Vertical International Holdings Ltd. (8375) AI Stock Analysis

• Market Cap: HK$501.12M
• Dividend Yield: N/A
• Average Volume (3M): 74.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -0.23%
• EPS Growth: -98.74%
• Country: HK
• Employees: 151
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 288,000,000
• 10 Day Avg. Volume: 109,200
• 30 Day Avg. Volume: 74,133
• PEG Ratio: 4.43
• Price to Book (P/B): 19.18
• Price to Sales (P/S): 16.39
• P/FCF Ratio: -206.57
• 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$2.00 ▲(49.25% Upside)

The score is primarily weighed down by weak financial performance (declining revenue, negative margins, and zero operating/free cash flow), partially offset by a conservatively levered balance sheet. Technicals add risk due to negative MACD and the price remaining well below the 200-day average despite short-term strength. Valuation is constrained by a negative P/E that reflects current losses and no provided dividend yield.

Positive Factors

Conservative Leverage

The company's low leverage indicates a conservative financial strategy, providing stability and flexibility to navigate challenging market conditions.

High Equity Ratio

A high equity ratio suggests strong capital structure, reducing reliance on debt and enhancing the company's ability to withstand financial downturns.

Diverse Revenue Streams

Diverse revenue streams from various logistics services help mitigate risks associated with reliance on a single income source, supporting long-term stability.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in maintaining market share or pricing power, potentially affecting long-term growth prospects.

Negative Profitability

Negative profitability reflects operational inefficiencies and challenges in cost management, which can hinder future investments and growth.

Zero Cash Flow

Lack of operating cash flow suggests liquidity issues, limiting the company's ability to fund operations and invest in growth opportunities.

Vertical International Holdings Ltd. Business Overview & Revenue Model

Company Description

Vertical International Holdings Ltd. (8375) is a Hong Kong-based investment holding company primarily engaged in the provision of integrated logistics services and supply chain management solutions. The company operates through various sectors, including logistics, freight forwarding, and warehousing, serving a diverse range of clients across different industries. Its core products and services include transportation management, customs clearance, and inventory management, aimed at enhancing operational efficiency and reducing costs for its customers.

How the Company Makes Money

Vertical International Holdings Ltd. generates revenue through multiple streams, primarily by charging clients for logistics services such as freight forwarding, warehousing, and supply chain management solutions. The company earns money by providing tailored logistics services that meet the specific needs of businesses, thereby establishing long-term contracts with clients. Additionally, Vertical International may engage in strategic partnerships with shipping lines, airlines, and other logistics providers to optimize costs and expand its service offerings, which can also contribute to its revenue. The volume of goods transported and stored, along with contract renewals and new client acquisitions, are key factors influencing the company's earnings.

Vertical International Holdings Ltd. Financial Statement Overview

Summary

The company is experiencing financial difficulties with declining revenue and negative profit margins. The balance sheet is stable with low leverage, but negative cash flow trends raise liquidity concerns.

Income Statement

The company has experienced declining revenue over recent years, with a negative revenue growth rate of -3.22% from 2023 to 2024. Gross profit margin remains low at 7.53% in 2024, and the net profit margin is negative at -6.72%, indicating unprofitability. Both EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

The balance sheet shows a relatively stable equity position with an equity ratio of 72.10%. The debt-to-equity ratio is low at 0.10, suggesting conservative leverage. However, the return on equity is negative due to losses, indicating inefficiency in generating returns.

Cash Flow

Cash flow from operations was zero in 2024, down from positive cash flow in previous years. The free cash flow position is also concerning, with no free cash flow in the latest year. The operating cash flow to net income ratio is not meaningful due to zero operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	86.17M	81.55M	84.26M	86.37M	132.48M	96.27M
Gross Profit	4.12M	6.14M	6.12M	5.06M	23.28M	15.17M
EBITDA	-13.49M	-8.21M	-8.91M	-16.25M	9.00M	3.30M
Net Income	-13.68M	-5.48M	-12.19M	-18.55M	5.08M	804.00K
Balance Sheet
Total Assets	97.61M	96.62M	107.60M	133.66M	157.31M	132.78M
Cash, Cash Equivalents and Short-Term Investments	25.34M	25.70M	29.44M	41.07M	40.08M	33.09M
Total Debt	4.91M	6.84M	8.63M	14.63M	16.73M	6.73M
Total Liabilities	34.70M	26.95M	30.98M	32.54M	46.16M	35.42M
Stockholders Equity	62.91M	69.67M	76.62M	101.12M	111.15M	97.36M
Cash Flow
Free Cash Flow	-2.27M	-6.47M	1.59M	-8.40M	-631.00K	1.08M
Operating Cash Flow	2.73M	-1.79M	8.50M	816.00K	11.03M	6.75M
Investing Cash Flow	6.78M	1.70M	-3.72M	-9.98M	-12.60M	-4.41M
Financing Cash Flow	-4.86M	-4.88M	-19.59M	10.86M	12.49M	-9.51M

Vertical International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.34
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8375, the sentiment is Positive. The current price of 1.34 is below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.49, and below the 200-day MA of 3.30, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 56.07 is Neutral, neither overbought nor oversold. The STOCH value of 19.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8375.

Vertical International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0259	74 Outperform	HK$3.45B	0.88	108.05%	46.02%	12.26%	2497.49%
0040	69 Neutral	HK$685.89M	16.96	3.78%	3.73%	2.10%	―
0580	67 Neutral	HK$3.20B	18.17	8.36%	1.01%	46.98%	130.04%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0894	54 Neutral	HK$393.04M	41.21	0.63%	0.63%	5.72%	-57.39%
0532	48 Neutral	HK$226.27M	-1.93	-8.12%	―	6.32%	28.39%
8375	43 Neutral	HK$501.12M	-36.63	-19.83%	―	-0.23%	-98.74%