Acme International Holdings Limited (1870) AI Stock Analysis

• Market Cap: HK$404.74M
• Dividend Yield: N/A
• Average Volume (3M): 3.78M
• Price to Earnings (P/E): 41.5
• Beta (1Y): -0.56
• 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: 987,170,000
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: HK$0.50 ▲(0.00% Upside)

The overall stock score of 55 reflects significant financial challenges, including declining profitability and increasing leverage. While technical indicators suggest bullish momentum, the stock is potentially overbought. The negative P/E ratio and lack of dividend yield further weigh on the valuation, making it less attractive.

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 multiple streams. Primarily, the company earns income from the sale of its consumer electronics and industrial components, leveraging economies of scale and a robust distribution network. Additionally, it provides logistics and supply chain management services, which contribute significantly to its revenue through service fees and long-term contracts with major clients. Strategic partnerships with key technology firms enhance its product offerings and market reach, while also creating opportunities for joint ventures that further diversify revenue streams. Moreover, the company's focus on research and development allows it to introduce innovative products, which can lead to increased sales and profitability.

Acme International Holdings Limited Financial Statement Overview

Summary

Acme International Holdings Limited has faced significant financial challenges over the past few years, with declining profitability and increasing leverage. While there are signs of recovery in profitability and cash flow, the company needs to address its leverage and improve cash generation to ensure long-term financial stability.

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: 0.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.5 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.31, and below the 200-day MA of 0.53, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 77.02 is Negative, neither overbought nor oversold. The STOCH value of 83.33 is Negative, 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	74 Outperform	HK$223.63M	3.18	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$192.00M	7.89	6.66%	14.58%	13.59%	-12.52%
1870	55 Neutral	HK$404.74M	41.55	-18.78%	―	-8.26%	-240.93%
1757	53 Neutral	HK$510.00M	472.22	1.19%	―	20.78%	-55.00%
1459	48 Neutral	HK$138.67M	-11.71	-0.68%	8.23%	-33.92%	-94.74%
1707	41 Neutral	HK$92.40M	―	-9.58%	―	3.97%	14.02%

Acme International Holdings Limited Corporate Events

Acme International Holdings Limited Relocates Principal Business Office in Hong Kong

Acme International Holdings Limited has announced a change in its principal place of business in Hong Kong, effective from October 22, 2025. The new location will be at the same address as the company’s head office, indicating a strategic consolidation of its operations. This move may streamline business processes and improve operational efficiency, potentially impacting the company’s market positioning and stakeholder relationships positively.

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.

Acme International Announces Resignation of Joint Company Secretary

Acme International Holdings Limited, a company incorporated in the Cayman Islands, announced the resignation of Mr. Lam Tsz Chung as the joint company secretary, effective September 30, 2025, due to other business commitments. The company confirmed there are no disagreements or issues related to the resignation. Mr. Yu Chim Shun will continue as the sole company secretary, and the board expressed appreciation for Mr. Lam’s contributions.

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.

Acme International Discloses CEO Remuneration Details

Acme International Holdings Limited has issued a supplemental announcement concerning the remuneration details of its chief executive, Mr. Poon Pui Kit, for the years ending December 31, 2022, 2023, and 2024. The announcement provides specific figures for salaries, bonuses, and pension contributions, highlighting an increase in total remuneration over the three years. This disclosure aims to enhance transparency regarding executive compensation, which may impact stakeholder perceptions and align with corporate governance practices.

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.

Acme International Completes HK$11.6 Million Share Placement

Acme International Holdings Limited has successfully completed the placing of 50 million new shares, raising approximately HK$11.6 million in net proceeds. The funds will be allocated equally towards the development of electricity trading and green power projects in the PRC, and for general working capital. This strategic move is expected to bolster the company’s operations and market positioning without significantly altering the current shareholding structure.

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.

Acme International Announces New Share Placement Under General Mandate

Acme International Holdings Limited announced a new share placement under a general mandate, involving up to 50,000,000 shares at a price of HK$0.238 each. This move represents approximately 5.34% of the existing share capital and aims to raise market value to HK$14,000,000. The placement is subject to conditions and aims to attract independent third-party investors, with no immediate substantial shareholder changes expected.

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.

Acme International Holdings Reports Significant Interim Losses Amid Revenue Decline

Acme International Holdings Limited reported its interim financial results for the six months ending June 30, 2025, revealing a significant decline in revenue and profitability compared to the previous year. The company experienced a drop in revenue from HK$83,932,000 in 2024 to HK$67,377,000 in 2025, and a shift from a profit of HK$4,478,000 to a loss of HK$24,390,000. Despite these challenges, the company’s gearing ratio improved from 78.6% at the end of 2024 to 37.7% by mid-2025, indicating a reduction in financial leverage.

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.

Acme International Holdings to Review Interim Results and Dividend

Acme International Holdings Limited has announced a board meeting scheduled for August 28, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation for an interim dividend, which could impact shareholder returns and reflect the company’s financial health.

Acme International Projects HK$26 Million Loss Amid Industry Challenges

Acme International Holdings Limited announced an expected unaudited consolidated loss of approximately HK$26 million for the first half of 2025, compared to a profit in the same period last year. The loss is attributed to a decline in the building maintenance unit system business due to a downturn in Hong Kong’s construction industry, losses in the electricity trading service in Shandong due to price fluctuations, and increased administrative expenses from developing its green power energy segment. Despite these challenges, the company anticipates improvement in the electricity trading segment as new energy power plants enter the market.