Quantum Thinking Limited (8050) AI Stock Analysis

• Market Cap: HK$184.45M
• Dividend Yield: N/A
• Average Volume (3M): 359.67K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.46
• Revenue Growth: 79.84%
• EPS Growth: -219.70%
• Country: HK
• Employees: 23
• Sector: Technology
• Sector Strength: 93
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 1,356,250,000
• 10 Day Avg. Volume: 344,200
• 30 Day Avg. Volume: 359,666
• PEG Ratio: 0.05
• Price to Book (P/B): 24.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -26.35
• 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: 39 Underperform
• Price Target: ―

Quantum Thinking Limited is currently facing significant financial challenges, including declining revenues and profitability issues. The technical indicators suggest a bearish trend, with oversold conditions indicating potential for further declines. The valuation metrics highlight financial instability, making the stock unattractive at this time. Strategic improvements are necessary to enhance its financial health and market performance.

Quantum Thinking Limited Business Overview & Revenue Model

Company Description

Quantum Thinking Limited, an investment holding company, engages in the provision of system development and other value-added technical consultation services, and hardware-related businesses in the People's Republic of China. The company operates through System Development, Consultancy, Maintenance and Other Services; and Sales of Hardware Products segments. It engages in developing and establishing integrated online platforms for the distribution of mobile products, as well as online network systems; and technical and software development of identity authentication services related products. The company was formerly known as Yunbo Digital Synergy Group Limited and changed its name to Quantum Thinking Limited in December 2017. The company was incorporated in 2000 and is headquartered in Wan Chai, Hong Kong. Quantum Thinking Limited is a subsidiary of Happy On Holdings Limited.

How the Company Makes Money

Quantum Thinking Limited generates revenue primarily through its IT services and solutions. The company earns money by offering subscription-based cloud computing services, where clients pay for access to computing resources and data storage. Additionally, Quantum Thinking Limited provides IT infrastructure management services, which involve setting up and maintaining IT systems for businesses, generating income through service contracts and maintenance fees. Software development projects also contribute to the company's earnings, as they develop custom software solutions for clients, often under project-based contracts or licensing agreements. Partnerships with technology providers and enterprise clients can significantly enhance their revenue streams by expanding their market reach and service offerings.

Quantum Thinking Limited Financial Statement Overview

Summary

Quantum Thinking Limited is navigating through financial difficulties, with declining revenues and profitability challenges. While there is a slight improvement in net income and equity, the overall financial health remains fragile with significant cash flow and leverage issues. The company needs strategic initiatives to enhance operational efficiency and financial stability to ensure long-term viability.

Income Statement

Quantum Thinking Limited has experienced a significant decline in revenue from 2021 to 2024, with a notable drop in gross profit margin from earlier years. The company posted a negative EBIT and declining EBITDA in recent years, indicating operational challenges and inefficiencies. However, the net income turned positive in 2024, marking a slight improvement in profitability, although it remains relatively weak.

Balance Sheet

The balance sheet reveals a positive shift in equity in 2024, but the company still faces high liabilities compared to its assets. The debt-to-equity ratio shows improvement as equity has increased, yet overall leverage remains a concern. The equity ratio indicates a need for more robust financial stability.

Cash Flow

Cash flow analysis shows ongoing negative free cash flow and operating cash flow, signaling liquidity issues. Although there was a positive change in investing cash flow, the company’s cash generation capabilities remain weak, impacting its ability to finance operations sustainably.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	16.15M	18.29M	32.80M	41.24M	26.56M
Gross Profit	761.00K	1.82M	3.88M	3.44M	1.57M
EBITDA	7.28M	-13.42M	-16.22M	12.55M	-25.12M
Net Income	6.60M	-10.11M	-18.19M	16.70M	-26.71M
Balance Sheet
Total Assets	15.72M	34.63M	58.21M	62.02M	89.28M
Cash, Cash Equivalents and Short-Term Investments	2.79M	11.70M	30.87M	47.47M	57.06M
Total Debt	724.00K	1.60M	1.44M	2.06M	7.09M
Total Liabilities	17.40M	48.01M	54.96M	37.13M	98.72M
Stockholders Equity	11.92M	246.00K	10.71M	28.41M	11.89M
Cash Flow
Free Cash Flow	-8.16M	-17.23M	-16.11M	-9.96M	-31.12M
Operating Cash Flow	-8.16M	-16.93M	-16.09M	-9.79M	-26.00M
Investing Cash Flow	7.89M	13.83M	7.48M	3.36M	6.78M
Financing Cash Flow	-841.00K	-1.11M	-2.49M	-2.28M	-2.59M

Quantum Thinking Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.13
• 50DMA: Positive
• 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:8050, the sentiment is Neutral. The current price of 0.13 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.12, and below the 200-day MA of 0.16, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.45 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8050.

Quantum Thinking Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1460	78 Outperform	HK$254.50M	11.43	4.67%	2.99%	7.39%	142.61%
Sector *	63 Neutral	$34.26B	5.42	-11.67%	1.85%	5.30%	-18.55%
8606	53 Neutral	HK$138.80M	―	-6.08%	―	8.50%	67.35%
1402	53 Neutral	HK$224.70M	―	-9.44%	2.00%	-26.46%	-3816.67%
8050	39 Underperform	HK$184.45M	―	-253.21%	―	79.84%	-219.70%
DAC	―		―		―	―	―
8229	46 Neutral	HK$188.60M	―	-11.66%	―	-9.21%	-4.52%