KML Technology Group Limited (8065) AI Stock Analysis

• Market Cap: HK$40.50M
• Dividend Yield: N/A
• Average Volume (3M): 187.17K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: 5.02%
• EPS Growth: 53.83%
• Country: HK
• Employees: 183
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): -0.01
• Shares Outstanding: 404,960,000
• 10 Day Avg. Volume: 17,000
• 30 Day Avg. Volume: 187,166
• PEG Ratio: -0.25
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.21
• 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

• Rating: 43 Neutral
• Price Target: ―

KML Technology Group Limited's stock score reflects significant challenges in profitability and cash flow, with negative margins and liquidity issues. While the balance sheet shows low leverage, the lack of profitability impacts investor confidence. Technical indicators suggest weak momentum, and valuation metrics are unattractive due to a negative P/E ratio and no dividend yield. Overall, the stock presents considerable risk, and improvement in financial health is essential for a more positive outlook.

KML Technology Group Limited Business Overview & Revenue Model

Company Description

KML Technology Group Limited (8065) is a company that operates in the technology sector, focusing on the development and provision of integrated solutions and services. Its core offerings include advanced technology systems, software applications, and related services tailored for various industries, aiming to enhance operational efficiency and technological capability.

How the Company Makes Money

KML Technology Group Limited generates revenue through the sale of its technology systems and software applications. The company provides comprehensive solutions that include both hardware and software components, often bundled as integrated systems. Additionally, it offers consulting, maintenance, and support services that contribute to its revenue streams. Key factors contributing to its earnings include strategic partnerships with technology providers and industry clients, enabling it to expand its market presence and customer base.

KML Technology Group Limited Financial Statement Overview

Summary

KML Technology Group Limited faces profitability challenges with declining revenues and negative margins, despite recent improvements in gross profit. The balance sheet is stable with low leverage, but the negative returns on equity are concerning. Cash flow analysis reveals liquidity issues with negative cash flows from operations. The company needs to address profitability and cash flow generation to improve its financial health.

Income Statement

KML Technology Group Limited has shown a decline in revenue over the past few years with a recent increase in 2024 but remains below the 2020 level. The gross profit margin improved from 2023 to 2024, reaching 15.42%, but the company is still facing losses as indicated by a negative net profit margin of -7.11% in 2024. EBIT and EBITDA margins are also negative. The company has not achieved sustainable profitability, which is a concern.

Balance Sheet

The company's debt-to-equity ratio is 0.13, indicating low leverage, which suggests financial stability. The equity ratio stands at 67.01%, reflecting strong equity positions. However, the return on equity has been negative due to consistent net losses, which is a drawback. Overall, the balance sheet shows low-risk leverage but is impacted by lack of profitability.

Cash Flow

The operating cash flow turned negative in 2024 at -37.20 million, and the free cash flow is also negative, indicating cash burn issues. The free cash flow to net income ratio is not favorable due to negative values, and the company has not managed to generate positive cash flows from operations consistently, highlighting liquidity challenges.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
180.78M	194.11M	153.41M	162.56M	224.84M	224.23M
	Gross Profit
25.98M	29.93M	9.89M	44.52M	64.18M	71.33M
	EBIT
-19.38M	-16.49M	-38.81M	2.66M	23.42M	26.37M
	EBITDA
-17.59M	-5.09M	-23.93M	17.98M	44.53M	33.91M
	Net Income Common Stockholders
-16.01M	-13.79M	-32.22M	7.88M	32.00M	21.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
58.62M	48.49M	88.53M	93.35M	113.89M	83.00M
	Total Assets
141.37M	203.43M	206.66M	233.25M	253.42M	236.42M
	Total Debt
0.00	18.32M	9.16M	6.32M	3.53M	8.70M
	Net Debt
-58.62M	-27.25M	-64.86M	-69.08M	-105.27M	-67.95M
	Total Liabilities
41.98M	67.13M	57.01M	43.82M	61.61M	70.23M
	Stockholders Equity
99.40M	136.30M	149.64M	189.43M	191.81M	166.19M
Cash Flow		Free Cash Flow
-12.49M	-40.81M	7.95M	-4.02M	43.48M	20.26M
	Operating Cash Flow
-12.00M	-39.64M	10.23M	-3.09M	45.38M	24.04M
	Investing Cash Flow
10.52M	2.48M	2.65M	-13.37M	-198.00K	21.65M
	Financing Cash Flow
-9.58M	8.71M	-14.26M	-16.95M	-13.03M	-6.02M

KML Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8065, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 73.61 is Negative, neither overbought nor oversold. The STOCH value of 69.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
1616	52 Neutral	HK$71.00M	―	-21.00%	―	-29.79%	-146.84%
3836	47 Neutral	€907.23M	―	-5.36%	5.97%	-7.58%	-21.25%
8065	43 Neutral	HK$40.50M	―	-11.55%	―	5.02%	53.83%