Sing Lee Software (Group) Ltd. (8076) AI Stock Analysis

• Market Cap: HK$34.25M
• Dividend Yield: N/A
• Average Volume (3M): 304.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -28.13%
• EPS Growth: -300.00%
• Country: HK
• Employees: 418
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 1,317,240,100
• 10 Day Avg. Volume: 74,000
• 30 Day Avg. Volume: 304,500
• PEG Ratio: -0.06
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -3.86
• 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: 41 Neutral
• Price Target: HK$0.03 ▼(-15.00% Downside)
• Action: Upgraded Date: 02/04/26
• Date: Action: Upgraded 02/04/26

The score is driven down primarily by weak financial performance—declining revenue, persistent losses, negative cash generation, and high leverage. Technicals add a modestly negative tilt (below short-term average and negative MACD), while valuation is neutral because the negative P/E reflects unprofitability and there is no dividend data.

Positive Factors

Equity base (32.51%)

An equity ratio of ~32.5% provides a material capital buffer versus total assets. That equity base helps absorb losses, supports creditor confidence and gives some runway to restructure or raise financing, reducing immediate solvency pressure over a 2–6 month horizon.

Established workforce

A headcount of 418 indicates retained institutional capability and delivery capacity in IT services. Sustained human capital supports client relationships, service continuity and the ability to execute turnaround or growth initiatives, aiding recovery of revenue and contracts.

Intermittent free cash flow

A positive free cash flow year (2022) shows the business can generate cash under the right operational mix. This implies there are identifiable operating levers—pricing, contract mix, cost structure—that can restore cash generation and improve liquidity structurally if management executes.

Negative Factors

Sustained revenue decline

A multiyear revenue decline (129.67m to 58.81m) erodes scale, reduces bargaining power and raises per-unit fixed costs. Loss of top-line scale makes investment in sales, R&D and client retention harder, lengthening the path to sustainable recovery over months rather than weeks.

Persistent unprofitability

Deep negative margins and ROE indicate the company is destroying shareholder value and cannot self-fund growth. Persistent losses limit reinvestment, constrain access to non-dilutive financing and increase the likelihood of covenant breaches, creating structural obstacles to medium-term stability.

High leverage & weak cash flow

Elevated leverage (D/E ~1.6) combined with negative operating and free cash flows raises refinancing and liquidity risk. Interest and principal demands limit strategic flexibility, may force dilution or asset sales, and constrain the company’s ability to execute long-term recovery plans.

Sing Lee Software (Group) Ltd. Business Overview & Revenue Model

Company Description

Sing Lee Software (Group) Ltd. (8076) is a technology company based in Hong Kong that specializes in providing software solutions and IT services across various industries. The company focuses on developing innovative software products, including enterprise resource planning (ERP) systems, business management software, and cloud-based solutions. Sing Lee Software serves a diverse clientele, ranging from small to medium-sized enterprises to larger corporations, and aims to enhance operational efficiency and drive digital transformation for its customers.

How the Company Makes Money

Sing Lee Software generates revenue primarily through the sale of its software products, which include licenses for ERP and business management systems, as well as subscription fees for its cloud-based services. Additionally, the company earns income from providing consultancy and implementation services to help clients integrate and customize their software solutions. Key revenue streams also include ongoing maintenance and support services for existing customers. Strategic partnerships with hardware vendors and other technology companies further bolster its offerings and contribute to its earnings, enabling the company to provide comprehensive solutions tailored to specific industry needs.

Sing Lee Software (Group) Ltd. Financial Statement Overview

Summary

Financials are weak: revenue has fallen materially over five years, margins have deteriorated with latest net margin at -19.75%, leverage is elevated (debt-to-equity 1.60) with negative ROE (-59.34%), and recent operating/free cash flows have been negative—raising sustainability and liquidity risk.

Income Statement

The company has experienced a significant decline in revenue over the past five years, with revenue dropping from 129.67 million in 2019 to 58.81 million in 2024. The gross profit margin has also decreased, with the most recent year showing a margin of 13.04%, down from 42.46% in 2019. Net profit margins are negative, indicating consistent losses, with the latest net profit margin at -19.75%. The EBIT and EBITDA margins are also deeply negative, reflecting operational challenges. Overall, the income statement shows a concerning trend of declining revenues and profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.60, indicating significant leverage, which poses a risk given the company's negative earnings. The equity ratio stands at 32.51%, showing that a reasonable portion of the assets is funded by equity. However, the return on equity is negative at -59.34%, highlighting the lack of profitability and return for shareholders. The company's financial stability is concerning due to high leverage and persistent losses.

Cash Flow

The cash flow statements show a troubling picture with negative operating and free cash flows in recent years. Although there was a positive free cash flow in 2022, the overall trend is negative, reflecting the company's ongoing operational struggles. The absence of positive free cash flow growth and the inability to generate cash from operations suggest cash flow issues that may impact the company's liquidity and ability to sustain operations without additional financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.01M	58.81M	70.38M	84.95M	94.41M	85.53M
Gross Profit	8.19M	7.67M	14.57M	12.70M	916.00K	6.76M
EBITDA	-7.68M	-9.29M	-5.41M	-15.03M	-10.98M	-24.57M
Net Income	-8.85M	-11.62M	-8.26M	-18.38M	-13.77M	-31.20M
Balance Sheet
Total Assets	49.87M	60.20M	70.36M	95.81M	100.08M	151.20M
Cash, Cash Equivalents and Short-Term Investments	10.17M	28.72M	35.29M	55.08M	45.14M	58.53M
Total Debt	30.73M	31.24M	27.02M	42.83M	30.52M	64.24M
Total Liabilities	37.95M	40.63M	39.17M	56.36M	48.10M	85.45M
Stockholders Equity	11.92M	19.57M	31.19M	39.45M	51.98M	65.75M
Cash Flow
Free Cash Flow	-1.44M	-6.73M	-3.15M	2.98M	-20.41M	-13.05M
Operating Cash Flow	-1.39M	-6.68M	-2.50M	3.01M	-20.32M	-12.30M
Investing Cash Flow	52.00K	68.00K	-395.00K	149.00K	42.06M	-687.00K
Financing Cash Flow	-634.00K	38.00K	-16.89M	6.76M	-35.12M	-4.82M

Sing Lee Software (Group) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8076, the sentiment is Negative. The current price of 0.04 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.26 is Neutral, neither overbought nor oversold. The STOCH value of 133.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8076.

Sing Lee Software (Group) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8319	71 Outperform	HK$102.02M	4.48	7.12%	6.41%	3.21%	-12.00%
8033	66 Neutral	HK$78.86M	6.78	6.73%	7.87%	-1.57%	-18.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8606	52 Neutral	HK$102.66M	28.26	-1.95%	―	5.01%	82.54%
8103	44 Neutral	HK$23.82M	-1.80	―	―	-32.50%	-106.28%
8076	41 Neutral	HK$34.25M	-1.81	-53.80%	―	-28.13%	-300.00%
8050	39 Underperform	HK$474.69M	-12.74	26.16%	―	33.20%	―