Acme International Holdings Limited (1870) AI Stock Analysis

• Market Cap: HK$158.75M
• Dividend Yield: N/A
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): 31.1
• Beta (1Y): -0.41
• Revenue Growth: 4.28%
• EPS Growth: -77.88%
• Country: HK
• Employees: 132
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 0.00
• Shares Outstanding: 748,800,000
• 10 Day Avg. Volume: 1,168,750
• 30 Day Avg. Volume: 1,611,500
• PEG Ratio: 0.15
• Price to Book (P/B): 8.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -26.42
• 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

• Rating: 49 Neutral
• Price Target: ―

Acme International Holdings Limited faces significant challenges with declining profitability and cash flow issues, heavily impacting its financial score. The technical analysis points to bearish trends, while high valuation metrics suggest limited upside potential. These factors collectively result in a below-average stock score.

Acme International Holdings Limited Business Overview & Revenue Model

Company Description

Acme International Holdings Limited (1870) is a diversified investment holding company primarily engaged in the sectors of consumer goods, real estate, and financial services. The company operates through its subsidiaries and affiliates to manage a portfolio of investments and businesses that cater to a variety of markets and industries. Acme International aims to enhance shareholder value through strategic acquisitions, effective management, and expansion into new markets.

How the Company Makes Money

Acme International Holdings Limited generates revenue through a combination of direct business operations and strategic investments. The company's revenue model includes income from its consumer goods division, which involves the manufacturing and distribution of various products. Additionally, Acme earns rental income and capital appreciation from its real estate holdings. Its financial services arm contributes to revenue through interest income, investment gains, and fees for financial advisory services. Partnerships with other corporations and strategic investments in high-growth sectors also play a significant role in the company's earnings, allowing Acme to diversify its income streams and mitigate risks associated with market fluctuations.

Acme International Holdings Limited Financial Statement Overview

Summary

Acme International Holdings Limited shows revenue growth but struggles with profitability and cash flow. The increased leverage and declining return on equity are concerning, while the stable equity ratio is a positive aspect. Addressing cash flow generation is crucial for improving financial health.

Income Statement

The company has shown a positive trend in revenue growth, increasing from 192.4M to 200.6M over the last year. However, gross profit margin decreased from 27.4% to 24.0%, and the net profit margin fell from 10.4% to 2.2%, indicating declining profitability. EBIT and EBITDA margins also shrank, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio increased from 0.59 to 0.79, suggesting higher leverage. However, the equity ratio remains strong at 43.0%, indicating a solid capital base. Return on equity decreased significantly from 19.1% to 4.1%, showing reduced profitability for shareholders.

Cash Flow

Cash flow performance is weak, with zero operating and free cash flows reported in the latest year. The free cash flow to net income ratio is also unavailable, highlighting potential concerns in cash generation capability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
200.63M	192.40M	152.22M	163.08M	435.80M
	Gross Profit
48.09M	52.79M	37.39M	40.02M	-29.18M
	EBIT
10.80M	27.14M	19.89M	24.85M	-55.64M
	EBITDA
12.07M	29.47M	20.02M	24.69M	-44.31M
	Net Income Common Stockholders
4.44M	20.05M	-74.59M	-187.46M	-47.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
69.00M	46.45M	48.88M	96.13M	107.29M
	Total Assets
251.17M	205.92M	160.75M	361.19M	483.97M
	Total Debt
84.94M	62.05M	47.98M	53.81M	6.47M
	Net Debt
22.49M	15.78M	905.00K	-42.32M	-100.82M
	Total Liabilities
139.90M	100.15M	75.58M	206.96M	166.12M
	Stockholders Equity
108.09M	104.74M	84.68M	154.24M	317.85M
Cash Flow		Free Cash Flow
0.00	1.66M	-26.68M	-72.14M	-112.39M
	Operating Cash Flow
0.00	2.62M	-26.24M	-72.00M	-110.16M
	Investing Cash Flow
0.00	901.00K	-2.14M	-142.00K	20.95M
	Financing Cash Flow
0.00	11.35M	18.32M	61.22M	-8.01M

Acme International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1870, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.24, and below the 200-day MA of 1.21, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 35.87 is Neutral, neither overbought nor oversold. The STOCH value of 11.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
3311	71 Outperform	HK$63.39B	6.46	14.62%	4.75%	1.21%	2.15%
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
1030	59 Neutral	HK$15.56B	30.46	1.07%	―	-26.43%	―
1870	49 Neutral	HK$158.75M	31.13	4.17%	―	4.28%	-77.88%

Acme International Holdings Limited Corporate Events

Acme International Completes Successful Share Placement to Boost Green Energy Initiatives

Acme International Holdings Limited has successfully completed the placing of new shares under a general mandate, resulting in the issuance of 124,800,000 shares. This move, which represents approximately 16.67% of the company’s enlarged share capital, raised gross proceeds of HK$17.2 million. The net proceeds of HK$16.4 million will be allocated towards the development of electricity trading and green power energy projects in the PRC, the expansion of renewable energy solutions in New Zealand, and general working capital. This strategic financial maneuver is expected to bolster Acme International’s positioning in the renewable energy sector, potentially enhancing its market presence and operational capabilities.

Acme International Holdings Reports Decline in Annual Profit Despite Revenue Growth

Acme International Holdings Limited announced its annual results for the year ended December 31, 2024, reporting a revenue increase to HK$200,634,000 from HK$192,402,000 in 2023. However, the company’s profit for the year significantly decreased to HK$4,275,000 from HK$18,631,000 the previous year, attributed to higher administrative expenses and net losses. The gross profit margin also declined from 27.4% to 24.0%, indicating potential challenges in maintaining profitability. These results may impact the company’s operations and stakeholder confidence, highlighting the need for strategic adjustments to improve financial performance.

Acme International Holdings Limited Announces Strategic Share Placement and Subscription

Acme International Holdings Limited announced a strategic move involving the placement and subscription of new shares. The company plans to issue up to 124.8 million new shares under a general mandate and 220 million shares under a specific mandate, with the latter involving a significant financial arrangement with Treasure Ship. This initiative aims to enhance the company’s capital structure and potentially strengthen its market position, though the completion of these transactions is contingent upon meeting certain conditions.

Acme International Holdings Schedules Board Meeting for Annual Results

Acme International Holdings Limited has announced a board meeting scheduled for March 27, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend payment, reflecting the company’s ongoing financial strategies and potential shareholder returns.

Acme International Reports 2024 Financial Projections Amid Market Fluctuations

Acme International Holdings Limited has observed unusual fluctuations in its stock price and trading volume, which the board attributes to the estimated annual results for 2024. While the company expects a slight increase in revenue, net profit is projected to decline significantly due to challenges in the construction industry affecting its building maintenance segment. However, the company has seen substantial growth in its green power energy segment, turning a previous loss into profit, indicating a strategic shift towards renewable energy.

Acme International Trading Halt Pending Inside Information Release

Acme International Holdings Limited has announced a trading halt on the Hong Kong Stock Exchange as of 2:51 p.m. on March 5, 2025. This halt is pending the release of an announcement concerning inside information about the company, which could have significant implications for its operations and stakeholders.