Bortex Global Ltd. (8118) AI Stock Analysis

• Market Cap: HK$73.50M
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 131.3
• Beta (1Y): -0.39
• Revenue Growth: -20.21%
• EPS Growth: -39.66%
• Country: HK
• Employees: 89
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.00
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 670,400
• 30 Day Avg. Volume: 1,259,200
• PEG Ratio: -0.02
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 2.06
• 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: 48 Neutral
• Price Target: HK$0.15 ▲(21.67% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is weighed down primarily by weak financial performance (declining revenue, ongoing losses, and higher leverage), partly offset by improved operating/free cash flow. Technicals are relatively supportive with price above key moving averages, but valuation remains pressured due to negative earnings and no indicated dividend yield.

Positive Factors

Cash flow improvement

Despite accounting losses, the company has generated positive operating cash flow and improved free cash flow. This durable cash-generation ability reduces immediate liquidity pressure, supports working capital, and buys time to execute restructuring or revenue recovery without immediate external financing.

Stable equity backing

A relatively stable equity ratio provides a structural asset buffer against losses and creditors. That asset backing can underwrite negotiated refinancing, preserve creditor confidence, and limit downside from prolonged operating weakness while management executes strategic adjustments.

Lean operating footprint

A small headcount indicates a lean cost structure and operational flexibility. Lower fixed labor overhead makes it easier to align costs with reduced revenue, accelerate margin recovery, and redeploy resources, providing durable benefit during a multi‑month restructuring or market rebound.

Negative Factors

Material revenue decline

A sharp, persistent revenue decline reduces scale economics and erodes gross margin leverage. Over a multi‑month horizon this undermines pricing power, weakens customer relationships, and requires costly investments or strategic shifts to restore top-line growth and stabilize profitability.

Ongoing losses and weak margins

Sustained negative margins and net losses deplete retained earnings and limit reinvestment capacity. Over time losses constrain product development and marketing, weaken competitive positioning, and raise reliance on external funding, increasing execution risk for any turnaround plan.

Elevated leverage

A debt-to-equity ratio near 1.0 while unprofitable raises solvency and interest coverage risk. Elevated leverage reduces financial flexibility, diverts cash to servicing debt instead of growth, and amplifies downside in adverse months, increasing the likelihood of covenant pressure or costly refinancing.

Bortex Global Ltd. Business Overview & Revenue Model

Company Description

Bortex Global Limited, an investment holding company, designs, manufactures, and trades in light-emitting diode (LED) lighting products in Canada, the United States, the People's Republic of China, Hong Kong, and internationally. The company offers LED decorative and string lights products, including straight line, icicle, beard garland, crab, wreath, flower, meteor shower, sphere, net, and smart string lights, as well as toy light and tree light series; LED commercial lighting products, such as tube lights, ceiling lamps, and light bulbs; and LED solar system series products. It serves retailers, wholesalers, real estate developers, and other fields, as well as agricultural technology production companies. Bortex Global Limited was incorporated in 2014 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

Bortex Global Ltd. Financial Statement Overview

Summary

Income statement weakness dominates: sharp revenue decline (-28.53%) and ongoing losses with negative margins. Balance sheet leverage is elevated (debt-to-equity 1.03) and ROE is negative, increasing risk. Offsetting factor: operating cash flow is positive with improved free cash flow metrics, supporting near-term liquidity.

Income Statement

Bortex Global Ltd. has experienced a significant decline in revenue over the past few years, with a revenue growth rate of -28.53% in the latest period. The company has been operating at a loss, as indicated by negative net profit margins and EBIT margins. The gross profit margin has also decreased, reflecting challenges in maintaining profitability.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.03, indicating higher leverage and potential financial risk. Return on equity is negative, reflecting losses. However, the equity ratio remains relatively stable, suggesting some level of asset backing.

Cash Flow

Despite negative net income, the company has managed to generate positive operating cash flow in the latest period, with a significant improvement in free cash flow growth. The free cash flow to net income ratio is positive, indicating better cash management.

Breakdown	Oct 2024	Apr 2023	Apr 2022	Apr 2021	Apr 2020
Income Statement
Total Revenue	26.44M	33.14M	70.56M	149.92M	200.91M
Gross Profit	3.70M	4.84M	11.15M	33.27M	55.20M
EBITDA	-43.51M	-28.81M	-62.11M	14.73M	40.09M
Net Income	-44.89M	-32.15M	-69.94M	5.67M	24.13M
Balance Sheet
Total Assets	51.93M	99.05M	138.78M	231.48M	228.88M
Cash, Cash Equivalents and Short-Term Investments	16.11M	1.92M	18.03M	56.97M	58.91M
Total Debt	16.38M	19.70M	15.22M	34.54M	38.44M
Total Liabilities	35.97M	35.35M	40.36M	61.27M	62.77M
Stockholders Equity	15.97M	63.70M	98.42M	170.21M	166.10M
Cash Flow
Free Cash Flow	18.41M	-21.03M	-19.53M	-2.18M	24.23M
Operating Cash Flow	18.41M	-21.03M	-19.29M	-915.00K	27.63M
Investing Cash Flow	11.00K	8.00K	-237.00K	1.60M	-3.25M
Financing Cash Flow	-3.87M	5.01M	-19.01M	-1.91M	5.28M

Bortex Global Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8118, the sentiment is Positive. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 71.97 is Negative, neither overbought nor oversold. The STOCH value of 90.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8118.

Bortex Global Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0396	52 Neutral	HK$226.27M	7.23	31.57%	8.93%	-13.44%	―
8222	49 Neutral	HK$17.14M	1.28	-104.51%	―	-7.75%	37.65%
8118	48 Neutral	HK$73.50M	131.25	-277.45%	―	-20.21%	-39.66%
8125	47 Neutral	HK$124.62M	-1.65	-51.88%	―	114.81%	-134.21%
8392	43 Neutral	HK$43.00M	5.27	-7.78%	―	19.09%	90.00%
8547	42 Neutral	HK$50.84M	-0.27	―	―	-21.85%	-98.18%