Atlinks Group Ltd. (8043) AI Stock Analysis

• Market Cap: HK$72.40M
• Dividend Yield: N/A
• Average Volume (3M): 20.17K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.35
• Revenue Growth: 9.71%
• EPS Growth: N/A
• Country: HK
• Employees: 62
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): N/A
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 33,500
• 30 Day Avg. Volume: 20,166
• PEG Ratio: -4.49
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 3.73
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$0.19 ▲(6.67% Upside)

The overall stock score of 60 reflects modest financial performance improvements, particularly in cash flow management, but ongoing challenges in profitability and revenue growth. Technical indicators suggest potential bearish momentum, and the valuation is moderate with no dividend yield to enhance appeal.

Positive Factors

Cash Flow Management

Improved cash flow management enhances liquidity and operational efficiency, providing a stronger foundation for future investments and growth.

Gross Profit Margin

An improved gross profit margin indicates better cost management, which can lead to enhanced profitability and competitive pricing strategies.

Leverage Reduction

A reduction in leverage enhances financial stability and reduces risk, allowing for more strategic financial planning and investment opportunities.

Negative Factors

Revenue Decline

Declining revenue can limit growth potential and indicates challenges in market penetration or product demand, impacting long-term sustainability.

Low Net Profit Margin

A low net profit margin suggests difficulties in converting revenue into profit, which may hinder reinvestment and shareholder returns.

Low Return on Equity

Low ROE indicates inefficient use of equity capital, potentially deterring investors and limiting the company's ability to raise funds.

Atlinks Group Ltd. Business Overview & Revenue Model

Company Description

Atlinks Group Limited, an investment holding company, designs, develops, and sells home and office telecommunication products to retailers, telecommunication operators, and distributors worldwide. The company develops and distributes telephones, monitoring solutions, baby monitors, and conferencing phones under the Alcatel brand; and landline phones, smart home accessories, mobile phones, and various services to support and reassure senior users under the Swissvoice brand. It also provides sound telephones, headphones, accessories, and mobile phones under the Amplicomms brand. In addition, the company develops and trades in electrical equipment, including radio communication equipment; and manages trademarks. The company was founded in 2013 and is based in Kowloon Bay, Hong Kong. Atlinks Group Limited is a subsidiary of Eiffel Global Limited.

How the Company Makes Money

Atlinks Group Ltd. generates revenue through the sale of its communication devices and related services. The primary revenue streams include direct sales of cordless phones and smart home devices to retailers and distributors, as well as e-commerce sales through its online platforms. Additionally, Atlinks may benefit from strategic partnerships with telecommunications providers and retail chains, which can enhance distribution capabilities and increase market reach. The company may also explore revenue opportunities through value-added services such as extended warranties, customer support, and software updates for its devices, further contributing to its overall earnings.

Atlinks Group Ltd. Financial Statement Overview

Summary

Atlinks Group Ltd. shows modest improvements in cash flow and cost management, but faces challenges in revenue growth and profitability. The balance sheet indicates slight improvements in leverage, but overall financial health is constrained by low profitability and returns on equity.

Income Statement

The company experienced a slight decline in revenue over the past year, with a drop from $29.73M to $29.47M. Gross profit margin improved, reaching 36.37% in 2024 compared to 31.67% in 2023, indicating better cost management. However, net profit margin remained low at 0.05% in 2024, showing challenges in translating revenue into net income. There is a noted improvement in EBIT margin from 2.75% in 2023 to 2.35% in 2024, although overall profitability remains a concern.

Balance Sheet

The debt-to-equity ratio improved slightly to 1.48 in 2024 from 1.53 in 2023, indicating a minor reduction in leverage. The return on equity (ROE) remains low at 0.20%, reflecting limited returns on shareholder investments. The equity ratio is stable at around 25.45%, indicating a balanced asset structure but potential vulnerability to high debt levels.

Cash Flow

The company showed significant improvement in free cash flow, which turned positive to $1.84M in 2024 from a negative $0.49M in 2023, indicating better cash management. The operating cash flow to net income ratio improved, suggesting more efficient conversion of earnings into cash flow. The free cash flow to net income ratio also improved, reflecting stronger liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.20M	29.47M	29.73M	29.96M	34.07M	29.83M
Gross Profit	10.79M	10.72M	9.42M	7.97M	10.60M	9.01M
EBITDA	1.74M	1.44M	1.55M	181.28K	1.59M	2.11M
Net Income	414.52K	15.30K	105.18K	-889.90K	205.18K	514.38K
Balance Sheet
Total Assets	26.25M	30.69M	29.17M	33.33M	33.24M	30.67M
Cash, Cash Equivalents and Short-Term Investments	653.51K	1.76M	1.13M	2.46M	5.02M	5.33M
Total Debt	10.73M	11.57M	11.93M	12.63M	12.97M	8.73M
Total Liabilities	18.61M	22.88M	21.36M	25.55M	24.93M	22.71M
Stockholders Equity	7.64M	7.81M	7.82M	7.78M	8.31M	7.96M
Cash Flow
Free Cash Flow	262.53K	1.84M	-494.48K	-682.81K	-3.62M	3.76M
Operating Cash Flow	330.56K	2.00M	-322.67K	-427.73K	-2.35M	4.49M
Investing Cash Flow	662.42K	-323.38K	-171.81K	-255.08K	-1.27M	-672.32K
Financing Cash Flow	-1.40M	-1.07M	-899.03K	-1.61M	3.17M	-436.47K

Atlinks Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8043, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.19, and above the 200-day MA of 0.16, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.88 is Neutral, neither overbought nor oversold. The STOCH value of 17.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8043.

Atlinks Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1720	63 Neutral	HK$115.50M	5.05	3.56%	―	8.78%	160.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1617	61 Neutral	HK$174.01M	2.66	7.40%	―	-9.34%	605.26%
8043	60 Neutral	HK$72.40M	20.80	5.29%	―	9.71%	―
1300	45 Neutral	HK$548.70M	―	-0.68%	―	6.88%	-49.48%
1613	41 Neutral	HK$109.49M	-2.96	-30.44%	―	-58.81%	-10.53%