Risecomm Group Holdings Limited (1679) AI Stock Analysis

• Market Cap: HK$100.35M
• Dividend Yield: N/A
• Average Volume (3M): 74.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: 37.63%
• EPS Growth: 56.51%
• Country: HK
• Employees: 67
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.12
• Shares Outstanding: 215,813,840
• 10 Day Avg. Volume: 40,500
• 30 Day Avg. Volume: 74,241
• PEG Ratio: 0.01
• Price to Book (P/B): -0.42
• Price to Sales (P/S): 0.37
• P/FCF Ratio: -1.31
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.39 ▼(-16.09% Downside)

The overall stock score is heavily influenced by the company's poor financial performance, characterized by declining revenues, persistent losses, and negative equity. Technical analysis further indicates bearish momentum, with the stock trading below major moving averages and showing oversold conditions. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, reflecting financial distress and lack of investor confidence.

Positive Factors

Strategic Partnerships

Strategic partnerships allow Risecomm to co-develop solutions and access broader customer networks, which can drive long-term revenue growth and market expansion.

Revenue Growth Potential

Despite financial challenges, the company shows potential for revenue growth, suggesting its products and services are gaining traction in the market.

Diverse Revenue Streams

Diverse revenue streams from sales, service contracts, and partnerships provide a stable base for long-term financial health and reduce dependency on a single income source.

Negative Factors

Financial Instability

Negative equity and high leverage pose significant risks to financial stability, potentially limiting the company's ability to invest in growth and innovation.

Cash Flow Challenges

Persistent negative cash flow suggests difficulties in funding operations without external financing, which could hinder long-term sustainability and growth.

Declining Revenues

The significant revenue decline indicates potential loss of market share or competitiveness, which could impact long-term growth and profitability.

Risecomm Group Holdings Limited Business Overview & Revenue Model

Company Description

Risecomm Group Holdings Limited, an investment holding company, designs and develops application-specific integrated circuits (ASICs) in the People's Republic of China. It operates through two segments, Automated Meter Reading (AMR) and Other Business; and Smart Manufacturing & Industrial Automation System (SMIA) Business. The AMR Business segment designs, develops, and sells power-line communication products; energy saving products; and environmental protection products and solutions that are used in streetlight control, building energy management, photovoltaic power management, etc. This segment also provides maintenance services in connection with the deployment and upgrading of AMR systems by power grid companies. The SMIA Business segment sells software license, production safety products, and construction contracts, as well as provides software post-contract customer support services, including smart manufacturing and industrial automation system. Risecomm Group Holdings Limited was founded in 2006 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

Risecomm Group Holdings generates revenue through multiple streams, primarily from the sale of its communication devices and smart city solutions. The company engages in direct sales to clients, including government agencies and private enterprises, which form a significant part of its customer base. Additionally, Risecomm benefits from service contracts and maintenance agreements tied to its products, ensuring ongoing revenue from existing installations. Strategic partnerships with other technology firms and collaborations within the telecommunications sector further enhance its market reach and revenue potential, as they allow for co-development of solutions and access to broader customer networks.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	139.46M	122.30M	94.87M	149.85M	248.15M	212.73M
Gross Profit	44.33M	37.09M	15.57M	39.08M	43.01M	33.53M
EBITDA	-40.23M	-47.50M	-89.33M	-34.83M	-20.66M	-70.00M
Net Income	-60.99M	-73.54M	-138.51M	-119.09M	-55.25M	-126.03M
Balance Sheet
Total Assets	241.22M	236.57M	250.49M	341.34M	471.55M	518.35M
Cash, Cash Equivalents and Short-Term Investments	13.37M	15.18M	35.92M	86.65M	91.70M	121.67M
Total Debt	249.48M	247.14M	193.98M	132.80M	133.52M	133.80M
Total Liabilities	360.97M	347.92M	285.02M	266.96M	277.75M	404.01M
Stockholders Equity	-114.11M	-105.70M	-28.89M	74.89M	193.80M	114.34M
Cash Flow
Free Cash Flow	-31.37M	-34.15M	-68.22M	4.28M	-28.20M	-12.44M
Operating Cash Flow	-31.86M	-33.92M	-62.84M	5.18M	-26.63M	-11.46M
Investing Cash Flow	661.00K	-45.58M	-64.78M	-4.97M	-116.19M	1.65M
Financing Cash Flow	5.35M	56.89M	77.27M	-5.85M	112.72M	-12.25M

Risecomm Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.46
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 0.46 is above the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.53, and below the 200-day MA of 0.51, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.39 is Neutral, neither overbought nor oversold. The STOCH value of 77.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1967	59 Neutral	HK$126.00M	-15.29	-2.32%	―	-6.45%	-596.43%
8257	59 Neutral	HK$234.00M	27.98	3.83%	―	-13.07%	-34.88%
1912	43 Neutral	HK$98.83M	-0.87	―	―	―	―
2203	42 Neutral	HK$192.80M	-1.20	―	―	-47.92%	-869.15%
8490	41 Neutral	HK$81.13M	-1.07	-41.46%	―	-26.02%	-4977.27%
1679	39 Underperform	HK$100.35M	-0.76	―	―	37.63%	56.51%

Risecomm Group Holdings Limited Corporate Events

Risecomm Group Holdings Limited Announces Auditor Change

Risecomm Group Holdings Limited announced a change in its auditor, with SHINEWING (HK) CPA Limited resigning due to a disagreement over audit fees. The company has appointed Rongcheng (Hong Kong) CPA Limited as the new auditor, citing competitive fees and the firm’s capabilities as reasons for the change. The transition is not expected to impact the company’s annual audit or financial results, and the decision is deemed beneficial for the company and its shareholders.

Risecomm Announces Share Option Adjustments Post Rights Issue

Risecomm Group Holdings Limited has announced adjustments to its outstanding share options following a rights issue, which offered five rights shares for every consolidated share held. The adjustments, certified by Silverbricks Securities Company Limited, involve changes to the exercise price and the number of shares issued upon exercising the options, ensuring compliance with relevant listing rules and guidance.

Risecomm Group Appoints New Executive Director

Risecomm Group Holdings Limited has announced the appointment of Ms. Ye Bailing as an executive director, effective from 28 October 2025. Ms. Ye brings over 15 years of experience in business management and development, having held significant roles in various companies, including Nanjing Guoyuan Machinery Parts Co., Ltd. and Jiangsu Guoyuan New Energy Technology Group Co., Ltd. Her appointment is expected to strengthen Risecomm’s leadership team and potentially enhance its strategic operations.

Risecomm Group Holdings Announces Board Composition and Committee Roles

Risecomm Group Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The board includes a mix of executive, non-executive, and independent non-executive directors, with Zhao Luyi serving as the Chairman and Executive Director. The announcement details the membership of three key board committees: the Audit Committee, Remuneration Committee, and Nomination Committee. This update on board composition is significant for stakeholders as it outlines the governance structure and leadership roles within the company, potentially impacting its strategic direction and operational oversight.

Executive Director Resignation at Risecomm Group Holdings

Risecomm Group Holdings Limited announced the resignation of Mr. Jiang Feng as an executive director, effective from October 24, 2025. Mr. Jiang is stepping down to focus on personal commitments, and he leaves without any disagreements with the board. The company expressed gratitude for his contributions during his tenure.

Risecomm Group Holdings Limited Completes Rights Issue, Raises HK$80.44 Million

Risecomm Group Holdings Limited announced the results of its Rights Issue, which was undersubscribed, leading to the placement of unsubscribed shares to independent placees. The company raised approximately HK$80.44 million in net proceeds, which will be used primarily for repaying current liabilities and supporting general corporate purposes, including business development in smart manufacturing and industrial automation.

Risecomm Group Holdings Limited Announces Undersubscribed Rights Issue

Risecomm Group Holdings Limited announced the results of its Rights Issue, revealing that only 32.34% of the offered Rights Shares were subscribed, leaving 67.66% unsubscribed. The company plans to place these unsubscribed shares with independent placees, potentially benefiting shareholders through any premium realized over the subscription price.