Geotech Holdings Ltd. (1707) AI Stock Analysis

• Market Cap: HK$105.84M
• Dividend Yield: N/A
• Average Volume (3M): 928.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: 3.97%
• EPS Growth: 14.02%
• Country: HK
• Employees: 60
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 1,680,000,000
• 10 Day Avg. Volume: 1,004,800
• 30 Day Avg. Volume: 928,533
• PEG Ratio: 3.68
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 2.23
• P/FCF Ratio: -11.06
• 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: 46 Neutral
• Price Target: HK$0.06 ▲(55.00% Upside)

The score is driven down primarily by weak financial performance (sharp revenue decline, persistent losses, and volatile/negative operating cash flow). Technicals provide some offset with strong recent momentum (price above key moving averages and positive MACD), but overbought signals (high Stochastic and elevated RSI) add short-term risk. Valuation remains unattractive/unclear due to negative earnings and no dividend data.

Positive Factors

Very low leverage

Extremely low debt and an ~85.7% equity ratio provide durable financial flexibility, reducing insolvency risk and preserving capacity to fund selective investments or weather project delays without relying on costly borrowing. This supports long-term contract execution stability.

Specialized geotech expertise

Deep specialization in geotechnical and environmental services creates structural barriers to entry, enabling repeat business on complex infrastructure projects. Technical know-how and trusted data provision support sticky client relationships and steady demand from construction and public works over time.

Diversified contract mix

A mix of long-term public sector contracts and private project work provides revenue diversity and reduces exposure to single-client cycles. Durable contract backlog and partnerships with engineering firms enhance revenue visibility and reduce short-term volatility in project pipelines.

Negative Factors

Sharp multi-year revenue decline

A steep fall in revenue over several years erodes scale economics and market position, limiting pricing leverage and the ability to maintain labs, equipment, and technical staff. Continued shrinkage threatens long-run competitiveness and investment capacity in core capabilities.

Persistent unprofitability

Sustained operating and net losses restrict internal funding for growth, capex, and technology upgrades. Persistent unprofitability forces dependence on external financing or asset reductions, undermining capacity to sustain long-term client service standards and strategic investments.

Volatile & negative operating cash flow

Inconsistent and often negative operating cash flow creates ongoing working capital pressure, making it harder to fund projects, retain skilled teams, and invest in equipment. Structural cash volatility increases refinancing risk and weakens resilience during project slowdowns.

Geotech Holdings Ltd. Business Overview & Revenue Model

Company Description

Geotech Holdings Ltd., an investment holding company, provides construction and engineering services, and property-related services in Hong Kong. It undertakes slope work contracting and ground investigation subcontracting activities. The company undertakes landslip preventive/remedial works to slopes/retaining walls; site formation works; and general civil works, including geotechnical and ground investigation field works. It also engages in property management consultancy; trading, design, and engineering; and construction and decoration services. The company was founded in 1994 and is headquartered in Central, Hong Kong. Geotech Holdings Ltd. is a subsidiary of Star Merit Global Limited.

How the Company Makes Money

Geotech Holdings Ltd. generates revenue through a diversified model primarily based on service contracts and project-based work within the geotechnical and environmental sectors. The company earns money by charging clients for its consultancy services, which include site investigations, laboratory testing, and environmental assessments. Key revenue streams include long-term contracts with government agencies and private sector clients involved in infrastructure projects, as well as one-off projects for specific construction developments. Additionally, Geotech Holdings Ltd. may engage in partnerships with construction firms and engineering companies, providing them with specialized geotechnical support, which further enhances its earnings potential. The company’s ability to adapt to regulatory changes and its reputation for delivering accurate and timely results also contribute significantly to its financial performance.

Geotech Holdings Ltd. Financial Statement Overview

Summary

Geotech Holdings Ltd. faces significant financial challenges, with declining revenues and persistent unprofitability. Despite a strong equity position and low leverage, cash flow issues and declining asset base pose substantial risks.

Income Statement

Geotech Holdings Ltd. has experienced a declining revenue trend over the years, with significant revenue drops from $355M in 2019 to $81M in 2024. The company also has persistent negative net income, indicating ongoing unprofitability, with a net loss margin worsening over time. Despite achieving a gross profit margin of around 6.7% in 2024, operating and net profit margins remain negative, reflecting inefficient cost management and operational challenges.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio of approximately 0.004, indicating minimal reliance on debt financing. The equity ratio remains high at around 85.7%, showcasing strong financial stability. However, the declining total assets and equity over the years suggest potential issues in asset management and capital preservation.

Cash Flow

Operating cash flow is highly volatile, with significant negative cash flows noted in recent years, reflecting operational inefficiencies. The free cash flow has shown periods of both positive and negative values, highlighting inconsistency in cash generation ability. The absence of positive free cash flow growth further indicates financial strain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	108.50M	80.50M	134.57M	281.51M	384.40M	331.65M
Gross Profit	5.82M	5.39M	3.58M	3.77M	2.64M	5.21M
EBITDA	-13.37M	-18.65M	-15.86M	-31.73M	-11.81M	-24.77M
Net Income	-15.45M	-15.81M	-16.37M	-32.18M	-14.28M	-28.07M
Balance Sheet
Total Assets	182.38M	188.33M	211.47M	226.46M	300.02M	299.58M
Cash, Cash Equivalents and Short-Term Investments	108.31M	121.41M	137.24M	167.21M	186.27M	156.34M
Total Debt	1.94M	675.00K	1.38M	516.00K	1.44M	2.99M
Total Liabilities	28.63M	26.86M	34.54M	32.75M	74.33M	59.61M
Stockholders Equity	153.75M	161.47M	176.93M	193.71M	225.69M	239.98M
Cash Flow
Free Cash Flow	-14.03M	-16.25M	-31.88M	-19.19M	43.27M	15.76M
Operating Cash Flow	-13.24M	-15.63M	-27.23M	-19.18M	43.58M	16.26M
Investing Cash Flow	1.32M	2.80M	-2.16M	1.00M	-10.81M	1.12M
Financing Cash Flow	-977.00K	-709.00K	-577.00K	-891.00K	-2.83M	-4.35M

Geotech Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1707, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 68.23 is Neutral, neither overbought nor oversold. The STOCH value of 94.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1707.

Geotech Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2663	64 Neutral	HK$158.73M	6.99	8.56%	23.73%	-32.31%	-51.89%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0368	61 Neutral	HK$336.00M	17.80	9.06%	3.63%	6.27%	―
1459	49 Neutral	HK$130.14M	-10.99	-0.68%	7.69%	-33.92%	-94.74%
1757	49 Neutral	HK$5.62B	4,680.00	1.30%	―	78.48%	-33.33%
1707	46 Neutral	HK$105.84M	-6.85	-9.58%	―	3.97%	14.02%

Geotech Holdings Ltd. Corporate Events

Geotech Holdings Ltd. Announces Board Changes

Geotech Holdings Ltd. announced a change in its board composition, appointing Ms. Tam Yuk Mei as an independent non-executive director. Ms. Tam has confirmed her independence according to the Listing Rules, and the board has verified her compliance with these requirements. This change is expected to enhance the governance structure of the company.

The most recent analyst rating on (HK:1707) stock is a Hold with a HK$0.03 price target. To see the full list of analyst forecasts on Geotech Holdings Ltd. stock, see the HK:1707 Stock Forecast page.

Geotech Holdings Auditor Resigns Amid Sanctions on Former Shareholder

Geotech Holdings Ltd. announced the resignation of Grant Thornton Hong Kong Limited as its auditor, effective November 21, 2025. This decision follows the U.S. Department of the Treasury’s sanctions against Mr. Chen Zhi, a former executive director and controlling shareholder, due to alleged involvement in criminal activities. The resignation is attributed to a conflict with Grant Thornton’s ethical responsibilities. The company plans to find a new auditor promptly and will make further announcements regarding the appointment.

Geotech Holdings Ltd. Announces Board Composition and Roles

Geotech Holdings Ltd. has announced the composition of its board of directors and their respective roles within the company. The board includes both executive and independent non-executive directors, with specific members assigned to the Audit, Remuneration, and Nomination Committees. This announcement clarifies the leadership structure and committee responsibilities, which is essential for stakeholders to understand the governance and decision-making processes within the company.

Geotech Holdings Announces Board Restructuring

Geotech Holdings Ltd. has announced a change in its board of directors, with Ms. Yip resigning from her roles as an independent non-executive director and committee chair, and Ms. Tam being appointed to these positions. This change is effective from October 31, 2025, and reflects a strategic move in the company’s governance structure, potentially impacting its operational and strategic direction.

Geotech Holdings Announces Leadership Changes

Geotech Holdings Ltd. announced the resignation of Mr. Lok Kar Kin as an executive director and authorized representative, effective October 27, 2025. Mr. Lok is stepping down to focus on personal and other business commitments, with no disagreements reported with the board. Mr. Hui Sai Kwong, Garrison, has been appointed as the new authorized representative, signaling a smooth transition in the company’s leadership.

Geotech Holdings Ltd. Announces Board and Committee Roles

Geotech Holdings Ltd. has announced the composition of its board of directors and their respective roles within the company. The board includes executive directors Wei Weizhan and Hui Sai Kwong Garrison, along with independent non-executive directors Chan Tsang Mo, Shen Zejing, and Yip Wai Ching. The announcement also details the members of the Audit, Remuneration, and Nomination Committees, highlighting the leadership roles of Chan Tsang Mo and Yip Wai Ching in these committees. This update provides clarity on the governance structure of Geotech Holdings Ltd., potentially impacting investor confidence and stakeholder engagement.

Geotech Holdings Announces Change in Registrar Services

Geotech Holdings Ltd. announced the resignation of Ocorian Trust (Cayman) Limited as its registered office and registrar & transfer agent services provider, effective from October 17, 2025. The company is actively seeking a suitable replacement and will update stakeholders accordingly, ensuring minimal disruption to its operations in Hong Kong.

Geotech Holdings Faces U.S. and U.K. Sanctions; Operations Unaffected

Geotech Holdings Ltd. announced that its controlling shareholder, Mr. Chen Zhi, and the company itself have been subjected to sanctions by both the U.S. and U.K. authorities. These sanctions include being added to the Specially Designated Nationals and Blocked Persons List by the U.S. Department of the Treasury and an asset freeze by the U.K.’s Foreign, Commonwealth and Development Office. Despite these sanctions, the company expects no material adverse impact on its operations, as its main assets and operations are in Hong Kong, and Mr. Chen is no longer involved with the company. Geotech Holdings is actively seeking legal advice to understand the sanctions’ implications and will continue to monitor the situation.