Trio Industrial Electronics Group Limited (1710) AI Stock Analysis

• Market Cap: HK$246.00M
• Dividend Yield: 7.63%
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.21
• Revenue Growth: 4.01%
• EPS Growth: N/A
• Country: HK
• Employees: 1,310
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 1,123,200
• 30 Day Avg. Volume: 2,038,933
• PEG Ratio: -0.19
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 1.67
• 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: 63 Neutral
• Price Target: HK$0.50 ▲(108.33% Upside)

The overall stock score reflects a mix of moderate financial performance and strong technical indicators. The company's stable balance sheet and attractive dividend yield are positive factors, but challenges in profitability and cash flow generation weigh on the score. The bullish technical trend provides a positive outlook, balancing the financial weaknesses.

Positive Factors

Stable Balance Sheet

A stable balance sheet with a moderate debt-to-equity ratio indicates a balanced capital structure, providing financial stability and resilience against economic fluctuations.

Long-term Contracts

Long-term contracts and partnerships ensure consistent demand and revenue streams, enhancing financial predictability and reducing market volatility impact.

R&D Investment

Continuous investment in R&D can lead to innovative products, maintaining competitive advantage and opening new revenue opportunities in evolving markets.

Negative Factors

Profitability Challenges

Pressure on profit margins indicates challenges in maintaining profitability, which can affect long-term financial health and investment capacity.

Cash Flow Issues

Weak cash flow performance and a drop in free cash flow limit the company's ability to invest in growth opportunities and meet financial obligations.

Operational Inefficiencies

Fluctuating EBIT and EBITDA margins suggest operational inefficiencies, which can hinder cost management and reduce competitive advantage over time.

Trio Industrial Electronics Group Limited Business Overview & Revenue Model

Company Description

Trio Industrial Electronics Group Limited, an investment holding company, provides customized engineering and contract manufacturing services for a range of industries. The company's product portfolio includes electro-mechanical products, switch-mode power supplies, smart chargers, smart vending systems, automatic testing equipment, power switchgear boards, and catering equipment control boards. It is also involved in the global sourcing and purchase of materials; manufacture and sale of electronic products and components; and provision of sales and marketing, and support services. The company's products have applications in industrial and commercial areas, such as renewable energy facilities, telecommunication equipment, commercial freight equipment, medical and health care devices, leisure and entertainment products, security and access systems, etc. It has operations in the United Kingdom, Switzerland, Ireland, Denmark, Sweden, North America, the People's Republic of China, South-east Asia, Israel, and Australia. The company was founded in 1983 and is headquartered in Hung Hom, Hong Kong. Trio Industrial Electronics Group Limited is a subsidiary of Trio Industrial Electronics Holding Limited.

How the Company Makes Money

Trio Industrial Electronics Group Limited generates revenue through multiple streams, primarily from the sale of its electronic components and systems to various industrial clients. The company profits from both direct sales and long-term contracts with businesses that require ongoing supply of electronic components. Additionally, Trio Industrial benefits from partnerships with other technology firms, allowing for collaborative product development and access to new markets. The company may also engage in service contracts that include installation and maintenance of its products, further enhancing its revenue potential. Overall, the combination of product sales, service agreements, and strategic partnerships contributes significantly to the company's earnings.

Trio Industrial Electronics Group Limited Financial Statement Overview

Summary

Trio Industrial Electronics Group Limited shows moderate financial health with a stable balance sheet but struggles with profitability and cash flow generation. The income statement indicates pressure on margins and revenue growth, while cash flow issues highlight challenges in operational efficiency. Overall, the company needs to enhance operational performance and cash management to improve its financial standing.

Income Statement

The company shows moderate revenue growth over the years, yet recent revenue has declined compared to the previous year. Gross and net profit margins are under pressure, indicating challenges in maintaining profitability. Historically, EBIT and EBITDA margins have fluctuated, reflecting operational inefficiencies.

Balance Sheet

The company's balance sheet is stable with a moderate debt-to-equity ratio, indicating a balanced capital structure. The equity ratio is healthy, suggesting financial stability, but there is room for improvement in leveraging assets effectively to boost profitability.

Cash Flow

Cash flow performance is weak, with a recent drop in free cash flow. The company has been unable to convert operating cash flow into free cash flow effectively. The operating cash flow to net income ratio reflects inconsistent cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.02B	1.01B	1.16B	978.10M	744.07M	701.70M
Gross Profit	195.93M	187.49M	222.72M	201.46M	133.51M	176.38M
EBITDA	33.25M	19.40M	95.52M	90.01M	12.27M	65.11M
Net Income	19.65M	8.56M	47.15M	45.42M	-10.58M	28.88M
Balance Sheet
Total Assets	765.43M	817.69M	682.77M	723.52M	601.61M	543.72M
Cash, Cash Equivalents and Short-Term Investments	105.48M	143.03M	61.21M	73.14M	69.57M	105.36M
Total Debt	166.34M	172.23M	123.41M	126.90M	26.54M	34.06M
Total Liabilities	369.91M	400.15M	272.04M	339.65M	256.95M	178.91M
Stockholders Equity	395.52M	417.54M	410.74M	383.87M	344.67M	364.81M
Cash Flow
Free Cash Flow	-31.63M	79.56M	21.45M	38.73M	-20.18M	32.77M
Operating Cash Flow	-8.73M	113.29M	52.04M	51.73M	-3.78M	41.56M
Investing Cash Flow	-24.51M	-27.42M	-31.85M	-12.95M	-14.01M	-12.61M
Financing Cash Flow	11.02M	-5.96M	-30.66M	-31.75M	-19.49M	-26.24M

Trio Industrial Electronics Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1710, the sentiment is Positive. The current price of 0.24 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.22, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.00 is Neutral, neither overbought nor oversold. The STOCH value of 72.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1710.

Trio Industrial Electronics Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0725	74 Outperform	HK$151.21M	4.24	8.30%	6.58%	25.46%	68.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1710	63 Neutral	HK$246.00M	12.49	5.04%	7.63%	4.01%	―
1750	60 Neutral	HK$140.40M	24.00	3.18%	―	5.80%	57.89%
1166	54 Neutral	HK$62.93M	-0.48	-20.57%	―	-27.26%	-60.80%
1399	48 Neutral	HK$218.00M	-6.31	-2.96%	―	-11.18%	-180.05%
3919	44 Neutral	HK$43.74M	-5.54	-2.29%	―	5.07%	-87.31%

Trio Industrial Electronics Group Limited Corporate Events

Trio Industrial Electronics Revises Consultancy Agreement with Mr. Kwan

Trio Industrial Electronics Group Limited has announced amendments to its Consultancy Agreement with Mr. Kwan, reducing his monthly consultancy fee and gratuity payments. These changes, effective from October 1, 2025, are part of a Second Supplemental Agreement and aim to adjust the financial terms of the consultancy arrangement, potentially impacting the company’s cost structure and financial planning.