Vicon Holdings Limited (3878) AI Stock Analysis

• Market Cap: HK$116.54M
• Dividend Yield: N/A
• Average Volume (3M): 145.20K
• Price to Earnings (P/E): 4.6
• Beta (1Y): <0.01
• Revenue Growth: -19.27%
• EPS Growth: -47.47%
• Country: HK
• Employees: 22
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.01
• Shares Outstanding: 479,600,000
• 10 Day Avg. Volume: 125,600
• 30 Day Avg. Volume: 145,200
• PEG Ratio: -0.45
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 11.10
• 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: 63 Neutral
• Price Target: HK$0.28 ▲(17.50% Upside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

Vicon Holdings Limited's overall stock score is driven by its mixed financial performance and positive technical indicators. The company's financial stability is a strong point, but challenges in cash flow and profitability weigh on the score. Technical analysis suggests bullish momentum, though caution is advised due to potential overbought conditions. The valuation is moderate, with no dividend yield to attract income investors.

Positive Factors

Conservative balance sheet

Extremely low leverage and a high equity ratio provide durable financial flexibility. With conservative debt levels the company can fund operations, invest selectively or withstand industry cyclicality without near-term refinancing pressure, supporting long-term stability.

Diversified revenue model

Multiple sales channels and partnerships reduce single-channel concentration risk and support steady demand over time. Supplier and manufacturing alliances also enhance production capacity and cost control, improving resilience and sustaining revenue streams across markets.

Positive underlying margins

Sustained positive EBIT and EBITDA margins indicate core operational viability and some efficiency in covering fixed costs. While modest, these margins create a foundation for incremental margin expansion through cost control or scale, supporting longer-term cash generation.

Negative Factors

Weak cash conversion

A steep decline in free cash flow and low operating cash conversion indicate difficulty turning reported profits into spendable cash. This constrains capacity for capex, working capital, or cushioning downturns, increasing reliance on external funding for strategic moves.

Declining revenue and EPS

Material declines in top-line and earnings per share point to weakening demand or margin pressure that could persist. Extended revenue and EPS contraction undermines reinvestment ability and makes achieving sustainable profit improvements more challenging over a multi-month horizon.

Thin profitability margins

Low gross and net margins signal limited pricing power and small buffers against cost inflation or competitive pricing. With tight margins, any adverse input-cost or sales mix movement can rapidly erode profitability and impede durable margin recovery efforts.

Vicon Holdings Limited Business Overview & Revenue Model

Company Description

Vicon Holdings Limited, an investment holding company, engages in the provision of foundation works and ancillary services in Hong Kong. The company's foundation projects cover various types of construction works, such as piling construction, ELS works, and pile cap construction works, as well as general building works. It is also involved in the lease of construction machinery. The company serves property developers, and project owners and their contractors, as well as public sectors. Vicon Holdings Limited was incorporated in 2016 and is headquartered in Cheung Sha Wan, Hong Kong.

How the Company Makes Money

Vicon Holdings Limited generates revenue through multiple streams, primarily from the manufacturing and sale of its consumer electronics and home appliances. The company's revenue model includes direct sales to retailers, online sales through e-commerce platforms, and partnerships with distributors across various regions. Additionally, Vicon benefits from strategic alliances with suppliers and manufacturers that enhance its production capabilities and reduce costs. The company's focus on innovation and quality allows it to maintain competitive pricing and attract a loyal customer base, contributing to its overall profitability.

Vicon Holdings Limited Financial Statement Overview

Summary

Vicon Holdings Limited shows a mixed financial performance. The income statement reveals challenges in maintaining revenue growth and profitability, while the balance sheet reflects strong financial stability with low leverage. However, cash flow performance is weak, with significant declines in free cash flow growth. The company needs to focus on improving cash generation and profitability to enhance its financial position.

Income Statement

Vicon Holdings Limited has experienced fluctuating revenue growth, with a recent decline of 4.58% after a previous increase. Gross profit margin has decreased to 6.79%, indicating pressure on profitability. The net profit margin is relatively low at 1.59%, reflecting challenges in maintaining profitability. Despite these challenges, the company has managed to maintain a positive EBIT margin of 1.86% and an EBITDA margin of 5.12%, suggesting some operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.031, indicating conservative leverage and financial stability. However, the return on equity has decreased to 1.78%, suggesting limited returns for shareholders. The equity ratio stands at 83.63%, highlighting a strong equity base relative to total assets, which is a positive indicator of financial health.

Cash Flow

Vicon Holdings Limited has faced a significant decline in free cash flow growth, down by 73.04%, which could impact future investments and liquidity. The operating cash flow to net income ratio is low at 0.20, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is 0.75, suggesting some ability to generate cash relative to net income, but overall cash flow performance remains a concern.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	257.13M	303.92M	486.64M	417.04M	156.59M	254.63M
Gross Profit	17.51M	20.62M	43.95M	43.58M	33.16M	-38.46M
EBITDA	12.81M	15.56M	17.43M	13.12M	-5.10M	-25.85M
Net Income	3.98M	4.83M	8.27M	2.39M	-24.56M	-51.51M
Balance Sheet
Total Assets	312.16M	324.41M	308.42M	338.93M	335.19M	405.05M
Cash, Cash Equivalents and Short-Term Investments	169.85M	60.41M	39.48M	18.63M	25.48M	14.61M
Total Debt	338.00K	8.50M	8.78M	11.02M	23.29M	93.05M
Total Liabilities	35.28M	53.09M	41.93M	80.71M	79.36M	144.02M
Stockholders Equity	276.89M	271.32M	266.49M	258.22M	255.83M	261.03M
Cash Flow
Free Cash Flow	123.55M	8.03M	38.50M	-17.77M	29.14M	60.63M
Operating Cash Flow	125.95M	10.75M	39.72M	-14.51M	34.44M	61.67M
Investing Cash Flow	-129.50M	-14.04M	-19.83M	22.89M	30.29M	10.78M
Financing Cash Flow	-8.61M	-1.92M	-2.89M	-15.22M	-53.87M	-80.41M

Vicon Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.24
• 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:3878, the sentiment is Neutral. The current price of 0.24 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.24, and above the 200-day MA of 0.20, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.82 is Neutral, neither overbought nor oversold. The STOCH value of 30.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3878.

Vicon Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1343	69 Neutral	HK$135.13M	11.27	3.56%	―	-5.73%	547.06%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3878	63 Neutral	HK$116.54M	4.63	1.45%	―	-19.27%	-47.47%
8217	52 Neutral	HK$108.67M	0.92	52.51%	―	-32.25%	―
1413	47 Neutral	HK$118.08M	-1.14	-40.10%	―	-70.99%	-2956.76%
6816	45 Neutral	HK$168.00M	-0.35	-98.05%	―	14.57%	13.79%