IMS Group Holdings Ltd. (8136) AI Stock Analysis

• Market Cap: HK$45.00M
• Dividend Yield: N/A
• Average Volume (3M): 414.33K
• Price to Earnings (P/E): 1.4
• Beta (1Y): 0.49
• Revenue Growth: -24.77%
• EPS Growth: -34.07%
• Country: HK
• Employees: 63
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): <0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 272,000
• 30 Day Avg. Volume: 414,333
• PEG Ratio: -0.12
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.66
• P/FCF Ratio: -20.77
• 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: 71 Outperform
• Price Target: HK$0.05 ▲(25.00% Upside)
• Action: Upgraded Date: 01/20/26
• Date: Action: Upgraded 01/20/26

The score is driven primarily by mixed financial performance: strong profitability and a very low-leverage balance sheet are tempered by declining revenue and weak free cash flow generation. Technicals add support, with price trading above all major moving averages and positive momentum indicators. Valuation is reasonable on a low P/E, though dividend support cannot be assessed due to missing yield data.

Positive Factors

High gross and operating margins

Sustained gross margin above 50% and double-digit EBIT/EBITDA margins indicate durable pricing power and operating efficiency. These margins provide a buffer against revenue volatility, enabling reinvestment and supporting long-term profitability even if top-line growth slows.

Very low financial leverage

Extremely low leverage gives the company strong financial flexibility and low interest burden. This durable balance sheet allows it to fund capex, absorb shocks, pursue strategic investments or M&A, and maintain stability through industry cycles without refinancing pressure.

Healthy net margin and operational profitability

A mid-teens net margin and positive ROE reflect consistent underlying profitability that can sustain operations and support stakeholder returns. This level of earnings quality aids cash generation potential over time if cash conversion improves, reinforcing business viability.

Negative Factors

Declining revenue

A material year-over-year revenue decline signals weakening demand or market share loss. If persistent, shrinking top-line can erode scale economics, limit pricing leverage, and strain the company's ability to sustain margins and finance growth or capital returns over the medium term.

Weak free cash flow and cash conversion

Severely negative FCF growth and OCF below net income indicate poor cash conversion of reported profits. Persistent weak cash flow limits capacity for capex, dividends or debt reduction and increases reliance on external funding despite low leverage, raising long-term financing risk.

Earnings deterioration

A large decline in EPS points to operating or margin pressures and earnings volatility. Prolonged EPS contraction reduces internally generated capital, constrains strategic flexibility, and can signal deeper structural issues in demand, pricing, or cost base over the medium term.

IMS Group Holdings Ltd. Business Overview & Revenue Model

Company Description

IMS Group Holdings Limited, an investment holding company, designs and sells light-emitting diode (LED) lighting fixtures for retail stores of luxury brands in Hong Kong, the People's Republic of China, the rest of Asia, Europe, and internationally. The company offers integrated LED lighting solution services, such as LED lighting system design; LED lighting system consultation and maintenance services; after-delivery maintenance and enhancement services; and onsite project management services, as well as project consultancy services. It also sells visual-audio systems, including audio/video conference, projection, public address, sound masking, and central controlling systems; and 3D printing materials and 3D printing services. IMS Group Holdings Limited was founded in 1998 and is headquartered in North Point, Hong Kong.

How the Company Makes Money

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IMS Group Holdings Ltd. Financial Statement Overview

Summary

Overall fundamentals are mixed: profitability is solid with strong gross margin (56.09%) and healthy EBIT/EBITDA margins (15.92%/23.92%), and the balance sheet is strong with very low leverage (debt-to-equity 0.033). Offsetting this, revenue contracted (-10.81%) and cash generation is weak, with sharply negative free cash flow growth (-136.67%) and operating cash flow below net income (0.41).

Income Statement

The company has experienced a decline in revenue growth, with a negative growth rate of -10.81% in the most recent year. However, it maintains a strong gross profit margin of 56.09% and a reasonable net profit margin of 13.75%. The EBIT and EBITDA margins are also healthy at 15.92% and 23.92%, respectively, indicating good operational efficiency despite the revenue decline.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.033, indicating low leverage and financial risk. The return on equity is moderate at 9.40%, reflecting decent profitability relative to shareholder equity. The equity ratio is robust, suggesting a stable financial structure with a high proportion of assets financed by equity.

Cash Flow

The cash flow statement shows challenges, with a significant decline in free cash flow growth at -136.67%. The operating cash flow to net income ratio is 0.41, indicating that operating cash flow is less than net income, which could be a concern for liquidity. The free cash flow to net income ratio is negative, highlighting issues in generating free cash flow relative to net income.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	68.62M	85.62M	73.38M	78.90M	55.65M
Gross Profit	38.49M	48.53M	34.01M	41.08M	28.34M
EBITDA	16.42M	23.05M	12.51M	19.46M	11.40M
Net Income	9.43M	15.46M	6.13M	11.37M	5.43M
Balance Sheet
Total Assets	115.19M	115.97M	110.58M	100.95M	92.94M
Cash, Cash Equivalents and Short-Term Investments	88.34M	91.76M	79.97M	65.02M	62.87M
Total Debt	3.29M	1.54M	4.24M	2.46M	2.69M
Total Liabilities	14.83M	24.79M	34.16M	25.64M	18.93M
Stockholders Equity	100.36M	91.18M	76.42M	75.31M	74.01M
Cash Flow
Free Cash Flow	-2.17M	13.36M	21.99M	14.62M	-286.00K
Operating Cash Flow	5.48M	17.32M	22.48M	18.82M	984.00K
Investing Cash Flow	27.70M	-15.21M	-19.97M	-3.98M	-661.00K
Financing Cash Flow	-3.21M	-2.92M	-6.96M	-12.87M	-2.18M

IMS Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 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:8136, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 21.13 is Positive, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8136.

IMS Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8136	71 Outperform	HK$45.00M	1.41	10.37%	―	-24.77%	-34.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1710	63 Neutral	HK$270.00M	-2.39	4.83%	7.47%	4.01%	―
1750	52 Neutral	HK$196.20M	20.00	3.18%	―	5.80%	57.89%
3919	44 Neutral	HK$40.82M	-4.92	-2.31%	―	5.07%	-87.31%
2188	40 Underperform	HK$228.28M	-3.22	-8.37%	―	-0.84%	42.31%