Hephaestus Holdings Limited (8173) AI Stock Analysis

• Market Cap: HK$25.41M
• Dividend Yield: N/A
• Average Volume (3M): 74.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: -42.53%
• EPS Growth: -232.12%
• Country: HK
• Employees: 40
• Sector: Industrials
• Sector Strength: 91
• Industry: Consulting Services
• EPS (TTM): -0.05
• Shares Outstanding: 215,346,530
• 10 Day Avg. Volume: 184,000
• 30 Day Avg. Volume: 74,971
• PEG Ratio: 0.16
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.83
• 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: 47 Neutral
• Price Target: ―

Hephaestus Holdings Limited is facing financial challenges with declining revenues and profitability, reflected in a low financial performance score. The technical analysis indicates a bearish trend with potential oversold conditions, while valuation metrics are unattractive due to negative earnings and no dividend yield. The company's strong balance sheet provides some financial stability, but efforts to improve revenue and profitability are essential for future success.

Hephaestus Holdings Limited Business Overview & Revenue Model

Company Description

Hephaestus Holdings Limited (8173) is a company engaged in the business of developing, manufacturing, and distributing advanced technological solutions. The company primarily operates in the sectors of industrial automation and manufacturing technology, providing innovative products and services aimed at enhancing operational efficiency and productivity for businesses across various industries.

How the Company Makes Money

Hephaestus Holdings Limited makes money through the sale of its technological products and services, which include industrial automation systems, manufacturing equipment, and related software solutions. The company's revenue streams are largely driven by its product sales, service contracts, and maintenance agreements. Additionally, Hephaestus Holdings Limited may engage in strategic partnerships with other technology providers and manufacturers to expand its market reach and enhance its product offerings. These partnerships can lead to increased sales opportunities and collaborative projects, further contributing to the company's earnings.

Hephaestus Holdings Limited Financial Statement Overview

Summary

Hephaestus Holdings Limited shows signs of financial instability with declining revenues and profitability. While the balance sheet remains robust with low leverage, the company's ability to generate consistent cash flows is uncertain. The consulting services industry may pose challenges, and efforts to stabilize revenue and profitability are crucial for long-term success.

Income Statement

The company has experienced declining revenues over the past few years, with a significant drop from 2022 to 2024. Gross profit margin decreased as well, indicating challenges in maintaining profitability. The company has faced negative EBIT and net income in recent years, suggesting operational difficulties and weak profitability.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. However, the decline in total assets and stockholders' equity suggests potential challenges in sustaining growth. The company maintains a healthy equity ratio, reflecting good financial health despite recent losses.

Cash Flow

The company has improved its free cash flow significantly in 2024, turning positive after a negative 2023. However, operating cash flow has been volatile, reflecting inconsistencies in cash generation from core operations. The improvement in free cash flow indicates effective cash management, but the overall cash flow position remains mixed.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
19.20M	27.97M	35.49M	51.73M	53.24M	73.09M
	Gross Profit
5.86M	10.74M	14.23M	27.64M	27.35M	42.69M
	EBIT
-12.60M	-7.30M	-2.77M	6.93M	11.21M	-37.41M
	EBITDA
-11.45M	-7.44M	-1.85M	10.76M	16.40M	-31.70M
	Net Income Common Stockholders
-14.94M	-8.55M	-3.05M	4.15M	8.21M	-42.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.05M	16.05M	7.39M	30.85M	72.37M	58.14M
	Total Assets
46.24M	46.24M	56.42M	59.06M	113.72M	113.99M
	Total Debt
176.00K	176.00K	577.00K	964.00K	49.56M	54.73M
	Net Debt
-15.45M	-15.45M	-4.50M	-21.68M	-14.68M	-3.40M
	Total Liabilities
9.89M	10.00M	11.62M	11.21M	59.09M	67.56M
	Stockholders Equity
36.24M	36.24M	44.80M	47.85M	54.64M	46.42M
Cash Flow		Free Cash Flow
6.74M	13.41M	-14.46M	10.88M	17.08M	12.56M
	Operating Cash Flow
10.55M	13.56M	-12.14M	11.06M	17.28M	12.93M
	Investing Cash Flow
-13.78M	-2.62M	-5.28M	-176.00K	-201.00K	-8.32M
	Financing Cash Flow
-380.00K	-407.00K	-149.00K	-52.48M	-10.97M	33.27M

Hephaestus Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8173, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.13, and below the 200-day MA of 0.21, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.98 is Neutral, neither overbought nor oversold. The STOCH value of 39.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8173.

Hephaestus Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8140	78 Outperform	HK$91.20M	2.99	17.55%	―	-12.07%	34.63%
8023	67 Neutral	HK$203.13M	18.38	8.56%	2.94%	0.80%	-13.95%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
8173	47 Neutral	HK$25.41M	―	-32.20%	―	-42.53%	-232.12%
8019	47 Neutral	HK$140.65M	―	-2.87%	―	-17.40%	11.19%
8193	41 Neutral	HK$55.96M	―	-79.76%	―	-1.68%	49.77%
8029	41 Neutral	HK$231.07M	―		―	14.74%	54.81%