CROSSTEC Group Holdings Ltd. (3893) AI Stock Analysis

• Market Cap: HK$25.19M
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 151.24%
• EPS Growth: 46.43%
• Country: HK
• Employees: 34
• Sector: Industrials
• Sector Strength: 84
• Industry: Consulting Services
• EPS (TTM): -0.23
• Shares Outstanding: 186,624,000
• 10 Day Avg. Volume: 215,200
• 30 Day Avg. Volume: 1,272,406
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.06
• 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: 44 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is primarily affected by the company's weak financial performance, marked by operational inefficiencies and high leverage. Technical analysis offers some positive outlook in the short term, but valuation concerns due to negative earnings and lack of dividends weigh heavily. The absence of earnings call insights and corporate events leaves these areas neutral.

CROSSTEC Group Holdings Ltd. Business Overview & Revenue Model

Company Description

CROSSTEC Group Holdings Ltd. (3893) is a company primarily engaged in the provision of interior design and fit-out services. The company operates within the sectors of architecture and interior design, focusing on delivering comprehensive solutions for commercial and residential properties. Their core services include space planning, design consultancy, project management, and the installation of custom furniture and fixtures.

How the Company Makes Money

CROSSTEC Group Holdings Ltd. generates revenue primarily through its interior design and fit-out services, which involve a full range of offerings from initial design concepts to the final implementation of projects. Key revenue streams include design consultancy fees, project management contracts, and the sale and installation of custom-designed furniture and fixtures. The company may also engage in partnerships with architects, contractors, and suppliers to enhance its service offerings and manage project costs effectively, although specific partnership details are not disclosed.

CROSSTEC Group Holdings Ltd. Financial Statement Overview

Summary

CROSSTEC Group Holdings Ltd. demonstrates financial instability with persistent losses and negative cash flows. Despite a revenue recovery in 2024, the company faces operational inefficiencies and high financial leverage, evident from negative equity and reliance on external financing.

Income Statement

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

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

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.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
92.54M	73.81M	48.00M	40.01M	86.60M	53.79M
	Gross Profit
1.04M	14.76M	-3.48M	11.65M	18.68M	17.13M
	EBIT
-23.46M	-9.52M	-33.81M	-18.15M	-13.45M	-19.58M
	EBITDA
-22.70M	-3.37M	-48.23M	-16.76M	-6.66M	-20.32M
	Net Income Common Stockholders
-32.82M	-13.04M	-53.56M	-21.89M	-11.80M	-28.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.33M	16.77M	31.00M	23.63M	18.77M	27.46M
	Total Assets
65.48M	63.61M	59.47M	48.47M	48.61M	54.94M
	Total Debt
86.07M	84.75M	77.79M	35.15M	18.74M	17.03M
	Net Debt
80.78M	67.99M	46.80M	11.52M	-31.00K	-10.43M
	Total Liabilities
122.73M	108.04M	113.57M	60.90M	41.34M	35.84M
	Stockholders Equity
-57.25M	-44.43M	-54.10M	-12.42M	7.27M	19.09M
Cash Flow		Free Cash Flow
-39.39M	-40.70M	-37.27M	-12.68M	-9.51M	-18.94M
	Operating Cash Flow
-39.51M	-39.77M	-35.36M	-12.62M	-9.47M	-9.69M
	Investing Cash Flow
-3.79M	-4.34M	-1.86M	-57.00K	-40.00K	-9.25M
	Financing Cash Flow
11.17M	31.20M	45.06M	16.92M	851.00K	6.39M

CROSSTEC Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.14 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.12, and below the 200-day MA of 0.34, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.36 is Neutral, neither overbought nor oversold. The STOCH value of 56.50 is Neutral, 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
3828	74 Outperform	HK$583.07M	4.04	11.13%	137.37%	11.80%	37.53%
8480	66 Neutral	HK$184.66M	7.81	6.39%	5.00%	-12.11%	-26.86%
Sector *	64 Neutral	$10.24B	15.15	4.04%	2.02%	2.54%	-26.43%
8051	55 Neutral	HK$75.51M	1,526.32	0.03%	―	130.84%	-99.24%
8379	47 Neutral	HK$101.60M	―	-42.74%	―	50.49%	68.84%
3893	44 Neutral	HK$25.19M	―		―	151.24%	46.43%
8268	44 Neutral	HK$216.00M	―	-17.62%	―	17.34%	-107.68%

CROSSTEC Group Holdings Ltd. Corporate Events

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.