Madison Holdings Group Limited (8057) AI Stock Analysis

• Market Cap: HK$61.07M
• Dividend Yield: N/A
• Average Volume (3M): 16.44K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.06
• Revenue Growth: 3.35%
• EPS Growth: 17.48%
• Country: HK
• Employees: 109
• Sector: Financial
• Sector Strength: 70
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): -0.02
• Shares Outstanding: 623,127,200
• 10 Day Avg. Volume: 34,120
• 30 Day Avg. Volume: 16,440
• PEG Ratio: 0.56
• Price to Book (P/B): -0.46
• Price to Sales (P/S): 0.74
• P/FCF Ratio: -9.62
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$0.11 ▲(80.00% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is weighed down primarily by weak financial performance (losses, negative cash flows, and negative equity/high leverage). Technicals are comparatively strong with price above major moving averages and positive MACD, but momentum indicators are elevated. Valuation remains challenged due to a negative P/E and no dividend yield data.

Positive Factors

Modest revenue growth trend

Reported revenue growth (~3.35%) shows the company can expand top-line sales despite profitability headwinds. Over a 2-6 month horizon, persistent revenue growth supports market traction and the potential to leverage fixed costs if margins and cash conversion improve.

Positive return on equity (period measure)

A positive ROE indicates the business generated accounting returns in the period, implying operational capability to produce profits before capital structure distortions. If the balance sheet is stabilized, this operational profitability could translate into sustainable shareholder returns.

Cash flow to net income ratios supportive

Positive cash-flow-to-income ratios suggest reported earnings have some cash backing, reflecting earnings quality versus pure accounting losses. This structural relationship helps liquidity planning and indicates management can convert operating activity into cash when absolute flows improve.

Negative Factors

Negative equity and high leverage

Negative shareholders' equity and heavy leverage are structural balance-sheet weaknesses that constrain strategic options, increase refinancing risk, and may require recapitalization. This ongoing capital structure strain impairs long-term financial flexibility and creditor confidence.

Negative operating and free cash flows

Sustained negative operating and free cash flows erode liquidity and force reliance on external funding or asset sales. This undermines the company's ability to invest, service debt, or sustain operations over months unless cash generation reverses significantly.

Weak and declining profit margins

Declining gross margins coupled with negative net margins point to cost pressures or pricing weakness that reduce operating leverage benefits. Structural margin erosion makes scaling less effective for restoring profitability and heightens sensitivity to revenue volatility.

Madison Holdings Group Limited Business Overview & Revenue Model

Company Description

Madison Holdings Group Limited, an investment holding company, engages in the retail and wholesale of wine products and other alcoholic beverages in the People's of Republic of China and Hong Kong. It operates through Sales of Alcoholic Beverages, Financial Services, and Loan Financing Services segments. The company also offers wine storage services; financial consultancy services; securities and futures dealing services; and loan financing and loan referral services, as well as business consultancy services. The company was formerly known as Madison Wine Holdings Limited and changed its name to Madison Holdings Group Limited in July 2017. Madison Holdings Group Limited was founded in 1997 and is based in Wong Chuk Hang, Hong Kong.

How the Company Makes Money

Madison Holdings Group Limited generates revenue through several key streams. Primarily, the company earns money from property sales and leasing, capitalizing on its portfolio of developed and undeveloped real estate. Additionally, revenues are generated through the hospitality sector, where the company manages hotels and related services, benefitting from both room bookings and ancillary services such as dining and events. Strategic partnerships with local and international developers, as well as alliances with tourism agencies, also contribute to its earnings by enhancing market reach and operational efficiency. The company's ability to adapt to market conditions and leverage its assets effectively plays a crucial role in its revenue generation.

Madison Holdings Group Limited Financial Statement Overview

Summary

Overall financial health is weak: persistent losses, negative operating/free cash flow, and a precarious balance sheet with negative equity and high leverage. Some revenue growth is present, but margins and profitability remain major concerns.

Income Statement

The company has shown some revenue growth in the latest year, but profitability remains a significant concern with negative net profit margins and fluctuating EBIT and EBITDA margins. The gross profit margin has decreased over the years, indicating potential cost management issues.

Balance Sheet

The balance sheet reveals a precarious financial position with negative stockholders' equity and a high debt-to-equity ratio, indicating significant leverage. Return on equity is positive but misleading due to negative equity, suggesting financial instability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a concerning decline in free cash flow growth. The ratios of cash flow to net income are positive but reflect the company's struggle to generate cash from operations.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	71.09M	68.09M	97.17M	130.49M	106.90M
Gross Profit	30.60M	19.29M	46.49M	42.25M	44.12M
EBITDA	-6.09M	-2.10M	35.25M	18.17M	50.21M
Net Income	-15.22M	-16.22M	-2.21M	-16.64M	-34.97M
Balance Sheet
Total Assets	336.99M	350.81M	432.28M	618.52M	649.42M
Cash, Cash Equivalents and Short-Term Investments	22.32M	34.44M	72.91M	49.74M	19.66M
Total Debt	95.99M	107.22M	135.88M	369.91M	352.77M
Total Liabilities	188.06M	237.52M	282.70M	442.25M	410.33M
Stockholders Equity	-114.07M	-38.88M	-12.42M	3.53M	11.15M
Cash Flow
Free Cash Flow	-5.44M	-9.59M	30.68M	45.72M	16.44M
Operating Cash Flow	-5.34M	-9.46M	30.81M	46.52M	16.49M
Investing Cash Flow	1.10M	9.56M	9.30M	5.66M	135.06M
Financing Cash Flow	-7.54M	-36.83M	-23.02M	-22.77M	-176.91M

Madison Holdings Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8057, the sentiment is Positive. The current price of 0.06 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.47 is Neutral, neither overbought nor oversold. The STOCH value of 90.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8057.

Madison Holdings Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8509	75 Outperform	HK$256.00M	7.57	13.15%	―	15.66%	-1.25%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0828	54 Neutral	HK$325.34M	13.36	7.35%	1.30%	-4.14%	-21.15%
8057	47 Neutral	HK$61.07M	-1.39	―	―	3.35%	17.48%
8146	45 Neutral	HK$504.06M	-14.99	-23.19%	―	-18.68%	-3305.88%
1389	41 Neutral	HK$131.93M	-39.56	-7.08%	―	-32.89%	57.23%
0389	40 Underperform	HK$104.04M	458.76	-65.18%	―	―	―