Risecomm Group Holdings Limited (1679) AI Stock Analysis

• Market Cap: HK$127.33M
• Dividend Yield: N/A
• Average Volume (3M): 74.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.63 ▲(40.89% Upside)

Overall score is constrained primarily by very weak financial performance (declining revenue, persistent losses, negative/zero operating and free cash flow, and negative equity). Technical indicators show short-term strength with price above major moving averages, but overbought readings temper this support. Valuation is also pressured by negative earnings (negative P/E) with no dividend yield provided.

Positive Factors

Large addressable market (IoT / smart city)

Focus on smart city, wireless comms and IoT positions the firm in multi-year structural growth markets. Municipal and enterprise demand for connectivity and automation supports a recurring product and service pipeline, increasing long-term revenue opportunity if execution improves.

Diversified revenue streams and partnerships

A mix of product sales plus service and maintenance contracts creates potential recurring revenue and higher lifetime customer value. Strategic partnerships can extend distribution and co-development, aiding resilience and scaling without proportionate fixed-cost increases over time.

Improving operating losses

Evidence of shrinking EBIT losses suggests management is slowing the pace of operating deterioration and implementing cost controls. If sustained, this can enable a pathway to breakeven and eventual margin recovery once revenue stabilizes, improving long-term cash dynamics.

Negative Factors

Negative equity and high leverage

Negative shareholders' equity and high leverage signal deep solvency stress, reducing access to capital markets and increasing refinancing or covenant risks. Over months this limits strategic options, may force dilutive financing or restructuring, and undermines creditor confidence.

Persistent negative operating and free cash flow

Sustained lack of operating cash generation erodes liquidity and forces reliance on external funding to support operations and capex. Over the medium term this constrains reinvestment in product development and service delivery, increasing execution risk and potential solvency pressure.

Declining revenue and weak margins

A halving of revenue over a multi-year period combined with low, volatile gross margins and persistent net losses undermines scale economics. Without revenue stabilization, durable margin improvement is unlikely, making sustained profitability and self-funded growth difficult.

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

Very weak fundamentals: revenue has declined sharply (about $248M in 2021 to $122M in 2024), profitability remains deeply negative, operating/free cash flow is negative or zero, and the balance sheet shows negative equity with severe leverage/solvency risk.

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: Positive
• Last Price: 0.45
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 0.45 is below the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.47, and below the 200-day MA of 0.54, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 61.32 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8257	59 Neutral	HK$242.00M	28.69	3.83%	―	-13.07%	-34.88%
1967	57 Neutral	HK$123.00M	-14.57	-2.32%	―	-6.45%	-596.43%
1912	46 Neutral	HK$73.79M	-0.66	―	―	―	―
2203	46 Neutral	HK$160.80M	-1.10	―	―	-47.92%	-869.15%
1679	45 Neutral	HK$127.33M	-0.99	―	―	37.63%	56.51%
8490	41 Neutral	HK$85.37M	-1.13	-41.46%	―	-26.02%	-4977.27%

Risecomm Group Holdings Limited Corporate Events

Risecomm Reshapes Board and Committee Structure to Strengthen Governance

Risecomm Group Holdings Limited has announced an updated composition of its board of directors and its three key board committees, effective 6 January. Zhao Luyi serves as chairman and executive director, alongside two other executive directors and two non-executive directors, with three independent non-executive directors providing additional oversight. The company has also detailed the memberships and leadership of its Audit, Remuneration and Nomination Committees, with independent directors Victor Yang, Lo Wan Man and Zou Heqiang taking on critical roles as chairs or members, signaling a continued emphasis on corporate governance and board independence that is important for shareholders and regulatory compliance.

The most recent analyst rating on (HK:1679) stock is a Sell with a HK$0.39 price target. To see the full list of analyst forecasts on Risecomm Group Holdings Limited stock, see the HK:1679 Stock Forecast page.

Risecomm Announces Resignation of Non-Executive Director Ding Zhigang

Risecomm Group Holdings Limited has announced the resignation of non-executive director Mr. Ding Zhigang, effective 6 January 2026, as he plans to devote more time to personal commitments. The company emphasized that Mr. Ding has no disagreement with the board and that his departure raises no issues requiring shareholder attention, while the board expressed appreciation for his contributions and confirmed the current composition of executive, non-executive and independent non-executive directors, suggesting continuity in overall governance despite the change.

The most recent analyst rating on (HK:1679) stock is a Sell with a HK$0.39 price target. To see the full list of analyst forecasts on Risecomm Group Holdings Limited stock, see the HK:1679 Stock Forecast page.

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.

The most recent analyst rating on (HK:1679) stock is a Sell with a HK$0.50 price target. To see the full list of analyst forecasts on Risecomm Group Holdings Limited stock, see the HK:1679 Stock Forecast page.

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.

The most recent analyst rating on (HK:1679) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Risecomm Group Holdings Limited stock, see the HK:1679 Stock Forecast page.

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.

The most recent analyst rating on (HK:1679) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Risecomm Group Holdings Limited stock, see the HK:1679 Stock Forecast page.

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.

The most recent analyst rating on (HK:1679) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Risecomm Group Holdings Limited stock, see the HK:1679 Stock Forecast page.

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.

The most recent analyst rating on (HK:1679) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Risecomm Group Holdings Limited stock, see the HK:1679 Stock Forecast page.