Maiyue Technology Limited (2501) AI Stock Analysis

• Market Cap: HK$425.00M
• Dividend Yield: N/A
• Average Volume (3M): 464.80K
• Price to Earnings (P/E): 80.2
• Beta (1Y): 0.04
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 171
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.02
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 367,200
• 30 Day Avg. Volume: 464,800
• PEG Ratio: -9.59
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 1.49
• P/FCF Ratio: -18.66
• 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: 53 Neutral
• Price Target: HK$0.86 ▼(-6.20% Downside)

The overall stock score reflects significant challenges in financial performance, particularly in profitability and cash flow generation, despite some positive signs in leverage management. Technical analysis shows mixed signals with short-term positive momentum but longer-term bearish trends. The high P/E ratio suggests overvaluation, further impacting the stock's attractiveness.

Positive Factors

Improved Leverage Management

Declining debt-to-equity and a higher equity ratio indicate a stronger capital structure and lower financial risk. This durable improvement reduces refinancing pressure, lowers interest burden, and provides balance sheet flexibility to fund operations, capex, or strategic initiatives over the medium term.

Diversified Revenue Channels & R&D

Multiple sales channels (retail, online, telecom bundling) plus sustained R&D investment create durable competitive advantages: broader market access, lower concentration risk, and product differentiation. These elements support long-term sales stability and the potential for higher margins if innovation succeeds.

Positive Revenue Growth

A 6% year-over-year revenue increase demonstrates ongoing market demand and product acceptance. Over the next few quarters this revenue momentum provides a base to leverage fixed costs and scale operations, improving the prospects for margin recovery if cost pressures are managed.

Negative Factors

Gross Margin Erosion

A sustained drop in gross margin of this magnitude points to structural cost pressures, pricing weakness, or an unfavorable product mix. Persistent margin erosion undermines operating leverage, reduces reinvestment capacity, and makes profitability vulnerable to further input cost or competitive pressures over the medium term.

Large Negative Free Cash Flow

A sharp deterioration in free cash flow, despite an operating cash flow recovery, signals heavy investment or working capital strain that depletes liquidity. Persistently negative FCF will pressure the company's ability to self-fund growth, forcing external financing or cuts to capex/dividends absent sustained cash conversion improvements.

Collapse in Return on Equity

A dramatic collapse in ROE reflects a severe decline in capital efficiency and profitability. This structural deterioration weakens shareholder returns and signals challenges in management's ability to convert equity into sustainable earnings, which must be addressed to restore investor confidence over the medium term.

Maiyue Technology Limited Business Overview & Revenue Model

Company Description

Maiyue Technology Limited, an investment holding company, provides integrated information technology (IT) solutions and services in the education and government IT solutions markets in the People's Republic of China. The company engages in the development of solution-based application systems and sourcing of suitable hardware, software, and equipment; and design and implementation of integrated IT solutions, including construction, integration, and upgrade of IT infrastructure and systems; and provision of technical and maintenance support services. It also sells hardware and software. The company was founded in 2003 and is headquartered in Nanning, the People's Republic of China.

How the Company Makes Money

Maiyue Technology Limited generates revenue primarily through the sale of its consumer electronics and smart devices. The company has established multiple key revenue streams, including direct sales to retailers, online sales through e-commerce platforms, and partnerships with telecommunications providers for bundled offerings. Additionally, Maiyue Technology invests in research and development to create proprietary technologies that differentiate its products in a competitive market, allowing for higher margins. Strategic partnerships with large retailers and telecom companies bolster its distribution channels, further contributing to its sales volume and overall earnings.

Maiyue Technology Limited Financial Statement Overview

Summary

Maiyue Technology Limited faces challenges in profitability and cash flow generation despite positive revenue growth. The declining profit margins and negative free cash flow highlight operational inefficiencies. However, the improved equity ratio and leverage management are positive signs for the company's financial stability.

Income Statement

The company shows a declining gross profit margin from 40.8% in 2020 to 24.9% in 2024, indicating increased cost pressures. Net profit margin has also decreased significantly from 19.0% in 2020 to 0.2% in 2024, reflecting reduced profitability. Revenue growth has been positive, with a 6.0% increase from 2023 to 2024, but the declining margins suggest challenges in maintaining profitability.

Balance Sheet

The debt-to-equity ratio has increased from 1.14 in 2020 to 0.70 in 2024, indicating improved leverage management. However, return on equity has decreased from 47.2% in 2020 to 0.1% in 2024, highlighting reduced efficiency in generating returns. The equity ratio has improved, rising from 30.4% in 2020 to 46.0% in 2024, suggesting a stronger capital structure.

Cash Flow

The company has experienced negative free cash flow in recent years, with a significant decline from -$5.5 million in 2022 to -$32.4 million in 2024. Operating cash flow has improved to $3.0 million in 2024 from a negative position in 2023, but the free cash flow to net income ratio remains negative, indicating challenges in cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	276.76M	274.72M	259.08M	243.25M	201.74M	207.07M
Gross Profit	67.43M	68.57M	85.44M	104.63M	98.88M	75.37M
EBITDA	22.83M	11.48M	46.08M	73.24M	69.48M	53.53M
Net Income	4.78M	433.00K	22.88M	48.77M	45.98M	39.44M
Balance Sheet
Total Assets	664.89M	691.03M	600.13M	482.21M	414.18M	274.70M
Cash, Cash Equivalents and Short-Term Investments	151.25M	40.50M	168.10M	119.22M	83.34M	68.95M
Total Debt	238.93M	223.34M	184.63M	158.48M	121.36M	95.42M
Total Liabilities	356.35M	371.67M	281.42M	302.77M	282.86M	191.16M
Stockholders Equity	307.51M	318.19M	316.98M	177.47M	129.64M	83.54M
Cash Flow
Free Cash Flow	-3.77M	-21.90M	-154.69M	-5.48M	-11.90M	-24.76M
Operating Cash Flow	20.96M	3.04M	-142.20M	10.11M	6.67M	5.50M
Investing Cash Flow	-33.51M	-38.91M	-9.76M	-17.92M	-17.99M	-26.51M
Financing Cash Flow	37.43M	28.57M	138.90M	21.25M	4.36M	40.59M

Maiyue Technology Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.92
• 50DMA: Negative
• 100DMA: Negative
• 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:2501, the sentiment is Negative. The current price of 0.92 is above the 20-day moving average (MA) of 0.88, above the 50-day MA of 0.91, and below the 200-day MA of 0.93, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.92 is Neutral, neither overbought nor oversold. The STOCH value of 42.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2501.

Maiyue Technology Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8319	71 Outperform	HK$104.43M	8.44	7.12%	6.41%	3.21%	-12.00%
1900	67 Neutral	HK$464.45M	1.02	20.36%	9.12%	27.05%	842.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1460	61 Neutral	HK$241.34M	14.18	2.96%	3.33%	8.45%	-30.47%
1985	55 Neutral	HK$390.00M	-194.03	-0.83%	8.55%	-1.86%	-105.19%
2501	53 Neutral	HK$425.00M	80.19	1.60%	―	―	―
3680	39 Underperform	HK$1.25B	451.43	4.78%	―	-25.92%	―

Maiyue Technology Limited Corporate Events

Maiyue Technology Limited Announces Change of Company Secretary

Maiyue Technology Limited announced a change in its company secretary position, with Mr. Yeung Kwong Wai resigning due to personal commitments and Mr. Lau Wai Piu Patrick being appointed as his successor. Mr. Lau brings extensive experience in accounting, auditing, and company secretarial matters, which is expected to benefit the company’s operations and governance.

The most recent analyst rating on (HK:2501) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Maiyue Technology Limited stock, see the HK:2501 Stock Forecast page.