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

• Market Cap: HK$48.74M
• Dividend Yield: N/A
• Average Volume (3M): 304.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• 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 ▼(-20.00% Downside)

The score is primarily held down by weak financial performance (declining revenue, persistent losses, high leverage, and poor cash generation). Technical indicators are mixed with modest longer-term support but weak near-term trend, while valuation is constrained by a negative P/E and no dividend yield data.

Positive Factors

Equity funding ratio

An equity ratio of 32.51% means a meaningful portion of assets is funded by shareholders rather than creditors. This provides a structural capital buffer to absorb losses and supports the company’s ability to raise incremental equity or withstand shocks without immediate insolvency risk.

Historical free cash flow generation

Recording positive free cash flow in 2022 shows the business can be cash-generative under certain operating conditions. That historical FCF demonstrates operational leverage potential and a path to restoring cash sustainability if revenue and margins stabilize long-term.

Public listing (HKEX)

Being listed on the HKEX provides continued access to public capital markets, regulatory transparency, and greater visibility with institutional investors. Those structural features aid long-term financing options and partnership development compared with private competitors.

Negative Factors

Steep multi-year revenue decline

A near-55% drop in revenue over five years erodes scale, reduces bargaining power with clients and suppliers, and impairs fixed-cost absorption. Persistent top-line decline is a structural headwind to margin recovery and makes sustainable profitability and investment harder to achieve.

Consistent unprofitability and negative returns

Deep, persistent negative margins and very negative ROE indicate the business is destroying shareholder capital. Structural unprofitability limits internal reinvestment, forces reliance on external financing, and undermines the ability to fund growth or stabilize operations long-term.

High leverage with weak cash generation

A high debt-to-equity ratio of 1.60 combined with negative operating and free cash flows raises solvency and refinancing risk. Structurally weak cash generation plus leverage constrains strategic flexibility and increases the probability of needing dilutive or costly financing to sustain operations.

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

Weak fundamentals: revenue has fallen sharply over five years, profitability is consistently negative (latest net margin -19.75%) with deeply negative operating margins, leverage is high (debt-to-equity 1.60) alongside negative ROE (-59.34%), and recent operating/free cash flows have been negative, raising liquidity and sustainability 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: Neutral
• Last Price: 0.04
• 50DMA: Positive
• 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:8076, the sentiment is Neutral. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, 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 Positive momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 23.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$104.43M	8.44	7.12%	6.41%	3.21%	-12.00%
8033	66 Neutral	HK$78.86M	5.42	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$86.75M	-55.45	-1.95%	―	5.01%	82.54%
8076	41 Neutral	HK$48.74M	-5.42	-53.80%	―	-28.13%	-300.00%
8103	39 Underperform	HK$18.51M	-1.67	―	―	-32.50%	-106.28%
8050	39 Underperform	HK$415.01M	182.14	26.16%	―	33.20%	―