K Cash Corporation Limited (2483) AI Stock Analysis

• Market Cap: HK$855.00M
• Dividend Yield: 5.76%
• Average Volume (3M): 47.33K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.18
• Revenue Growth: 19.41%
• EPS Growth: 23.37%
• Country: HK
• Employees: 61
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.09
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 21,800
• 30 Day Avg. Volume: 47,333
• PEG Ratio: 0.00
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 3.26
• P/FCF Ratio: -4.33
• 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: 68 Neutral
• Price Target: HK$2.00 ▲(16.96% Upside)

The overall stock score of 68 reflects a balanced view of K Cash Corporation Limited. While the company benefits from a solid valuation and positive technical indicators, financial performance concerns, particularly in cash flow and revenue trends, weigh on the score.

Positive Factors

Strong Gross Profit Margins

Strong gross profit margins suggest that K Cash is effectively managing its costs, which can support profitability and provide a buffer against market fluctuations.

Stable Balance Sheet

A stable balance sheet with manageable leverage indicates financial health and resilience, providing the company with the ability to invest in growth opportunities.

Revenue Growth

The positive revenue growth rate reflects the company's ability to expand its market presence and increase its transaction volume, which is crucial for long-term success in the financial services sector.

Negative Factors

Declining Net Profit Margin

A declining net profit margin indicates challenges in maintaining profitability, which could affect the company's ability to reinvest in its business and sustain growth.

Cash Flow Volatility

Volatile cash flow and negative operating cash flow suggest potential liquidity issues, which could limit the company's operational flexibility and investment capacity.

Declining Return on Equity

A declining return on equity points to inefficiencies in generating returns on shareholder investments, which may affect investor confidence and the company's valuation.

K Cash Corporation Limited Business Overview & Revenue Model

Company Description

K Cash Corp. Ltd. engages in the provision of money lending services. It offers unsecured credit access through fintech, including loan application, credit assessment, drawdown, and loan repayment. The company was founded in October 2006 and is headquartered in Hong Kong.

How the Company Makes Money

K Cash Corporation Limited generates revenue through multiple streams primarily associated with its electronic payment solutions. Key revenue sources include transaction fees charged to merchants for processing payments via its platform, subscription fees for premium services offered to businesses, and commissions from partnerships with financial institutions for integrating their services into K Cash's payment ecosystem. Additionally, the company may earn revenue from advertising on its digital platforms and value-added services such as data analytics for merchants. Significant partnerships with local banks and e-commerce platforms further bolster its earning potential by expanding its user base and enhancing service offerings.

K Cash Corporation Limited Financial Statement Overview

Summary

K Cash Corporation Limited exhibits a mixed financial profile. Strong margins and a stable balance sheet are offset by declining revenue and profitability trends. Cash flow volatility raises concerns about operational efficiency and liquidity.

Income Statement

The company shows a mixed performance in its income statement. The gross profit margin is strong, indicating efficient cost management. However, the net profit margin has declined over the years, reflecting challenges in maintaining profitability. Revenue growth is inconsistent, with recent declines suggesting potential market or operational challenges. EBIT and EBITDA margins are healthy, but the downward trend in revenue and net income growth is concerning.

Balance Sheet

The balance sheet reveals a stable equity base with a reasonable debt-to-equity ratio, indicating manageable leverage. The equity ratio is solid, suggesting a strong asset base relative to liabilities. However, the return on equity has been declining, which could point to efficiency issues in generating returns on shareholder investments.

Cash Flow

Cash flow analysis indicates significant volatility. The operating cash flow has turned negative in the latest period, raising concerns about the company's ability to generate cash from operations. Free cash flow has also decreased, suggesting potential liquidity issues. The free cash flow to net income ratio is unfavorable, highlighting inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	188.59M	282.58M	248.73M	242.27M	274.04M	305.40M
Gross Profit	188.59M	215.19M	223.59M	227.65M	263.13M	197.71M
EBITDA	133.04M	88.98M	79.52M	119.55M	103.70M	112.67M
Net Income	73.68M	63.75M	51.57M	67.86M	77.08M	91.03M
Balance Sheet
Total Assets	1.46B	1.45B	1.24B	1.09B	1.31B	1.27B
Cash, Cash Equivalents and Short-Term Investments	41.61M	116.43M	218.37M	24.13M	28.95M	29.19M
Total Debt	384.94M	514.68M	349.16M	322.22M	348.72M	333.71M
Total Liabilities	526.80M	532.24M	360.71M	366.77M	656.40M	671.70M
Stockholders Equity	934.36M	917.60M	880.89M	720.54M	652.67M	593.39M
Cash Flow
Free Cash Flow	-189.84M	-212.24M	5.65M	167.78M	206.03M	162.73M
Operating Cash Flow	-188.06M	-206.93M	7.11M	169.26M	207.03M	164.59M
Investing Cash Flow	73.37M	-8.79M	90.62M	-111.42M	-161.97M	-316.46M
Financing Cash Flow	95.43M	117.10M	96.51M	-62.65M	-45.30M	160.27M

K Cash Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2483, the sentiment is Neutral. The current price of 1.71 is above the 20-day moving average (MA) of 1.71, below the 50-day MA of 1.71, and above the 200-day MA of 1.68, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.41 is Neutral, neither overbought nor oversold. The STOCH value of 85.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2483.

K Cash Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1577	80 Outperform	HK$680.00M	6.20	8.46%	5.46%	-24.04%	60.24%
2483	68 Neutral	HK$855.00M	11.61	8.01%	5.76%	19.41%	23.37%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6866	66 Neutral	HK$336.30M	5.57	2.75%	4.88%	-12.94%	-15.93%
8452	47 Neutral	HK$97.02M	-10.84	-1.99%	―	135.97%	-271.72%