Top Spring International Holdings Limited (3688) AI Stock Analysis

• Market Cap: HK$473.27M
• Dividend Yield: N/A
• Average Volume (3M): 69.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 24.01%
• EPS Growth: -103.87%
• Country: HK
• Employees: 754
• Sector: Real Estate
• Sector Strength: 63
• Industry: Real Estate - Development
• EPS (TTM): -1.27
• Shares Outstanding: 1,412,732,400
• 10 Day Avg. Volume: 78,950
• 30 Day Avg. Volume: 69,190
• PEG Ratio: 0.01
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.15
• 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

• Rating: 20 Underperform
• Price Target: ―

Top Spring International Holdings Limited's overall stock score is very low due to significant financial challenges, bearish technical indicators, and a concerning valuation profile. The company's negative income and cash flow performance, combined with high leverage and declining equity, indicate substantial financial instability. The technical analysis further confirms a bearish trend, with the stock underperforming across multiple moving averages and technical indicators. The absence of profitability and dividends adds to the negative sentiment, making the stock a high-risk investment.

Top Spring International Holdings Limited Business Overview & Revenue Model

Company Description

Top Spring International Holdings Limited, an investment holding company, operates as a real estate property developer in the People's Republic of China. It operates through four segments: Property Development, Property Investment, Property Management and Related Services, and Education Related Services. The company develops and operates urban mixed-use communities; and develops and sells residential properties in the Greater Bay Area, the Yangtze River Delta, the Central China, and the Beijing-Tianjin and the Chengdu-Chongqing regions. It also leases shopping arcades, club houses, serviced apartments, and car park units. In addition, the company provides property management and related services to purchasers and tenants; decoration services; and education related services and products to students, as well as offers investment management services. As of December 31, 2021, it had a total of 22 property projects approximately in 11 cities at various stages of development in Shenzhen and Dongguan, Shanghai, Nanjing, Chengdu, Hangzhou, Tianjin, Changzhou, Kunming, Hong Kong, and Sydney of Australia with a total net saleable/leasable gross floor area of approximately 335,519 square meters. The company was formerly known as Top Spring Holdings Limited and changed its name to Top Spring International Holdings Limited in September 2009. Top Spring International Holdings Limited was founded in 2001 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Top Spring International Holdings Limited generates revenue primarily through the sale of developed residential and commercial properties. The company develops these properties, often in sought-after urban areas, and markets them to individuals and businesses seeking quality real estate. Another significant revenue stream comes from the leasing of investment properties, where the company earns rental income. Property management services also contribute to the company's earnings, as it provides management and maintenance for its own properties as well as for third-party clients. Partnerships with local governments and construction companies can enhance project development opportunities and financial performance, although specific partnerships are not detailed.

Top Spring International Holdings Limited Financial Statement Overview

Summary

Top Spring International Holdings Limited is currently facing significant financial challenges across all major financial statement verticals. 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, requiring strategic interventions to stabilize and improve financial health.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.37B	954.32M	3.67B	638.96M	575.05M
	Gross Profit
-116.77M	-253.78M	594.23M	320.17M	261.13M
	EBIT
-1.84B	-458.86M	288.76M	491.53M	-125.89M
	EBITDA
-535.85M	-512.76M	338.40M	297.73M	-21.45M
	Net Income Common Stockholders
-1.83B	-876.89M	-183.64M	46.71M	-367.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
379.76M	668.03M	611.19M	1.21B	1.77B
	Total Assets
16.62B	20.04B	21.83B	28.37B	27.18B
	Total Debt
6.57B	7.29B	7.71B	10.14B	10.77B
	Net Debt
6.20B	6.62B	7.13B	9.07B	9.12B
	Total Liabilities
10.59B	11.92B	12.55B	18.00B	17.03B
	Stockholders Equity
6.07B	8.09B	9.22B	10.30B	10.07B
Cash Flow		Free Cash Flow
0.00	349.18M	240.49M	212.52M	-492.71M
	Operating Cash Flow
58.20M	352.24M	244.43M	221.65M	-483.18M
	Investing Cash Flow
0.00	142.26M	1.27B	304.26M	28.11M
	Financing Cash Flow
0.00	-385.67M	-1.99B	-1.13B	-113.74M

Top Spring International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.32
• 50DMA: Positive
• 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:3688, the sentiment is Positive. The current price of 0.32 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.32, and below the 200-day MA of 0.42, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 57.67 is Neutral, neither overbought nor oversold. The STOCH value of 28.03 is Neutral, 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
1109	70 Neutral	$191.11B	6.89	9.66%	2.01%	9.97%	-19.80%
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
3383	40 Underperform	$2.02B	―	-90.47%	―	-1.96%	-17.34%
2777	31 Underperform	$3.79B	―	-71.13%	―	-50.18%	12.86%
3688	20 Underperform	HK$473.27M	―	-25.88%	―	24.01%	-103.87%

Top Spring International Holdings Limited Corporate Events

Top Spring International Announces AGM and Key Resolutions for 2025

Top Spring International Holdings Limited has announced its upcoming annual general meeting scheduled for May 22, 2025, in Hong Kong. Key agenda items include the adoption of the company’s financial statements for the year ending December 31, 2024, the re-election of several directors, and the authorization for the board to appoint new auditors following KPMG’s retirement. Additionally, the company seeks approval to issue new shares, which could impact its capital structure and shareholder value.

Top Spring International Reports Increased Revenue but Faces Significant Losses in 2024

Top Spring International Holdings Limited reported a significant increase in revenue for the year ended December 31, 2024, reaching approximately HK$1,369.3 million, a 43.5% rise from the previous year. Despite this growth, the company faced a substantial loss attributable to equity shareholders, amounting to approximately HK$1,832.6 million, with a gross loss margin of 8.5%. The company’s net gearing ratio increased to 80.0%, and no final dividend was recommended for the year.

Top Spring International Issues Profit Warning with Increased Net Loss

Top Spring International Holdings Limited, a company incorporated in the Cayman Islands, has issued a profit warning indicating that it expects to record a significant increase in net loss for the year ended 31 December 2024, compared to the previous year. The anticipated net loss of approximately HK$2 billion is primarily attributed to impairments in investments in associates and substantial fair value losses on investment properties. The company’s financial results are still being finalized, and the detailed audited annual results are expected to be published on 28 March 2025.