KOS International Holdings Limited (8042) AI Stock Analysis

• Market Cap: HK$32.00M
• Dividend Yield: N/A
• Average Volume (3M): 108.67K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.25
• Revenue Growth: 48.57%
• EPS Growth: 38.46%
• Country: HK
• Employees: 133
• Sector: Industrials
• Sector Strength: 85
• Industry: Staffing & Employment Services
• EPS (TTM): >-0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 264,000
• 30 Day Avg. Volume: 108,666
• PEG Ratio: -0.19
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.09
• 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

• Rating: 49 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score reflects strong revenue growth but significant challenges with profitability, cash flow, and valuation. The technical indicators suggest bearish momentum with potential short-term reversal due to oversold conditions. The negative P/E ratio and lack of dividends further impact the stock's attractiveness.

KOS International Holdings Limited Business Overview & Revenue Model

Company Description

KOS International Holdings Limited (8042) is a Hong Kong-based company primarily engaged in the provision of human resources and recruitment services. The company operates mainly through its recruitment services segment, offering a range of solutions including permanent and contract recruitment, executive search, and other human resource-related services across various industries.

How the Company Makes Money

KOS International Holdings Limited generates revenue mainly through fees charged for its recruitment and human resource services. The company's income is derived from placement fees, which are charged when they successfully place candidates in positions for their clients. The fees can vary depending on the level of the position and the terms agreed upon with each client. Additionally, they may earn revenue from providing contract staffing solutions, where they supply temporary staff to businesses and charge a markup on the employee's salary. The company may also form strategic partnerships with businesses to offer tailored recruitment and HR solutions, contributing to its earnings.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
214.42M	143.57M	125.97M	108.95M	65.28M
	Gross Profit
41.77M	36.42M	37.76M	31.25M	8.07M
	EBIT
26.03M	-4.47M	17.93M	15.29M	-838.00K
	EBITDA
4.64M	3.61M	22.08M	18.72M	2.68M
	Net Income Common Stockholders
-2.55M	-4.16M	14.05M	12.80M	-1.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.11M	35.27M	43.68M	44.38M	32.57M
	Total Assets
83.70M	80.49M	91.67M	76.00M	48.48M
	Total Debt
10.23M	4.39M	13.10M	11.66M	1.60M
	Net Debt
-14.46M	-30.27M	-29.63M	-31.11M	-30.97M
	Total Liabilities
25.54M	19.26M	25.86M	23.73M	9.17M
	Stockholders Equity
58.16M	61.23M	65.81M	52.27M	39.31M
Cash Flow		Free Cash Flow
-6.58M	1.64M	5.81M	10.87M	4.96M
	Operating Cash Flow
-6.34M	2.77M	11.21M	12.84M	5.34M
	Investing Cash Flow
488.00K	-635.00K	-5.33M	-5.08M	-314.00K
	Financing Cash Flow
-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: Positive
• 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 Positive momentum. The RSI at 38.91 is Neutral, neither overbought nor oversold. The STOCH value of 14.48 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
8201	72 Outperform	HK$41.04M	―	-6.39%	―	14.00%	-366.00%
Sector *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%
8611	50 Neutral	HK$304.20M	―	-37.23%	―	14.28%	78.69%
8042	49 Neutral	HK$32.00M	―	-4.27%	―	48.57%	38.46%
8310	41 Neutral	HK$553.84M	8.50		―	-32.49%	-182.35%
8133	39 Underperform	HK$12.98M	―	-8.84%	―	-16.83%	62.13%