Guru Online (Holdings) Limited (8121) AI Stock Analysis

• Market Cap: HK$23.11M
• Dividend Yield: N/A
• Average Volume (3M): 13.73K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.36
• Revenue Growth: 34.13%
• EPS Growth: -139.87%
• Country: HK
• Employees: 83
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.03
• Shares Outstanding: 30,008,000
• 10 Day Avg. Volume: 8,005
• 30 Day Avg. Volume: 13,726
• PEG Ratio: 0.07
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -0.95
• 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: 55 Neutral
• Price Target: HK$1.00 ▲(33.33% Upside)

The overall stock score of 55 reflects significant challenges in financial performance, particularly in profitability and cash flow. Technical indicators also suggest bearish momentum. While the valuation appears moderate, the lack of a dividend yield and earnings call data limits further insights. Strategic improvements are necessary for better performance.

Positive Factors

Revenue Growth

The significant increase in revenue indicates a recovering market position and potential for future growth, enhancing the company's competitive edge.

Stable Balance Sheet

A stable balance sheet with low leverage provides financial flexibility and potential for future borrowing, supporting long-term strategic initiatives.

Operational Efficiency

Operational efficiency, as indicated by the EBITDA margin, suggests the company can manage costs effectively, which is crucial for long-term profitability.

Negative Factors

Profitability Concerns

Ongoing profitability issues with negative margins indicate challenges in cost management and pricing strategy, impacting long-term financial health.

Cash Flow Challenges

Negative operating cash flows highlight difficulties in sustaining operations without external financing, posing risks to financial stability.

Declining Gross Profit Margin

A declining gross profit margin suggests rising costs or pricing pressures, which could erode profitability and competitiveness over time.

Guru Online (Holdings) Limited Business Overview & Revenue Model

Company Description

Guru Online (Holdings) Limited (8121) is a Hong Kong-based investment holding company primarily engaged in providing online marketing solutions and digital advertising services. The company operates in the technology and marketing sectors, focusing on leveraging data analytics and innovative strategies to enhance the online presence of its clients. Guru Online offers a range of services including search engine marketing, social media management, and content creation, targeting various industries to optimize their digital marketing efforts.

How the Company Makes Money

Guru Online generates revenue through multiple streams, primarily from its digital marketing services. The company charges clients for online advertising campaigns, which may include pay-per-click (PPC) advertising, social media promotions, and search engine optimization (SEO) services. Additionally, Guru Online earns income from data analytics services that provide insights and performance metrics to its clients, helping them improve their marketing strategies. Significant partnerships with technology platforms and advertising networks also contribute to its earnings by expanding its service offerings and enhancing client acquisition.

Guru Online (Holdings) Limited Financial Statement Overview

Summary

Guru Online (Holdings) Limited faces a mixed financial landscape. Revenue shows some recovery, but profitability and cash flow remain critical issues. The balance sheet is relatively strong, with low leverage, but ongoing losses hinder overall performance. Strategic improvements in cost management and cash generation are essential for future stability and growth.

Income Statement

The company shows a volatile revenue trajectory with recent improvement in total revenue, increasing from 116.1M to 161.3M. However, profitability remains a concern, with negative EBIT and net income margins for the latest period. The gross profit margin has declined over the years, indicating rising costs or pricing pressures. Despite these challenges, the EBITDA margin indicates some level of operational efficiency, though not enough to offset overall losses.

Balance Sheet

The balance sheet reflects a relatively stable financial position with an equity ratio improvement, reaching 47.7% in the latest period. The debt-to-equity ratio remains low, suggesting limited leverage and potential for future borrowing if needed. However, consistent negative net income impacts the return on equity, which is currently unfavorable.

Cash Flow

The cash flow statement highlights significant challenges, particularly in operating cash flows, which turned negative in the most recent period. Free cash flow has also deteriorated, indicating potential issues in funding operations without external financing. The ability to convert earnings into cash remains weak, as evidenced by the negative operating cash flow to net income ratio.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	170.41M	161.34M	116.13M	119.78M	155.78M	141.39M
Gross Profit	27.82M	25.12M	26.02M	25.49M	33.72M	43.35M
EBITDA	381.00K	1.38M	5.66M	187.00K	7.70M	-7.56M
Net Income	879.50K	-1.09M	3.17M	-5.90M	-31.00K	-16.25M
Balance Sheet
Total Assets	87.49M	87.49M	68.03M	61.20M	64.47M	93.82M
Cash, Cash Equivalents and Short-Term Investments	31.60M	31.60M	23.24M	18.49M	12.24M	38.86M
Total Debt	4.12M	4.12M	3.06M	493.00K	5.39M	8.62M
Total Liabilities	45.73M	45.73M	42.36M	41.18M	41.18M	68.98M
Stockholders Equity	41.77M	41.77M	25.67M	20.02M	23.29M	24.84M
Cash Flow
Free Cash Flow	-10.25M	-10.25M	3.96M	460.00K	-25.36M	-3.50M
Operating Cash Flow	-10.03M	-10.03M	4.82M	658.00K	-24.73M	-3.16M
Investing Cash Flow	1.48M	1.48M	-3.23M	5.38M	8.64M	8.45M
Financing Cash Flow	17.18M	17.18M	924.00K	-117.00K	-5.36M	2.86M

Guru Online (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8121, the sentiment is Positive. The current price of 0.75 is below the 20-day moving average (MA) of 0.77, below the 50-day MA of 0.82, and above the 200-day MA of 0.75, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.28 is Neutral, neither overbought nor oversold. The STOCH value of 52.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8121.

Guru Online (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
8121	55 Neutral	HK$23.11M	―	-7.45%	―	34.13%	-139.87%
8429	53 Neutral	HK$21.60M	-5.17	-7.87%	―	7.97%	53.72%
8091	50 Neutral	HK$25.20M	―	-31.64%	―	-17.56%	37.33%
1736	46 Neutral	HK$23.76M	-1.31	―	―	-1.46%	71.80%
8401	40 Underperform	HK$74.54M	―	-17.66%	―	236.80%	80.53%
8238	31 Underperform	HK$18.46M	-0.92	―	―	22.85%	76.33%