Risecomm Group Holdings Limited (1679) AI Stock Analysis

• Market Cap: HK$86.95M
• Dividend Yield: N/A
• Average Volume (3M): 250.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: 27.19%
• EPS Growth: 54.51%
• Country: HK
• Employees: 67
• Sector: Technology
• Sector Strength: 96
• Industry: Semiconductors
• EPS (TTM): -0.21
• Shares Outstanding: 255,728,870
• 10 Day Avg. Volume: 270,353
• 30 Day Avg. Volume: 250,301
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: 47.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: HK$0.50 ▲(47.06% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, persistent losses, and negative equity. While technical analysis indicates strong upward momentum, the overbought conditions suggest caution. The valuation is weak due to a negative P/E ratio and lack of dividend yield, further weighing down the score.

Risecomm Group Holdings Limited Business Overview & Revenue Model

Company Description

Risecomm Group Holdings Limited (1679) is a technology company that specializes in the design, development, and sale of Power Line Communication (PLC) products and solutions. The company operates primarily in the smart energy sector, offering advanced metering infrastructure solutions for electricity utilities, as well as smart energy management systems for residential, commercial, and industrial users. Risecomm's core products include PLC integrated circuits, modules, and devices that enable reliable communication over existing power lines.

How the Company Makes Money

Risecomm Group Holdings Limited generates revenue primarily through the sale of its PLC-based products and solutions. The company's key revenue streams include the sale of PLC integrated circuits and modules to electricity utilities for smart grid and advanced metering infrastructure (AMI) projects, as well as to manufacturers of smart appliances and industrial equipment. Additionally, Risecomm derives income from providing related services such as system integration, technical support, and maintenance for its smart energy management systems. The company may also benefit from strategic partnerships and collaborations with utility companies, technology firms, and government bodies to expand its market reach and enhance its product offerings.

Risecomm Group Holdings Limited Financial Statement Overview

Summary

Risecomm Group Holdings Limited is facing significant financial challenges, characterized by declining revenues, persistent losses, and negative equity. High leverage and negative cash flows exacerbate the company's financial instability. The semiconductor industry typically favors innovation and growth, but this company struggles with both profitability and liquidity. Immediate strategic changes are necessary to address these financial concerns and 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: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 0.34 is above the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.17, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 84.98 is Negative, neither overbought nor oversold. The STOCH value of 61.69 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
1967	67 Neutral	HK$168.00M	81.16	0.60%	―	6.98%	―
8257	65 Neutral	HK$70.00M	11.67	3.01%	―	-32.47%	-74.03%
Sector *	57 Neutral	HK$14.39B	9.80	-0.60%	4.57%	7.08%	-37.99%
1679	51 Neutral	HK$86.95M	―		―	27.19%	54.51%
1912	49 Neutral	HK$88.95M	―	-42.18%	―	-6.19%	18.71%
8490	46 Neutral	HK$93.83M	68.18	-21.90%	―	-8.34%	-8828.57%
2203	45 Neutral	HK$172.00M	―	-3324.55%	―	-45.66%	-275.12%

Risecomm Group Holdings Limited Corporate Events

Risecomm Group Announces Share Consolidation and Rights Issue

Risecomm Group Holdings Limited has announced an extraordinary general meeting to discuss significant changes to its share structure. The company plans to consolidate every five existing shares into one new share and increase its authorized share capital, aiming to issue new shares through a rights issue. This strategic move is expected to strengthen the company’s capital base and provide more flexibility for future growth opportunities.

Risecomm Group Holdings Delays Circular Dispatch and Revises Timetable for Corporate Actions

Risecomm Group Holdings Limited announced a delay in the dispatch of a circular related to its proposed share consolidation, increase in authorized share capital, and rights issue. The delay affects the expected timetable for these corporate actions, which are now rescheduled with new dates for the dispatch of documents and the extraordinary general meeting. This announcement may impact the company’s operational timeline and shareholder engagement.

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.