Telecom Service One Holdings Ltd. (3997) AI Stock Analysis

• Market Cap: HK$87.27M
• Dividend Yield: 5.71%
• Average Volume (3M): 65.87K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.18
• Revenue Growth: -18.69%
• EPS Growth: -46.01%
• Country: HK
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Personal Products & Services
• EPS (TTM): -0.01
• Shares Outstanding: 128,342,000
• 10 Day Avg. Volume: 31,800
• 30 Day Avg. Volume: 65,866
• PEG Ratio: -0.13
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 1.60
• P/FCF Ratio: -76.23
• 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: HK$0.50
• Price Target Upside: -27.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: HK$0.50 ▼(-27.54% Downside)

The overall stock score is primarily influenced by the company's financial challenges, including declining revenues and profitability, and negative cash flow trends. While technical analysis shows some positive momentum, the overbought RSI suggests caution. The dividend yield provides some valuation support, but the negative P/E ratio highlights ongoing profitability issues.

Telecom Service One Holdings Ltd. Business Overview & Revenue Model

Company Description

Telecom Service One Holdings Ltd. (3997) is a prominent telecommunications company focused on providing a diverse range of telecommunication services and solutions. Operating primarily in the telecommunications sector, the company offers services such as mobile and fixed-line communication, broadband internet, and value-added services. With a commitment to innovation and customer satisfaction, Telecom Service One Holdings Ltd. aims to meet the evolving needs of its clientele in both residential and enterprise markets.

How the Company Makes Money

Telecom Service One Holdings Ltd. generates revenue through multiple key streams, primarily from subscription-based services, including mobile and internet plans, which account for a significant portion of its earnings. The company also earns income from value-added services, such as digital content and cloud-based solutions. Partnerships with technology providers and content creators further enhance its offerings, driving additional revenue through bundled services. The company's focus on expanding its customer base and enhancing service quality contributes to its profitability, while strategic investments in infrastructure ensure competitive pricing and improved service delivery.

Telecom Service One Holdings Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenues and profitability, negative cash flow trends, and a negative return on equity. While the low debt level is a positive aspect, the inability to generate positive returns and cash flows poses risks to its financial stability.

Income Statement

The income statement shows a declining trend in revenue and profitability. Revenue decreased by 13.27% in the most recent year, and the company has been experiencing negative net profit margins, with the latest at -30.31%. The gross profit margin has also decreased significantly from previous years, indicating challenges in maintaining profitability.

Balance Sheet

The balance sheet reflects a relatively low debt-to-equity ratio of 0.03, suggesting low leverage, which is a positive aspect. However, the return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio remains stable, showing a solid equity position relative to total assets.

Cash Flow

Cash flow analysis reveals negative free cash flow growth and a negative operating cash flow to net income ratio, highlighting cash flow challenges. The free cash flow to net income ratio is slightly above 1, indicating some ability to cover net losses, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.99M	44.22M	54.39M	51.38M	34.76M	38.35M
Gross Profit	7.00M	3.53M	11.25M	11.38M	13.44M	15.32M
EBITDA	-7.92M	-7.34M	-4.28M	-1.37M	3.93M	10.72M
Net Income	-8.68M	-13.40M	-9.17M	-7.12M	-1.01M	9.57M
Balance Sheet
Total Assets	78.11M	61.86M	85.62M	89.11M	97.05M	100.12M
Cash, Cash Equivalents and Short-Term Investments	12.54M	5.70M	12.79M	18.58M	20.46M	89.73M
Total Debt	3.16M	1.60M	6.76M	1.49M	4.44M	1.23M
Total Liabilities	9.17M	7.43M	14.88M	9.07M	9.73M	4.34M
Stockholders Equity	68.94M	54.43M	70.73M	80.03M	87.31M	95.78M
Cash Flow
Free Cash Flow	5.30M	-926.00K	-689.00K	-931.00K	-34.00M	5.82M
Operating Cash Flow	5.47M	-868.00K	215.00K	410.00K	1.63M	6.00M
Investing Cash Flow	10.42M	10.66M	-269.00K	1.01M	-77.13M	754.00K
Financing Cash Flow	-5.26M	-7.90M	-728.00K	-1.31M	-9.75M	-7.07M

Telecom Service One Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3997, the sentiment is Positive. The current price of 0.69 is above the 20-day moving average (MA) of 0.65, above the 50-day MA of 0.58, and above the 200-day MA of 0.58, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 70.36 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3997.

Telecom Service One Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8603	72 Outperform	HK$1.16B	25.35	54.98%	―	45.40%	12.38%
1161	69 Neutral	$598.89M	7.14	25.63%	6.25%	-1.62%	-10.07%
Sector *	61 Neutral	$16.98B	10.44	-7.45%	3.24%	1.51%	-15.34%
8483	58 Neutral	HK$104.00M	14.89	-6.35%	7.21%	-23.23%	-136.17%
0919	56 Neutral	€89.54M	24.38	-2.50%	―	-0.31%	47.17%
3997	52 Neutral	HK$87.27M	―	-21.42%	5.71%	-18.69%	-46.01%
1827	51 Neutral	HK$424.00M	40.00	7.45%	―	-18.43%	―

Telecom Service One Holdings Ltd. Corporate Events

Telecom Service One Holdings Reports Decrease in Revenue and Profit for 2025

Telecom Service One Holdings Limited reported its audited consolidated results for the year ending March 31, 2025, showing a decrease in revenue from HK$54,387,000 in 2024 to HK$44,223,000 in 2025. The company experienced a significant reduction in gross profit and reported a total comprehensive expense of HK$13,736,000, indicating operational challenges and potential impacts on stakeholders.

Telecom Service One Holdings Ltd. Declares Fourth Quarter Dividend

Telecom Service One Holdings Ltd. announced a fourth quarter interim dividend of HKD 0.02 per share for the financial year ending March 31, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively, reinforcing its stable financial position.

Telecom Service One Updates Nomination Committee Guidelines

Telecom Service One Holdings Limited has revised the terms of reference for its Nomination Committee, emphasizing a structured approach to board composition and succession planning. The updated guidelines aim to ensure a balanced and skilled board, enhance board diversity, and maintain the independence of non-executive directors, thereby strengthening the company’s governance framework and aligning with its corporate strategy.

Telecom Service One Holdings to Announce Annual Results and Consider Dividend

Telecom Service One Holdings Limited has announced that its board of directors will meet on June 27, 2025, to approve the company’s final results for the fiscal year ending March 31, 2025. The meeting will also consider the possibility of declaring a dividend, which could impact shareholder returns and reflect the company’s financial health.

Telecom Service One Holdings Ltd. Announces Board Composition

Telecom Service One Holdings Ltd. has announced the composition of its Board of Directors, highlighting the roles and functions of each member. The Board is led by Chairman and Non-Executive Director Mr. Cheung King Shek, with Mr. Cheung King Fung Sunny serving as the Executive Director and CEO. The announcement also details the membership of three key Board committees, which are crucial for the company’s governance and strategic oversight.

Telecom Service One Appoints New Independent Director and Committee Chair

Telecom Service One Holdings Limited has announced the appointment of Ms. Wong Wai Yee Daisy as an independent non-executive director, effective from June 12, 2025. Ms. Wong, with over 36 years of experience in human resources management, will also serve on the Audit and Remuneration Committees. Additionally, she will chair the Nomination Committee, replacing Mr. Tso Ka Yi, who will remain a member. This strategic appointment is anticipated to strengthen the company’s governance and operational oversight, potentially enhancing its market position and stakeholder confidence.