutral	HK$718.56M	-2.15	-89.45%	―	12.16%	-16700.00%
1841	53 Neutral	HK$94.00M	-22.60	-3.56%	―	-14.40%	-180.62%
8416	50 Neutral	HK$34.56M	-6.07	-6.35%	―	-16.78%	-233.66%
8450	42 Neutral	HK$87.00M	-7.63	-23.68%	―	-30.12%	-208.11%