Quantum Thinking Limited (8050) AI Stock Analysis

• Market Cap: HK$617.09M
• Dividend Yield: N/A
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.45
• Revenue Growth: 144.88%
• EPS Growth: -302.04%
• Country: HK
• Employees: 23
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 1,356,250,000
• 10 Day Avg. Volume: 1,527,900
• 30 Day Avg. Volume: 1,153,800
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: HK$0.50 ▲(8.70% Upside)

The overall stock score is primarily influenced by the company's strong revenue growth, which is overshadowed by significant profitability and financial stability challenges. Technical analysis shows bullish momentum, but the stock may be overbought. Valuation metrics are weak due to negative profitability.

Quantum Thinking Limited Business Overview & Revenue Model

Company Description

Quantum Thinking Limited (8050) is a forward-thinking technology company specializing in advanced analytical solutions and artificial intelligence applications. Operating in sectors such as data science, machine learning, and business intelligence, the company focuses on providing innovative software and consulting services that empower organizations to harness their data for strategic decision-making. Core products include data analytics platforms, AI-driven predictive modeling tools, and customized consulting services tailored to specific industry needs.

How the Company Makes Money

Quantum Thinking Limited generates revenue through a diversified model that includes subscription fees for its software products, one-time licensing fees, and consulting service charges. The subscription model provides a steady stream of recurring revenue as clients pay for ongoing access to the software and its updates. Additionally, the company earns money from customized consulting services that help businesses implement and optimize their data analytics strategies. Key partnerships with major cloud service providers enhance its product offerings and extend market reach, contributing significantly to its earnings through co-marketing initiatives and bundled service solutions.

Quantum Thinking Limited Financial Statement Overview

Summary

Quantum Thinking Limited shows strong revenue growth but faces significant challenges in profitability and financial stability. Negative margins and a precarious balance sheet highlight the need for improved cost management and equity strengthening.

Income Statement

Quantum Thinking Limited shows a significant revenue growth rate of 32.97% in the latest year, indicating potential market expansion. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is also low, suggesting challenges in cost management. Overall, while revenue growth is a positive sign, the company needs to address its profitability issues.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity and a high debt-to-equity ratio of -6.34, indicating financial instability and potential solvency risks. The return on equity is positive, but this is due to the negative equity, which is not a sustainable situation. The company needs to improve its equity position to enhance financial stability.

Cash Flow

Cash flow analysis shows a slight improvement in free cash flow growth, but the company still faces negative operating cash flow, which is a concern for liquidity. The free cash flow to net income ratio is slightly above 1, indicating that the company is generating enough free cash flow relative to its net income, but the negative operating cash flow coverage ratio highlights ongoing cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.75M	39.55M	16.15M	18.29M	32.80M	41.24M
Gross Profit	514.00K	742.00K	761.00K	1.82M	3.88M	3.44M
EBITDA	-11.67M	-12.66M	7.28M	-13.42M	-16.22M	12.55M
Net Income	-10.69M	-13.41M	6.60M	-10.11M	-18.19M	16.70M
Balance Sheet
Total Assets	14.87M	15.25M	15.72M	34.63M	58.21M	62.02M
Cash, Cash Equivalents and Short-Term Investments	4.05M	1.89M	2.79M	11.70M	30.87M	47.47M
Total Debt	7.29M	8.45M	724.00K	1.60M	1.44M	2.06M
Total Liabilities	21.14M	30.21M	17.40M	48.01M	54.96M	37.13M
Stockholders Equity	7.62M	-1.33M	11.92M	246.00K	10.71M	28.41M
Cash Flow
Free Cash Flow	-7.00M	-7.55M	-8.16M	-17.23M	-16.11M	-9.96M
Operating Cash Flow	-7.00M	-7.53M	-8.16M	-16.93M	-16.09M	-9.79M
Investing Cash Flow	2.17M	-11.00K	7.89M	13.83M	7.48M	3.36M
Financing Cash Flow	3.19M	6.65M	-841.00K	-1.11M	-2.49M	-2.28M

Quantum Thinking Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8050, the sentiment is Positive. The current price of 0.46 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.30, and above the 200-day MA of 0.20, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 15.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	285.22M	11.09	4.57%	3.23%	5.87%	54.21%
8050	53 Neutral	HK$617.09M	―	-253.21%	―	144.88%	-302.04%
8606	51 Neutral	117.11M	-73.64	-6.27%	―	5.01%	82.54%
8229	46 Neutral	324.90M	-17.00	-10.86%	―	-9.21%	-4.52%
1402	46 Neutral	262.50M	-17.48	-15.63%	―	-6.11%	-16.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%