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

• Market Cap: HK$91.12M
• Dividend Yield: 5.63%
• Average Volume (3M): 61.80K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.13
• Revenue Growth: -22.48%
• EPS Growth: -77.51%
• Country: HK
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): N/A
• Shares Outstanding: 128,342,000
• 10 Day Avg. Volume: 69,800
• 30 Day Avg. Volume: 61,800
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$0.50 ▼(-29.58% Downside)

The stock's overall score is primarily influenced by its financial challenges, including declining revenues and negative profitability. However, positive technical indicators and a reasonable dividend yield provide some support. The absence of earnings call data and notable corporate events limits further insights.

Positive Factors

Low Debt Levels

Low debt levels provide financial flexibility and reduce the risk of financial distress, allowing the company to navigate challenging periods more effectively.

Diverse Revenue Streams

A diverse range of revenue streams helps mitigate risks associated with reliance on a single income source, supporting long-term business stability and growth potential.

Strategic Investments

Investments in infrastructure enhance service quality and competitiveness, positioning the company for sustained growth and customer retention in the telecommunications sector.

Negative Factors

Declining Revenue

A declining revenue trend indicates potential challenges in market demand or competitive positioning, which could impact long-term financial health and growth prospects.

Negative Profitability

Sustained negative profitability undermines the company's ability to reinvest in growth initiatives and may lead to financial instability if not addressed.

Weak Cash Flow Performance

Weak cash flow performance limits the company's ability to fund operations and invest in future growth, posing a risk to long-term sustainability.

Telecom Service One Holdings Ltd. Business Overview & Revenue Model

Company Description

Telecom Service One Holdings Limited, an investment holding company, engages in the provision of repair and refurbishment services for mobile phones and other personal electronic products. It also sells mobile phone accessories, as well as offers support services. In addition, the company invests in properties. It serves the manufacturers of mobile phones and personal electronic products; telecommunication service providers; and services companies worldwide. The company was founded in 1987 and is based in Kowloon Bay, Hong Kong. Telecom Service One Holdings Limited is a subsidiary of East-Asia Pacific Limited.

How the Company Makes Money

Telecom Service One Holdings generates revenue primarily through subscription fees for its mobile and fixed-line services, broadband internet plans, and other telecommunication solutions. Key revenue streams include monthly service charges from customers, one-time installation fees, and charges for value-added services such as data packages and international calling. The company may also engage in partnerships with other telecom providers and technology firms to offer bundled services, which helps to expand its customer base and enhance its service offerings. Additionally, the company might benefit from economies of scale as it grows, leading to improved profit margins.

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. Despite a low debt level, 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	39.53M	44.22M	54.39M	51.38M	34.76M	38.35M
Gross Profit	2.19M	3.53M	11.25M	11.38M	13.44M	15.32M
EBITDA	-11.50M	-7.34M	-4.28M	-1.37M	3.93M	10.72M
Net Income	-15.40M	-13.40M	-9.17M	-7.12M	-1.01M	9.57M
Balance Sheet
Total Assets	59.79M	61.86M	85.62M	89.11M	97.05M	100.12M
Cash, Cash Equivalents and Short-Term Investments	1.29M	5.70M	12.79M	18.58M	20.46M	89.73M
Total Debt	6.17M	1.60M	6.76M	1.49M	4.44M	1.23M
Total Liabilities	11.72M	7.43M	14.88M	9.07M	9.73M	4.34M
Stockholders Equity	48.07M	54.43M	70.73M	80.03M	87.31M	95.78M
Cash Flow
Free Cash Flow	-4.29M	-926.00K	-689.00K	-931.00K	-34.00M	5.82M
Operating Cash Flow	-4.29M	-868.00K	215.00K	410.00K	1.63M	6.00M
Investing Cash Flow	191.00K	10.66M	-269.00K	1.01M	-77.13M	754.00K
Financing Cash Flow	-7.37M	-7.90M	-728.00K	-1.31M	-9.75M	-7.07M

Telecom Service One Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.71 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.72, and above the 200-day MA of 0.61, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.20 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, 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
1161	73 Outperform	HK$632.91M	7.79	24.41%	5.98%	-0.19%	19.04%
8603	69 Neutral	HK$3.65B	71.13	49.25%	―	56.28%	-9.91%
8483	68 Neutral	HK$100.00M	-73.53	-6.35%	7.50%	-23.23%	-136.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3997	55 Neutral	HK$91.12M	-5.92	-26.32%	5.63%	-22.48%	-77.51%
1827	55 Neutral	HK$380.00M	34.93	7.67%	―	-20.59%	―
0919	46 Neutral	HK$67.84M	3.81	10.10%	―	-3.40%	515.63%

Telecom Service One Holdings Ltd. Corporate Events

Telecom Service One Holdings Reports Increased Losses in Interim Results

Telecom Service One Holdings Ltd. reported its interim financial results for the six months ending September 30, 2025, showing a decrease in revenue and an increase in losses compared to the previous year. The company’s revenue fell from HK$23,600,000 in 2024 to HK$18,905,000 in 2025, and it recorded a loss of HK$3,793,000, highlighting challenges in maintaining profitability amidst rising costs and declining sales.

Telecom Service One Holdings Schedules Board Meeting for Interim Results

Telecom Service One Holdings Limited has announced that its board of directors will meet on November 28, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the payment of a dividend. This meeting could have implications for the company’s financial strategy and shareholder returns, indicating a period of assessment and potential distribution of profits.

Telecom Service One Holdings Secures Unanimous Shareholder Approval at AGM

Telecom Service One Holdings Limited announced that all resolutions proposed at their Annual General Meeting held on September 25, 2025, were unanimously approved by shareholders. The resolutions included the adoption of financial statements, re-election of directors, authorization of director remuneration, re-appointment of auditors, and granting of mandates for share issuance and repurchase. These approvals reflect strong shareholder support and provide the company with flexibility in its financial and operational strategies.