tiprankstipranks
Trending News
More News >
CROSSTEC Group Holdings Ltd. (HK:3893)
:3893
Hong Kong Market
Advertisement

CROSSTEC Group Holdings Ltd. (3893) AI Stock Analysis

Compare
0 Followers

Top Page

HK

CROSSTEC Group Holdings Ltd.

(3893)

Rating:43Neutral
Price Target:
HK$0.00
▼(-100.00%Downside)
The overall stock score is low due to significant financial instability, characterized by consistent losses, negative cash flows, and high financial leverage. The valuation is poor, with a negative P/E ratio and no dividend yield. Technical analysis indicates neutral momentum, providing minimal upside potential.

CROSSTEC Group Holdings Ltd. (3893) vs. iShares MSCI Hong Kong ETF (EWH)

CROSSTEC Group Holdings Ltd. Business Overview & Revenue Model

Company DescriptionCrosstec Group Holdings Limited, an investment holding company, provides various interior design solutions for retail stores and property facilities in the People's Republic of China, Hong Kong, rest of Asia, the United States, Europe, and the Middle East. It designs and trades in millwork, furniture, and facade fabrication products; and provides interior design, project consultancy, maintenance, and interior solution services. The company also offers labor and management services. Crosstec Group Holdings Limited was founded in 1999 and is headquartered in North Point, Hong Kong. Crosstec Group Holdings Limited is a subsidiary of CGH (BVI) Limited.
How the Company Makes MoneyCROSSTEC Group Holdings Ltd. generates revenue predominantly through its interior design and fit-out services. The company earns money by providing a range of services from initial design consultation and project planning to the execution and completion of interior construction projects. Key revenue streams include design fees, project management fees, and construction fees. CROSSTEC may also engage in partnerships or collaborations with architects, developers, and other stakeholders in the construction and design industry, which can contribute to its income through shared projects or referrals. The company's ability to secure contracts for large-scale or high-profile projects can significantly impact its earnings.

CROSSTEC Group Holdings Ltd. Financial Statement Overview

Summary
CROSSTEC Group Holdings Ltd. shows financial instability with negative net income, weak margins, persistent losses, and negative cash flows. While there is some revenue recovery, the company suffers from high operational inefficiencies and financial leverage, evidenced by negative equity and reliance on external financing.
Income Statement
45
Neutral
The company has shown volatile revenue trends with a significant drop from 2021 to 2023, followed by a recovery in 2024. Margins are weak with consistent negative net income and gross profit margin improvements in 2024. EBIT and EBITDA remain negative, indicating operational inefficiencies.
Balance Sheet
30
Negative
The balance sheet is concerning with negative stockholders' equity in recent years, reflecting financial instability. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio is negative, indicating high leverage. The company's increased liabilities and reduced equity suggest financial strain.
Cash Flow
40
Negative
Operating cash flows have been consistently negative, highlighting cash burn issues. Free cash flow has deteriorated, although financing activities have provided some relief. The company struggles to generate cash from operations, which is a significant concern.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue73.81M48.00M40.01M86.60M53.79M
Gross Profit14.76M-3.48M11.65M18.68M17.13M
EBITDA-3.37M-48.23M-16.76M-6.66M-20.32M
Net Income-13.04M-53.56M-21.89M-11.80M-28.20M
Balance Sheet
Total Assets63.61M59.47M48.47M48.61M54.94M
Cash, Cash Equivalents and Short-Term Investments16.77M31.00M23.63M18.77M27.46M
Total Debt84.75M77.79M35.15M18.74M17.03M
Total Liabilities108.04M113.57M60.90M41.34M35.84M
Stockholders Equity-44.43M-54.10M-12.42M7.27M19.09M
Cash Flow
Free Cash Flow-40.70M-37.27M-12.68M-9.51M-18.94M
Operating Cash Flow-39.77M-35.36M-12.62M-9.47M-9.69M
Investing Cash Flow-4.34M-1.86M-57.00K-40.00K-9.25M
Financing Cash Flow31.20M45.06M16.92M851.00K6.39M

CROSSTEC Group Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.13
Price Trends
50DMA
0.13
Positive
100DMA
0.17
Negative
200DMA
0.32
Negative
Market Momentum
MACD
<0.01
Positive
RSI
43.31
Neutral
STOCH
-1.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3893, the sentiment is Negative. The current price of 0.13 is below the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.13, and below the 200-day MA of 0.32, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.31 is Neutral, neither overbought nor oversold. The STOCH value of -1.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3893.

CROSSTEC Group Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$10.90B15.415.26%1.89%3.11%-26.85%
63
Neutral
HK$17.20M3.3212.10%-8.46%-3.88%
59
Neutral
HK$87.10M-2.95%-47.50%-335.68%
50
Neutral
HK$78.00M5.82%-48.30%-395.18%
47
Neutral
HK$22.18M-22.97%-42.53%-232.12%
43
Neutral
HK$24.63M
151.24%46.43%
39
Underperform
HK$60.48M-617.73%-4.49%51.39%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3893
CROSSTEC Group Holdings Ltd.
0.13
-0.44
-77.19%
HK:1376
Raffles Interior Ltd.
0.08
-0.14
-63.64%
HK:8173
Hephaestus Holdings Limited
0.10
-0.28
-73.68%
HK:8341
Aeso Holding Limited
0.24
0.08
50.00%
HK:8455
Lai Group Holding Co Ltd
0.07
0.05
250.00%
HK:8501
Sanbase Corporation Limited
0.44
0.10
29.41%

CROSSTEC Group Holdings Ltd. Corporate Events

CROSSTEC Group Holdings Delays Circular Dispatch for Convertible Bond Issuance
Jul 14, 2025

CROSSTEC Group Holdings Limited announced a further delay in the dispatch of its Circular related to loan capitalization and the issuance of convertible bonds. The delay is due to additional time required for preparing and finalizing the Circular’s contents, with the new expected dispatch date set on or before August 4, 2025. This delay may impact stakeholders awaiting the detailed information and recommendations regarding the Subscription Agreements and the proposed issuance of convertible bonds.

CROSSTEC Group Holdings Enhances Governance with New Nomination Committee
Jun 30, 2025

CROSSTEC Group Holdings Limited has established a Nomination Committee to enhance its corporate governance practices. This committee, primarily composed of independent non-executive directors, is tasked with reviewing the board’s structure and composition, assessing director independence, and making recommendations on board appointments and succession planning. The creation of this committee is expected to strengthen the company’s governance framework, ensuring a diverse and skilled board that aligns with its corporate strategy.

CROSSTEC Group Holdings Delays Circular Dispatch for Convertible Bond Issuance
Jun 23, 2025

CROSSTEC Group Holdings Limited announced a delay in the dispatch of a circular related to loan capitalisation involving the issuance of convertible bonds. Originally expected by June 23, 2025, the circular’s release has been postponed to on or before July 14, 2025, to allow additional time for preparation and finalisation. This delay may impact stakeholders awaiting detailed information and recommendations from the Independent Board Committee and Financial Adviser regarding the terms of the subscription agreements.

CROSSTEC Announces Loan Capitalization via Convertible Bonds
Jun 2, 2025

CROSSTEC Group Holdings Limited, a company incorporated in the Cayman Islands, announced a loan capitalization involving the issuance of convertible bonds to its stakeholders. The company entered into agreements with HIL and MKI for the subscription of convertible bonds amounting to HK$57,100,000 and HK$38,400,000, respectively. These transactions aim to discharge part of the company’s payment obligations on existing loans, with the issuance of conversion shares subject to shareholder approval and stock exchange permissions. The agreements are not inter-conditional, and the company will hold an Extraordinary General Meeting (EGM) for shareholders to approve the transactions.

CROSSTEC Group Enters New Tenancy Agreement in Shenzhen
May 14, 2025

CROSSTEC Group Holdings Limited, a company incorporated in the Cayman Islands, has entered into a tenancy agreement with Shenzhen Jindi for leasing office premises in Shenzhen, China. This transaction, classified as a discloseable transaction under the Listing Rules, involves the recognition of a right-of-use asset on the company’s financial statements, indicating an asset acquisition. The lease is set for 38 months, with a total rent of RMB3,201,000, and includes several rent-free periods, highlighting a strategic move to expand or maintain operations in Shenzhen.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025