Cheshi Technology Inc. (1490) AI Stock Analysis

• Market Cap: HK$212.45M
• Dividend Yield: N/A
• Average Volume (3M): 159.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 2.85%
• EPS Growth: -118.89%
• Country: HK
• Employees: 81
• Sector: Communication Services
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 1,234,600,000
• 10 Day Avg. Volume: 150,000
• 30 Day Avg. Volume: 159,333
• PEG Ratio: -0.70
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 207.09
• 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: 51 Neutral
• Price Target: HK$0.19 ▲(2.11% Upside)

Cheshi Technology Inc. faces significant financial challenges, with declining revenue and cash flow issues being the most impactful factors. While technical analysis shows some positive momentum, the high RSI suggests caution. The negative P/E ratio indicates potential overvaluation concerns.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and flexibility, allowing Cheshi Technology to invest in growth opportunities and weather economic downturns.

Healthy Gross Profit Margin

A healthy gross profit margin indicates efficient cost management and pricing power, which can support long-term profitability and competitive positioning in the market.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single source, enhancing resilience against market fluctuations and enabling sustained growth across different sectors.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in market demand or competitive pressures, which could hinder the company's ability to invest in innovation and maintain market share.

Cash Flow Issues

Reduced cash flow limits the company's ability to fund operations and strategic initiatives, potentially impacting its capacity to sustain growth and meet financial obligations.

Decreased Profitability

Decreased profitability indicates operational inefficiencies or increased costs, which can undermine long-term financial health and shareholder value if not addressed.

Cheshi Technology Inc. Business Overview & Revenue Model

Company Description

AI X Tech, Inc. is an investment holding company, which engages in online automobile vertical media platforms in China. It offers automobile advertising services through its subsidiaries. The company was founded on November 22, 2018 and is headquartered in Beijing, China.

How the Company Makes Money

Cheshi Technology Inc. generates revenue through multiple streams, primarily by offering subscription-based software services, which provide clients with ongoing access to their advanced analytics and AI-driven tools. Additionally, the company earns income from direct sales of its proprietary hardware products, as well as through consulting services that help businesses implement and optimize their technology solutions. Significant partnerships with industry leaders enhance their market presence and facilitate co-development initiatives, further contributing to their revenue growth. Furthermore, Cheshi Technology benefits from licensing agreements for its technology, allowing other companies to leverage its innovations, which adds another layer to its revenue model.

Cheshi Technology Inc. Financial Statement Overview

Summary

Cheshi Technology Inc. is facing financial challenges with declining revenue and profitability. Despite a strong balance sheet with low leverage, the significant decline in cash flow raises concerns about liquidity and operational efficiency.

Income Statement

Cheshi Technology Inc. has experienced a decline in revenue over the past year, with a negative revenue growth rate of -2.25% from 2023 to 2024. The gross profit margin for 2024 is 56.53%, which is relatively healthy, but the net profit margin has significantly decreased to 1.77% due to a sharp decline in net income. The EBIT and EBITDA margins have also turned negative, indicating operational challenges.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.01, indicating minimal leverage. The equity ratio is high at 86.28%, suggesting a strong equity base relative to total assets. However, the return on equity has decreased to 0.50%, reflecting reduced profitability.

Cash Flow

Cheshi Technology Inc. has faced a significant decline in operating cash flow, dropping from 49.23 million in 2023 to 2.10 million in 2024. The free cash flow has also decreased substantially, with a negative growth rate. The operating cash flow to net income ratio is low, indicating potential cash flow issues relative to reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	151.24M	151.85M	155.36M	170.04M	197.19M	180.40M
Gross Profit	87.24M	85.85M	121.78M	129.21M	146.40M	152.46M
EBITDA	-12.45M	-13.06M	46.47M	19.40M	60.77M	86.02M
Net Income	-3.62M	2.69M	42.88M	16.40M	41.01M	64.64M
Balance Sheet
Total Assets	613.46M	622.75M	609.60M	572.42M	560.27M	339.29M
Cash, Cash Equivalents and Short-Term Investments	469.09M	435.80M	434.55M	401.71M	349.83M	160.47M
Total Debt	4.42M	5.62M	5.30M	4.50M	22.05M	59.81M
Total Liabilities	81.36M	88.88M	77.66M	81.82M	80.26M	140.92M
Stockholders Equity	535.63M	537.41M	535.10M	492.29M	480.34M	198.37M
Cash Flow
Free Cash Flow	14.54M	856.00K	45.80M	46.30M	44.11M	49.37M
Operating Cash Flow	17.88M	2.10M	49.23M	49.67M	45.78M	51.58M
Investing Cash Flow	-131.23M	-164.06M	41.05M	-98.83M	82.31M	-90.92M
Financing Cash Flow	-1.81M	-2.50M	-1.53M	-19.15M	176.28M	-7.03M

Cheshi Technology Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1490, the sentiment is Negative. The current price of 0.19 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.19, and below the 200-day MA of 0.19, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of -26.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1490.

Cheshi Technology Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1490	51 Neutral	HK$212.45M	-53.82	-0.67%	―	2.85%	-118.89%
1753	45 Neutral	HK$236.90M	-4.87	-3.55%	―	-5.89%	-330.91%
0164	44 Neutral	HK$110.60M	-15.43	―	―	-1.65%	92.30%
6988	41 Neutral	HK$278.53M	-0.34	-96.45%	―	-99.64%	15.42%
1993	39 Underperform	HK$239.08M	-4.50	―	―	-38.24%	-31.99%