Qeeka Home (Cayman) Inc. (1739) AI Stock Analysis

• Market Cap: HK$277.78M
• Dividend Yield: 11.71%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -29.48%
• EPS Growth: 28.14%
• Country: HK
• Employees: 822
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): N/A
• Shares Outstanding: 1,145,011,100
• 10 Day Avg. Volume: 648,650
• 30 Day Avg. Volume: 1,716,300
• PEG Ratio: -0.06
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -3.25
• 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: 55 Neutral
• Price Target: HK$0.28 ▲(34.29% Upside)

The overall stock score reflects significant financial challenges, with declining revenues and persistent losses weighing heavily on the company's outlook. While technical indicators show some positive trends, the negative P/E ratio and cash flow issues highlight ongoing operational inefficiencies. The high dividend yield is a positive aspect but does not offset the broader financial concerns.

Positive Factors

Low Debt Levels

Low debt levels provide financial flexibility and reduce risk, allowing the company to navigate economic downturns and invest in growth opportunities without significant financial strain.

Strategic Partnerships

These partnerships enhance the company's competitive advantage by ensuring cost-effective sourcing and a broad product offering, crucial for sustaining market position and customer satisfaction.

Improvement in Free Cash Flow

Improvement in free cash flow indicates better cash management and operational efficiency, which can support future investments and debt reduction, enhancing long-term financial health.

Negative Factors

Declining Revenue

Declining revenue signals potential market share loss or reduced demand, which can undermine the company's ability to invest in growth and maintain competitive positioning over time.

Negative Profit Margins

Sustained negative profit margins reflect operational inefficiencies and pricing pressures, which can hinder the company's ability to generate shareholder value and reinvest in business growth.

Cash Flow Challenges

Negative operating cash flow suggests difficulties in covering operational expenses and investing in growth, potentially leading to liquidity issues and limiting strategic flexibility.

Qeeka Home (Cayman) Inc. Business Overview & Revenue Model

Company Description

Qeeka Home (Cayman) Inc. (1739) is a company operating in the home improvement and furnishing sector, primarily focused on providing innovative home design solutions and products. The company specializes in a wide range of offerings, including furniture, decor, and home renovation services, catering to both residential and commercial clients. With a strong emphasis on quality and customer satisfaction, Qeeka Home aims to enhance living spaces through stylish and functional products.

How the Company Makes Money

Qeeka Home generates revenue through multiple streams, including direct sales of home furnishings and decor items through both online and brick-and-mortar retail outlets. Additionally, the company offers value-added services such as interior design consultations and home renovation projects, which contribute significantly to its earnings. Strategic partnerships with manufacturers and suppliers allow Qeeka Home to maintain competitive pricing while ensuring a diverse product range. Furthermore, the company may benefit from affiliate marketing programs and collaborations with other businesses in the home improvement sector, enhancing its market reach and revenue potential.

Qeeka Home (Cayman) Inc. Financial Statement Overview

Summary

Qeeka Home (Cayman) Inc. is facing financial difficulties with declining revenues and persistent losses impacting profitability. The balance sheet remains relatively strong with low debt levels, providing some stability. However, cash flow issues persist, highlighting operational inefficiencies. The company needs to address revenue growth and profitability to improve its financial health.

Income Statement

The company has experienced a decline in revenue over the past year, with a significant drop in gross profit margins from 41.7% to 39.1%. Net profit margins have also remained negative, indicating ongoing challenges in achieving profitability. Although there was a smaller EBIT loss compared to the previous year, the overall financial performance is weak, reflecting difficulties in generating sustainable profits.

Balance Sheet

The balance sheet shows a relatively healthy equity position with a debt-to-equity ratio of 0.16, indicating low leverage. However, the return on equity remains negative due to the net losses. The equity ratio has decreased slightly from the previous year, reflecting some erosion in the company's financial stability, but overall, the balance sheet is stable with sufficient assets to cover liabilities.

Cash Flow

The cash flow statement reveals a negative operating cash flow, indicating challenges in cash generation despite improvements in free cash flow. The free cash flow to net income ratio remains unfavorable, suggesting inefficiencies in converting earnings into cash. While there has been an improvement in free cash flow growth, the company still faces significant cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	897.94M	1.06B	1.19B	875.74M	1.11B	916.26M
Gross Profit	373.62M	413.03M	495.46M	473.93M	593.42M	520.50M
EBITDA	-138.83M	-111.92M	-64.52M	-109.47M	-33.61M	75.67M
Net Income	-92.71M	-126.96M	-96.87M	-126.04M	74.05M	40.61M
Balance Sheet
Total Assets	1.58B	1.69B	1.87B	1.81B	2.12B	2.15B
Cash, Cash Equivalents and Short-Term Investments	848.48M	798.66M	972.08M	978.22M	1.18B	1.16B
Total Debt	106.18M	141.75M	245.70M	75.08M	55.95M	31.87M
Total Liabilities	731.15M	823.62M	851.85M	641.83M	839.27M	855.37M
Stockholders Equity	868.78M	886.10M	1.03B	1.18B	1.30B	1.31B
Cash Flow
Free Cash Flow	-158.91M	-66.30M	-257.79M	-231.80M	-211.51M	73.18M
Operating Cash Flow	-155.65M	-66.30M	-247.38M	-225.71M	-190.57M	80.72M
Investing Cash Flow	142.16M	73.59M	-56.53M	97.43M	-82.37M	550.59M
Financing Cash Flow	-10.04M	-148.94M	117.63M	8.20M	-65.40M	-108.68M

Qeeka Home (Cayman) Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.21
• 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:1739, the sentiment is Neutral. The current price of 0.21 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.25, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 45.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1739.

Qeeka Home (Cayman) Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3601	61 Neutral	HK$242.10M	7.93	4.24%	11.11%	-11.92%	-17.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0150	56 Neutral	HK$378.65M	-10.81	-7.63%	1.88%	-28.29%	-167.19%
1739	55 Neutral	HK$277.78M	-2.74	-10.06%	11.71%	-29.48%	28.14%
0543	55 Neutral	HK$367.41M	13.54	3.89%	15.13%	-9.35%	57.89%
1980	52 Neutral	HK$737.25M	-15.30	-2.08%	4.41%	15.66%	47.36%
2008	46 Neutral	HK$823.95M	-3.03	-9.70%	―	-13.10%	13.01%

Qeeka Home (Cayman) Inc. Corporate Events

Qeeka Home Appoints New Auditor Following PwC Resignation

Qeeka Home (Cayman) Inc. announced a change in its auditing firm, with PricewaterhouseCoopers resigning due to a disagreement on remuneration for the upcoming financial year. The company has appointed BDO Limited as the new auditor, citing BDO’s competence, independence, and cost-effectiveness as key reasons for the change. The board believes this transition will not impact the annual audit and is in the best interest of the company and its shareholders.