Hatcher Group Limited (8365) AI Stock Analysis

• Market Cap: HK$465.60M
• Dividend Yield: N/A
• Average Volume (3M): 338.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -16.56%
• EPS Growth: -769.12%
• Country: HK
• Employees: 144
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 189,269,440
• 10 Day Avg. Volume: 222,280
• 30 Day Avg. Volume: 338,780
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 0.51
• 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: 55 Neutral
• Price Target: HK$2.50 ▲(1.63% Upside)

The overall stock score is primarily influenced by mixed financial performance, with strong revenue growth and equity position offset by profitability challenges. Technical analysis shows positive momentum, supporting the stock's upward trend. However, valuation remains a concern due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

Consistent revenue growth suggests strong market demand and effective sales strategies, which are crucial for long-term business expansion.

Equity Position

A strong equity position provides financial stability and resilience, enabling the company to invest in growth opportunities and withstand economic downturns.

Cash Flow Improvement

Improved cash flow indicates better cash management and operational efficiency, enhancing the company's ability to fund operations and invest in growth.

Negative Factors

Profitability Challenges

Ongoing profitability challenges highlight operational inefficiencies and high costs, which can hinder long-term growth and financial health.

Negative Return on Equity

Negative return on equity indicates that the company is not generating sufficient profit from its equity base, which can deter investors and limit growth potential.

Volatile Free Cash Flow

Volatile free cash flow suggests challenges in maintaining consistent liquidity, which can impact the company's ability to invest in strategic initiatives.

Hatcher Group Limited Business Overview & Revenue Model

Company Description

Hatcher Group Limited, an investment holding company, provides financial services in Hong Kong and Canada. It offers corporate finance advisory services, such as acting as financial adviser for advising on transactions or compliance matters under the listing rules; independent financial adviser for giving opinions or recommendations to the independent board committee and independent shareholders; sponsor in initial public offerings (IPO) exercises for advising companies on compliance requirements; and compliance adviser to listed companies post-IPO. The company also provides placing and underwriting services by acting as underwriter, sub underwriter, placing agent, or sub-placing agent in fund raising activities conducted for companies listed or to be listed on the stock exchange, as well as assists companies listed or to be listed on the stock exchange in securing investors. In addition, it offers business consulting services for individuals and/or entities to identify and facilitate business development, and mergers and acquisition opportunities; devise a business and organizational structure; introduce business cooperation and collaboration for business development; advise the terms and conditions of the target opportunities; introduce joint venture partners, suppliers, and market players in pursuance of business development opportunities; and assist and advise in the negotiation with the partners. Further, the company assists customers in enhancing and transforming business performance through strategic and operational re-engineering; and provides margin enhancement, finance functions and process enhancement, post-merger integration, cost optimization, and performance measurement services. The company was formerly known as VBG International Holdings Limited and changed its name to Hatcher Group Limited in October 2021. Hatcher Group Limited was incorporated in 2016 and is based in Central, Hong Kong.

How the Company Makes Money

Hatcher Group Limited generates revenue through multiple streams, primarily by offering software development and IT consulting services to businesses seeking digital transformation. The company charges clients on a project basis or through retainer agreements, ensuring a steady flow of income. Additionally, Hatcher Group engages in investment management, where it earns fees from managing client portfolios and providing advisory services. Significant partnerships with technology firms and industry leaders enhance its service offerings and expand its market reach, further contributing to its earnings.

Hatcher Group Limited Financial Statement Overview

Summary

Hatcher Group Limited shows promising revenue growth and a strong equity position. However, the company faces significant profitability challenges with consistent net losses and negative profit margins. Cash flow has improved, but maintaining consistent positive cash flow remains a challenge. The overall financial health is mixed, with strengths in growth and stability offset by profitability risks.

Income Statement

The company's revenue has grown over time, indicating positive sales trends. However, profitability metrics such as EBIT, EBITDA, and net income margins are negative, reflecting ongoing losses. The revenue growth rate is positive, but the negative profit margins suggest operational inefficiencies and high costs relative to revenue.

Balance Sheet

The company has a low debt-to-equity ratio, indicating moderate leverage, which is favorable. The equity ratio is strong, showing a solid equity base relative to total assets. However, the return on equity is negative due to net losses, highlighting profitability challenges.

Cash Flow

The company has shown improvement in operating cash flow, which is a positive sign of cash generation. Free cash flow has also improved but remains volatile, indicating challenges in maintaining consistent cash flow. The ratio of operating cash flow to net income suggests better cash management compared to reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.17M	150.00K	147.00K	19.00K	313.00K	135.00K
Gross Profit	22.60M	-1.08M	-1.35M	-2.44M	-403.00K	-692.00K
EBITDA	736.31K	-64.56M	-5.87M	9.40M	-8.31M	-26.59M
Net Income	-6.19M	-77.08M	-13.83M	-8.25M	-20.09M	-35.23M
Balance Sheet
Total Assets	170.30M	167.87M	272.59M	266.61M	69.44M	102.04M
Cash, Cash Equivalents and Short-Term Investments	66.94M	62.77M	55.77M	21.17M	18.96M	27.53M
Total Debt	22.00M	24.82M	34.30M	44.22M	8.88M	10.99M
Total Liabilities	42.47M	35.69M	74.37M	197.27M	32.15M	49.81M
Stockholders Equity	127.87M	132.18M	199.23M	69.84M	37.30M	52.23M
Cash Flow
Free Cash Flow	8.89M	20.02M	-2.63M	-5.29M	1.03M	-1.35M
Operating Cash Flow	8.96M	20.68M	-1.07M	4.52M	1.10M	-992.00K
Investing Cash Flow	482.00K	-567.00K	-36.91M	2.63M	3.52M	-1.99M
Financing Cash Flow	-3.36M	-3.94M	32.98M	-10.17M	-2.96M	-4.31M

Hatcher Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8365, the sentiment is Positive. The current price of 2.46 is above the 20-day moving average (MA) of 2.39, above the 50-day MA of 2.18, and above the 200-day MA of 1.04, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 60.61 is Neutral, neither overbought nor oversold. The STOCH value of 31.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8365.

Hatcher Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8168	56 Neutral	HK$132.52M	-13.58	-34.27%	―	-30.21%	-305.00%
8365	55 Neutral	HK$465.60M	-1.86	-44.10%	―	-16.56%	-769.12%
3938	55 Neutral	HK$721.58M	-40.88	-11.63%	―	8.17%	54.75%
8439	51 Neutral	HK$47.68M	-25.00	-3.06%	6.45%	-10.35%	86.76%
8072	49 Neutral	HK$49.66M	-0.99	-13.20%	―	5.03%	70.32%
8226	49 Neutral	HK$45.51M	43.60	0.28%	―	―	―