Acme International Holdings Limited (1870) AI Stock Analysis

• Market Cap: HK$539.10M
• Dividend Yield: N/A
• Average Volume (3M): 3.78M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.51
• Revenue Growth: -8.26%
• EPS Growth: -240.93%
• Country: HK
• Employees: 132
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.03
• Shares Outstanding: 1,017,170,000
• 10 Day Avg. Volume: 7,625,750
• 30 Day Avg. Volume: 3,784,333
• PEG Ratio: -3.32
• Price to Book (P/B): 10.62
• Price to Sales (P/S): 5.72
• P/FCF Ratio: -314.18
• 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$0.55 ▲(3.96% Upside)

The score is held back primarily by mixed financial performance—rising leverage and negative recent free cash flow despite a modest profitability recovery—while technical indicators are supportive with price above key moving averages and positive momentum. Valuation is also a drag due to a negative P/E and no dividend yield data.

Positive Factors

Diversified revenue streams

A multi‑stream business model (manufacturing, trading, investments) provides structural revenue diversification and reduces single‑market dependency, supporting steadier cash flows and resilience to sectoral downturns over the medium term.

ROE recovery

Improving ROE signals better capital efficiency after prior losses, indicating management progress in restoring profitability. A sustainably positive ROE can support reinvestment capacity and gradual balance sheet repair over the coming quarters.

Improving cash conversion

An improved operating cash flow to net income ratio indicates tighter working capital and operational discipline, which helps convert reported earnings into cash. This trend, if sustained, strengthens funding for operations and reduces reliance on external financing.

Negative Factors

Rising leverage

A marked decline in equity ratio reflects increased leverage and weaker capitalization. Higher debt burdens reduce financial flexibility, raise refinancing and interest risks, and constrain strategic investments or dividend capacity over the medium term.

Negative free cash flow

Persistently negative free cash flow undermines the company’s ability to self‑fund capex, deleverage, or withstand shocks. Over time this elevates dependency on external financing and may pressure liquidity and investment plans if not reversed.

Volatile, low margins

Low and volatile margins indicate operational and pricing pressure across product lines. Limited margin buffer reduces capacity to absorb input cost shocks and undermines predictable profitability, complicating long‑term planning and sustainable earnings growth.

Acme International Holdings Limited Business Overview & Revenue Model

Company Description

Acme International Holdings Limited, an investment holding company, provides design and build solutions for façade and building maintenance unit (BMU) system works in Hong Kong and Macau. Its activities include design, preparation of shop drawings and structural calculations, procurement of building materials and BMU systems, installation and logistics arrangement services, on-site project supervision, post-completion maintenance services, and project management services. The company was founded in 1989 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

Acme International Holdings Limited generates revenue through several key streams. The primary source of income comes from the manufacturing and sale of industrial and consumer goods, which are distributed both domestically and internationally. The company also earns significant revenue from trading activities, as it engages in importing and exporting products across different industries. Strategic partnerships with local distributors and suppliers enhance its market presence and distribution efficiency. Additionally, Acme International invests in various ventures, yielding returns from dividends and capital gains. The company's focus on innovation and sustainability further supports its earnings by attracting environmentally-conscious consumers and businesses.

Acme International Holdings Limited Financial Statement Overview

Summary

Overall fundamentals are mixed: profitability has been volatile with margins deteriorating and only modestly recovering (net margin 2.2% in 2024), leverage has risen (equity ratio down to 43% in 2024), and free cash flow has been negative in recent years, signaling ongoing cash generation pressure despite some improvement in cash conversion.

Income Statement

The company has shown a significant decline in profitability over the years, with gross profit margin decreasing from 19.6% in 2019 to 24% in 2024. Net profit margin has also deteriorated, turning negative in recent years but recovering slightly in 2024 to 2.2%. Revenue growth has been inconsistent, with a notable drop from 2019 to 2020, followed by a recovery trend. However, EBIT and EBITDA margins have been volatile, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio has increased over the years, indicating rising leverage, which poses a risk to financial stability. The equity ratio has decreased from 75.5% in 2019 to 43% in 2024, showing a decline in financial stability. However, the return on equity has improved from negative figures in 2020 to a positive 4.1% in 2024, indicating a recovery in profitability.

Cash Flow

Free cash flow has been negative in recent years, indicating challenges in generating cash from operations. The operating cash flow to net income ratio has improved, suggesting better cash conversion, but free cash flow to net income remains negative, highlighting ongoing cash flow issues. The company needs to improve its cash generation to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	184.08M	200.63M	192.40M	152.22M	163.08M	435.80M
Gross Profit	29.10M	48.09M	52.79M	37.39M	40.02M	-29.18M
EBITDA	-18.69M	12.07M	29.47M	20.02M	24.69M	-44.31M
Net Income	-22.94M	4.44M	20.05M	-74.59M	-187.46M	-47.84M
Balance Sheet
Total Assets	244.55M	251.17M	205.92M	160.75M	361.19M	483.97M
Cash, Cash Equivalents and Short-Term Investments	53.64M	69.00M	46.45M	33.01M	96.13M	107.29M
Total Debt	50.97M	84.94M	62.05M	47.98M	53.81M	6.47M
Total Liabilities	107.70M	139.90M	100.15M	75.58M	206.96M	166.12M
Stockholders Equity	135.06M	108.09M	104.74M	84.68M	154.24M	317.85M
Cash Flow
Free Cash Flow	-16.67M	-3.65M	1.66M	-26.68M	-72.14M	-112.39M
Operating Cash Flow	11.47M	22.51M	2.62M	-26.24M	-72.00M	-110.16M
Investing Cash Flow	-31.93M	-29.74M	901.00K	-2.73M	-64.00K	21.31M
Financing Cash Flow	26.91M	23.88M	11.35M	36.17M	50.65M	-8.01M

Acme International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.53
• 50DMA: Positive
• 100DMA: Positive
• 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:1870, the sentiment is Positive. The current price of 0.53 is above the 20-day moving average (MA) of 0.49, above the 50-day MA of 0.50, and above the 200-day MA of 0.33, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.47 is Neutral, neither overbought nor oversold. The STOCH value of 68.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1870.

Acme International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1420	77 Outperform	HK$322.17M	4.59	11.37%	―	20.41%	188.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$188.00M	7.73	6.66%	15.38%	13.59%	-12.52%
1870	58 Neutral	HK$539.10M	-15.87	-18.78%	―	-8.26%	-240.93%
1757	53 Neutral	HK$7.44B	6,200.00	1.30%	―	78.48%	-33.33%
1459	49 Neutral	HK$132.81M	-11.22	-0.68%	7.69%	-33.92%	-94.74%
1707	47 Neutral	HK$70.56M	-4.57	-9.58%	―	3.97%	14.02%

Acme International Holdings Limited Corporate Events

Acme International Warns of 2025 Loss Amid BMU Slump and Green Power Investment Push

Acme International Holdings has warned that it expects to post a net loss of at least HK$52 million for the year ended 31 December 2025, as its core BMU systems business suffers from weaker demand and the group absorbs higher costs tied to its strategic pivot into green power. Revenue from the BMU systems segment is projected to fall by roughly half year-on-year, pressured by delayed construction projects, reduced industry activity and shrinking margins, while its AI-based electricity trading operation in Shandong is set to deepen its loss due to elevated power procurement costs amid volatile local wholesale prices and an electricity market still undergoing structural reform; at the same time, administrative and project-related expenses are rising as the company invests in building out its green energy platform, which the board views as essential groundwork for future growth.

The most recent analyst rating on (HK:1870) stock is a Hold with a HK$0.51 price target. To see the full list of analyst forecasts on Acme International Holdings Limited stock, see the HK:1870 Stock Forecast page.

Acme International Wins Key Approvals for Major Energy Storage Project in Guangdong

Acme International Holdings Limited announced that its wholly owned subsidiary, Lechang Green Energy Storage Technology, has secured inclusion of its 218 MW/436 MWh electrochemical independent energy storage project in Shaoguan, Guangdong, in the provincial 2025 new energy storage construction plan and obtained formal grid-connection approval from Guangdong Power Grid. The project, which uses lithium iron phosphate battery cells and connects directly to the 220 kV regional backbone grid, has completed key preparatory milestones including project filing, site selection consultations, feasibility and grid-connection studies, marking its transition into a substantive implementation phase with enhanced transmission capacity and operational stability. Management expects the project to diversify the group’s revenue base by tapping into electricity energy markets, ancillary services and potential future capacity compensation, while adoption of advanced solid-state and semi-solid-state battery technologies is intended to lower lifecycle costs, improve efficiency and extend battery life, thereby strengthening Acme’s competitive position in China’s rapidly evolving energy storage sector and supporting its long-term growth strategy aligned with national “dual-carbon” goals.

The most recent analyst rating on (HK:1870) stock is a Hold with a HK$0.53 price target. To see the full list of analyst forecasts on Acme International Holdings Limited stock, see the HK:1870 Stock Forecast page.

Acme International Raises HK$16.1 Million Through Share Placing to Fund Green Power Push

Acme International Holdings Limited has completed a placing of 30 million new shares under its general mandate, increasing its issued share capital by about 2.95% following the allotment to at least six independent investors at HK$0.55 per share. The transaction raised gross proceeds of HK$16.5 million, with net proceeds of approximately HK$16.1 million to be used 40% for developing its electricity trading and green power projects in the PRC and 60% for general working capital, slightly diluting existing shareholders while broadening its investor base without creating any new substantial shareholder.

The most recent analyst rating on (HK:1870) stock is a Hold with a HK$0.53 price target. To see the full list of analyst forecasts on Acme International Holdings Limited stock, see the HK:1870 Stock Forecast page.

Acme International Announces New Share Placement

Acme International Holdings Limited has announced a new share placement under a general mandate, involving the issuance of up to 30,000,000 new shares at a price of HK$0.55 per share. This move represents approximately 3.04% of the company’s existing issued share capital and is aimed at raising funds through independent third-party investors. The completion of this placement is contingent upon certain conditions being met, and the company has applied for the listing of these new shares.

The most recent analyst rating on (HK:1870) stock is a Hold with a HK$0.53 price target. To see the full list of analyst forecasts on Acme International Holdings Limited stock, see the HK:1870 Stock Forecast page.

Acme International Expands Green Energy Footprint with New Solar Project in the Philippines

Acme International Holdings Limited has announced a co-development agreement between its subsidiary, Green Empire Developments Limited, and Gainza Energy Corporation to establish a joint venture for a 40MWh aquavoltaics solar power project in the Philippines. This collaboration aligns with Acme’s strategic goal of expanding its green power energy business in Southeast Asia, demonstrating its commitment to becoming a major player in the region’s renewable energy sector.

The most recent analyst rating on (HK:1870) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Acme International Holdings Limited stock, see the HK:1870 Stock Forecast page.