ECI Technology Holdings Ltd. (8013) AI Stock Analysis

• Market Cap: HK$73.60M
• Dividend Yield: N/A
• Average Volume (3M): 168.67K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.22
• Revenue Growth: -4.74%
• EPS Growth: -19.23%
• Country: HK
• Employees: 332
• Sector: Technology
• Sector Strength: 89
• Industry: Specialty Business Services
• EPS (TTM): <0.01
• Shares Outstanding: 1,600,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 168,666
• PEG Ratio: -0.89
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.68
• 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: 1

• Rating: 66 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score of 66 reflects a strong financial performance with robust revenue growth, increased profitability, and solid balance sheet metrics. However, the technical analysis indicates bearish momentum and oversold conditions, which somewhat dampens the outlook. The valuation is moderate, but the absence of a dividend yield limits its appeal to income-focused investors.

ECI Technology Holdings Ltd. Business Overview & Revenue Model

Company Description

ECI Technology Holdings Limited is engaged in the provision of extra-low voltage (ELV) solutions. The Company's solutions include central control monitoring systems such as security system, car park system and clubhouse management system, and telecommunications and broadcasting services systems, such as CABD System and SMATV System. It sources hardware, such as security cameras, display devices, cables and wires, and electronic and electrical components, as well as systems such as smartcard and access control systems from local and overseas suppliers. It provides total security solutions, including access control, burglar alarm, time attendance, elevator control and door phone entry system. Its customers in the private sector are property developers and property management companies in Hong Kong. Its customers in the public sector are government departments, such as drainage services department, leisure and cultural services department, electrical and mechanical services department.

How the Company Makes Money

ECI Technology Holdings Ltd. generates revenue through multiple streams primarily centered around its IT service offerings. The company earns income by providing software development services, where it designs and implements customized software solutions tailored to the specific needs of its clients. Additionally, ECI Technology Holdings Ltd. engages in systems integration projects, which involve the combination of various technology systems and software applications into a cohesive and functional unit for its customers. The company also offers IT consultancy services, advising businesses on technology strategies and solutions to optimize their operations. These services are often delivered through contractual agreements, with revenue recognized based on project milestones or service delivery terms. Strategic partnerships and collaborations with other technology firms can also play a role in expanding its service offerings and client base, further contributing to its revenue streams.

ECI Technology Holdings Ltd. Financial Statement Overview

Summary

ECI Technology Holdings Ltd. presents a robust financial profile with strong revenue growth and improved profitability margins. The balance sheet is solid, characterized by low leverage and high equity, while cash flow performance has significantly improved, supporting future growth and investment opportunities. However, the absence of EBIT highlights the need for continued focus on operational efficiency.

Income Statement

ECI Technology Holdings Ltd. demonstrated strong revenue growth, with a significant increase of 15.08% from the previous year. The gross profit margin improved to 24.87%, reflecting efficient cost management. The net profit margin rose to 4.47%, indicating enhanced profitability. However, the absence of EBIT suggests potential operational challenges. Overall, the company showcases robust growth and profitability metrics.

Balance Sheet

The balance sheet reveals a stable financial structure with a low debt-to-equity ratio of 0.104, suggesting low financial leverage. The equity ratio stands at 80.28%, reflecting a strong equity base. Return on equity improved to 10.56%, demonstrating effective utilization of shareholder funds. Despite these strengths, the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

Strong cash flow performance is evidenced by a turnaround in operating cash flow and a positive free cash flow of 14.71 million. The free cash flow to net income ratio of 1.64 indicates efficient conversion of earnings into cash. Although the free cash flow growth rate is not calculable due to negative values in the previous period, the company showcases a healthy cash flow position overall.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	200.26M	174.01M	130.43M	138.21M	114.44M
Gross Profit	49.81M	40.59M	31.93M	30.95M	27.32M
EBITDA	13.61M	9.14M	9.41M	11.92M	8.41M
Net Income	8.95M	5.62M	6.34M	8.72M	3.65M
Balance Sheet
Total Assets	105.48M	98.31M	86.50M	82.72M	71.40M
Cash, Cash Equivalents and Short-Term Investments	33.14M	21.81M	37.63M	29.16M	23.58M
Total Debt	8.79M	8.38M	8.84M	9.70M	8.78M
Total Liabilities	20.79M	22.73M	15.78M	18.22M	15.62M
Stockholders Equity	84.69M	75.58M	70.72M	64.50M	55.78M
Cash Flow
Free Cash Flow	14.71M	-8.12M	11.43M	9.13M	2.10M
Operating Cash Flow	18.68M	-7.11M	11.52M	10.15M	2.28M
Investing Cash Flow	-5.64M	-6.78M	-532.00K	-318.00K	-282.00K
Financing Cash Flow	-2.81M	-1.91M	-2.54M	-4.28M	-3.87M

ECI Technology Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8013, the sentiment is Negative. The current price of 0.05 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 8.30 is Positive, neither overbought nor oversold. The STOCH value of 60.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8013.

ECI Technology Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8013	66 Neutral	HK$73.60M	10.71	7.76%	―	-4.74%	-19.23%
1841	65 Neutral	HK$87.60M	16.98	-1.47%	―	-14.57%	-72.26%
Sector *	63 Neutral	$34.08B	6.06	-11.85%	1.82%	5.31%	-18.34%
8416	61 Neutral	HK$37.08M	8.71	-9.16%	20.62%	-11.05%	-222.58%
1884	56 Neutral	HK$56.65M	―	-2.70%	―	-0.14%	72.86%
8450	56 Neutral	HK$153.00M	―	-23.68%	―	-30.12%	-208.11%
8317	42 Neutral	HK$68.99M	―	-9.01%	―	-12.96%	61.54%