Jimu Group Ltd. (8187) AI Stock Analysis

• Market Cap: HK$81.91M
• Dividend Yield: N/A
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -1.74%
• EPS Growth: -55.92%
• Country: HK
• Employees: 24
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): N/A
• Shares Outstanding: 151,683,840
• 10 Day Avg. Volume: 2,335,950
• 30 Day Avg. Volume: 1,961,225
• PEG Ratio: -0.22
• Price to Book (P/B): 9.45
• Price to Sales (P/S): 13.57
• P/FCF Ratio: 148.98
• 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: 48 Neutral
• Price Target: HK$0.52 ▲(3.00% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, with ongoing operational inefficiencies and negative cash flows. Technical analysis shows some bullish momentum, but the high RSI suggests caution. Valuation is unattractive due to negative earnings and lack of dividends.

Positive Factors

Diversified revenue streams and channels

Multiple sales channels (direct e‑commerce, retail/distributor relationships) plus licensing and institutional partnerships create durable revenue flexibility. This lowers customer concentration risk, supports distribution scale, and helps stabilize sales as individual channels fluctuate over a 2–6 month horizon.

Technology-driven product portfolio

A focus on smart home, robotics and STEM educational products provides structural demand tailwinds and product differentiation. Technology and proprietary software can enable recurring engagement, platform effects, and higher switching costs, supporting longer-term product relevance and margin improvement potential.

Total debt decreasing over time

A declining debt level reduces financial leverage and interest burden, improving solvency and strategic optionality. With lower debt the company has greater flexibility to fund R&D or channel expansion without immediate refinancing risk, a durable improvement to capital structure quality.

Negative Factors

Declining revenues and profitability

Persistent revenue declines and negative profitability erode scale economics and limit resources for product development and marketing. Over months this trend hampers the firm's ability to regain margin traction, weakens competitive position, and increases reliance on external funding to sustain operations.

Chronic negative operating cash flow

Long‑standing negative operating cash flow constrains internal reinvestment and forces dependence on financing or asset sales. A slight recent improvement is not yet a durable signal; unless OCF sustainably turns positive, cash deficits will impair growth initiatives and heighten solvency risk over the medium term.

Eroding margins and operational inefficiency

Significantly falling gross margins and persistent negative operating metrics indicate structural cost or pricing issues and weak operating leverage. Continued margin erosion undermines cash generation and ROE, making it difficult to achieve sustainable profitability without major operational restructuring or pricing power gains.

Jimu Group Ltd. Business Overview & Revenue Model

Company Description

Jimu Group Limited, an investment holding company, designs, develops, sources, markets, and sells footwear and apparel to wholesalers and retailers in Hong Kong and the People's Republic of China. The company operates through Footwear and Apparel Businesses, and Loan Facilitation and Credit Assessment Services segments. It offers formal and casual footwear for men, women, and children, as well as logistics management services. The company also provides pre-loan and post-loan facilitation services, which assist the qualified borrowers to obtain financing from various financial institutions or investors who have registered with online information intermediary service platforms. Its pre-loan and post-loan facilitation services comprise business consulting, credit assessment, and repayment management services. The company was formerly known as Ever Smart International Holdings Limited and changed its name to Jimu Group Limited in February 2018. The company was founded in 2009 and is headquartered in Central, Hong Kong. Jimu Group Limited is a subsidiary of Jimu Group Holdings Limited.

How the Company Makes Money

Jimu Group Ltd. generates revenue through multiple streams, primarily from the sale of its consumer electronic products, including robotic kits and smart home devices. The company employs a direct-to-consumer sales model through its e-commerce platform, as well as partnerships with retail chains and distributors to reach a broader customer base. Additionally, Jimu Group may earn revenue from licensing agreements related to its technology and proprietary software. Significant partnerships with educational institutions and technology firms enhance its market reach and credibility, contributing to its earnings through collaborative projects and co-branded products.

Jimu Group Ltd. Financial Statement Overview

Summary

Jimu Group Ltd. has faced substantial financial challenges, as evidenced by declining revenues and profitability. While debt levels have decreased, operational inefficiencies and negative cash flows persist. The company needs to address its operational challenges and stabilize its financial health to improve investor confidence.

Income Statement

The company has experienced a declining revenue trend with significant volatility. Gross profit margins have decreased drastically over recent years, indicating cost pressures or pricing issues. Net profit margins have been consistently negative, highlighting ongoing operational challenges. The EBIT and EBITDA margins are also negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio with total debt decreasing over time, which is positive. However, the equity ratio remains concerning due to fluctuating stockholders' equity. Return on equity has been negative, reflecting losses and diminished shareholder value.

Cash Flow

Operating cash flow has been negative for many years, with only a slight positive shift recently. The free cash flow to net income ratio is concerning due to negative free cash flow and net losses. While there is a recent improvement in free cash flow, sustainable cash generation remains uncertain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.91M	11.25M	28.75M	30.34M	9.33M	83.29M
Gross Profit	1.88M	3.58M	7.55M	1.70M	4.14M	41.09M
EBITDA	-19.90M	-7.94M	-2.38M	-3.08M	-17.64M	-8.96M
Net Income	-28.28M	-10.54M	1.54M	-5.29M	-14.88M	-8.71M
Balance Sheet
Total Assets	20.64M	24.03M	30.73M	29.57M	21.61M	33.76M
Cash, Cash Equivalents and Short-Term Investments	10.78M	5.04M	1.48M	2.01M	3.48M	26.83M
Total Debt	1.64M	1.66M	7.26M	14.46M	9.30M	9.47M
Total Liabilities	8.42M	7.88M	14.42M	28.34M	27.86M	25.19M
Stockholders Equity	12.22M	16.15M	16.31M	1.24M	-6.24M	8.57M
Cash Flow
Free Cash Flow	-7.94M	1.02M	-4.71M	-15.83M	-23.68M	-19.73M
Operating Cash Flow	-7.72M	1.99M	-4.59M	-15.83M	-23.68M	-19.70M
Investing Cash Flow	-1.66M	-963.00K	-425.00K	1.00K	132.00K	13.00K
Financing Cash Flow	2.61M	2.54M	4.51M	14.42M	-123.00K	11.74M

Jimu Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.50
• 50DMA: Positive
• 100DMA: Positive
• 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:8187, the sentiment is Positive. The current price of 0.5 is below the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.48, and below the 200-day MA of 0.56, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8187.

Jimu Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2683	73 Outperform	HK$465.83M	5.44	28.87%	5.45%	31.25%	147.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1170	49 Neutral	HK$337.81M	-12.44	-2.53%	4.15%	2.32%	-88.07%
8187	48 Neutral	HK$81.91M	-6.31	-88.05%	―	-1.74%	-55.92%
0738	48 Neutral	HK$166.59M	-1.64	-18.87%	―	-30.45%	-97.13%
8285	44 Neutral	HK$21.84M	-5.42	―	―	-48.40%	66.36%
1058	42 Neutral	HK$204.45M	-6.04	-134.59%	―	-8.05%	33.37%