Ocean Star Technology Group Limited (8297) AI Stock Analysis

• Market Cap: HK$50.45M
• Dividend Yield: N/A
• Average Volume (3M): 12.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -15.26%
• EPS Growth: 27.67%
• Country: HK
• Employees: 40
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.01
• Shares Outstanding: 1,293,647,000
• 10 Day Avg. Volume: 9,525,250
• 30 Day Avg. Volume: 12,575,833
• PEG Ratio: -0.10
• Price to Book (P/B): 8.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.11
• 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

• Rating: 40 Underperform
• Price Target: ―

The overall score is adversely impacted by the company's weak financial performance, including declining revenues, negative equity, and cash flow issues. Additionally, the technical indicators suggest bearish momentum, and the valuation remains unattractive due to negative earnings and lack of dividends.

Ocean Star Technology Group Limited Business Overview & Revenue Model

Company Description

Ocean Star Technology Group Limited (8297) is a company listed on the Hong Kong Stock Exchange. It operates within the technology sector, focusing on the development and provision of innovative solutions and services. The company is involved in various technological advancements, offering a range of products and services tailored to meet the needs of its clientele.

How the Company Makes Money

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Ocean Star Technology Group Limited Financial Statement Overview

Summary

Ocean Star Technology Group Limited is struggling with declining revenues, persistent losses, and significant leverage issues. The financial health is weak, with negative equity and cash flow challenges indicating financial instability. Immediate strategic actions are necessary to address profitability and solvency concerns.

Income Statement

The company has seen declining revenues, with a negative revenue growth rate of -7.87% in the most recent year. Net income remains negative, leading to a net profit margin of -65.97%, indicating ongoing profitability challenges. The gross profit margin is relatively high at 65.98%, but the EBIT and EBITDA margins are significantly negative, reflecting operational inefficiencies and substantial losses.

Balance Sheet

The balance sheet shows a negative stockholders' equity, leading to a negative equity ratio of -15.28%, which is concerning. The debt-to-equity ratio is not meaningful due to the negative equity, indicating potential solvency issues. Return on equity is also negative, consistent with the company's net losses.

Cash Flow

Operating and free cash flows are negative, although free cash flow has improved slightly from the previous year. The operating cash flow to net income ratio is less than 1, suggesting cash losses are in line with accounting losses. The company faces liquidity challenges, as indicated by negative cash flows and high net debt.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	34.90M	41.17M	44.69M	46.59M	53.43M	62.53M
Gross Profit	22.34M	27.17M	30.77M	34.54M	42.20M	39.37M
EBITDA	-25.59M	-14.30M	-12.12M	-5.47M	20.20M	-33.67M
Net Income	-27.52M	-27.16M	-34.72M	-18.80M	3.70M	-46.84M
Balance Sheet
Total Assets	49.97M	59.38M	93.39M	95.49M	61.72M	80.38M
Cash, Cash Equivalents and Short-Term Investments	3.92M	5.74M	28.77M	24.78M	3.70M	3.27M
Total Debt	6.93M	5.73M	16.37M	16.81M	11.03M	21.18M
Total Liabilities	71.30M	68.45M	80.18M	88.89M	90.40M	112.66M
Stockholders Equity	-21.34M	-9.07M	13.21M	6.60M	-28.68M	-32.29M
Cash Flow
Free Cash Flow	-10.38M	-14.52M	-22.91M	-25.07M	11.86M	-1.36M
Operating Cash Flow	-10.27M	-14.41M	-19.01M	-23.07M	12.26M	1.57M
Investing Cash Flow	492.00K	-90.00K	-5.85M	-2.21M	445.00K	652.00K
Financing Cash Flow	2.38M	-5.65M	28.57M	43.46M	-12.34M	-11.79M

Ocean Star Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8297, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.20 is Neutral, neither overbought nor oversold. The STOCH value of 22.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8297.

Ocean Star Technology Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8319	69 Neutral	HK$92.38M	6.61	8.06%	7.13%	-8.25%	-14.22%
8299	66 Neutral	HK$2.34B	34.24	12.45%	―	957.74%	194.12%
Sector *	56 Neutral	HK$23.37B	3.96	-1.56%	6.69%	0.06%	-64.88%
8331	49 Neutral	HK$21.32M	―	-6.50%	―	―	―
8305	48 Neutral	HK$352.80M	―	-6.91%	―	4.61%	89.62%
8297	40 Underperform	HK$50.45M	―		―	-15.26%	27.67%
8316	35 Underperform	HK$183.05M	―		―	-37.75%	-11.19%