ETS Group Limited (8031) AI Stock Analysis

• Market Cap: HK$35.77M
• Dividend Yield: N/A
• Average Volume (3M): 247.00K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.21
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 237
• Sector: Industrials
• Sector Strength: 79
• Industry: Staffing & Employment Services
• EPS (TTM): <0.01
• Shares Outstanding: 295,625,000
• 10 Day Avg. Volume: 378,200
• 30 Day Avg. Volume: 247,000
• PEG Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

ETS Group Limited's overall stock score is primarily driven by its strong financial performance, reflecting a solid recovery and financial stability. However, the technical analysis indicates bearish momentum, and the valuation metrics are concerning due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a moderate overall score.

ETS Group Limited Business Overview & Revenue Model

Company Description

ETS Group Limited (8031) is a diversified enterprise primarily engaged in providing technology-driven solutions across various sectors, including telecommunications, information technology, and digital services. The company focuses on delivering innovative products and services that enhance operational efficiency and connectivity for businesses and consumers alike. With a commitment to quality and customer-centric solutions, ETS Group Limited aims to leverage emerging technologies to stay competitive in a rapidly evolving market.

How the Company Makes Money

ETS Group Limited generates revenue through multiple channels, primarily by offering a range of technology services and products tailored to meet the needs of businesses across different industries. Key revenue streams include service fees from telecommunications solutions, sales of hardware and software products, and recurring subscription fees for managed services. The company may also engage in strategic partnerships with other tech firms to broaden its service offerings and enhance its market presence, contributing to its overall earnings. Additionally, ETS Group Limited may benefit from government contracts or grants aimed at advancing technological adoption in various sectors, further solidifying its revenue base.

ETS Group Limited Financial Statement Overview

Summary

ETS Group Limited has shown significant improvement in financial performance with a turnaround in profitability, strong balance sheet with low leverage, and robust cash flow generation. However, attention is needed on the decreasing gross profit margin.

Income Statement

The income statement shows a significant turnaround in profitability for ETS Group Limited with a net income of $17.5 million in 2024, compared to a loss of $7.9 million in 2023. Revenue grew by 2.55% from 2023 to 2024. The EBIT and EBITDA margins have improved substantially, indicating effective cost management. However, the Gross Profit Margin has decreased, suggesting some pressure on production or service costs.

Balance Sheet

The balance sheet is strong with a solid equity base, as evidenced by the equity ratio of 75.92% in 2024. The debt-to-equity ratio remains low at 0.04, indicating minimal leverage and financial stability. Return on Equity (ROE) has improved to 28.98%, marking a significant improvement from the previous year, highlighting efficient use of equity capital.

Cash Flow

Cash flow analysis indicates robust free cash flow growth and a strong operating cash flow position. The free cash flow to net income ratio is 0.75, and the operating cash flow to net income ratio is 0.82, both suggesting high cash generation relative to profits. The company has significantly improved its cash flow management from prior years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	103.23M	80.73M	78.72M	86.13M	98.76M	104.21M
Gross Profit	4.72M	5.80M	15.95M	16.18M	-6.24M	-12.62M
EBITDA	-10.88M	12.79M	-4.64M	-4.02M	-7.91M	7.26M
Net Income	-7.79M	17.51M	-7.92M	-9.30M	-18.62M	-5.14M
Balance Sheet
Total Assets	56.04M	79.55M	55.52M	119.20M	136.64M	146.04M
Cash, Cash Equivalents and Short-Term Investments	34.63M	49.52M	26.59M	66.64M	41.94M	61.10M
Total Debt	402.00K	2.70M	536.00K	11.58M	9.13M	5.93M
Total Liabilities	10.33M	19.16M	12.63M	29.35M	37.49M	30.01M
Stockholders Equity	45.71M	60.39M	42.88M	89.85M	99.15M	116.03M
Cash Flow
Free Cash Flow	2.36M	13.14M	4.42M	24.53M	-11.08M	9.14M
Operating Cash Flow	2.36M	14.41M	5.34M	25.43M	-8.08M	10.60M
Investing Cash Flow	7.10M	10.56M	28.57M	-21.72M	-12.86M	-2.81M
Financing Cash Flow	-47.44M	-2.04M	-53.76M	1.01M	3.19M	-6.23M

ETS Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 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:8031, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.15, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.09 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8031.

ETS Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2180	70 Neutral	HK$1.25B	8.61	10.74%	4.31%	16.07%	0.77%
6100	69 Neutral	HK$2.15B	14.40	4.48%	―	-10.48%	30250.00%
8462	67 Neutral	HK$64.80M	3.38	7.43%	―	-11.47%	5.00%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
6919	54 Neutral	HK$713.18M	10.94	-5.73%	1.93%	20.23%	-275.42%
8031	54 Neutral	HK$35.77M	―	-13.66%	―	―	―
8042	48 Neutral	HK$39.20M	17.50	3.76%	―	50.80%	―