Sinopharm Tech Holdings Limited (8156) AI Stock Analysis

• Market Cap: HK$180.60M
• Dividend Yield: N/A
• Average Volume (3M): 226.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -11.42%
• EPS Growth: 26.75%
• Country: HK
• Employees: 30
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): -0.02
• Shares Outstanding: 633,693,050
• 10 Day Avg. Volume: 398,520
• 30 Day Avg. Volume: 226,440
• PEG Ratio: -0.13
• Price to Book (P/B): -4.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -67.66
• 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

• Rating: 25 Underperform
• Price Target: ―

Sinopharm Tech Holdings Limited faces significant financial distress, with declining revenue, persistent losses, and negative equity. The technical indicators provide a neutral to slightly bearish outlook, and the valuation metrics are unappealing due to ongoing profitability issues. These factors indicate a precarious financial position, warranting caution for potential investors.

Sinopharm Tech Holdings Limited Business Overview & Revenue Model

Company Description

Sinopharm Tech Holdings Limited (8156) is a Hong Kong-based investment holding company primarily engaged in the provision of lottery-related services and solutions. The company operates through multiple segments, including lottery system and games development, provision of lottery distribution and ancillary services, and other related services. Sinopharm Tech Holdings aims to leverage technology and innovation to enhance the efficiency and effectiveness of lottery operations, while also exploring opportunities in other related sectors.

How the Company Makes Money

Sinopharm Tech Holdings Limited generates revenue primarily from its lottery business activities. The company's revenue streams include sales of lottery products, software development for lottery systems, and the provision of lottery distribution and ancillary services. Sinopharm Tech collaborates with government agencies and lottery operators to develop and manage lottery systems, ensuring compliance with regulatory standards. The company also engages in partnerships and collaborations to expand its market presence and explore new business opportunities in the lottery and related sectors. Service fees and commissions from lottery sales and distribution contribute significantly to the company's earnings.

Sinopharm Tech Holdings Limited Financial Statement Overview

Summary

Sinopharm Tech Holdings Limited is facing substantial financial challenges, reflected in its declining revenue, persistent losses, high debt levels, and negative equity. The company is struggling with profitability and liquidity issues, which are critical areas for improvement to ensure future sustainability. The overall financial health appears to be in distress, indicating a need for strategic restructuring.

Income Statement

The company has been experiencing declining revenue over the years with a slight increase in the last reported year. The gross profit margin is weak at 12.16%, and net income has been consistently negative, indicating profitability issues. The EBIT margin is non-existent, and EBITDA margin is slightly better at 12.06%, but still low. Overall, the income statement displays a trend of declining financial health and profitability challenges.

Balance Sheet

The balance sheet indicates significant financial stress with a negative stockholders' equity of -199.48 million, showing insolvency. The company has a high debt-to-equity ratio due to negative equity and substantial liabilities, which poses a significant risk. The equity ratio is negative, reflecting an overwhelmed asset structure with liabilities. The company's financial stability is considerably weak.

Cash Flow

The cash flow statement reveals negative operating cash flow and a negative free cash flow, which have deteriorated over the years. The free cash flow to net income ratio also highlights challenges in generating cash relative to earnings. The company is relying heavily on financing activities to manage its cash needs, evidencing potential liquidity issues.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	41.28M	42.84M	40.98M	77.81M	165.93M
Gross Profit	5.02M	5.47M	5.93M	20.88M	44.65M
EBITDA	4.98M	-1.01M	-75.17M	-89.65M	-138.51M
Net Income	-19.70M	-10.63M	-88.00M	-106.34M	-161.07M
Balance Sheet
Total Assets	44.49M	33.48M	76.89M	135.90M	188.17M
Cash, Cash Equivalents and Short-Term Investments	2.64M	1.78M	2.99M	7.48M	6.75M
Total Debt	73.26M	0.00	45.93M	108.03M	117.42M
Total Liabilities	250.09M	213.24M	250.28M	276.46M	261.56M
Stockholders Equity	-199.48M	-172.73M	-166.78M	-138.88M	-73.08M
Cash Flow
Free Cash Flow	-12.58M	4.73M	-36.88M	-16.32M	523.00K
Operating Cash Flow	-9.25M	4.73M	-36.76M	-6.21M	23.92M
Investing Cash Flow	-4.86M	2.00K	-85.00K	-5.05M	-23.39M
Financing Cash Flow	14.98M	-4.52M	32.24M	12.46M	-299.00K

Sinopharm Tech Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 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:8156, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.18, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.20 is Neutral, neither overbought nor oversold. The STOCH value of 55.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8156.

Sinopharm Tech Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1099	78 Outperform	$61.38B	8.03	9.19%	0.20%	-3.94%	-23.48%
1513	74 Outperform	$39.71B	15.95	14.56%	0.10%	-5.37%	6.28%
2186	72 Outperform	$15.23B	30.29	3.53%	―	-3.12%	-12.71%
1110	71 Outperform	HK$345.70M	7.29	6.61%	9.76%	-3.59%	4.81%
0867	71 Outperform	$32.64B	18.49	10.17%	0.62%	-8.91%	-34.40%
Sector *	57 Neutral	HK$14.24B	5.65	-5.77%	5.08%	9.65%	-43.80%
8156	25 Underperform	HK$180.60M	―		―	-11.42%	26.75%