Tongda Hong Tai Holdings Ltd (2363) AI Stock Analysis

• Market Cap: HK$70.46M
• Dividend Yield: N/A
• Average Volume (3M): 11.17K
• Price to Earnings (P/E): 21.8
• Beta (1Y): -0.37
• Revenue Growth: 53.37%
• EPS Growth: -75.77%
• Country: HK
• Employees: 22
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.03
• Shares Outstanding: 204,224,080
• 10 Day Avg. Volume: 12,342
• 30 Day Avg. Volume: 11,168
• PEG Ratio: 0.04
• Price to Book (P/B): -0.36
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 27.70
• 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: 43 Neutral
• Price Target: HK$0.50 ▲(47.06% Upside)

The overall stock score is primarily impacted by weak financial performance and bearish technical indicators. While the valuation is moderate, the lack of dividend yield and negative market momentum weigh heavily on the stock's attractiveness.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for the company's products, suggesting a solid market position and potential for future expansion.

Cash Flow Improvement

Positive operating cash flow reflects improved cash management, enhancing the company's ability to fund operations and invest in growth opportunities.

Long-term Relationships

Long-term relationships with major electronics manufacturers ensure steady demand, providing a stable revenue base and competitive advantage.

Negative Factors

High Leverage

High leverage and negative equity indicate financial instability, increasing risk and potentially limiting future borrowing capacity.

Persistent Losses

Ongoing losses and negative margins highlight operational inefficiencies, challenging the company's ability to achieve profitability.

Weak Free Cash Flow

Low free cash flow limits the company's ability to invest in growth and meet financial obligations, impacting long-term financial health.

Tongda Hong Tai Holdings Ltd Business Overview & Revenue Model

Company Description

Tongda Hong Tai Holdings Limited, an investment holding company, manufactures and sells casings for notebooks and tablets in Mainland China. It also offers other related accessories. The company was founded in 2008 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Tongda Hong Tai generates revenue through the sale of its manufactured electronic components and assembly services. The company has established key revenue streams from its core operations in producing high-quality plastic and metal parts, which are essential for various electronic devices. Furthermore, Tongda Hong Tai benefits from long-term contracts and partnerships with major clients in the electronics sector, providing stability and predictability to its earnings. The company also explores opportunities for growth through product innovation and expanding its manufacturing capabilities, which contribute positively to its overall financial performance.

Tongda Hong Tai Holdings Ltd Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues, persistent losses, and high leverage. Despite some positive cash flow developments, overall profitability and financial health remain concerns.

Income Statement

The company has been experiencing declining revenues with a significant drop from 2020 to 2024. Net profit margins are negative due to consistent net losses, and EBIT and EBITDA margins are also well below zero, indicating a lack of operational profitability. There is a slight improvement in gross profit margin in 2024, but overall financial performance remains weak.

Balance Sheet

The company is highly leveraged with negative stockholders' equity, leading to an unfavorable debt-to-equity ratio. The equity ratio is negative, reflecting a capital structure dominated by liabilities. Negative return on equity further highlights the company's inability to generate returns on shareholders' investments.

Cash Flow

While operating cash flow turned positive in 2024, free cash flow remains low. The operating cash flow to net income ratio is improving, indicating better cash management, but free cash flow to net income is still weak. Overall, cash flow stability is lacking, though there are signs of potential improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	100.62M	71.59M	91.26M	150.54M	370.69M	472.37M
Gross Profit	11.90M	3.20M	331.00K	-113.93M	-110.78M	-17.46M
EBITDA	17.13M	-11.64M	-23.86M	-213.23M	-178.37M	-132.00M
Net Income	3.22M	-25.66M	-37.85M	-231.42M	-196.96M	-165.27M
Balance Sheet
Total Assets	158.49M	164.61M	87.70M	146.38M	433.85M	611.89M
Cash, Cash Equivalents and Short-Term Investments	81.37M	85.29M	6.28M	7.60M	11.04M	36.71M
Total Debt	284.60M	261.09M	73.28M	213.69M	305.08M	284.91M
Total Liabilities	334.49M	336.00M	320.90M	349.80M	476.85M	467.86M
Stockholders Equity	-176.00M	-171.39M	-233.20M	-203.42M	-43.00M	144.03M
Cash Flow
Free Cash Flow	-4.03M	2.24M	-4.76M	-30.90M	-34.26M	33.48M
Operating Cash Flow	-4.03M	2.24M	-4.17M	-29.71M	-27.66M	40.76M
Investing Cash Flow	3.94M	7.74M	7.46M	-1.33M	-6.49M	-6.85M
Financing Cash Flow	-6.43M	68.37M	-3.97M	26.53M	11.60M	-29.88M

Tongda Hong Tai Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.34
• 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:2363, the sentiment is Negative. The current price of 0.34 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.35, and below the 200-day MA of 0.35, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.57 is Neutral, neither overbought nor oversold. The STOCH value of 4.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2363.

Tongda Hong Tai Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8070	68 Neutral	HK$168.00M	10.34	16.11%	―	25.67%	-6.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0889	55 Neutral	HK$113.60M	-2.69	-5.46%	―	-17.44%	-66.75%
8113	55 Neutral	HK$43.61M	-9.58	-3.56%	―	-13.62%	40.15%
0675	45 Neutral	HK$109.47M	-33.88	-1.26%	14.63%	-6.48%	74.69%
2363	43 Neutral	HK$70.46M	21.84	―	―	53.37%	-75.77%
0515	38 Underperform	HK$49.40M	-0.65	―	―	-84.61%	-14.10%

Tongda Hong Tai Holdings Ltd Corporate Events

Tongda Hong Tai Holdings Announces Leadership Changes

Tongda Hong Tai Holdings Limited, a company incorporated in the Cayman Islands, has announced significant changes in its leadership and committee roles effective from December 2, 2025. Mr. Lee King On Jeff has resigned from his positions as Board Chairman, executive Director, company secretary, and authorized representative due to personal commitments. Mr. Chan Shiu Man has been appointed as the new Board Chairman and redesignated from an independent non-executive Director to an executive Director. Additionally, Ms. Kwok Sau King Tina has been appointed as the chairlady of the Audit Committee, and Mr. Chan Luk On as the authorized representative. These changes are expected to impact the company’s strategic direction and governance structure.

Tongda Hong Tai Holdings Announces Board Composition and Committee Roles

Tongda Hong Tai Holdings Limited has announced the composition of its board of directors and their roles within the company’s committees. The board consists of five directors, including two executive directors and three independent non-executive directors. The announcement details the membership of the audit, remuneration, and nomination committees, highlighting the leadership roles within these groups. This update provides stakeholders with clarity on the governance structure and the individuals responsible for key decision-making processes within the company.

Tongda Hong Tai Holdings Updates on Net Proceeds and Share Option Scheme

Tongda Hong Tai Holdings Limited has issued a supplemental announcement regarding its 2024 Annual Report. The company disclosed that the net proceeds from a rights issue, initially intended for loan repayment and working capital, have not been fully utilized due to extended loan repayment dates, with a new timeline set for full utilization by 2026 and 2027. Additionally, details about the Share Option Scheme were provided, including the number of options available for grant and shares available for issue. This announcement does not affect other information in the 2024 Annual Report.