EFT Solutions Holdings Ltd (8062) AI Stock Analysis

• Market Cap: HK$118.08M
• Dividend Yield: 8.47%
• Average Volume (3M): 152.00K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.08
• 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: 74 Outperform
• 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Balance Sheet Health

A strong balance sheet with low debt enhances financial flexibility and reduces risk, supporting sustainable growth.

Profit Margins

Improving profit margins indicate efficient cost management and strong pricing power, contributing to long-term profitability.

Negative Factors

Free Cash Flow Decline

A declining free cash flow growth rate can limit investment capacity and affect financial health if not addressed.

Revenue Growth Volatility

Volatile revenue growth can indicate market challenges or operational issues, potentially impacting long-term stability.

EPS Decline

A significant decline in EPS suggests profitability challenges, which may affect investor confidence and future earnings potential.

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

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

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

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

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.

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: 0.24
• 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 0.24 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.27, and below the 200-day MA of 0.29, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 21.39 is Positive, neither overbought nor oversold. The STOCH value of 17.86 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
8062	74 Outperform	HK$118.08M	―	-0.93%	8.47%	-29.38%	-104.21%
8017	69 Neutral	HK$1.01B	14.63	39.26%	―	146.18%	1617.05%
1410	65 Neutral	HK$361.52M	14.75	27.72%	―	9.58%	48.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3315	61 Neutral	€789.68M	16.98	2.23%	6.32%	-16.76%	-50.21%
0818	54 Neutral	HK$1.56B	10.89	1.98%	―	-17.23%	-6.20%
8613	41 Neutral	HK$109.88M	-3.17	―	―	-43.10%	-5.98%