abc Multiactive Limited (8131) AI Stock Analysis

• Market Cap: HK$79.71M
• Dividend Yield: N/A
• Average Volume (3M): 95.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 78.40%
• EPS Growth: 72.37%
• Country: HK
• Employees: 16
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 599,342,600
• 10 Day Avg. Volume: 16,000
• 30 Day Avg. Volume: 95,333
• PEG Ratio: 0.12
• Price to Book (P/B): 59.66
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 6.17
• 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: 44 Neutral
• Price Target: HK$0.10 ▲(20.00% Upside)

The overall stock score is primarily influenced by the company's mixed financial performance, with revenue growth offset by persistent unprofitability and high leverage. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and successful product adoption, which are critical for long-term business sustainability.

Cash Flow Improvement

Improved cash flow suggests better cash management and operational efficiency, enhancing the company's ability to fund growth initiatives.

Strategic Partnerships

Partnerships with major tech providers can drive innovation and cross-selling opportunities, supporting sustained revenue growth and market expansion.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Unprofitability

Ongoing unprofitability raises concerns about the company's ability to achieve sustainable operations and generate shareholder value over the long term.

Weak Equity Base

A weak equity base indicates limited financial resilience, which could hinder the company's capacity to absorb losses and invest in future growth.

abc Multiactive Limited Business Overview & Revenue Model

Company Description

abc Multiactive Limited, an investment holding company, designs and sells computer software in Hong Kong. The company operates in three segments: Financial Solutions, Fintech Resources, and Overseas Property Mortgage Loan Consultancy Services. It offers OCTOSTP, a trading solution that is used for front and back-office trading in brokerages and securities divisions of banks. It also provides FinReg solution, a risk driven tool that assist brokerage firms in detecting abnormal trade, suspicious and insider trading activities, and money laundering. The company also provides professional and maintenance services; Fintech resources services, including IT professional secondment and support services; and Fintech professional recruitment services, as well as overseas mortgage loan consultancy services. In addition, it sells computer hardware and related products; software for brokerage houses and securities division of banks; and non-financial solution module, management services solutions, and infrastructure services. The company was incorporated in 2000 and is headquartered in Central, Hong Kong. abc Multiactive Limited is a subsidiary of Maximizer International Limited.

How the Company Makes Money

ABC Multiactive Limited generates revenue through the sale and licensing of its software products and solutions. The company earns money by offering subscription-based models for its software services, which provide a steady stream of income. Additionally, the company may engage in direct sales of software packages and customization services, where clients pay for personalized software solutions to meet their unique business needs. ABC Multiactive may also receive revenue from maintenance contracts and technical support services, ensuring ongoing client engagement and satisfaction. Strategic partnerships with other technology firms can also contribute to its revenue by expanding its market reach and enhancing its product offerings.

abc Multiactive Limited Financial Statement Overview

Summary

The company shows revenue growth but remains unprofitable with a negative net profit margin of -18.3%. High leverage and a weak equity base pose financial risks, despite improvements in cash flow.

Income Statement

The company has shown a volatile revenue trajectory with significant fluctuations over the years. The most recent year saw a revenue increase of 56.7% compared to the previous year, but the company remains unprofitable with a negative net profit margin of -18.3%. The gross profit margin stands at 30.0%, indicating some ability to cover direct costs, but the negative EBIT and EBITDA margins highlight operational inefficiencies.

Balance Sheet

The balance sheet reveals a highly leveraged position with a debt-to-equity ratio of 23.85, indicating significant reliance on debt financing. The equity ratio is a mere 2.4%, reflecting a weak equity base. Return on equity is negative due to the net loss, pointing to challenges in generating shareholder value.

Cash Flow

The cash flow statement shows improvement with a positive operating cash flow of $6.24 million in the latest year, compared to a negative figure the previous year. The free cash flow has also turned positive, indicating better cash management. However, the free cash flow to net income ratio is not meaningful due to negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.83M	41.07M	26.20M	60.24M	62.36M	16.63M
Gross Profit	10.13M	12.34M	15.43M	35.64M	37.63M	9.19M
EBITDA	-4.94M	-6.05M	-10.02M	12.38M	20.60M	1.92M
Net Income	-4.36M	-7.53M	-12.78M	9.11M	15.64M	-2.99M
Balance Sheet
Total Assets	24.67M	27.15M	41.72M	65.02M	51.61M	12.12M
Cash, Cash Equivalents and Short-Term Investments	12.77M	15.98M	11.03M	16.14M	35.52M	4.43M
Total Debt	16.00M	15.41M	13.40M	13.06M	9.16M	29.99M
Total Liabilities	26.00M	26.58M	33.55M	44.07M	39.77M	37.33M
Stockholders Equity	-1.35M	646.00K	8.18M	20.96M	11.85M	-25.20M
Cash Flow
Free Cash Flow	-5.87M	6.24M	-2.79M	-28.50M	34.21M	-2.20M
Operating Cash Flow	-5.87M	6.24M	-2.69M	-27.79M	34.25M	-2.02M
Investing Cash Flow	-838.00K	-841.00K	-61.00K	-712.00K	-1.90M	-172.00K
Financing Cash Flow	37.00K	-32.00K	1.20M	546.00K	-1.27M	1.94M

abc Multiactive Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8131, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 23.84 is Positive, neither overbought nor oversold. The STOCH value of 24.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8131.

abc Multiactive Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8060	46 Neutral	HK$30.68M	―	-11.34%	―	-5.06%	-457.45%
8036	46 Neutral	HK$33.53M	―	-0.42%	―	-14.25%	77.78%
8131	44 Neutral	HK$79.71M	―	-523.99%	―	78.40%	72.37%
8290	44 Neutral	HK$50.00M	-41.67	-2.07%	―	-6.88%	-100.00%
1933	41 Neutral	HK$69.36M	―	-43.25%	―	-23.88%	-1021.62%