Confidence Intelligence Holdings Limited (1967) AI Stock Analysis

• Market Cap: HK$123.00M
• Dividend Yield: N/A
• Average Volume (3M): 399.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -6.45%
• EPS Growth: -596.43%
• Country: HK
• Employees: 489
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): <0.01
• Shares Outstanding: 300,000,000
• 10 Day Avg. Volume: 369,280
• 30 Day Avg. Volume: 399,973
• PEG Ratio: -0.42
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 2.35
• 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$0.44 ▲(7.07% Upside)

Confidence Intelligence Holdings Limited shows a positive financial recovery with strong cash flow and financial stability, which are significant strengths. However, technical indicators present mixed signals, and the valuation metrics highlight challenges, particularly with a negative P/E ratio. These factors collectively result in a moderate overall stock score.

Positive Factors

Cash Flow Generation

The improvement in free cash flow highlights the company's enhanced ability to generate cash, providing financial flexibility and supporting long-term investments.

Balance Sheet Health

A strong equity position with low leverage reduces financial risk, ensuring the company can withstand economic fluctuations and invest in growth opportunities.

Revenue Growth

The return to revenue growth indicates recovery and potential market expansion, suggesting the company's products and services are gaining traction.

Negative Factors

Operational Efficiency

Low EBIT and EBITDA margins indicate inefficiencies that could hinder profitability and competitiveness, requiring strategic improvements to enhance margins.

Profitability Concerns

A negative P/E ratio reflects challenges in achieving sustainable profitability, which could impact investor confidence and long-term growth prospects.

Earnings Growth

The significant negative EPS growth suggests declining earnings, which could affect the company's ability to reinvest in its business and maintain competitive positioning.

Confidence Intelligence Holdings Limited Business Overview & Revenue Model

Company Description

Confidence Intelligence Holdings Limited, an investment holding company, provides electronic manufacturing services in the People's Republic of China, the United States, and internationally. The company offers assembling and production services of printed circuit board assembly (PCBAs) that integrates research and design, selection and procurement of raw materials, assembling of PCBAs, quality control, testing, logistics and aftersales services. Its products include PCBAs, which are applied to electronic end-products of telecommunication, industrial-use, and Internet of Things industries. Confidence Intelligence Holdings Limited was founded in 2000 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

The company generates revenue through multiple streams, primarily from the sale of software licenses and subscription-based services for its analytics platforms. Additionally, Confidence Intelligence Holdings Limited earns income from consulting services provided to clients, which include tailored solutions that utilize the company's proprietary technologies. Strategic partnerships with other tech firms and industry leaders further enhance its market reach and provide collaborative opportunities for product development, contributing significantly to its revenue. The company also benefits from maintenance and support contracts, which ensure ongoing relationships with clients and a steady flow of income.

Confidence Intelligence Holdings Limited Financial Statement Overview

Summary

Confidence Intelligence Holdings Limited shows a recovery trajectory with improvements in profitability, cash flow, and financial stability. The income statement indicates positive growth and margin recovery, while the balance sheet is robust with low leverage. Cash flow metrics highlight strong cash generation and conversion efficiency. However, operational efficiency needs improvement.

Income Statement

The company shows a mixed performance in its income statement. The gross profit margin improved significantly to 15.5% in 2024 from 6.3% in 2023, indicating better cost management. The net profit margin turned positive at 0.6% in 2024, a notable recovery from a negative margin in the previous year. Revenue growth was 9.2% from 2023 to 2024, showing a positive trend after a decline in earlier years. However, EBIT and EBITDA margins remain relatively low, suggesting room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 77% in 2024, indicating financial stability. The debt-to-equity ratio is low at 0.04, showing minimal leverage and reduced financial risk. Return on equity improved to 0.6% in 2024, recovering from negative returns in previous years, but still relatively low. Overall, the company maintains a solid balance sheet with strong equity backing and low debt levels.

Cash Flow

Cash flow statements reveal a robust recovery in free cash flow, which turned positive to $36.9 million in 2024 from a negative $37.8 million in 2023, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 25.6, reflecting efficient cash conversion. The free cash flow to net income ratio is also healthy, supporting the company's ability to generate cash relative to its earnings. These metrics highlight a solid cash flow position, enhancing financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	198.76M	288.82M	264.46M	260.51M	353.90M	246.53M
Gross Profit	21.79M	44.77M	16.74M	28.13M	53.98M	50.41M
EBITDA	7.21M	33.59M	18.08M	33.26M	37.61M	37.02M
Net Income	-6.87M	1.60M	-23.84M	-9.08M	7.24M	11.74M
Balance Sheet
Total Assets	344.79M	342.25M	340.81M	411.42M	401.45M	384.31M
Cash, Cash Equivalents and Short-Term Investments	127.81M	99.46M	77.91M	128.78M	65.01M	109.00M
Total Debt	7.62M	9.93M	12.00M	17.70M	33.01M	20.43M
Total Liabilities	51.33M	65.35M	67.32M	105.15M	103.59M	92.38M
Stockholders Equity	278.67M	263.39M	262.54M	288.02M	287.73M	286.13M
Cash Flow
Free Cash Flow	17.55M	36.94M	-37.84M	73.06M	-46.34M	-19.64M
Operating Cash Flow	18.27M	40.87M	-22.39M	77.10M	16.34M	51.48M
Investing Cash Flow	-3.46M	-10.11M	-14.66M	-10.47M	-72.57M	-74.73M
Financing Cash Flow	-3.29M	-17.78M	-13.10M	-11.62M	2.87M	-8.01M

Confidence Intelligence Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1967, the sentiment is Positive. The current price of 0.41 is above the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.42, and below the 200-day MA of 0.41, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.08 is Neutral, neither overbought nor oversold. The STOCH value of 65.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1967.

Confidence Intelligence Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1967	59 Neutral	HK$123.00M	-14.75	-2.32%	―	-6.45%	-596.43%
8257	59 Neutral	HK$234.00M	27.86	3.83%	―	-13.07%	-34.88%
0243	43 Neutral	HK$123.00M	-95.95	-0.33%	―	14.75%	98.26%
1912	43 Neutral	HK$92.24M	-0.84	―	―	―	―
2203	42 Neutral	HK$184.80M	-1.27	―	―	-47.92%	-869.15%
8490	41 Neutral	HK$83.25M	-1.10	-41.46%	―	-26.02%	-4977.27%

Confidence Intelligence Holdings Limited Corporate Events

Confidence Intelligence Holdings Limited Announces EGM for Key Transaction Approval

Confidence Intelligence Holdings Limited has announced an Extraordinary General Meeting (EGM) to discuss and potentially approve a Sale and Purchase Agreement. This meeting, scheduled for December 12, 2025, will allow shareholders to vote on the proposed transactions, which could significantly impact the company’s strategic direction and operational capabilities.

Confidence Intelligence Holdings Updates Share Option Scheme Details

Confidence Intelligence Holdings Limited has issued a supplemental announcement regarding its Share Option Scheme, as part of its 2024 Annual Report. The announcement clarifies the terms under which options can be exercised, including the absence of a specified vesting period and the determination of exercise prices based on market conditions. This update ensures compliance with Chapter 17 of the Listing Rules and aims to provide greater transparency for stakeholders.

Confidence Intelligence Holdings Acquires Full Ownership of Subsidiary

Confidence Intelligence Holdings Limited has announced the acquisition of a 30% equity interest in a non-wholly owned subsidiary, making it a fully owned entity. This acquisition, valued at RMB40 million, will allow the company to consolidate the financial results of the subsidiary into its financial statements, potentially enhancing its market position and operational efficiency.