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

• Market Cap: HK$27.61M
• Dividend Yield: N/A
• Average Volume (3M): 17.42K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.39
• 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: 18,000
• 30 Day Avg. Volume: 17,423
• 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$0.94 ▲(25.73% 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 Recovery

A material rebound in revenue shows renewed demand for the company’s services. If sustained, higher top-line supports operating leverage, better absorption of fixed costs and more durable reinvestment capacity into client acquisition and product improvements, aiding a path to stable profitability.

Low Leverage / Solid Equity Ratio

A relatively high equity ratio and low leverage provide financial flexibility during losses. This durability lowers refinancing risk, preserves borrowing capacity for strategic investment, and gives management time to fix cash generation without immediate pressure from creditors.

Positive EBITDA Signal

A positive EBITDA margin suggests the core business can generate operating profit before non-cash items and financing. This indicates underlying unit economics that, with better cost control and sustained revenue, can translate into long-term cash generation and eventual net profitability.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow is a structural concern because it prevents self-funding of working capital and growth. Persistent cash deficits increase reliance on external financing, elevate liquidity and refinancing risks, and constrain the company’s ability to invest or withstand economic stress.

Persistent Net Losses

Ongoing negative EBIT and net margins erode retained earnings and limit capacity to fund operations internally. Over the medium term this weakens return on equity, risks shareholder dilution if capital raises are needed, and forces restructuring or sustained margin improvements to restore viability.

Declining Gross Margin & EPS Collapse

A falling gross margin points to pricing pressure or rising direct costs that damage core profitability. Combined with a steep EPS contraction, this signals volatile earnings quality and structural margin pressure that require strategic pricing, cost or product-mix fixes to recover sustainable earnings power.

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: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 0.87, below the 50-day MA of 0.83, and below the 200-day MA of 0.76, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 77.32 is Negative, neither overbought nor oversold. The STOCH value of 47.21 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$27.61M	-6.83	-7.45%	―	34.13%	-139.87%
8429	53 Neutral	HK$28.80M	-11.26	-7.87%	―	7.97%	53.72%
8238	49 Neutral	HK$80.12M	-1.12	―	―	22.85%	76.33%
8091	48 Neutral	HK$25.92M	-3.83	-31.64%	―	-17.56%	37.33%
1736	46 Neutral	HK$28.70M	-1.43	―	―	-1.46%	71.80%
8401	40 Underperform	HK$60.31M	-10.99	-17.66%	―	236.80%	80.53%