Cornerstone Technologies Holdings Limited (8391) AI Stock Analysis

• Market Cap: HK$619.82M
• Dividend Yield: N/A
• Average Volume (3M): 5.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: 83.87%
• EPS Growth: -10.49%
• Country: HK
• Employees: 79
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.04
• Shares Outstanding: 953,575,400
• 10 Day Avg. Volume: 9,735,600
• 30 Day Avg. Volume: 5,725,845
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: -23.08% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: HK$0.50 ▼(-23.08% Downside)

The overall stock score is heavily impacted by poor financial performance, characterized by negative profitability and cash flow issues. While technical analysis shows bullish momentum, overbought indicators suggest caution. Valuation metrics further highlight the company's financial struggles, with a negative P/E ratio and no dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for EV charging solutions, suggesting a solid market position and potential for future expansion.

Market Position

The focus on EV charging services positions the company well within a growing industry, aligning with global trends towards sustainable transportation.

Business Model

A diversified revenue model enhances resilience and provides multiple avenues for growth, reducing dependency on a single income stream.

Negative Factors

Profitability Issues

Persistent losses indicate challenges in cost management and pricing strategy, which could hinder long-term financial sustainability.

High Leverage

Heavy reliance on debt financing increases financial risk, potentially limiting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Negative cash flows suggest difficulties in covering operational costs, which could impact the company's ability to sustain operations without external funding.

Cornerstone Technologies Holdings Limited Business Overview & Revenue Model

Company Description

Cornerstone Technologies Holdings Limited engages in printing, charging, and energy businesses in Hong Kong. The company offers electric vehicle (EV) integrated charging solutions for homes and businesses, including supply and installation of EV chargers, developing EV charging-enabling infrastructure, central management system, hub for e-payment, load management system, and license plate recognition system to electric vehicles and smart parking. It also provides printing, typesetting, and translation services; and energy management solutions, including EV batteries and Solar photovoltaic systems. The company was formerly known as Elegance Commercial and Financial Printing Group Limited and changed its name to Cornerstone Technologies Holdings Limited in October 2020. The company was founded in 1980 and is based in Tsim Sha Tsui, Hong Kong. Cornerstone Technologies Holdings Limited is a subsidiary of Global Fortune Global Limited.

How the Company Makes Money

Cornerstone Technologies Holdings Limited generates revenue through multiple streams related to its electric vehicle charging services. The company's primary revenue stream comes from charging fees collected from users of its EV charging stations. Additionally, Cornerstone Technologies may enter into strategic partnerships with businesses and governmental entities to expand and manage charging networks, which can provide additional income through service contracts and maintenance agreements. The company may also earn revenue through the sale or lease of charging equipment and technology solutions to other businesses or organizations looking to establish their own charging infrastructure.

Cornerstone Technologies Holdings Limited Financial Statement Overview

Summary

Cornerstone Technologies Holdings Limited shows troubling financial health. Despite revenue growth, profitability is lacking, and the balance sheet reveals high leverage and weakened equity. Negative cash flows raise concerns about liquidity and operational sustainability. Urgent measures are needed to improve financial stability and profitability.

Income Statement

The company has experienced significant revenue growth from 2023 to 2024, nearly doubling its revenue. However, this hasn't translated into profitability, as indicated by consistent negative net income and EBIT margins. Gross profit margin improved slightly, but the persistence of high operating losses remains a critical concern.

Balance Sheet

The company's balance sheet highlights a precarious situation with a debt-to-equity ratio that suggests heavy reliance on debt financing. Stockholders' equity has drastically decreased, indicating potential solvency issues. The equity ratio has diminished significantly, reflecting weakened financial stability.

Cash Flow

Cash flows are concerning, with operating cash flow consistently negative, indicating challenges in covering operating expenses. Free cash flow remains negative, further emphasizing liquidity problems. The absence of operating cash flow to net income and free cash flow to net income ratios underscores cash flow challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.13M	78.13M	80.14M	55.03M	54.55M
Gross Profit	27.28M	14.22M	3.19M	6.96M	10.71M
EBITDA	-51.43M	-87.22M	-113.95M	-42.69M	-23.53M
Net Income	-144.23M	-124.19M	-161.19M	-62.00M	-40.63M
Balance Sheet
Total Assets	376.67M	220.14M	170.08M	170.01M	139.46M
Cash, Cash Equivalents and Short-Term Investments	52.25M	23.38M	10.52M	16.62M	33.20M
Total Debt	178.38M	65.78M	62.95M	83.25M	36.10M
Total Liabilities	375.43M	114.70M	119.19M	108.35M	76.01M
Stockholders Equity	1.24M	105.44M	52.40M	62.30M	63.46M
Cash Flow
Free Cash Flow	-83.92M	-132.25M	-65.02M	-74.67M	-15.48M
Operating Cash Flow	-38.30M	-95.19M	-32.62M	-64.67M	-6.13M
Investing Cash Flow	-121.23M	-39.35M	-32.76M	-13.85M	-20.98M
Financing Cash Flow	188.40M	147.39M	59.28M	61.93M	11.54M

Cornerstone Technologies Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8391, the sentiment is Positive. The current price of 0.65 is above the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.46, and above the 200-day MA of 0.48, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 84.11 is Negative, neither overbought nor oversold. The STOCH value of 78.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8391.

Cornerstone Technologies Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
1975	63 Neutral	HK$182.40M	12.79	3.04%	9.21%	-26.49%	-16.57%
1631	59 Neutral	HK$126.72M	26.19	5.97%	―	-13.63%	-30.26%
1884	51 Neutral	HK$64.35M	―	-2.70%	―	-7.49%	25.83%
8391	48 Neutral	HK$619.82M	―	-566.49%	―	83.87%	-10.49%
8450	48 Neutral	HK$124.00M	―	-23.68%	―	-30.12%	-208.11%
8206	38 Underperform	HK$111.85M	―		―	-34.77%	-72.73%