Phoenitron Holdings (8066) AI Stock Analysis

• Market Cap: HK$235.76M
• Dividend Yield: N/A
• Average Volume (3M): 539.47K
• Price to Earnings (P/E): 4.3
• Beta (1Y): -0.44
• Revenue Growth: 99.25%
• EPS Growth: 82000.00%
• Country: HK
• Employees: 136
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 664,126,800
• 10 Day Avg. Volume: 252,300
• 30 Day Avg. Volume: 539,466
• PEG Ratio: -1.11
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 53.69
• 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: 56 Neutral
• Price Target: HK$0.37 ▼(-22.13% Downside)

Phoenitron Holdings' overall stock score is primarily influenced by its financial performance challenges and bearish technical indicators. While the stock appears undervalued, the lack of dividend yield and weak cash flow generation are concerning. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Diversified business model

Phoenitron's revenue mix across tech products, telecom services, content distribution and strategic investments provides durable revenue diversification. Multiple monetization paths reduce single-market exposure and support resilience through sector-specific cycles over the next several quarters.

Relatively strong equity base

An equity ratio above 50% signals a conservative capital structure that can absorb operational shocks and support strategic investment without immediate refinancing. This balance sheet strength underpins longer-term flexibility for product development and partnerships.

Healthy gross margin

A gross margin near 37% provides structural cushion for gross-profit preservation amid revenue pressures. If management controls operating expenses, this margin allows recovery in operating profitability and funds reinvestment in R&D and commercial expansion over multiple quarters.

Negative Factors

Declining revenue trend

A ~25% revenue decline indicates weakening demand or market share erosion, a structural concern for growth. Sustained top-line contraction reduces scale, pressures margins, and constrains the firm's ability to invest in product development and customer acquisition over the medium term.

Weak cash generation

An 83.5% drop in free cash flow and much lower operating cash conversion signals persistent cash-generation issues. Poor cash flow limits capex, working-capital flexibility and deleveraging, increasing reliance on external financing and hampering sustainable reinvestment and dividend capacity.

Rising leverage and low returns

Higher leverage combined with ROE near 1% suggests inefficient capital use and rising financial risk. This structural mismatch reduces shareholder return potential and increases sensitivity to interest or demand shocks, making recovery harder without operational improvement.

Phoenitron Holdings Business Overview & Revenue Model

Company Description

Phoenitron Holdings Limited, an investment holding company, engages in the contract manufacturing and sale of smart cards in the People's Republic of China, Hong Kong, Taiwan, Europe, Africa, and rest of Asia. The company operates through five segments: Sales of Smart Cards; Sales of Smart Card Application Systems; Financial and Management Consultancy Services; Sales and Trading of Scrap Metals; and Media and Entertainment. It also trades in scrap vehicles; and develops and provides smart card application systems. In addition, the company provides financial and management consultancy services; and research, development, marketing, and sales services. Further, it is involved in the production of a TV play. The company was formerly known as Cardlink Technology Group Limited and changed its name to Phoenitron Holdings Limited in May 2010. Phoenitron Holdings Limited was founded in 1995 and is headquartered in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

Phoenitron Holdings generates revenue through multiple streams, including the sale of technology products and services, licensing agreements, and strategic investments in high-growth sectors. The company earns income from its telecommunications division by providing infrastructure and services to clients, while its entertainment sector focuses on content creation and distribution, which also involves partnerships with other media companies. Additionally, Phoenitron Holdings capitalizes on its investments in startups and emerging technologies, generating returns through equity appreciation and dividends, further enhancing its overall financial performance.

Phoenitron Holdings Financial Statement Overview

Summary

Phoenitron Holdings is experiencing significant profitability and efficiency challenges, with declining income statement metrics. The balance sheet shows a stable equity base but increased leverage, while cash flow generation has weakened considerably.

Income Statement

Phoenitron Holdings has experienced a significant decline in revenue, with a 24.7% decrease from the previous year. Gross profit margin stands at 36.9% but the net profit margin has dramatically dropped to 0.8% from 5.5% the previous year, highlighting compression in profitability. EBIT and EBITDA margins have also deteriorated, indicating challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a stable equity base with an equity ratio of 52.1%, indicating a relatively strong capital structure. However, the debt-to-equity ratio increased to 0.5, suggesting rising leverage. Return on Equity (ROE) has decreased to 1.1%, showing reduced profitability relative to equity.

Cash Flow

Operating cash flow has significantly declined, affecting the company's free cash flow, which decreased by 83.5%. The operating cash flow to net income ratio has fallen to 5.6, indicating weaker cash generation relative to net income. Despite positive financing activities, overall cash flow performance remains below optimal.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	126.05M	59.58M	79.10M	58.48M	72.76M	76.10M
Gross Profit	82.47M	21.99M	27.73M	14.97M	18.83M	24.16M
EBITDA	58.19M	6.40M	9.84M	-1.94M	1.24M	9.87M
Net Income	43.90M	452.96K	4.34M	-7.75M	-5.76M	3.96M
Balance Sheet
Total Assets	127.79M	78.13M	69.06M	66.32M	85.22M	93.96M
Cash, Cash Equivalents and Short-Term Investments	53.53M	13.82M	7.22M	6.24M	3.68M	8.82M
Total Debt	3.10M	20.51M	7.81M	6.58M	8.59M	10.76M
Total Liabilities	28.98M	37.21M	28.62M	29.63M	39.74M	43.57M
Stockholders Equity	98.58M	40.70M	40.21M	36.46M	45.25M	50.16M
Cash Flow
Free Cash Flow	52.80M	831.90K	5.06M	3.28M	-2.55M	2.32M
Operating Cash Flow	54.50M	2.53M	7.71M	3.84M	-1.25M	6.46M
Investing Cash Flow	-13.33M	-6.75M	-2.65M	1.31M	-135.83K	-3.52M
Financing Cash Flow	5.27M	11.02M	-4.08M	-2.36M	-3.95M	-4.83M

Phoenitron Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8066, the sentiment is Negative. The current price of 0.47 is above the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.44, and above the 200-day MA of 0.46, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 32.01 is Neutral, neither overbought nor oversold. The STOCH value of 47.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8066.

Phoenitron Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8257	59 Neutral	HK$242.00M	28.81	3.83%	―	-13.07%	-34.88%
1967	57 Neutral	HK$123.00M	-14.75	-2.32%	―	-6.45%	-596.43%
8066	56 Neutral	HK$235.76M	4.26	64.72%	―	99.25%	82000.00%
1912	46 Neutral	HK$73.79M	-0.68	―	―	―	―
2203	46 Neutral	HK$168.80M	-1.10	―	―	-47.92%	-869.15%
8490	41 Neutral	HK$85.37M	-1.13	-41.46%	―	-26.02%	-4977.27%