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Quantum Thinking Limited (HK:8050)
:8050
Hong Kong Market
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Quantum Thinking Limited (8050) AI Stock Analysis

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HK

Quantum Thinking Limited

(8050)

Rating:39Underperform
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 (8050) vs. iShares MSCI Hong Kong ETF (EWH)

Quantum Thinking Limited Business Overview & Revenue Model

Company DescriptionQuantum 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 MoneyQuantum 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
35
Negative
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
40
Negative
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
30
Negative
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.
BreakdownMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue16.15M18.29M32.80M41.24M26.56M
Gross Profit761.00K1.82M3.88M3.44M1.57M
EBITDA7.28M-13.42M-16.22M12.55M-25.12M
Net Income6.60M-10.11M-18.19M16.70M-26.71M
Balance Sheet
Total Assets15.72M34.63M58.21M62.02M89.28M
Cash, Cash Equivalents and Short-Term Investments2.79M11.70M30.87M47.47M57.06M
Total Debt724.00K1.60M1.44M2.06M7.09M
Total Liabilities17.40M48.01M54.96M37.13M98.72M
Stockholders Equity11.92M246.00K10.71M28.41M11.89M
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 Flow7.89M13.83M7.48M3.36M6.78M
Financing Cash Flow-841.00K-1.11M-2.49M-2.28M-2.59M

Quantum Thinking Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.13
Price Trends
50DMA
0.12
Positive
100DMA
0.14
Negative
200DMA
0.16
Negative
Market Momentum
MACD
<0.01
Negative
RSI
51.45
Neutral
STOCH
46.67
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
HK$254.50M11.434.67%2.99%7.39%142.61%
63
Neutral
$34.26B5.42-11.67%1.85%5.30%-18.55%
53
Neutral
HK$138.80M-6.08%8.50%67.35%
53
Neutral
HK$224.70M-9.44%2.00%-26.46%-3816.67%
39
Underperform
HK$184.45M-253.21%79.84%-219.70%
DEDAC
46
Neutral
HK$188.60M-11.66%-9.21%-4.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8050
Quantum Thinking Limited
0.13
-0.01
-7.14%
DE:DAC
Maxnerva Technology Services Limited
HK:1402
i-Control Holdings Limited
0.23
-0.05
-17.86%
HK:1460
ICO Group Limited
0.29
0.12
70.59%
HK:8229
Future Data Group Ltd.
0.34
-0.15
-30.61%
HK:8606
Kinetix Systems Holdings Limited
0.10
0.03
42.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025