Risecomm Group Holdings Limited (1679) AI Stock Analysis

• Market Cap: HK$46.03M
• Dividend Yield: N/A
• Average Volume (3M): 220.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: 27.19%
• EPS Growth: 54.51%
• Country: HK
• Employees: 67
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): -0.21
• Shares Outstanding: 255,728,870
• 10 Day Avg. Volume: 394,725
• 30 Day Avg. Volume: 220,458
• PEG Ratio: -0.01
• Price to Book (P/B): -0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.11
• 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: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The most significant factor affecting the score is the company's poor financial performance, characterized by declining revenues, persistent losses, and financial instability. Technical analysis shows some positive short-term momentum, but caution is advised due to near-overbought conditions. The valuation is unattractive due to negative profitability and the lack of dividend yield. No earnings call insights or corporate events were available to influence the score further.

Risecomm Group Holdings Limited Business Overview & Revenue Model

Company Description

Risecomm Group Holdings Limited (1679) is a company primarily engaged in the design, development, and sale of power line communication (PLC) products and solutions. It operates within the smart grid and energy management sectors, offering a range of products that enhance communication and data transfer capabilities over existing power lines. The company's core products include advanced metering infrastructure (AMI) solutions and smart metering systems that help utilities and end-users optimize energy usage and improve efficiency.

How the Company Makes Money

Risecomm Group Holdings Limited generates revenue through the sale of its PLC-based products and solutions. The company's key revenue streams include the development and sale of smart metering systems and AMI solutions to utility companies and other energy service providers. These products enable efficient energy management and data collection, which are critical for modernizing grid infrastructure and enhancing energy efficiency. Additionally, Risecomm may engage in partnerships with utility companies and technology firms to broaden its market reach and technology capabilities, contributing to its earnings. The company's focus on innovation and expanding its product offerings also plays a significant role in its revenue generation strategy.

Risecomm Group Holdings Limited Financial Statement Overview

Summary

Risecomm Group Holdings Limited is facing significant financial challenges, with declining revenues, persistent losses, and negative equity. High leverage and negative cash flows exacerbate the company's financial instability, necessitating immediate strategic changes to improve operational efficiency.

Income Statement

The company has experienced declining revenue over the past few years, with a significant drop from $248 million in 2021 to $122 million in 2024. Gross profit margin has been low and volatile, standing at around 30% in 2024. Net profit margins are deeply negative due to persistent net losses. Despite a reduction in EBIT losses compared to prior years, profitability remains a major concern.

Balance Sheet

The balance sheet shows high leverage, with a debt-to-equity ratio that is negative due to negative stockholders' equity in 2024. This indicates financial instability and potential solvency issues. The equity ratio is also negative, reflecting a dire financial position. The steep decline in stockholders' equity over recent years is alarming.

Cash Flow

Cash flow from operations is non-existent in 2024, following negative operating cash flow in previous years. Free cash flow has been negative or zero, indicating that the company struggles to generate cash. This poses risks to liquidity and financial flexibility. The inability to generate positive free cash flow suggests potential difficulties in funding operations without external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.30M	94.87M	149.85M	248.15M	212.73M
Gross Profit	37.09M	15.57M	39.08M	43.01M	33.53M
EBITDA	-47.50M	-89.33M	-41.42M	-20.66M	-53.22M
Net Income	-73.54M	-138.51M	-119.09M	-55.25M	-126.03M
Balance Sheet
Total Assets	236.57M	250.49M	341.34M	471.55M	518.35M
Cash, Cash Equivalents and Short-Term Investments	15.18M	35.92M	86.65M	91.70M	121.67M
Total Debt	247.14M	193.98M	132.80M	133.52M	133.80M
Total Liabilities	347.92M	285.02M	266.96M	277.75M	404.01M
Stockholders Equity	-105.70M	-28.89M	74.89M	193.80M	114.34M
Cash Flow
Free Cash Flow	-34.15M	-68.22M	4.28M	-28.20M	-12.44M
Operating Cash Flow	-33.92M	-62.84M	5.18M	-26.63M	-11.46M
Investing Cash Flow	-45.58M	-64.78M	-4.97M	-116.19M	1.65M
Financing Cash Flow	56.89M	77.27M	-5.85M	112.72M	-12.25M

Risecomm Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1679, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.13, and above the 200-day MA of 0.18, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.80 is Neutral, neither overbought nor oversold. The STOCH value of 71.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1679.

Risecomm Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8257	65 Neutral	HK$57.00M	9.50	3.01%	―	-32.47%	-74.03%
1967	59 Neutral	HK$126.00M	60.87	0.60%	―	6.98%	―
Sector *	56 Neutral	$3.16B	4.94	-5.68%	5.81%	7.96%	-51.05%
1679	46 Neutral	HK$46.03M	―		―	27.19%	54.51%
2203	46 Neutral	HK$150.40M	―	-3324.55%	―	-45.66%	-275.12%
1912	45 Neutral	HK$85.65M	―	-42.18%	―	-6.19%	18.71%
8490	39 Underperform	HK$84.66M	68.18	-21.90%	―	-8.34%	-8828.57%

Risecomm Group Holdings Limited Corporate Events

Risecomm Group Holdings Secures Unanimous Approval at AGM

Risecomm Group Holdings Limited held its Annual General Meeting on June 20, 2025, where all proposed resolutions were unanimously approved. These resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting mandates for share repurchase and issuance. The unanimous approval of these resolutions indicates strong shareholder support and positions the company for continued operational stability and strategic flexibility.

Risecomm Group Announces Capital Reorganization and Fundraising Initiative

Risecomm Group Holdings Limited has announced a capital reorganization and fundraising initiative involving a share consolidation, an increase in authorized share capital, and a rights issue. The company aims to consolidate its shares on a 5-to-1 basis, increase its authorized share capital significantly, and raise approximately HK$127.86 million through a rights issue. This strategic move is expected to strengthen the company’s financial position and support its future growth plans.

Risecomm Group Holdings Announces 2025 Annual General Meeting

Risecomm Group Holdings Limited has announced its upcoming annual general meeting scheduled for June 20, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, re-appointment of auditors, and a resolution to authorize the repurchase of shares. This meeting is significant for stakeholders as it addresses critical governance and operational decisions that could impact the company’s strategic direction and shareholder value.