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

• Market Cap: HK$32.93M
• Dividend Yield: N/A
• Average Volume (3M): 298.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -17.39%
• EPS Growth: -29.73%
• Country: HK
• Employees: 418
• Sector: Technology
• Sector Strength: 98
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 1,317,240,100
• 10 Day Avg. Volume: 157,500
• 30 Day Avg. Volume: 298,833
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 40 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 40.4 reflects significant financial challenges, including declining revenues and negative profitability, which weigh heavily on the company's prospects. Technical analysis provides a slight positive offset, but not enough to improve the overall score meaningfully. The valuation metrics further highlight the company's struggles, reinforcing the low overall score.

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

Company Description

Sing Lee Software (Group) Limited, an investment holding company, engages in development and sale of information and network technologies and services to the financial industry in the People's Republic of China. It is involved in development and sale of software products; sale of related hardware products; and provision of technical support services. The company was founded in 1993 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Sing Lee Software (Group) Ltd. generates revenue through several streams, primarily driven by its software and IT services. The company earns income by charging clients for custom software development projects, which involve creating tailored software solutions to meet specific business requirements. Additionally, it provides system integration services, enabling clients to seamlessly incorporate new software into their existing IT infrastructure, for which it charges integration fees. The company also offers IT consultancy services, advising organizations on technology strategies and solutions, which generates consulting fees. Sing Lee Software may also partner with other technology firms to enhance its service offerings, potentially sharing revenues from joint projects or receiving commissions for service referrals. These diverse revenue streams allow the company to maintain a steady flow of income and capitalize on its expertise in the technology sector.

Sing Lee Software (Group) Ltd. Financial Statement Overview

Summary

The company exhibits a troubling financial position, with significant revenue declines, negative profitability, high leverage, and poor cash flow. The negative margins and consistent losses signal substantial operational challenges.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.81M	70.38M	84.95M	94.41M	85.53M
Gross Profit	7.67M	14.57M	12.70M	916.00K	6.76M
EBITDA	-9.29M	-5.41M	-15.62M	-10.98M	-24.57M
Net Income	-11.62M	-8.26M	-21.46M	-13.77M	-31.20M
Balance Sheet
Total Assets	60.20M	70.36M	95.81M	100.08M	151.20M
Cash, Cash Equivalents and Short-Term Investments	29.06M	35.29M	55.08M	45.14M	58.53M
Total Debt	31.24M	27.02M	42.83M	30.52M	64.24M
Total Liabilities	40.63M	39.17M	56.36M	48.10M	85.45M
Stockholders Equity	19.57M	31.19M	39.45M	51.98M	65.75M
Cash Flow
Free Cash Flow	-6.73M	-3.15M	2.98M	-20.41M	-13.05M
Operating Cash Flow	-6.68M	-2.50M	3.01M	-20.32M	-12.30M
Investing Cash Flow	68.00K	-395.00K	149.00K	42.06M	-687.00K
Financing Cash Flow	38.00K	-16.89M	6.76M	-35.12M	-4.82M

Sing Lee Software (Group) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.02 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.81 is Neutral, neither overbought nor oversold. The STOCH value of -30.16 is Positive, 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
8033	73 Outperform	HK$79.48M	7.72	4.70%	7.58%	14.53%	57.55%
Sector *	61 Neutral	$34.87B	5.87	-10.42%	2.07%	6.72%	-8.84%
8319	61 Neutral	HK$89.97M	6.44	8.06%	7.19%	-9.11%	-8.90%
8050	53 Neutral	HK$434.00M	―	-253.21%	―	144.88%	-302.04%
8606	53 Neutral	HK$130.13M	―	-6.08%	―	8.50%	67.35%
8076	40 Neutral	HK$32.93M	―	-45.64%	―	-17.39%	-29.73%
8103	21 Underperform	HK$21.10M	―		―	16.32%	57.06%