KOS International Holdings Limited (8042) AI Stock Analysis

• Market Cap: HK$33.60M
• Dividend Yield: N/A
• Average Volume (3M): 400.00K
• Price to Earnings (P/E): 14.6
• Beta (1Y): -0.15
• Revenue Growth: 50.80%
• EPS Growth: N/A
• Country: HK
• Employees: 133
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): <0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 160,000
• 30 Day Avg. Volume: 400,000
• PEG Ratio: 0.37
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -5.47
• 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

• Rating: 59 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 59 reflects strong revenue growth and a solid balance sheet, but is tempered by challenges in profitability and cash flow generation. Technical indicators provide a neutral to slightly positive outlook, while the valuation is reasonable. The absence of earnings call data and corporate events limits additional insights.

KOS International Holdings Limited Business Overview & Revenue Model

Company Description

KOS International Holdings Limited, an investment holding company, provides human resources (HR) services to clients from various industries in the People's Republic of China. The company offers recruitment, and secondment and payroll services. It offers its services under the brands KOS Executive, KOS Recuritment, KOS staffing, KOS solutions, and KOS china. KOS International Holdings Limited was founded in 2009 and is headquartered in Tsim Sha Tsui, Hong Kong. KOS International Holdings Limited is a subsidiary of KJE Limited.

How the Company Makes Money

KOS International Holdings Limited generates revenue through its recruitment and human resource services. The company's primary revenue streams include fees from successful placements of candidates in permanent positions, as well as temporary staffing and contract recruitment services. These services often involve charging client companies a percentage of the placed candidate's first-year salary or a fee based on the duration of temporary assignments. Additionally, the company may earn income from consulting services provided to businesses seeking to optimize their human resource strategies. Significant partnerships with various companies across industries also contribute to its earnings by facilitating a steady demand for its services.

KOS International Holdings Limited Financial Statement Overview

Summary

KOS International Holdings Limited demonstrates strong revenue growth but faces challenges with profitability and cash flow generation. The balance sheet remains strong with low leverage, but the negative return on equity and declining cash flows indicate areas needing improvement. The company must focus on enhancing profitability and cash generation to sustain its growth trajectory.

Income Statement

The company has shown a significant increase in revenue over the years, with a revenue growth rate of 49.35% from 2023 to 2024. However, profitability remains a concern as the net profit margin is negative at -1.19% in 2024. Gross profit margin has decreased to 12.47% in 2024 from 25.37% in 2023, indicating a decline in cost efficiency. The EBIT margin improved to 12.14% in 2024 from -3.12% in 2023, showing some operational improvement. Overall, the income statement reflects strong revenue growth but struggles with profitability.

Balance Sheet

The balance sheet reveals a strong equity position, with an equity ratio of 69.46% in 2024, showcasing financial stability. The debt-to-equity ratio is relatively low at 0.18, indicating low leverage and reduced financial risk. However, there is a decline in stockholders' equity from previous years. Return on equity is negative at -4.38% due to negative net income, reflecting inefficiencies in generating returns for shareholders.

Cash Flow

The cash flow statement highlights challenges in cash generation, with operating cash flow reduced to zero in 2024. Free cash flow has also declined, and there is no growth in free cash flow compared to 2023. The absence of positive cash flow metrics suggests operational cash generation issues, which could impact the company's ability to invest and grow further.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	257.67M	214.42M	143.57M	125.97M	108.95M	65.28M
Gross Profit	29.22M	41.77M	23.95M	37.76M	31.25M	8.07M
EBITDA	5.35M	4.64M	3.61M	22.08M	18.72M	2.68M
Net Income	2.25M	-2.55M	-4.16M	14.05M	12.80M	-1.62M
Balance Sheet
Total Assets	90.16M	83.70M	80.49M	91.67M	76.00M	48.48M
Cash, Cash Equivalents and Short-Term Investments	24.76M	25.11M	35.27M	43.68M	44.38M	32.57M
Total Debt	16.64M	10.23M	4.39M	13.10M	11.66M	1.60M
Total Liabilities	29.40M	25.54M	19.26M	25.86M	23.73M	9.17M
Stockholders Equity	60.75M	58.16M	61.23M	65.81M	52.27M	39.31M
Cash Flow
Free Cash Flow	-6.18M	-6.58M	1.64M	5.81M	10.87M	4.96M
Operating Cash Flow	-5.91M	-6.34M	2.77M	11.21M	12.84M	5.34M
Investing Cash Flow	145.50K	488.00K	-635.00K	-5.33M	-5.08M	-314.00K
Financing Cash Flow	6.31M	-3.98M	-4.06M	-5.68M	-3.61M	-2.44M

KOS International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8042, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.00 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8042.

KOS International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2180	73 Outperform	HK$1.11B	7.32	11.29%	35.57%	17.49%	9.67%
8462	68 Neutral	HK$57.00M	5.65	7.43%	―	-11.47%	5.00%
6100	64 Neutral	HK$1.73B	11.00	4.48%	―	-10.48%	30250.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8031	60 Neutral	HK$54.99M	―	-13.66%	―	―	―
8042	59 Neutral	HK$33.60M	14.64	3.76%	―	50.80%	―
6919	52 Neutral	HK$763.69M	10.94	-4.09%	1.80%	14.29%	-200.37%