ISP Holdings Limited (2340) AI Stock Analysis

• Market Cap: HK$127.71M
• Dividend Yield: N/A
• Average Volume (3M): 333.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: -2.33%
• EPS Growth: -149.41%
• Country: HK
• Employees: 316
• Sector: Industrials
• Sector Strength: 72
• Industry: Real Estate - Services
• EPS (TTM): -0.04
• Shares Outstanding: 764,723,000
• 10 Day Avg. Volume: 326,223
• 30 Day Avg. Volume: 333,955
• PEG Ratio: -0.05
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.15
• P/FCF Ratio: -2.82
• 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: 42 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

ISP Holdings Limited's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and negative cash flows. The technical analysis indicates bearish momentum, further weighing on the score. The valuation is unattractive due to the negative P/E ratio and lack of dividend yield, contributing to the low overall score.

Positive Factors

Low Debt Levels

A low debt-to-equity ratio indicates financial prudence, providing the company with flexibility to manage its finances and invest in growth opportunities without the burden of high-interest obligations.

Strategic Partnerships

Partnerships with technology and infrastructure firms can drive innovation and expand service offerings, strengthening competitive position and supporting long-term revenue growth.

Stable Equity Position

A stable equity position reflects a solid financial foundation, enabling the company to withstand economic fluctuations and invest in future growth initiatives.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in market competitiveness and customer retention, potentially impacting long-term financial sustainability and growth prospects.

Negative Cash Flow

Negative cash flow from operations suggests difficulty in generating sufficient cash to cover expenses, which can hinder the company's ability to invest in growth and maintain operations without external funding.

Operational Inefficiencies

Operational inefficiencies leading to negative margins indicate challenges in cost management and profitability, which can undermine the company's ability to compete effectively and achieve long-term success.

ISP Holdings Limited Business Overview & Revenue Model

Company Description

ISP Holdings Limited (2340) is a Hong Kong-based investment holding company primarily engaged in the provision of internet services and related technologies. The company operates across various sectors, including telecommunications and broadband services, offering a range of core products such as high-speed internet access, data center solutions, and network infrastructure services. ISP Holdings aims to enhance connectivity for both residential and commercial customers, leveraging its technological expertise and strategic partnerships to deliver reliable and efficient internet solutions.

How the Company Makes Money

ISP Holdings generates revenue primarily through its subscription-based internet services, where customers pay monthly fees for access to high-speed broadband and telecommunications services. Additionally, the company earns income from value-added services such as web hosting, cloud computing, and data storage solutions. Key revenue streams include residential subscriptions, business contracts, and partnerships with local enterprises to provide customized networking solutions. Strategic collaborations with technology providers and infrastructure developers further enhance ISP Holdings' market reach, contributing to its overall financial performance.

ISP Holdings Limited Financial Statement Overview

Summary

ISP Holdings Limited faces significant financial challenges with declining revenues, persistent losses, and negative cash flows. Despite a low debt-to-equity ratio, the overall financial health is concerning due to operational inefficiencies and cash flow issues.

Income Statement

ISP Holdings Limited has experienced a significant decline in revenue over the past few years, with a sharp drop from 2019 to 2024. The gross profit margin has also decreased, indicating reduced profitability. The company has been operating at a net loss for several years, with negative EBIT and EBITDA margins, highlighting operational inefficiencies and challenges in maintaining profitability.

Balance Sheet

The balance sheet shows a relatively stable equity position, with stockholders' equity remaining positive. The debt-to-equity ratio is low, suggesting limited leverage, which is a positive aspect. However, the declining total assets and equity over the years indicate potential challenges in asset management and growth.

Cash Flow

The cash flow statement reveals consistent negative operating cash flow, indicating challenges in generating cash from operations. The free cash flow has also been negative, reflecting ongoing cash outflows exceeding inflows. This trend raises concerns about the company's ability to sustain operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	120.19M	105.49M	154.72M	224.92M	430.65M	385.60M
Gross Profit	10.97M	9.30M	13.10M	22.66M	17.50M	-34.50M
EBITDA	-52.36M	-31.31M	-12.72M	1.57M	-6.87M	-75.77M
Net Income	-45.69M	-33.54M	-15.24M	436.74M	19.61M	14.21M
Balance Sheet
Total Assets	285.22M	297.56M	348.60M	424.31M	521.96M	628.20M
Cash, Cash Equivalents and Short-Term Investments	120.43M	47.61M	94.64M	201.60M	82.66M	205.08M
Total Debt	1.46M	1.05M	1.50M	1.11M	2.75M	114.94M
Total Liabilities	147.16M	147.25M	164.17M	224.12M	356.99M	482.72M
Stockholders Equity	138.06M	150.31M	184.43M	200.20M	164.98M	145.48M
Cash Flow
Free Cash Flow	-42.20M	-43.11M	-24.52M	-16.44M	-7.90M	163.34M
Operating Cash Flow	-42.19M	-42.49M	-24.43M	-16.25M	-6.70M	166.85M
Investing Cash Flow	12.58M	-1.67M	-58.07M	481.16M	8.32M	-2.49M
Financing Cash Flow	8.07M	-1.90M	-2.16M	-401.27M	-115.35M	-77.87M

ISP Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2340, the sentiment is Negative. The current price of 0.17 is above the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.18, and above the 200-day MA of 0.16, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 37.36 is Neutral, neither overbought nor oversold. The STOCH value of 92.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2340.

ISP Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2146	69 Neutral	HK$132.54M	4.39	5.00%	―	1.30%	-6.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6958	46 Neutral	HK$117.24M	-0.47	-24.03%	―	-0.04%	-104.98%
0183	45 Neutral	HK$96.38M	-1.52	-4.91%	―	30.19%	72.49%
2340	42 Neutral	HK$127.71M	-1.91	-29.30%	―	-2.33%	-149.41%
0499	41 Neutral	HK$107.84M	-3.18	-10.84%	―	-6.81%	-23.46%

ISP Holdings Limited Corporate Events

ISP Holdings Completes HK$16.87 Million Share Placing

ISP Holdings Limited has successfully completed the placing of 127,448,000 new shares under a general mandate, raising approximately HK$16.87 million in net proceeds. The funds will be used for professional fees and general working capital, with no substantial change in the company’s shareholder structure as a result of the placing.

ISP Holdings Updates Executive Compensation Details

ISP Holdings Limited has issued a supplemental announcement regarding the emoluments of its key executives as disclosed in its annual reports for the years 2019 to 2024. The announcement details the remuneration of Mr. CHAN Tat Wai, Mr. TSE Chi Chiu, and Ms. LEUNG Yuet Ngor, highlighting changes in their roles and responsibilities within the company. This update provides stakeholders with a clearer understanding of the company’s executive compensation structure and ensures compliance with the listing rules of the Hong Kong Stock Exchange.

ISP Holdings Clarifies Share Voting Discrepancy at AGM

ISP Holdings Limited clarified discrepancies regarding the number of shares eligible for voting at their annual general meeting on 30 May 2025. The company initially reported 424,850,000 shares as eligible, but the actual total was 637,275,000 due to the issuance of 212,425,000 rights shares. This clarification impacts shareholder voting rights and the general mandate for directors to issue or repurchase shares.

ISP Holdings Limited Announces New Share Placement to Strengthen Financial Position

ISP Holdings Limited has entered into a Placing Agreement with Kingston Securities Limited to issue up to 127,448,000 new shares, representing approximately 20% of its current issued share capital. The estimated net proceeds of HK$16.87 million will be used primarily for general working capital and professional fees, aiming to strengthen the company’s financial position and expand its shareholder base. The transaction involves connected parties, but is exempt from certain regulatory requirements due to its scale.