KML Technology Group Limited (8065) AI Stock Analysis

• Market Cap: HK$48.19M
• Dividend Yield: N/A
• Average Volume (3M): 60.00K
• Price to Earnings (P/E): 595.0
• Beta (1Y): 0.01
• Revenue Growth: 1.03%
• EPS Growth: N/A
• Country: HK
• Employees: 183
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.01
• Shares Outstanding: 404,960,000
• 10 Day Avg. Volume: 56,500
• 30 Day Avg. Volume: 60,000
• PEG Ratio: -4.28
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 6.48
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score reflects a mixed outlook. The most significant factor is the financial performance, which shows recovery signs but also highlights ongoing profitability and cash flow challenges. Technical analysis indicates positive momentum, which is a supportive factor. However, the high P/E ratio suggests overvaluation, which is a significant risk.

KML Technology Group Limited Business Overview & Revenue Model

Company Description

KML Technology Group Limited (8065) is a technology-focused company that specializes in providing innovative solutions and services primarily in the fields of telecommunications and information technology. The company is engaged in the development, integration, and deployment of advanced telecommunications infrastructure and software applications, aiming to enhance connectivity and communication efficiency across various sectors.

How the Company Makes Money

KML Technology Group Limited generates revenue through multiple channels, including the sale of telecommunications equipment, software licensing, and consulting services. Key revenue streams include contracts with telecommunications providers for infrastructure development, ongoing maintenance services, and integration of communication systems. Additionally, the company may have partnerships with technology firms that enhance its service offerings, contributing to its earnings through collaborative projects and joint ventures. The demand for improved telecommunications solutions in both the public and private sectors further supports the company's revenue generation.

KML Technology Group Limited Financial Statement Overview

Summary

The company shows signs of recovery with improved revenue and gross profit margins. However, profitability remains a concern with low EBIT and EBITDA margins. The balance sheet is strong with low leverage, but cash flow volatility poses a risk. Overall, the company is on a path to recovery but faces challenges in achieving sustainable profitability and cash flow stability.

Income Statement

The income statement shows a mixed performance. The company has seen a recent improvement in gross profit margin to 19.96% and a slight positive net profit margin of 0.05% in the latest year, indicating a recovery from previous losses. However, EBIT and EBITDA margins remain weak, reflecting ongoing operational challenges. Revenue growth of 8.48% is a positive sign, but the overall profitability remains low.

Balance Sheet

The balance sheet is relatively stable with a low debt-to-equity ratio of 0.045, indicating conservative leverage. The equity ratio is strong, suggesting a solid capital structure. However, the return on equity is very low at 0.07%, highlighting inefficiencies in generating returns from equity.

Cash Flow

Cash flow analysis reveals significant volatility. The company has improved its free cash flow position, but the free cash flow growth rate is negative, indicating challenges in sustaining cash generation. The operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	254.11M	196.10M	194.11M	153.41M	162.56M	224.84M
Gross Profit	52.12M	39.13M	29.93M	9.89M	44.52M	64.18M
EBITDA	7.77M	8.01M	-5.09M	-23.93M	17.98M	44.53M
Net Income	2.88M	97.00K	-13.79M	-32.22M	7.88M	32.00M
Balance Sheet
Total Assets	195.31M	195.31M	203.43M	206.66M	233.25M	253.42M
Cash, Cash Equivalents and Short-Term Investments	36.15M	36.15M	48.49M	88.53M	93.35M	113.89M
Total Debt	6.19M	6.19M	18.32M	9.16M	6.32M	3.53M
Total Liabilities	58.90M	58.90M	67.13M	57.01M	43.82M	61.61M
Stockholders Equity	136.41M	136.41M	136.30M	149.64M	189.43M	191.81M
Cash Flow
Free Cash Flow	6.45M	6.45M	-40.81M	7.95M	-4.02M	43.48M
Operating Cash Flow	6.78M	6.78M	-39.64M	10.23M	-3.09M	45.38M
Investing Cash Flow	3.94M	3.98M	2.48M	2.65M	-13.37M	-198.00K
Financing Cash Flow	-31.53M	-21.15M	8.71M	-14.26M	-16.95M	-13.03M

KML Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8065, the sentiment is Neutral. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 61.31 is Neutral, neither overbought nor oversold. The STOCH value of 52.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8065.

KML Technology Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8502	70 Outperform	HK$228.00M	3.85	10.04%	―	0.89%	-3.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2258	62 Neutral	HK$191.65M	2.52	10.40%	4.36%	-13.98%	―
8065	53 Neutral	HK$48.19M	595.00	0.07%	―	1.03%	―
6888	52 Neutral	HK$152.25M	34.09	0.63%	―	-78.51%	388.89%
1823	51 Neutral	HK$453.87M	128.95	-5.81%	―	-44.12%	-3110.53%
0269	40 Underperform	HK$106.44M	0.15	―	―	-2.61%	-119.48%