Hephaestus Holdings Limited (8173) AI Stock Analysis

• Market Cap: HK$28.00M
• Dividend Yield: N/A
• Average Volume (3M): 153.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -41.70%
• EPS Growth: 12.59%
• Country: HK
• Employees: 40
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): -0.02
• Shares Outstanding: 215,346,530
• 10 Day Avg. Volume: 393,275
• 30 Day Avg. Volume: 153,123
• PEG Ratio: 0.31
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 1.80
• P/FCF Ratio: -4.42
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.13 ▼(-5.71% Downside)

The overall stock score is primarily influenced by the company's weak financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weigh down the valuation score. The absence of earnings call data and corporate events means the analysis is heavily reliant on the available financial and technical data.

Positive Factors

Diversified Revenue Streams

The company's diversified revenue streams from manufacturing, trading, and technology investments provide resilience against sector-specific downturns and enhance long-term growth potential.

Low Leverage

Low leverage indicates financial stability and reduces the risk of financial distress, allowing the company to navigate economic fluctuations more effectively and invest in growth opportunities.

Strategic Partnerships

Strategic partnerships enhance market reach and access to new technologies, supporting competitive advantages and long-term growth by leveraging external expertise and resources.

Negative Factors

Declining Revenue

A consistent decline in revenue indicates challenges in market demand or competitive positioning, which can impact long-term financial health and necessitate strategic adjustments.

Negative Profitability

Negative profitability metrics highlight operational inefficiencies and market challenges, which may require cost restructuring and strategic realignment to achieve sustainable growth.

Cash Flow Difficulties

Cash flow difficulties limit the company's ability to invest in growth initiatives and meet financial obligations, posing risks to long-term operational sustainability and strategic flexibility.

Hephaestus Holdings Limited Business Overview & Revenue Model

Company Description

Hephaestus Holdings Limited, an investment holding company, provides interior design and execution services in Hong Kong, Japan, Macau, and Mainland China. The company offers its services to private residences, corporate offices, service apartments, hotels, residential clubhouses, show flats, and sales galleries. It also provides color-rendering and handling services. The company was formerly known as Union Asia Enterprise Holdings Limited and changed its name to Hephaestus Holdings Limited in September 2021. The company is headquartered in Central, Hong Kong. Hephaestus Holdings Limited operates as a subsidiary of Hong Kong Jun Tai Ting Investment Company Limited.

How the Company Makes Money

Hephaestus Holdings Limited generates revenue through multiple streams, primarily from the manufacturing and trading of industrial components, which contribute significantly to its overall earnings. The company also earns income through investments in technology firms and joint ventures that enhance its product offerings and market presence. Key partnerships with suppliers and technology firms play a crucial role in securing favorable terms and broadening the company's market reach. Additionally, Hephaestus Holdings may benefit from strategic collaborations that facilitate access to new markets and innovative solutions, further enhancing its revenue potential.

Hephaestus Holdings Limited Financial Statement Overview

Summary

Hephaestus Holdings Limited is facing financial challenges, with declining revenues and profitability issues. While the balance sheet shows low leverage, the negative return on equity and cash flow difficulties highlight underlying operational struggles. The company needs to address its revenue decline and improve profitability to enhance its financial health.

Income Statement

The company has experienced a significant decline in revenue over the past few years, with a negative revenue growth rate of -15.06% in the most recent year. Profitability metrics such as net profit margin and EBIT margin are negative, indicating ongoing losses. The gross profit margin has decreased over time, reflecting challenges in maintaining profitability.

Balance Sheet

The company maintains a low debt-to-equity ratio, suggesting conservative leverage and financial stability. However, the return on equity is negative, indicating that the company is not generating returns for shareholders. The equity ratio is relatively healthy, showing a strong equity base compared to total assets.

Cash Flow

The cash flow situation is concerning, with negative operating cash flow and a significant decline in free cash flow growth. The free cash flow to net income ratio is high, indicating that free cash flow exceeds net income, but this is due to negative net income rather than strong cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.81M	16.30M	27.97M	35.49M	51.73M	53.24M
Gross Profit	10.63M	7.81M	10.74M	14.23M	27.64M	27.35M
EBITDA	-6.15M	-6.31M	-6.10M	-1.85M	10.76M	16.40M
Net Income	-8.45M	-7.47M	-8.55M	-3.05M	4.15M	8.21M
Balance Sheet
Total Assets	39.84M	39.84M	46.24M	56.42M	59.06M	113.72M
Cash, Cash Equivalents and Short-Term Investments	3.78M	3.78M	16.05M	7.39M	30.85M	72.37M
Total Debt	295.00K	295.00K	176.00K	577.00K	964.00K	49.56M
Total Liabilities	11.06M	11.06M	10.00M	11.62M	11.21M	59.09M
Stockholders Equity	28.78M	28.78M	36.24M	44.80M	47.85M	54.64M
Cash Flow
Free Cash Flow	-6.62M	-6.62M	13.41M	-14.46M	10.88M	17.08M
Operating Cash Flow	64.50K	-1.16M	13.56M	-12.14M	11.06M	17.28M
Investing Cash Flow	-16.60M	-11.06M	-2.62M	-5.28M	-176.00K	-201.00K
Financing Cash Flow	-378.00K	-252.00K	-407.00K	-149.00K	-52.48M	-10.97M

Hephaestus Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.14 is above the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.16, and below the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.25 is Neutral, neither overbought nor oversold. The STOCH value of 44.87 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8341	53 Neutral	HK$30.72M	2.10	12.10%	―	-12.30%	-27.24%
8501	49 Neutral	HK$97.98M	-24.87	-5.93%	―	50.50%	27.48%
3893	46 Neutral	HK$197.82M	―	―	―	-24.93%	-72.69%
8040	46 Neutral	HK$151.30M	―	-48.06%	―	-10.74%	-81.54%
8173	41 Neutral	HK$28.00M	-3.75	-22.97%	―	-41.70%	12.59%
8455	41 Neutral	HK$48.00M	-3.09	-601.82%	―	4.00%	13.57%