EFT Solutions Holdings Ltd (8062) AI Stock Analysis

• Market Cap: HK$96.48M
• Dividend Yield: 8.4%
• Average Volume (3M): 152.00K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.12
• Revenue Growth: -29.38%
• EPS Growth: -104.21%
• Country: HK
• Employees: 78
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): <0.01
• Shares Outstanding: 480,000,000
• 10 Day Avg. Volume: 268,500
• 30 Day Avg. Volume: 152,000
• PEG Ratio: -0.29
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 3.65
• 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: 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: 63 Neutral
• Price Target: HK$0.21 ▼(-6.96% Downside)

The score is supported primarily by the company’s strong balance sheet (near zero leverage) and robust FY2025 cash generation. This is meaningfully offset by weak technicals (downtrend and negative momentum) and inconsistent operating performance, including FY2025 revenue decline and sharply lower margins.

Positive Factors

Conservative balance sheet

An effectively debt-free balance sheet gives durable financial flexibility to fund organic growth, weather downturns, pursue acquisitions, or sustain dividends without interest burden. This materially lowers insolvency risk and preserves capital-allocation optionality over months.

Strong cash generation

Robust FY2025 operating and free cash flow, with ~27.7% FCF growth and FCF close to net income, demonstrate strong cash conversion. Persistent cash generation supports reinvestment, dividend capacity and strategic flexibility, underpinning financial resilience over the medium term.

Demonstrated operating profitability

The company has maintained positive operating profit in FY2025 and has produced materially stronger margins in prior years, indicating underlying operating leverage and product economics. This suggests potential for margin recovery if revenue stabilizes and mix improves.

Negative Factors

Revenue decline and volatility

Choppy top-line performance and a meaningful FY2025 decline undermine predictability for capacity, pricing, and long-term growth planning. Persistent revenue volatility raises execution risk, makes margin recovery harder, and complicates capital-allocation decisions over multiple quarters.

Sharp profitability reset

A pronounced drop in net margin materially lowers retained earnings and returns (ROE fell to ~4.2%), constraining reinvestment and dividend flexibility. Unless the company restores pricing, mix, or cost structure, the lower profitability impairs sustainable value generation over the medium term.

Cash flow and working-capital volatility

Year-to-year swings in operating cash flow point to working-capital timing and execution variability. Persistent cash-flow volatility increases forecasting uncertainty and can force trade-offs among capex, dividends and liquidity buffers, limiting strategic execution over months.

EFT Solutions Holdings Ltd Business Overview & Revenue Model

Company Description

EFT Solutions Holdings Limited, an investment holding company, provides electronic fund transfer at point-of-sale (EFT-POS) solutions in Hong Kong, Macau, Australia, and internationally. The company operates through Sale of Hardware Devices, and System Support and Software Solution Services segments. It provides EFT-POS terminals and peripheral devices sourcing services, as well as EFT-POS system support services to various EFT-POS terminal manufacturers, acquirers, and merchants. The company also develops software solutions, including electronic payment standards acceptance certification solutions, installation, maintenance, and repair services of EFTPOS terminals. In addition, it provides embedded system solution services; and engages in the property holding activities. The company was founded in 2004 and is headquartered in Kwai Chung, Hong Kong. EFT Solutions Holdings Limited is a subsidiary of LCK Group Limited.

How the Company Makes Money

EFT Solutions Holdings Ltd generates revenue primarily through the sale and rental of EFT-POS terminals and related software solutions. The company earns service fees from the integration and maintenance of these systems, ensuring seamless payment processing for its clients. Additionally, EFT Solutions leverages partnerships with financial institutions and service providers to expand its market reach and enhance its service offerings. Key revenue streams include upfront sales or leasing of payment terminals, ongoing maintenance contracts, and transaction-based fees for payment processing services. The company's earnings are bolstered by its ability to adapt to technological advancements and the growing demand for cashless payment solutions.

EFT Solutions Holdings Ltd Financial Statement Overview

Summary

Strong financial footing driven by an effectively debt-free balance sheet and very strong FY2025 operating/free cash flow. The key offset is volatility: FY2025 revenue fell (-13.4%) and profitability reset sharply (net margin ~5.9% vs ~24.4% in FY2024).

Income Statement

Revenue has been choppy, including a meaningful decline in FY2025 (-13.4%) after growth in FY2023–FY2024. Profitability also cooled sharply in FY2025 (net margin ~5.9% vs ~24.4% in FY2024), indicating weaker operating leverage and/or a less favorable mix. Offsetting this, the business still maintained positive operating profit in FY2025 (EBIT margin ~7.9%) and has demonstrated the ability to generate strong margins in prior years.

Balance Sheet

The balance sheet is very conservatively positioned with effectively no leverage (debt-to-equity ~0.0 across recent years), providing strong financial flexibility. Equity remains sizable relative to assets, and returns on equity have historically been solid (notably FY2024), though FY2025 profitability drove a lower return on equity (~4.2%). Overall, strength is driven by minimal debt and ample equity, with the main watch item being the variability in returns.

Cash Flow

Cash generation is a core strength: FY2025 operating cash flow (40.2M) and free cash flow (36.9M) were very strong with free cash flow growth of ~27.7%. Cash flow also compared favorably to earnings in FY2025 (free cash flow close to net income), suggesting good cash conversion. The key weakness is volatility—FY2024 showed much weaker cash generation (operating cash flow below net income), implying working-capital swings or timing effects.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.35M	94.35M	127.75M	111.35M	103.73M	103.97M
Gross Profit	38.49M	38.49M	62.23M	46.81M	37.69M	33.95M
EBITDA	15.72M	15.00M	46.60M	31.54M	19.10M	33.97M
Net Income	5.61M	5.61M	31.23M	19.30M	10.43M	26.55M
Balance Sheet
Total Assets	148.53M	148.53M	157.45M	145.30M	151.85M	128.26M
Cash, Cash Equivalents and Short-Term Investments	84.80M	84.80M	62.52M	73.12M	56.43M	54.83M
Total Debt	0.00	0.00	27.00K	178.00K	0.00	0.00
Total Liabilities	15.12M	15.12M	14.97M	20.35M	31.51M	13.81M
Stockholders Equity	132.35M	132.35M	141.34M	124.23M	119.88M	114.26M
Cash Flow
Free Cash Flow	36.86M	36.86M	2.11M	30.79M	7.82M	22.09M
Operating Cash Flow	40.23M	40.23M	6.46M	34.24M	23.95M	32.63M
Investing Cash Flow	-3.34M	-3.34M	-2.50M	-3.05M	-17.55M	1.42M
Financing Cash Flow	-14.43M	-14.43M	-14.56M	-14.53M	-4.80M	-14.25M

EFT Solutions Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8062, the sentiment is Negative. The current price of 0.23 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.23, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 20.13 is Positive, neither overbought nor oversold. The STOCH value of 18.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8062.

EFT Solutions Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1410	72 Outperform	HK$642.70M	13.98	27.72%	―	9.58%	48.41%
8017	69 Neutral	HK$1.04B	8.47	39.26%	―	146.18%	1617.05%
8062	63 Neutral	HK$96.48M	-75.77	-0.93%	8.40%	-29.38%	-104.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3315	61 Neutral	HK$654.08M	14.07	2.23%	6.63%	-16.76%	-50.21%
0818	54 Neutral	HK$1.39B	9.73	1.98%	―	-17.23%	-6.20%
8613	40 Underperform	HK$84.82M	-2.26	―	―	-43.10%	-5.98%