Acme International Holdings Limited (1870) AI Stock Analysis

• Market Cap: HK$439.29M
• Dividend Yield: N/A
• Average Volume (3M): 3.78M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.43
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: HK$0.53 ▼(-3.27% Downside)

The overall stock score is primarily influenced by the company's financial performance challenges, including declining profitability and increasing leverage. Positive technical indicators provide some support, but the valuation remains a concern due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Return on Equity Improvement

The improvement in return on equity suggests enhanced profitability and operational efficiency, indicating a positive trend in financial performance.

Revenue Recovery Trend

The recovery trend in revenue growth indicates potential stabilization and resilience in the company's market position, supporting long-term business prospects.

Improved Cash Conversion

Improved cash conversion efficiency enhances the company's ability to fund operations and investments, supporting sustainable growth and financial health.

Negative Factors

Rising Leverage

Increased leverage can pose risks to financial stability, potentially limiting flexibility and increasing vulnerability to economic downturns.

Negative Free Cash Flow

Persistent negative free cash flow suggests ongoing operational challenges, which may hinder the company's ability to invest in growth opportunities.

Declining Profitability

Declining profitability reflects operational inefficiencies and market challenges, potentially impacting long-term financial performance and competitiveness.

Acme International Holdings Limited Business Overview & Revenue Model

Company Description

Acme International Holdings Limited (1870) is a diversified global enterprise engaged in multiple sectors, including manufacturing, trading, and investment services. The company specializes in producing high-quality industrial goods and consumer products, leveraging advanced technology and sustainable practices. Acme International operates through a network of subsidiaries and joint ventures, providing innovative solutions across various markets, including electronics, textiles, and construction materials.

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

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: 0.55
• 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 0.55 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.43, and above the 200-day MA of 0.32, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 68.00 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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	74 Outperform	HK$224.89M	3.20	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%	15.38%	13.59%	-12.52%
1870	59 Neutral	HK$439.29M	-13.32	-18.78%	―	-8.26%	-240.93%
1757	54 Neutral	HK$756.00M	700.00	1.30%	―	78.48%	-33.33%
1459	49 Neutral	HK$141.34M	-11.94	-0.68%	8.03%	-33.92%	-94.74%
1707	41 Neutral	HK$63.84M	-4.13	-9.58%	―	3.97%	14.02%

Acme International Holdings Limited Corporate Events

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.

Acme International Expands Renewable Energy Investment in Vietnam

Acme International Holdings Limited has entered into a memorandum of agreement with DCH Technology Group to invest in a solar power system for a Digital Hub in Vietnam. This agreement aligns with Acme’s strategy to support AI-driven infrastructures and global sustainability goals, though the terms remain non-binding and subject to further negotiation.

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.

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.

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.

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.