Zhao Xian Business Ecology International Holdings Limited (8245) AI Stock Analysis

• Market Cap: HK$45.42M
• Dividend Yield: N/A
• Average Volume (3M): 165.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: -42.99%
• EPS Growth: -408.15%
• Country: HK
• Employees: 17
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): >-0.01
• Shares Outstanding: 248,181,270
• 10 Day Avg. Volume: 161,200
• 30 Day Avg. Volume: 165,086
• PEG Ratio: <0.01
• Price to Book (P/B): -16.92
• Price to Sales (P/S): 1.59
• P/FCF Ratio: -10.08
• 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: 37 Underperform
• Price Target: HK$0.08 ▲(1.25% Upside)

The overall stock score is driven by significant financial challenges, bearish technical indicators, and poor valuation metrics. The company's financial instability, marked by declining revenues, high leverage, and liquidity issues, is the most critical factor. The technical analysis further supports a negative outlook, with the stock in a downtrend and oversold conditions. Valuation concerns, including a negative P/E ratio, reinforce the low score.

Positive Factors

Business Model Strength

Diversification across sustainable sectors provides resilience against market volatility and aligns with growing eco-friendly trends.

Revenue Streams

Multiple revenue streams from eco-friendly initiatives and partnerships enhance stability and growth potential in the sustainability sector.

Strategic Collaborations

Collaborations with industry leaders expand market reach and can drive innovation, supporting long-term growth and competitive positioning.

Negative Factors

Revenue Decline

Significant revenue decline indicates challenges in maintaining market share and could impact long-term financial stability.

High Leverage

High leverage and negative equity suggest financial instability, limiting the company's ability to invest in growth opportunities.

Liquidity Issues

Severe liquidity issues hinder the company's ability to meet short-term obligations and invest in long-term strategic initiatives.

Zhao Xian Business Ecology International Holdings Limited Business Overview & Revenue Model

Company Description

Zhao Xian Business Ecology International Holdings Limited (8245) is a diversified company primarily engaged in the business ecology sector, focusing on providing integrated solutions that enhance sustainability and environmental conservation. The company operates across various sectors including agriculture, renewable energy, and ecological restoration, offering products and services that promote eco-friendly practices and improve business efficiencies in these areas.

How the Company Makes Money

Zhao Xian Business Ecology International Holdings Limited generates revenue through multiple streams including the sale of eco-friendly products, consulting services for sustainable practices, and partnerships with governmental and non-governmental organizations focused on environmental initiatives. The company earns income by providing tailored solutions to businesses looking to reduce their environmental impact, as well as through grants and funding associated with ecological projects. Additionally, strategic collaborations with industry leaders enhance its market reach and contribute to revenue growth.

Zhao Xian Business Ecology International Holdings Limited Financial Statement Overview

Summary

The company is facing substantial financial difficulties across all verticals. The income statement shows declining revenues and persistent losses, the balance sheet reflects high leverage and negative equity, and cash flow statements indicate liquidity constraints. These issues are critical and need urgent attention to stabilize financial health.

Income Statement

The income statement reveals significant challenges, with a sharp decline in revenue by 35.8% in the latest year and consistently negative net profit margins, indicating ongoing profitability issues. The gross profit margin has also deteriorated, reflecting inefficiencies in cost management. Overall, the company is struggling to generate positive earnings, which is a major concern.

Balance Sheet

The balance sheet shows a precarious financial position with negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio is negative, reflecting high leverage and financial instability. Although the return on equity appears positive, it is misleading due to negative equity. The equity ratio is also concerning, suggesting a weak capital structure.

Cash Flow

Cash flow analysis highlights severe liquidity issues, with negative operating and free cash flows indicating insufficient cash generation to cover expenses. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, suggesting poor cash conversion efficiency. The company faces significant challenges in maintaining liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.63M	31.59M	49.96M	66.40M	126.18M	250.60M
Gross Profit	2.77M	2.80M	15.48M	9.32M	-21.76M	5.81M
EBITDA	-11.36M	-14.88M	3.18M	-25.48M	-59.88M	-30.33M
Net Income	-22.18M	-15.22M	1.96M	-26.30M	-60.45M	-34.58M
Balance Sheet
Total Assets	45.34M	45.34M	41.27M	39.30M	56.28M	87.16M
Cash, Cash Equivalents and Short-Term Investments	5.54M	5.54M	5.24M	11.30M	7.95M	11.81M
Total Debt	6.80M	6.80M	6.41M	9.03M	5.92M	16.23M
Total Liabilities	48.40M	48.40M	34.96M	45.00M	84.33M	56.10M
Stockholders Equity	-2.97M	-2.97M	6.39M	-5.62M	-28.11M	30.99M
Cash Flow
Free Cash Flow	-4.98M	-4.98M	-8.48M	4.33M	3.21M	11.06M
Operating Cash Flow	-4.98M	-4.98M	-8.48M	4.35M	3.31M	12.80M
Investing Cash Flow	4.00K	4.00K	92.00K	75.00K	-2.02M	-7.31M
Financing Cash Flow	4.23M	4.23M	4.81M	1.56M	-7.17M	-40.23M

Zhao Xian Business Ecology International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8245, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.17, and below the 200-day MA of 0.20, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 15.87 is Positive, neither overbought nor oversold. The STOCH value of 4.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8245.

Zhao Xian Business Ecology International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8043	60 Neutral	HK$72.40M	20.80	5.29%	―	9.71%	―
8092	59 Neutral	HK$28.69M	13.48	11.90%	6.45%	11.36%	9.52%
0248	50 Neutral	HK$52.30M	-1.59	-14.69%	―	-43.22%	-34.69%
8286	47 Neutral	HK$48.49M	-1.33	―	―	21.29%	-91.90%
0948	44 Neutral	HK$99.98M	―	―	―	145.86%	-569.50%
8245	37 Underperform	HK$45.42M	-2.59	-224.46%	―	-42.99%	-408.15%