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EFT Solutions Holdings Ltd (HK:8062)
:8062
Hong Kong Market

EFT Solutions Holdings Ltd (8062) AI Stock Analysis

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HK

EFT Solutions Holdings Ltd

(8062)

Rating:74Outperform
Price Target:
EFT Solutions Holdings Ltd scores well due to its strong financial performance, particularly in revenue growth and a stable balance sheet with low debt levels. The attractive valuation with a low P/E ratio and high dividend yield further supports the stock's appeal. However, technical indicators suggest a neutral to slightly bearish trend, limiting the immediate upside potential. Investors should monitor cash flow trends closely for long-term sustainability.

EFT Solutions Holdings Ltd (8062) vs. iShares MSCI Hong Kong ETF (EWH)

EFT Solutions Holdings Ltd Business Overview & Revenue Model

Company DescriptionEFT Solutions Holdings Ltd (8062) is a leading Hong Kong-based financial technology company focused on providing electronic fund transfer at point-of-sale (EFT-POS) terminal solutions. The company specializes in the development, integration, and maintenance of EFT-POS systems, offering a comprehensive range of payment solutions to retail merchants, service providers, and financial institutions across various sectors.
How the Company Makes MoneyEFT 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
EFT Solutions Holdings Ltd exhibits robust financial health with strong revenue growth, profitability, and a stable balance sheet characterized by low leverage and effective equity utilization. While cash flow remains positive, the recent decline in free cash flow growth warrants attention to ensure long-term sustainability. Overall, the company is well-positioned in the Software - Infrastructure industry.
Income Statement
85
Very Positive
The company shows strong financial performance with a consistent increase in revenue over the years, indicating a positive growth trajectory. The gross profit margin improved significantly from the previous years, and the net profit margin is robust. EBIT and EBITDA margins also demonstrate strong operational efficiency. The revenue growth rate from 2023 to 2024 was approximately 14.7%, reflecting healthy expansion.
Balance Sheet
90
Very Positive
The balance sheet is solid with a very low debt-to-equity ratio due to minimal debt levels, which reduces financial risk. The equity ratio is high, indicating a strong capital structure with significant shareholder equity compared to liabilities. Return on Equity (ROE) is impressive, demonstrating effective use of equity to generate profits.
Cash Flow
70
Positive
The operating cash flow remains positive and reasonably strong, though there was a significant drop from 2023 to 2024. The free cash flow is positive, which is a good indicator of financial health. However, the free cash flow growth rate shows a decline, which could be a concern if it continues. The ratios of cash flow to net income are healthy, indicating good cash generation relative to profit.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue123.58M127.75M111.35M103.73M103.97M119.67M
Gross Profit59.27M62.23M46.81M37.69M33.95M50.41M
EBITDA39.44M46.60M31.54M19.10M33.97M23.33M
Net Income29.65M31.23M19.30M10.43M26.55M4.25M
Balance Sheet
Total Assets159.44M157.45M145.30M151.85M128.26M118.56M
Cash, Cash Equivalents and Short-Term Investments81.81M62.52M73.12M56.43M54.83M34.84M
Total Debt0.0027.00K178.00K0.000.001.62M
Total Liabilities16.99M14.97M20.35M31.51M13.81M19.13M
Stockholders Equity141.10M141.34M124.23M119.88M114.26M99.45M
Cash Flow
Free Cash Flow20.88M2.11M30.79M7.82M22.09M10.40M
Operating Cash Flow25.23M6.46M34.24M23.95M32.63M12.55M
Investing Cash Flow-1.58M-2.50M-3.05M-17.55M1.42M-926.00K
Financing Cash Flow-14.43M-14.56M-14.53M-4.80M-14.25M-14.86M

EFT Solutions Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.28
Price Trends
50DMA
0.31
Negative
100DMA
0.30
Negative
200DMA
0.29
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
24.59
Positive
STOCH
6.02
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 0.28 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.31, and below the 200-day MA of 0.29, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 24.59 is Positive, neither overbought nor oversold. The STOCH value of 6.02 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$270.22B16.5825.82%9.42%33.34%
74
Outperform
HK$136.80M4.6122.27%14.04%11.81%49.64%
71
Outperform
$37.23B10.218.59%5.83%20.21%23.24%
63
Neutral
HK$418.03M7.5212.01%25.55%14.47%
56
Neutral
$3.16B5.05-5.68%5.76%8.05%-41.83%
47
Neutral
HK$42.40M-10.42%9.43%-20.08%-44.11%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8062
EFT Solutions Holdings Ltd
0.28
-0.03
-9.68%
HK:2023
China Ludao Technology Co. Ltd.
0.85
0.00
0.00%
HK:1213
Mobicon Group Limited
0.21
0.02
10.53%
HK:1024
Kuaishou Technology Class B
63.30
17.65
38.66%
HK:2380
China Power International Development
2.99
-0.92
-23.63%
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 30, 2025