Kinergy Corporation Ltd. (3302) AI Stock Analysis

• Market Cap: HK$317.54M
• Dividend Yield: N/A
• Average Volume (3M): 3.22M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -0.51%
• EPS Growth: -922.95%
• Country: HK
• Employees: 797
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.02
• Shares Outstanding: 920,393,400
• 10 Day Avg. Volume: 3,442,210
• 30 Day Avg. Volume: 3,221,470
• PEG Ratio: -0.02
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 31.29
• 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: 51 Neutral
• Price Target: HK$0.35 ▼(-3.61% Downside)

The overall stock score is primarily impacted by financial performance challenges, with declining revenues and profitability being significant concerns. Technical analysis shows positive momentum, providing some support to the score. However, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation, limiting the stock's attractiveness.

Positive Factors

Recurring revenue streams

Stable recurring revenue from maintenance contracts and software subscriptions supports more predictable cash flows and customer lock-in. Over 2-6 months this helps funding of R&D and service enhancements, improving resilience versus pure product sales volatility.

Position in renewables and energy efficiency

Kinergy's focus on renewable energy and energy-efficiency aligns with multi-year structural demand trends and government incentives. This market positioning should sustain long-term product demand and create opportunities for integrated projects and recurring services.

Manageable leverage

A manageable debt-to-equity ratio preserves financial flexibility to invest in product development and capital projects without excessive refinancing risk. Over months this reduces insolvency risk and supports execution of strategic initiatives when cash flows improve.

Negative Factors

Declining revenue and profitability

Sustained revenue declines and negative operating and net margins indicate structural issues in demand, pricing, or cost control. Persisting over several quarters would erode competitive capacity, limit reinvestment, and impair ability to restore profitable growth.

Insufficient free cash flow to cover capex

Inability of operating cash flow to reliably cover capex forces reliance on external financing or asset sales for growth and maintenance. Over months this constrains capital investments, delays upgrades, and raises vulnerability to higher financing costs or liquidity strains.

Declining equity and negative return on equity

A shrinking equity base and negative ROE reflect value erosion and poor capital efficiency. If persistent, these trends reduce buffers against downturns, limit capacity to fund expansion and may pressure stakeholder confidence and long-term strategic options.

Kinergy Corporation Ltd. Business Overview & Revenue Model

Company Description

Kinergy Corporation Ltd., together with its subsidiaries, provides contract manufacturing, design, engineering, and assembly services for the electronics industry in Singapore, the Philippines, the United States, the People's Republic of China, Japan, and internationally. It operates through three segments: Electronics Manufacturing Services (EMS), Original Design Manufacturing (ODM), and Investment. The EMS segment manufactures and sells sub-systems, such as work-holders, sliders, and magazine handlers; complete machines, including dicing machines, lapping machines, lifters, and polishing machines; and mechanical components for semiconductor processing equipment industry, as well as provides maintenance and commissioning services. The ODM segment designs, develops, manufactures, and sells automated equipment, such as auto frame loader, auto-buffing equipment, and strip laser markers; precision tools, such as encapsulation molds and dies; and spare parts. The Investment segment engages in provision of fund management services and investment activities in equity securities and funds. The company offers its products under the Kinergy brand. It is also involved in marketing and logistics business; and the procurement of materials. The company was formerly known as Kinergy Ltd and changed its name to Kinergy Corporation Ltd. in December 2013. Kinergy Corporation Ltd. was incorporated in 1988 and is headquartered in Singapore.

How the Company Makes Money

Kinergy Corporation Ltd. generates revenue through multiple channels, including the sale of energy management systems, automation solutions, and consulting services. Key revenue streams include product sales from its renewable energy technologies, such as solar panels and wind turbines, as well as recurring revenue from maintenance contracts and software subscriptions for its automation systems. The company has established significant partnerships with various industry players, which enhance its market reach and product offerings. Additionally, Kinergy benefits from government incentives and subsidies associated with renewable energy projects, contributing to its overall earnings.

Kinergy Corporation Ltd. Financial Statement Overview

Summary

Kinergy Corporation Ltd. faces significant financial challenges, with declining revenues and profitability. The balance sheet shows manageable leverage, but declining equity and negative returns on equity highlight operational struggles. Cash flow management has seen some improvement but remains a concern.

Income Statement

Kinergy Corporation Ltd. has experienced declining revenue and profitability. The gross profit margin has decreased over time, and the company has reported negative EBIT and net income margins in the latest periods, indicating challenges in cost control and overall profitability. Revenue growth has been negative, reflecting shrinking business operations.

Balance Sheet

The company's debt-to-equity ratio remains manageable, suggesting relatively low financial risk from leverage. However, the declining equity ratio signifies a reduction in financial stability. The return on equity has turned negative, pointing to unprofitable operations impacting shareholder returns.

Cash Flow

Operating cash flow has shown improvement but remains insufficient to cover capital expenditures consistently, leading to fluctuating free cash flow. The free cash flow to net income ratio suggests cash flow generation challenges, though there's some improvement compared to previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.80M	99.04M	92.49M	124.20M	168.32M	70.98M
Gross Profit	6.00M	6.30M	7.00M	19.00M	28.22M	6.50M
EBITDA	-6.51M	-6.55M	4.06M	5.16M	11.54M	-3.64M
Net Income	-9.77M	-6.28M	-2.56M	4.63M	11.93M	-2.66M
Balance Sheet
Total Assets	149.63M	157.61M	159.37M	168.91M	195.14M	125.14M
Cash, Cash Equivalents and Short-Term Investments	11.23M	18.22M	18.14M	20.60M	41.71M	25.26M
Total Debt	27.20M	26.41M	20.89M	22.22M	20.79M	7.00M
Total Liabilities	53.91M	55.08M	49.82M	46.61M	66.84M	36.20M
Stockholders Equity	83.01M	89.51M	94.62M	106.48M	113.42M	87.39M
Cash Flow
Free Cash Flow	-1.89M	672.00K	-3.19M	-3.26M	-5.01M	-9.16M
Operating Cash Flow	-1.62M	3.47M	1.15M	2.94M	-542.00K	-5.77M
Investing Cash Flow	677.00K	-2.71M	2.88M	-12.32M	-2.29M	-9.28M
Financing Cash Flow	3.24M	-1.15M	-5.39M	-9.47M	18.56M	4.64M

Kinergy Corporation Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3302, the sentiment is Positive. The current price of 0.36 is above the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.36, and above the 200-day MA of 0.23, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.46 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3302.

Kinergy Corporation Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1289	76 Outperform	HK$332.80M	7.72	5.59%	3.13%	20.69%	-24.85%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3302	51 Neutral	HK$317.54M	-5.53	-10.85%	―	-0.51%	-922.95%
1536	50 Neutral	HK$91.20M	-4.69	-14.06%	―	19.32%	-100.00%
1645	48 Neutral	HK$2.01B	-104.39	-6.34%	―	-2.88%	44.39%
0365	46 Neutral	HK$421.95M	-24.17	-5.21%	―	18.71%	61.54%
1673	39 Underperform	HK$367.11M	-29.49	-2.71%	―	-4.33%	55.43%