ISP Holdings Limited (2340) AI Stock Analysis

• Market Cap: HK$97.50M
• Dividend Yield: N/A
• Average Volume (3M): 121.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -31.82%
• EPS Growth: -119.72%
• Country: HK
• Employees: 316
• Sector: Technology
• Sector Strength: 91
• Industry: Real Estate - Services
• EPS (TTM): -0.04
• Shares Outstanding: 637,275,000
• 10 Day Avg. Volume: 93,200
• 30 Day Avg. Volume: 121,968
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 40 Underperform
• 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, persistent losses, and negative cash flows. Technical analysis also indicates bearish momentum, and the valuation is unattractive due to a negative P/E ratio. These factors collectively contribute to a low overall stock score.

ISP Holdings Limited Business Overview & Revenue Model

Company Description

ISP Holdings Limited, an investment holding company, engages in property and facility management, interiors and special projects, and ancillary businesses in the People's Republic of China. The company provides property and facility management services to government, corporate clients, public institutions, and private clients. It manages a portfolio of approximately 93,000 residential units of residential, commercial, and industrial facilities. The company also provides asset management services, such as feasibility study, due diligence, market positioning, design consultancy, marketing and promotion, financial analysis, leasing, tenancy management, and operation management services. In addition, it offers alteration and addition, fitting-out, conservation, renovation, demolition, and construction works; curtain walling, cladding, and related products; and security guarding, and security systems, as well as technical support services. Further, the provides project management; laundry and cleaning; procurement, supply chain, and trading; repair and maintenance services for equipment; indoor cleaning services; and property agency services, as well as property management consultancy. The company was formerly known as Synergis Holdings Limited and changed its name to ISP Holdings Limited in January 2022. The company was founded in 1978 and is based in Kwun Tong, Hong Kong. ISP Holdings Limited is a subsidiary of Champ Key Holdings Limited.

How the Company Makes Money

ISP Holdings Limited generates revenue through multiple streams. The primary source of income is its financial technology solutions, which include providing software and technology platforms to financial institutions, thereby earning fees and subscription revenues. Additionally, the company derives income from its investment management division, which involves managing a diversified portfolio of financial assets, earning returns through dividends, interest, and capital gains. Another significant revenue stream comes from its property development sector, where it engages in the development and sale of real estate properties. Key partnerships with financial institutions and technology companies also play a role in enhancing its service offerings and expanding its market reach, contributing to its overall earnings.

ISP Holdings Limited Financial Statement Overview

Summary

ISP Holdings is facing significant financial challenges with declining revenues and profitability. Negative margins and cash flows indicate operational inefficiencies. Despite manageable debt levels, persistent losses and negative cash flows highlight cash management issues.

Income Statement

ISP Holdings has experienced significant revenue declines over the years, with the revenue dropping from 1,569 million in 2019 to 105 million in 2024. This sharp decline in revenue has been accompanied by consistently negative net income, illustrating a troubling downward trend. The gross profit margin has also decreased significantly, highlighting shrinking profitability. EBIT and EBITDA margins are negative, indicating operational inefficiencies. Overall, the income statement reflects a challenging financial position with declining revenues and profitability.

Balance Sheet

The balance sheet shows a mixed picture with a relatively stable equity base and a decreasing total debt over recent years, which is positive. The debt-to-equity ratio is low, indicating manageable leverage. However, the equity ratio has been decreasing, reflecting a reduced proportion of equity in the asset base. While the company's liabilities have been decreasing, the total assets have also declined significantly, suggesting asset devaluation or reduction. Return on equity remains negative due to persistent net losses, signaling inefficiencies in generating profit from shareholder funds.

Cash Flow

ISP Holdings has consistently reported negative operating cash flows, indicating operational cash challenges. The free cash flow has also been negative, reflecting insufficient cash generation to cover capital expenditures. While the company has managed financing cash outflows, the negative free cash flow to net income ratio shows that cash generation is not supporting profitability. Overall, the cash flow statement reflects cash management issues and an inability to generate positive cash flow from operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	105.49M	154.72M	224.92M	430.65M	1.13B
Gross Profit	9.30M	13.10M	22.66M	17.50M	50.14M
EBITDA	-31.31M	-12.72M	1.57M	-6.87M	-75.77M
Net Income	-33.54M	-15.24M	-1.70M	-15.45M	14.21M
Balance Sheet
Total Assets	297.56M	348.60M	424.31M	521.96M	628.20M
Cash, Cash Equivalents and Short-Term Investments	47.61M	94.64M	182.08M	82.66M	205.08M
Total Debt	1.05M	1.50M	1.11M	2.75M	114.94M
Total Liabilities	147.25M	164.17M	224.12M	356.99M	482.72M
Stockholders Equity	150.31M	184.43M	200.20M	164.98M	145.48M
Cash Flow
Free Cash Flow	-43.11M	-24.52M	-16.44M	-7.90M	163.34M
Operating Cash Flow	-42.49M	-24.43M	-16.25M	-6.70M	166.85M
Investing Cash Flow	-1.67M	-58.07M	481.16M	8.32M	-2.49M
Financing Cash Flow	-1.90M	-2.16M	-401.27M	-115.35M	-77.87M

ISP Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2340, the sentiment is Positive. The current price of 0.15 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.17, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.87 is Neutral, neither overbought nor oversold. The STOCH value of 29.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	67 Neutral	HK$119.38M	3.87	5.35%	―	4.83%	-13.53%
Sector *	62 Neutral	$34.80B	6.83	-11.92%	2.06%	6.36%	-8.52%
6958	47 Neutral	HK$133.84M	―	-24.52%	―	-4.77%	-194.39%
0183	45 Neutral	HK$144.56M	―	-12.61%	―	11.40%	-9.26%
2340	40 Underperform	HK$97.50M	―	-20.04%	―	-31.82%	-119.72%
ZID	―		―		―	―	―
0499	45 Neutral	HK$108.84M	―	-12.09%	―	5.19%	29.38%

ISP Holdings Limited Corporate Events

ISP Holdings Limited Announces Disposal of Listed Securities

ISP Holdings Limited has announced the disposal of listed securities on the open market, resulting in a cumulative aggregate consideration of approximately HK$17,900,000. This series of disposals, conducted between October 2024 and July 2025, constitutes a discloseable transaction under the Hong Kong Listing Rules, as the applicable percentage ratios exceed 5% but are less than 25%. The company has stated that the purchasers of these securities are independent third parties.

ISP Holdings Limited Enhances Governance with New Nomination Committee

ISP Holdings Limited has established a nomination committee to enhance its governance structure. The committee’s primary role is to formulate nomination policies and identify suitable candidates for board positions, focusing on diversity and alignment with the company’s corporate strategy. This move is expected to strengthen the company’s board composition and improve its strategic oversight, benefiting stakeholders by ensuring a diverse and skilled leadership team.

ISP Holdings Appoints New Member to Nomination Committee

ISP Holdings Limited has announced the appointment of Ms. Leung Yuet Ngor, an Executive Director and Senior Contract Service Officer, to its nomination committee, effective June 30, 2025. This appointment aligns with upcoming changes to the Corporate Governance Code, which will be effective from July 1, 2025, potentially enhancing the company’s governance structure and compliance with regulatory standards.

ISP Holdings Limited Announces Board Composition and Roles

ISP Holdings Limited has announced the composition of its board of directors and the roles each member will play within the company’s four board committees. The board includes executive, non-executive, and independent non-executive directors, with Mr. Kingston Chu Chun Ho serving as Chairman. This announcement provides clarity on the governance structure of ISP Holdings Limited, which could impact the company’s strategic decision-making and operational oversight.

ISP Holdings Limited AGM Resolutions Unanimously Approved

ISP Holdings Limited announced the successful passing of all proposed resolutions at its Annual General Meeting held on May 30, 2025. The resolutions included the adoption of financial statements, re-election of directors, and granting of mandates for share issuance and repurchase. The unanimous approval by shareholders, with all votes in favor, underscores strong support for the company’s management and strategic direction.

ISP Holdings Limited Reports Oversubscribed Rights Issue

ISP Holdings Limited announced the results of its rights issue, which was significantly oversubscribed. The company received valid acceptances for 570,881,996 Rights Shares, representing approximately 268.75% of the total available, indicating strong investor interest. The net proceeds from the rights issue, approximately HK$10.13 million, will be allocated towards legal costs and general working capital, potentially strengthening the company’s financial position and operational capabilities.

ISP Holdings Limited Announces HK$12.6 Million Disposal of Listed Securities

ISP Holdings Limited has announced the disposal of listed securities on the open market, totaling approximately HK$12,600,000. These transactions, which occurred between October 2024 and May 2025, are classified as a discloseable transaction under Hong Kong’s Listing Rules, requiring reporting and announcement due to the applicable percentage ratios exceeding 5% but remaining under 25%.