Quantum Thinking Limited (8050) AI Stock Analysis

• Market Cap: HK$467.91M
• Dividend Yield: N/A
• Average Volume (3M): 683.47K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.39
• Revenue Growth: 144.88%
• EPS Growth: -302.04%
• Country: HK
• Employees: 23
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 1,356,250,000
• 10 Day Avg. Volume: 793,800
• 30 Day Avg. Volume: 683,466
• PEG Ratio: 0.04
• Price to Book (P/B): -128.29
• Price to Sales (P/S): 4.32
• P/FCF Ratio: -22.65
• 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: 47.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: HK$0.50 ▲(47.06% 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, 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 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 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	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: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 0.34 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.18, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 75.49 is Negative, neither overbought nor oversold. The STOCH value of 55.33 is Neutral, 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
8050	53 Neutral	HK$467.91M	―	-253.21%	―	144.88%	-302.04%
Sector *	50 Neutral	C$3.52B	0.36	-5.03%	7.64%	16.99%	-2.41%
DAC	―		―		―	―	―
1460	78 Outperform	HK$289.60M	11.26	4.67%	3.03%	5.87%	54.21%
1402	56 Neutral	HK$304.50M	―	-9.44%	2.00%	-6.11%	-16.26%
8606	53 Neutral	HK$134.46M	―	-6.08%	―	8.50%	67.35%
8229	46 Neutral	HK$319.39M	―	-11.66%	―	-9.21%	-4.52%