Top Spring International Holdings Limited (3688) AI Stock Analysis

• Market Cap: HK$572.16M
• Dividend Yield: N/A
• Average Volume (3M): 17.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: 53.69%
• EPS Growth: -33.81%
• Country: HK
• Employees: 754
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.41
• Shares Outstanding: 1,412,732,400
• 10 Day Avg. Volume: 15,800
• 30 Day Avg. Volume: 17,450
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 1.40
• 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: 46 Neutral
• Price Target: HK$0.50 ▲(11.11% Upside)

Top Spring International Holdings Limited's overall stock score is primarily impacted by its poor financial performance, which indicates significant challenges in profitability and cash generation. Technical analysis provides a slightly positive outlook due to the stock trading above key moving averages, but bearish momentum indicators limit optimism. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, further weighing down the overall score.

Positive Factors

Revenue Growth

Despite financial challenges, the company has shown a significant revenue growth rate, indicating potential for market expansion and increased sales.

Market Position

A strong presence in mainland China positions the company well to capitalize on the growing demand for modern housing solutions in a major market.

Business Model

The diversified revenue streams from property sales and management services provide a stable income base, enhancing resilience against market fluctuations.

Negative Factors

Financial Performance

Ongoing financial challenges, including persistent losses and declining revenues, threaten the company's long-term viability and ability to invest in growth.

Balance Sheet Health

High leverage and declining equity indicate potential liquidity issues, limiting financial flexibility and increasing risk during economic downturns.

Cash Generation

Inadequate cash generation and lack of free cash flow hinder the company's ability to fund operations and growth initiatives, impacting long-term sustainability.

Top Spring International Holdings Limited Business Overview & Revenue Model

Company Description

Top Spring International Holdings Limited (3688) is a leading property development and investment company based in Hong Kong. The company primarily operates in the real estate sector, focusing on residential, commercial, and mixed-use property developments. With a strong presence in mainland China, Top Spring aims to create high-quality living spaces and sustainable communities, catering to the growing demand for modern housing solutions.

How the Company Makes Money

Top Spring International Holdings Limited generates revenue primarily through the sale and leasing of residential and commercial properties. The company develops real estate projects, which include apartments, office buildings, and retail spaces, and earns income from the sale of these properties to end consumers and investors. Additionally, Top Spring engages in property management services, which provide a steady revenue stream through management fees. The company may also benefit from partnerships with local governments and other stakeholders in the real estate sector, allowing for access to prime development sites and favorable regulatory conditions, further enhancing its profitability.

Top Spring International Holdings Limited Financial Statement Overview

Summary

Top Spring International Holdings Limited is facing significant financial challenges. The income statement shows persistent losses and declining revenues, the balance sheet is highly leveraged with declining equity, and the cash flow statement shows inadequate cash generation. These factors collectively indicate a precarious financial position for the company.

Income Statement

The company shows a concerning decline in its income statement metrics. Gross profit margin and net profit margin are negative, indicating the company is struggling to cover its costs. Revenue growth has been inconsistent, with significant declines in recent years. The negative EBIT and EBITDA margins further highlight operational inefficiencies and inability to generate positive earnings before interest and taxes.

Balance Sheet

The balance sheet reveals potential liquidity issues with a high debt-to-equity ratio, reflecting significant leverage. The equity ratio indicates a moderate portion of assets financed by equity. However, declining stockholders' equity and total assets suggest deteriorating financial strength. Return on equity is negative, pointing to poor profitability for shareholders.

Cash Flow

Cash flow metrics are weak, with no free cash flow generated in the most recent period, indicating cash constraints. The operating cash flow to net income ratio is unfavorable due to negative net income, highlighting poor cash generation relative to earnings. Historical free cash flow growth has been erratic with significant declines, raising concerns about future cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.65B	1.37B	954.32M	3.67B	638.96M	575.05M
Gross Profit	-34.04M	-116.77M	-253.78M	594.23M	320.17M	261.13M
EBITDA	-491.77M	-535.85M	-512.76M	338.40M	297.73M	34.87M
Net Income	-2.04B	-1.83B	-876.89M	-185.10M	33.43M	-283.26M
Balance Sheet
Total Assets	15.09B	16.62B	20.04B	21.83B	28.37B	27.18B
Cash, Cash Equivalents and Short-Term Investments	1.11B	379.76M	668.03M	611.19M	1.21B	1.77B
Total Debt	5.77B	6.57B	7.29B	7.71B	10.14B	10.87B
Total Liabilities	9.65B	10.59B	11.92B	12.55B	18.00B	17.03B
Stockholders Equity	5.48B	6.07B	8.09B	9.22B	10.30B	10.07B
Cash Flow
Free Cash Flow	243.21M	538.63M	349.18M	240.49M	212.52M	-492.71M
Operating Cash Flow	701.67M	547.12M	352.24M	244.43M	221.65M	-483.18M
Investing Cash Flow	395.02M	129.72M	142.26M	1.27B	304.26M	28.11M
Financing Cash Flow	-1.13B	-953.63M	-385.67M	-1.99B	-1.13B	-113.74M

Top Spring International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.45
• 50DMA: Positive
• 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:3688, the sentiment is Positive. The current price of 0.45 is above the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.41, and above the 200-day MA of 0.38, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.04 is Neutral, neither overbought nor oversold. The STOCH value of 85.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3688.

Top Spring International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0496	64 Neutral	HK$771.35M	9.77	1.50%	―	10.78%	-12.42%
1243	51 Neutral	HK$562.40M	-0.58	-38.17%	―	213.63%	-61.18%
3688	46 Neutral	HK$572.16M	―	-29.51%	―	53.69%	-33.81%
0542	44 Neutral	HK$1.35B	―	―	―	-16.81%	-0.18%
0846	41 Neutral	HK$694.65M	―	-12.55%	―	-25.51%	-158.20%
1628	38 Underperform	HK$220.89M	>-0.01	―	―	-62.71%	-16.95%

Top Spring International Holdings Limited Corporate Events

Top Spring International Clarifies Interim Financial Results

Top Spring International Holdings Limited has issued a clarification announcement regarding errors in its interim financial results for the six months ended June 30, 2025. The company reported a loss attributable to equity shareholders and holders of bonus perpetual subordinated convertible securities of approximately HK$625.5 million, an increase from the previous year’s HK$539.2 million. The basic and diluted loss per share also rose to HK40.9 cents from HK35.3 cents. These corrections highlight a challenging financial period for the company, impacting its market position and stakeholder confidence.

Top Spring International Reports Mixed Interim Results for 2025

Top Spring International Holdings Limited reported an 8.4% increase in pre-sales of properties and car park units for the first half of 2025, totaling approximately HK$451.1 million. Despite this growth in pre-sales, the average selling price per square meter decreased significantly by 54.8% compared to the same period in 2024. The company’s revenue surged by 62.6% to HK$737.3 million, although it faced a gross loss margin of 2.6% and a substantial loss attributable to equity shareholders amounting to HK$746.5 million. The net gearing ratio increased to 84.7%, and no interim dividend was declared for the period.

Top Spring International Issues Profit Warning Amid Increased Losses

Top Spring International Holdings Limited has issued a profit warning, indicating an expected increase in net loss for the first half of 2025, ranging from HK$700 million to HK$800 million, compared to a net loss of approximately HK$560.6 million in the same period of the previous year. The anticipated loss is primarily attributed to fair value losses on investment properties and impairment losses on certain inventories, highlighting potential challenges in the company’s financial performance and market positioning.