Link Holdings Ltd (8237) AI Stock Analysis

• Market Cap: HK$37.39M
• Dividend Yield: N/A
• Average Volume (3M): 38.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: -38.95%
• EPS Growth: -132.68%
• Country: HK
• Employees: 60
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): N/A
• Shares Outstanding: 201,024,000
• 10 Day Avg. Volume: 7,200
• 30 Day Avg. Volume: 38,317
• PEG Ratio: -0.01
• Price to Book (P/B): -1.34
• Price to Sales (P/S): 2.51
• P/FCF Ratio: -5.72
• 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: 39 Underperform
• Price Target: HK$0.19 ▼(-17.83% Downside)

The score is driven primarily by very weak financial performance (losses, negative equity, and negative free cash flow). Technicals further weigh on the outlook with a clear downtrend and negative momentum indicators. Valuation is only mildly supportive because a negative P/E reflects ongoing unprofitability and no dividend yield data is available.

Positive Factors

Diversified Business Model

Operating across technology, real estate and financial services provides durable revenue diversification, reducing reliance on any single cyclical market. This structural mix enables cross‑business synergies and cushions overall cash flow variability over the medium term.

Recurring Software Revenue

Subscription and licensing revenue is inherently more predictable and recurring than one‑off project or property sales. Durable recurring streams can underpin cash generation and margin stability if product uptake and retention remain steady over the coming months.

Lean Operating Footprint

A small headcount implies a lean cost structure and operational flexibility, enabling management to scale output without large fixed overheads. This structural agility can preserve margins and extend runway while the company addresses larger financial issues.

Negative Factors

Weak Balance Sheet

Negative equity and high leverage indicate structural solvency risk and constrained financial flexibility. Over months this can limit access to credit, force deleveraging or asset sales, and increase refinancing risk, undermining long‑term strategic options.

Persistent Negative Free Cash Flow

Ongoing negative free cash flow and poor cash conversion limit the firm's ability to fund operations or invest without external financing. Structurally weak cash generation increases reliance on debt or equity raises and heightens liquidity risk over the medium term.

Operational Profitability Pressure

Negative profitability and declining revenues signal structural margin and execution issues. Sustained losses erode capital, impede reinvestment in products and property, and make it harder to restore sustainable earnings without significant operational changes.

Link Holdings Ltd Business Overview & Revenue Model

Company Description

Link Holdings Limited, an investment holding company, engages in the hotel business in Singapore, Indonesia, and Japan. It owns and operates Link Hotel, boutique hotel with 274 guest rooms and suites located in Tiong Bahru Road, Singapore; and Hanatsubaki Spa Hotel in Japan. The company is also involved in property investment, cottage, and real estate businesses. In addition, it offers distressed debt asset management services in the People's Republic of China. The company was founded in 2004 and is headquartered in Sheung Wan, Hong Kong. Link Holdings Limited is a subsidiary of Vertic Holdings Limited.

How the Company Makes Money

Link Holdings Ltd generates revenue through a variety of channels. Its primary revenue streams include software licensing and subscription fees from its technology solutions, which are designed for businesses looking to improve efficiency and digital transformation. Additionally, the company earns income from real estate development and leasing, capitalizing on property investments in prime locations. Financial services, including advisory and investment management, also contribute to its earnings. Significant partnerships with tech firms and real estate developers further enhance Link Holdings' market position and revenue potential, allowing for collaborative projects and shared resources that drive profitability.

Link Holdings Ltd Financial Statement Overview

Summary

Financial statements point to severe weakness: negative net income/EBIT, inconsistent and recently declining revenue, negative stockholders’ equity with high leverage/solvency risk, and persistently negative free cash flow indicating ongoing liquidity strain.

Income Statement

Link Holdings Ltd has experienced significant challenges in its income statement. The company reported a negative net income and EBIT, indicating operational inefficiencies and high expenses relative to revenue. The revenue growth rate has been inconsistent, with a notable decline in the most recent year. Gross profit margins have also been under pressure, reflecting challenges in maintaining profitability.

Balance Sheet

The balance sheet reveals a concerning financial position with negative stockholders' equity and a high debt-to-equity ratio, indicating potential solvency issues. The equity ratio is negative, highlighting the company's reliance on debt financing. This financial structure poses significant risks, especially in a volatile industry like travel lodging.

Cash Flow

Cash flow analysis shows persistent negative free cash flow, reflecting the company's struggle to generate sufficient cash from operations. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting revenue into cash. Despite some financing inflows, the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.18M	41.66M	58.33M	33.33M	49.72M	57.62M
Gross Profit	8.96M	17.86M	37.70M	17.36M	26.89M	30.24M
EBITDA	-33.66M	-81.03M	-35.77M	-17.57M	-73.40M	-15.42M
Net Income	-153.93M	-146.46M	-88.25M	-54.29M	-113.07M	-48.30M
Balance Sheet
Total Assets	510.78M	496.53M	616.94M	617.29M	682.60M	829.08M
Cash, Cash Equivalents and Short-Term Investments	25.46M	13.22M	56.13M	49.22M	26.36M	39.52M
Total Debt	494.90M	444.91M	381.03M	345.44M	336.55M	345.19M
Total Liabilities	651.21M	577.81M	544.34M	469.01M	461.90M	486.44M
Stockholders Equity	-137.36M	-78.27M	71.20M	146.58M	218.04M	337.16M
Cash Flow
Free Cash Flow	-19.87M	-18.30M	-25.72M	-8.13M	27.42M	7.14M
Operating Cash Flow	-19.10M	-17.52M	-23.61M	-5.94M	28.41M	12.07M
Investing Cash Flow	-243.69K	-774.00K	-2.11M	-2.09M	-916.59K	10.00M
Financing Cash Flow	-4.89M	6.15M	52.12M	-17.67M	-40.43M	-20.21M

Link Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8237, the sentiment is Negative. The current price of 0.23 is above the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.24, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 5.40 is Positive, neither overbought nor oversold. The STOCH value of 105.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8237.

Link Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0559	56 Neutral	HK$49.18M	1.48	7.28%	―	8.87%	―
0181	49 Neutral	HK$135.17M	20.00	1.89%	―	-32.86%	―
0193	46 Neutral	HK$51.30M	-3.31	-1.69%	―	-4.96%	-332.17%
1355	42 Neutral	HK$167.03M	-2.47	―	―	-16.39%	-10.74%
8237	39 Underperform	HK$37.39M	-0.20	―	―	-38.95%	-132.68%