KOS International Holdings Limited (8042) AI Stock Analysis

• Market Cap: HK$47.20M
• Dividend Yield: N/A
• Average Volume (3M): 230.00K
• Price to Earnings (P/E): 21.1
• Beta (1Y): -0.05
• Revenue Growth: 50.80%
• EPS Growth: N/A
• Country: HK
• Employees: 133
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): N/A
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 291,000
• 30 Day Avg. Volume: 230,000
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$0.06 ▼(-21.43% Downside)

The score is primarily constrained by weak profitability and cash generation despite strong revenue growth and a solid, low-leverage balance sheet. Technicals are relatively supportive with price above major moving averages and neutral-to-positive momentum, while valuation (P/E ~24.3 with no dividend yield provided) is only fair given current fundamentals.

Positive Factors

Revenue Growth

The company demonstrates robust revenue growth, indicating successful market expansion and effective business strategies that could sustain future growth.

Balance Sheet Health

A strong equity position and low leverage reduce financial risk, providing the company with stability and flexibility to pursue growth opportunities.

Operational Improvement

Improvement in EBIT margin reflects better operational efficiency, which can enhance profitability and competitive positioning over time.

Negative Factors

Profitability Concerns

Negative profitability metrics indicate challenges in converting revenue into profit, which could hinder long-term financial health and shareholder returns.

Cash Generation Issues

Zero operating cash flow suggests difficulties in generating cash internally, potentially impacting the company's ability to invest and grow sustainably.

Declining Gross Profit Margin

A declining gross profit margin indicates reduced cost efficiency, which could pressure future profitability and competitive advantage.

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 multiple streams, primarily from its logistics and supply chain management services, which include warehousing, transportation, and distribution solutions for various industries. The company also earns income from trading consumer products, capitalizing on its extensive network and relationships with suppliers and retailers. Key revenue streams include service fees from logistics operations, margins on product sales, and potential commissions from partnerships with other businesses. Additionally, collaborations with industry partners and investments in technology to streamline operations contribute significantly to its earnings, allowing the company to maintain a competitive edge in the market.

KOS International Holdings Limited Financial Statement Overview

Summary

The company exhibits strong revenue growth with a 49.35% increase from 2023 to 2024. However, profitability is a concern with a negative net profit margin of -1.19% and declining gross profit margin. The balance sheet is stable with low leverage, but cash flow generation is weak, impacting the company's ability to invest and grow.

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: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8042, the sentiment is Positive. The current price of 0.07 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.44 is Neutral, neither overbought nor oversold. The STOCH value of 56.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	7.31	11.29%	36.73%	17.49%	9.67%
6100	72 Outperform	HK$1.91B	12.39	―	―	-10.48%	30250.00%
8031	66 Neutral	HK$82.78M	―	―	―	―	―
8462	66 Neutral	HK$49.20M	4.88	7.43%	―	-11.47%	5.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8042	60 Neutral	HK$47.20M	21.07	3.76%	―	50.80%	―
6919	46 Neutral	HK$685.64M	-11.88	-4.09%	2.26%	14.29%	-200.37%