AGTech Holdings (8279) AI Stock Analysis

• Market Cap: HK$2.58B
• Dividend Yield: N/A
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: 24.34%
• EPS Growth: -1428.57%
• Country: HK
• Employees: 373
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): >-0.01
• Shares Outstanding: 11,672,343,000
• 10 Day Avg. Volume: 1,187,200
• 30 Day Avg. Volume: 1,820,200
• PEG Ratio: 0.06
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 4.10
• P/FCF Ratio: 2.20
• 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: 43 Neutral
• Price Target: HK$0.20 ▼(-1.00% Downside)

AGTech Holdings faces significant challenges, primarily due to its negative profitability and bearish technical indicators. While revenue growth and cash flow improvements are positive, the lack of profitability and negative valuation metrics weigh heavily on the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and demand for AGTech's solutions, supporting long-term business expansion.

Cash Flow Generation

Robust cash flow growth enhances AGTech's ability to reinvest in business operations and manage financial obligations, ensuring sustainability.

Stable Capital Structure

A stable capital structure with low leverage provides AGTech with financial resilience and flexibility to navigate industry challenges.

Negative Factors

Profitability Challenges

Persistent profitability issues can hinder AGTech's ability to invest in growth and compete effectively, impacting long-term viability.

Negative Return on Equity

Negative ROE suggests AGTech struggles to efficiently use shareholder funds, potentially limiting investor confidence and future capital access.

Operational Efficiency

Operational inefficiencies can lead to increased costs and reduced competitiveness, threatening AGTech's market position and growth potential.

AGTech Holdings Business Overview & Revenue Model

Company Description

AGTech Holdings Limited (8279) is a leading technology and services provider specializing in the development and operation of technology solutions for the gaming and lottery sectors. The company operates primarily in the Asia-Pacific region, focusing on digital gaming, sports lottery, and related applications. AGTech's core products include software platforms for sports betting, lottery ticketing, and gaming machine solutions, aimed at enhancing user experiences and operational efficiency for its clients.

How the Company Makes Money

AGTech Holdings generates revenue through several key streams. Primarily, the company earns money by providing technology solutions and software licensing fees to gaming operators, including lottery and sports betting platforms. Additionally, AGTech benefits from transaction fees based on the volume of bets placed on its platforms. The company also engages in partnerships with government and private entities to manage and operate lottery systems, which contributes to its earnings through service fees and revenue sharing agreements. Furthermore, AGTech's involvement in the hardware side, such as gaming machines, adds to its revenue through sales and leasing arrangements.

AGTech Holdings Financial Statement Overview

Summary

AGTech Holdings shows strong revenue growth and a stable capital structure, but struggles with profitability and operational efficiency. The company has improved cash flow generation, yet negative profitability metrics indicate a need for strategic adjustments.

Income Statement

AGTech Holdings has shown significant revenue growth of 46.36% in the latest period, indicating strong top-line expansion. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is robust at 85.69%, but the negative net profit margin of -14.71% highlights ongoing challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet is relatively stable with a low debt-to-equity ratio of 0.03, suggesting conservative leverage. However, the return on equity is negative at -3.54%, indicating inefficiencies in generating returns from equity. The equity ratio is strong, reflecting a solid capital structure, but the negative ROE points to potential issues in profitability.

Cash Flow

AGTech Holdings has experienced substantial free cash flow growth of 334.24%, which is a positive indicator of cash generation capability. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio of 0.98 suggests that cash flow is closely aligned with net income, indicating limited flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	922.45M	614.97M	613.27M	351.41M	253.24M	161.65M
Gross Profit	546.45M	526.96M	519.11M	288.70M	133.47M	116.61M
EBITDA	-40.37M	-6.94M	1.17M	-37.79M	-43.68M	-75.07M
Net Income	-136.63M	-90.43M	25.49M	-126.70M	-63.63M	-121.37M
Balance Sheet
Total Assets	6.24B	6.24B	3.73B	6.42B	3.08B	3.15B
Cash, Cash Equivalents and Short-Term Investments	2.60B	2.60B	1.37B	4.02B	1.64B	1.70B
Total Debt	74.58M	74.58M	65.13M	70.10M	30.19M	55.44M
Total Liabilities	3.48B	3.48B	1.08B	3.76B	195.53M	205.12M
Stockholders Equity	2.55B	2.55B	2.65B	2.63B	2.84B	2.90B
Cash Flow
Free Cash Flow	1.15B	1.15B	-2.08B	2.72B	-28.66M	-98.58M
Operating Cash Flow	1.17B	1.17B	-2.07B	2.75B	-26.14M	-93.78M
Investing Cash Flow	-656.42M	-459.88M	-314.47M	234.00M	922.43M	-754.67M
Financing Cash Flow	-4.41M	16.53M	-23.76M	-49.53M	-42.55M	-32.52M

AGTech Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.20
• 50DMA: Positive
• 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:8279, the sentiment is Positive. The current price of 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.21, and below the 200-day MA of 0.22, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 75.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8279.

AGTech Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1245	73 Outperform	HK$243.95M	7.88	2.95%	8.10%	-0.75%	35.42%
1180	66 Neutral	HK$652.35M	1.56	97.12%	30.33%	43.64%	130.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1680	48 Neutral	HK$311.61M	-0.12	-75.45%	―	-37.01%	-18861.22%
0582	48 Neutral	HK$558.68M	-0.53	-7.56%	―	-15.22%	59.00%
0082	46 Neutral	HK$398.30M	-18.72	-2.96%	―	-16.44%	-9.30%
8279	43 Neutral	HK$2.58B	-24.09	-4.08%	―	24.34%	-1428.57%