Eco-Tek Holdings Limited (8169) AI Stock Analysis

• Market Cap: €24.03M
• Dividend Yield: N/A
• Average Volume (3M): 99.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -20.90%
• EPS Growth: -165.12%
• Country: HK
• Employees: 78
• Sector: Services
• Sector Strength: N/A
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): N/A
• Shares Outstanding: 649,540,000
• 10 Day Avg. Volume: 57,000
• 30 Day Avg. Volume: 99,333
• PEG Ratio: 0.09
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -1.73
• 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: 52 Neutral
• Price Target: HK$0.04 ▼(-7.50% Downside)

Eco-Tek Holdings Limited's overall stock score is primarily impacted by its financial performance, which shows significant challenges in revenue and profitability. Technical analysis provides some positive signals, but valuation concerns due to a negative P/E ratio and lack of dividend yield further weigh down the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Innovative Business Model

Focusing on sustainability and environmental protection positions Eco-Tek to capitalize on growing demand for eco-friendly solutions, supporting long-term growth.

Government Partnerships

Partnerships with government entities enhance revenue stability and provide a competitive edge in securing long-term contracts in the environmental sector.

Negative Factors

Declining Revenue

Declining revenue indicates potential challenges in market demand or competitive pressures, which could hinder future growth and profitability if not addressed.

Negative Cash Flow

Negative cash flow suggests difficulties in generating sufficient cash from operations, potentially impacting the company's ability to fund operations and invest in growth.

Profitability Challenges

Ongoing profitability issues can limit reinvestment in the business and affect shareholder returns, necessitating strategic changes to improve margins.

Eco-Tek Holdings Limited Business Overview & Revenue Model

Company Description

Eco-Tek Holdings Limited, an investment holding company, engages in the research, development, marketing, sale, and servicing of industrial environmental protection related products and services in Hong Kong, the People's Republic of China. The company operates through two segments, Environment-Friendly Products and Water Supply Plant. It markets and sells environment-friendly products, and operates water supply plant, as well has holds intellectual properties. The company is headquartered in Quarry Bay, Hong Kong. Eco-Tek Holdings Limited is a subsidiary of Team Drive Limited.

How the Company Makes Money

Eco-Tek Holdings generates revenue through several key streams. Primarily, the company earns income from its waste management services, which include the collection, processing, and disposal of waste materials for businesses and municipalities. Additionally, Eco-Tek profits from its recycling operations, wherein it processes recyclable materials and sells them to manufacturers for reuse. The company also develops and licenses proprietary green technologies and solutions, which provide another revenue avenue through partnerships and collaborations with other firms in the environmental sector. Significant partnerships with governmental organizations and private enterprises seeking to comply with environmental regulations further bolster its earnings, as they often require sustainable waste management and recycling solutions.

Eco-Tek Holdings Limited Financial Statement Overview

Summary

Eco-Tek Holdings Limited faces financial challenges with declining revenue and profitability, and negative cash flows. The balance sheet is relatively strong with low leverage, but overall financial performance is hindered by operational and cash flow inefficiencies.

Income Statement

The company has faced a decline in revenue over the past year, with a 7.14% decrease from 2023 to 2024. Gross profit margin stands at 32.85%, which is reasonable, but the company ended with a negative net profit margin of -1.91%, indicating profitability challenges. EBIT and EBITDA margins also declined significantly, showing operational efficiency issues.

Balance Sheet

The balance sheet shows a relatively stable financial position with a debt-to-equity ratio of 0.13, indicating low leverage. The equity ratio is 64.20%, reflecting a strong equity base. However, the decrease in total assets and stockholders' equity over the year suggests a potential contraction in financial stability.

Cash Flow

Cash flow analysis reveals negative operating cash flow of -9.59 million and a significant decrease in free cash flow, which dropped from -5.95 million in 2023 to -12.37 million in 2024. The free cash flow to net income ratio is negative, highlighting cash flow management issues and potential liquidity constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.57M	94.64M	101.92M	97.59M	118.52M	92.64M
Gross Profit	26.93M	31.10M	36.93M	31.32M	34.33M	29.56M
EBITDA	153.00K	6.67M	16.20M	12.30M	15.26M	15.68M
Net Income	-3.64M	-1.81M	5.59M	4.38M	5.06M	-7.79M
Balance Sheet
Total Assets	162.61M	168.59M	170.54M	172.04M	197.37M	196.27M
Cash, Cash Equivalents and Short-Term Investments	28.37M	27.05M	41.48M	41.06M	63.27M	55.81M
Total Debt	13.27M	14.50M	15.85M	16.40M	14.41M	15.43M
Total Liabilities	57.89M	60.35M	62.98M	64.36M	81.13M	93.99M
Stockholders Equity	104.72M	108.24M	107.56M	107.68M	116.24M	102.28M
Cash Flow
Free Cash Flow	-5.71M	-12.37M	-5.95M	-16.93M	2.51M	-18.44M
Operating Cash Flow	-4.18M	-9.59M	381.00K	-9.68M	7.99M	-17.15M
Investing Cash Flow	-1.11M	-2.33M	6.39M	-6.93M	-4.97M	1.78M
Financing Cash Flow	-3.50M	-3.57M	-3.62M	-396.00K	-118.00K	-2.96M

Eco-Tek Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 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:8169, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 74.52 is Negative, neither overbought nor oversold. The STOCH value of 76.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8169.

Eco-Tek Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1527	66 Neutral	HK$270.00M	2.91	9.21%	―	-11.01%	69.56%
2377	66 Neutral	HK$942.13M	3.62	8.32%	4.69%	8.09%	30.76%
0556	63 Neutral	HK$376.20M	22.35	1.33%	―	9.77%	165.63%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
8169	52 Neutral	€24.03M	―	-3.39%	―	-20.90%	-165.12%
0073	46 Neutral	$29.80M	―	-19.29%	―	-55.40%	14.13%
1452	43 Neutral	HK$62.25M	―	-24.77%	―	-0.22%	-22.16%