CROSSTEC Group Holdings Ltd. (3893) AI Stock Analysis

• Market Cap: HK$242.49M
• Dividend Yield: N/A
• Average Volume (3M): 710.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -24.93%
• EPS Growth: -72.69%
• Country: HK
• Employees: 34
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): -0.08
• Shares Outstanding: 226,624,000
• 10 Day Avg. Volume: 1,224,798
• 30 Day Avg. Volume: 710,003
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$1.00 ▼(-2.16% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, which poses significant risks. Technical analysis provides some moderate support, but valuation concerns due to negative profitability further weigh down the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for CROSSTEC's services, suggesting a robust market position and potential for future expansion.

Governance Enhancement

Improved governance through the new Nomination Committee can enhance strategic oversight and align board composition with corporate goals, strengthening long-term leadership.

Strategic Expansion

The new office lease in Shenzhen suggests strategic expansion, potentially increasing market presence and operational capacity in a key region.

Negative Factors

Financial Instability

Ongoing financial instability with negative cash flows and losses poses risks to sustainability, potentially limiting growth and operational flexibility.

High Financial Leverage

High leverage and negative equity increase financial risk, potentially impacting the company's ability to secure favorable financing and manage debt obligations.

Convertible Bond Delays

Delays in convertible bond issuance may affect stakeholder confidence and the company's ability to manage debt effectively, impacting financial planning.

CROSSTEC Group Holdings Ltd. Business Overview & Revenue Model

Company Description

CROSSTEC Group Holdings Ltd. (3893) is a diversified investment holding company that operates primarily in the technology and manufacturing sectors. The company focuses on providing innovative solutions and services, including manufacturing electronic components, developing software solutions, and offering consulting services. With a commitment to enhancing operational efficiency and technological advancement, CROSSTEC leverages its expertise to cater to a wide range of industries, including telecommunications, automotive, and consumer electronics.

How the Company Makes Money

CROSSTEC Group Holdings Ltd. generates revenue through multiple streams, primarily from the sale of electronic components and related technologies. The company capitalizes on its manufacturing capabilities to produce high-demand products for various sectors, which provides a steady income source. Additionally, CROSSTEC offers software development and consulting services, creating another significant revenue stream. Strategic partnerships with other firms in technology and manufacturing enhance its market reach and facilitate joint ventures, leading to increased sales opportunities. Furthermore, the company benefits from ongoing demand for innovative solutions in the fast-evolving tech landscape, contributing to its overall earnings.

CROSSTEC Group Holdings Ltd. Financial Statement Overview

Summary

CROSSTEC Group Holdings Ltd. is facing severe financial difficulties, with declining revenues, negative profitability, high leverage, and negative cash flows. These factors pose significant risks to its financial stability and future growth prospects.

Income Statement

CROSSTEC Group Holdings Ltd. has experienced significant revenue decline with a negative growth rate of -40.125% in the latest period. The company is facing substantial losses, as indicated by negative net profit and EBIT margins. The gross profit margin has also decreased, reflecting challenges in maintaining profitability.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity and a high debt-to-equity ratio, indicating significant leverage. The negative return on equity further highlights the company's inability to generate returns for shareholders.

Cash Flow

The cash flow statement shows negative operating and free cash flows, with a substantial decline in free cash flow growth. The ratios of operating and free cash flow to net income are unfavorable, indicating cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.41M	55.41M	73.81M	48.00M	40.01M	86.60M
Gross Profit	9.50M	9.50M	14.76M	-3.48M	11.65M	18.68M
EBITDA	-14.83M	-14.78M	-3.37M	-48.23M	-16.76M	-6.66M
Net Income	-28.21M	-28.21M	-13.04M	-53.56M	-21.89M	-11.80M
Balance Sheet
Total Assets	67.19M	67.19M	63.61M	59.47M	48.47M	48.61M
Cash, Cash Equivalents and Short-Term Investments	9.72M	9.72M	16.77M	31.00M	23.63M	12.43M
Total Debt	88.39M	88.39M	84.75M	77.79M	35.15M	18.74M
Total Liabilities	132.87M	132.87M	108.04M	113.57M	60.90M	41.34M
Stockholders Equity	-65.68M	-65.68M	-44.43M	-54.10M	-12.42M	7.27M
Cash Flow
Free Cash Flow	-13.42M	-13.43M	-40.36M	-37.27M	-12.68M	-9.51M
Operating Cash Flow	-13.42M	-13.43M	-39.77M	-35.36M	-12.62M	-9.47M
Investing Cash Flow	7.00K	19.00K	-4.34M	227.00K	4.76M	1.11M
Financing Cash Flow	5.41M	5.41M	31.20M	44.66M	16.56M	675.00K

CROSSTEC Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3893, the sentiment is Positive. The current price of 1.02 is below the 20-day moving average (MA) of 1.03, above the 50-day MA of 0.94, and above the 200-day MA of 0.42, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.29 is Neutral, neither overbought nor oversold. The STOCH value of 90.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3893.

CROSSTEC Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8341	50 Neutral	HK$36.00M	2.76	10.44%	―	-26.94%	-38.23%
8501	46 Neutral	HK$98.97M	-12.63	-5.93%	―	50.50%	27.48%
3893	46 Neutral	HK$242.49M	-6.06	―	―	-24.93%	-72.69%
8455	45 Neutral	HK$83.52M	-7.77	-601.82%	―	4.00%	13.57%
1376	43 Neutral	HK$77.00M	-12.58	29.87%	―	1.93%	-158.33%
8173	41 Neutral	HK$24.76M	-4.86	-19.25%	―	46.11%	54.20%

CROSSTEC Group Holdings Ltd. Corporate Events

CROSSTEC Group Holdings Delays Circular Dispatch for Convertible Bond Issuance

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

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

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

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

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.