Most Kwai Chung Ltd. (1716) AI Stock Analysis

• Market Cap: HK$153.90M
• Dividend Yield: N/A
• Average Volume (3M): 176.00K
• Price to Earnings (P/E): 54.8
• Beta (1Y): 0.52
• Revenue Growth: 37.70%
• EPS Growth: N/A
• Country: HK
• Employees: 78
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): <0.01
• Shares Outstanding: 270,000,000
• 10 Day Avg. Volume: 36,400
• 30 Day Avg. Volume: 176,000
• PEG Ratio: -0.10
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 1.05
• P/FCF Ratio: -295.06
• 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: 58 Neutral
• Price Target: HK$0.50 ▼(-5.66% Downside)

Most Kwai Chung Ltd. shows promising revenue growth and operational recovery, supported by a strong balance sheet. However, significant cash flow issues and a high P/E ratio limit the stock's attractiveness. Technical indicators suggest bullish momentum, but overbought conditions could lead to a short-term pullback.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand for the company's products and effective sales strategies, supporting long-term business expansion.

Operational Margins

Improved operational margins reflect enhanced efficiency and cost control, which can lead to sustained profitability and competitive advantage.

Balance Sheet Strength

A strong balance sheet with minimal leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities.

Negative Factors

Cash Flow Challenges

Weak cash flow performance indicates difficulties in converting income into cash, which can hinder the company's ability to finance operations and growth.

Net Profit Margin

A low net profit margin suggests limited profitability, which may impact the company's ability to reinvest in its business and compete effectively.

Free Cash Flow

Negative free cash flow relative to net income highlights potential liquidity issues, affecting the company's capacity to fund strategic initiatives and manage debt.

Most Kwai Chung Ltd. Business Overview & Revenue Model

Company Description

Most Kwai Chung Ltd. (1716) is a Hong Kong-based company primarily engaged in the manufacturing and distribution of electronic components and accessories. The company operates in the electronics sector, focusing on providing high-quality products that cater to various industries, including consumer electronics, telecommunications, and automotive. Most Kwai Chung Ltd. is known for its innovative designs and commitment to quality, offering a range of products such as connectors, circuit boards, and power supply units.

How the Company Makes Money

Most Kwai Chung Ltd. generates revenue through multiple channels, primarily by manufacturing and selling electronic components to a diverse clientele. The company's revenue model is predominantly based on direct sales to original equipment manufacturers (OEMs) and distributors, which forms the bulk of its earnings. Additionally, Most Kwai Chung Ltd. engages in contract manufacturing, allowing other companies to outsource their production needs, further diversifying its income streams. Strategic partnerships with key players in the electronics industry enhance its market reach and provide access to new technologies, contributing significantly to its revenue. The company also invests in research and development to innovate and improve its product offerings, which helps in maintaining competitive pricing and attracting new customers.

Most Kwai Chung Ltd. Financial Statement Overview

Summary

Most Kwai Chung Ltd. demonstrates strong revenue growth and improved operational margins, indicating a recovery in business performance. The balance sheet remains robust with low leverage and improved equity returns. However, significant cash flow challenges persist, highlighting the need for better cash management.

Income Statement

Most Kwai Chung Ltd. has shown a significant improvement in revenue growth, with a 37.08% increase in the latest year. The gross profit margin has improved to 46.29%, indicating better cost management. However, the net profit margin remains relatively low at 6.55%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have turned positive, reflecting operational recovery.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.023, indicating minimal leverage. The return on equity has improved to 11.86%, showing better utilization of equity. The equity ratio is solid, reflecting a stable financial position with a significant portion of assets financed by equity.

Cash Flow

Cash flow performance is weak, with a significant decline in free cash flow growth by 95.57%. The operating cash flow to net income ratio is low at 0.025, indicating challenges in converting income into cash. The negative free cash flow to net income ratio suggests cash flow issues despite reported profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.01M	93.59M	55.20M	39.59M	67.78M	59.11M
Gross Profit	42.86M	43.33M	19.97M	8.75M	9.10M	20.89M
EBITDA	6.23M	9.15M	-7.47M	-14.39M	-16.32M	12.17M
Net Income	2.80M	6.13M	-9.21M	-20.39M	-16.32M	9.34M
Balance Sheet
Total Assets	72.70M	71.79M	60.96M	65.93M	88.20M	106.83M
Cash, Cash Equivalents and Short-Term Investments	50.04M	43.91M	42.82M	50.81M	64.31M	84.36M
Total Debt	1.34M	1.21M	1.55M	1.52M	1.19M	1.72M
Total Liabilities	17.43M	17.86M	14.26M	9.60M	11.12M	12.20M
Stockholders Equity	52.53M	51.64M	45.51M	55.69M	76.08M	94.63M
Cash Flow
Free Cash Flow	7.29M	-334.00K	-10.95M	-12.33M	-12.02M	18.96M
Operating Cash Flow	7.73M	444.00K	-10.13M	-11.81M	-10.63M	19.27M
Investing Cash Flow	168.00K	2.55M	3.34M	-522.00K	1.11M	-1.27M
Financing Cash Flow	-2.38M	-1.91M	-1.20M	-1.16M	-10.53M	-14.45M

Most Kwai Chung Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.53
• 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:1716, the sentiment is Positive. The current price of 0.53 is below the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.56, and above the 200-day MA of 0.48, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1716.

Most Kwai Chung Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1716	58 Neutral	HK$153.90M	54.81	5.47%	―	37.70%	―
1163	54 Neutral	HK$147.08M	68.75	1.00%	―	26.96%	―
0072	46 Neutral	HK$96.33M	-5.02	-9.13%	―	-3.94%	40.24%
1753	45 Neutral	HK$239.05M	-4.64	-3.55%	―	-5.89%	-330.91%
1917	43 Neutral	HK$296.45M	-19.57	-31.88%	―	-5.03%	-35.29%

Most Kwai Chung Ltd. Corporate Events

Most Kwai Chung Ltd. Reports Decrease in Interim Net Profit

Most Kwai Chung Limited reported its interim results for the six months ended 30 September 2025, showing a slight increase in revenue to HK$45.0 million from HK$44.6 million in the previous year. However, the company’s net profit significantly decreased to HK$1.4 million from HK$4.7 million, attributed to higher selling and distribution expenses. This decline in profitability may impact the company’s financial health and stakeholder confidence.

Most Kwai Chung Ltd. Schedules Board Meeting for Interim Results

Most Kwai Chung Limited has announced that its board of directors will hold a meeting on November 27, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the declaration of an interim dividend. This meeting could impact the company’s financial strategy and shareholder returns, reflecting its operational performance and potential market positioning.

Most Kwai Chung Issues Profit Warning for 2025

Most Kwai Chung Limited has issued a profit warning, indicating a significant decrease in expected profits for the six months ending September 2025 compared to the same period in 2024. The decline is attributed to the absence of revenue from a performance event and no fair value gain from a previous acquisition, impacting the company’s financial performance and potentially affecting shareholder and investor decisions.