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Cornerstone Technologies Holdings Limited (HK:8391)
:8391
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Cornerstone Technologies Holdings Limited
(8391)
Select Model
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Rating:39Underperform
Price Target:
HK$0.48
▼(-13.93% Downside)
The score is primarily weighed down by weak financial fundamentals—ongoing losses, high leverage with reduced equity, and negative operating/free cash flow—combined with a clear technical downtrend. Valuation provides limited offset because the negative P/E is driven by losses and there is no dividend yield data.
Positive Factors
Strong revenue growth
Revenue nearly doubled year-over-year, reflecting robust demand and successful go-to-market execution. Sustained high top-line growth provides room to scale operations, improve unit economics and invest in product and sales capability, supporting long-term market expansion.
Diversified revenue streams & partnerships
Multiple revenue streams (licenses, recurring support, consulting, project work) plus technology partnerships create recurring and project-based cash opportunities. This diversification lowers client concentration risk and supports durable revenue resilience and cross-sell potential over time.
Multi-vertical enterprise exposure
Serving finance, healthcare and retail exposes the business to secular IT spending and digital transformation tailwinds across industries. Broad end-market penetration reduces dependence on any single sector and supports steadier long-term demand for enterprise IT services.
Negative Factors
Persistent unprofitability
Ongoing negative net income and EBIT indicate the business has yet to convert growth into sustainable profits. Persistent losses erode retained capital, limit reinvestment ability, and increase reliance on external funding, challenging long-term financial viability.
Weakened balance sheet and high leverage
A weakened equity base and high leverage reduce financial flexibility, increase refinancing and interest risks, and constrain strategic options. In a capital-intensive scaling phase, this balance sheet weakness heightens solvency risk over the medium term.
Negative operating and free cash flow
Consistently negative operating and free cash flows mean the company cannot self-fund operations or growth. This structural cash shortfall forces repeated external financing or dilution, undermining sustainability unless cash generation is restored.
Cornerstone Technologies Holdings Limited (8391) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$530.68M
Dividend YieldN/A
Average Volume (3M)7.99M
Price to Earnings (P/E)―
Beta (1Y)0.25
Revenue Growth83.87%
EPS Growth-10.49%
CountryHK
Employees79
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,040,557,400
10 Day Avg. Volume5,964,800
30 Day Avg. Volume7,994,600
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)382.62
Price to Sales (P/S)3.11
P/FCF Ratio-5.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Cornerstone Technologies Holdings Limited Business Overview & Revenue Model
Company DescriptionCornerstone 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 MoneyCornerstone Technologies generates revenue through multiple streams, including the sale of software licenses, service contracts for IT consulting, and ongoing support and maintenance services for clients. The company also engages in project-based revenue through system integration services, which involve customizing software solutions to meet specific client needs. Significant partnerships with technology firms and service providers enhance its capabilities and market reach, allowing Cornerstone to tap into new customer segments and expand its service offerings, thereby contributing to its overall earnings.
Cornerstone Technologies Holdings Limited Financial Statement Overview
Summary
Despite strong revenue growth, the company remains unprofitable with persistent negative net income/EBIT, a weakened balance sheet marked by heavy leverage and sharply reduced equity, and consistently negative operating and free cash flow that raises liquidity and sustainability risk.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.35
Negative
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.30
Negative
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.20
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 148.82M | 153.13M | 78.13M | 31.83M | 55.03M | 54.55M |
| Gross Profit | 30.07M | 27.28M | 14.22M | 3.24M | 6.96M | 10.71M |
| EBITDA | -40.59M | -51.43M | -87.22M | -109.56M | -42.69M | -23.53M |
| Net Income | -138.30M | -144.23M | -124.19M | -160.31M | -61.36M | -40.63M |
Balance Sheet | ||||||
| Total Assets | 323.55M | 376.67M | 220.14M | 170.08M | 170.01M | 139.46M |
| Cash, Cash Equivalents and Short-Term Investments | 31.69M | 52.25M | 23.38M | 10.52M | 16.62M | 33.20M |
| Total Debt | 200.62M | 194.41M | 65.78M | 62.95M | 83.25M | 36.10M |
| Total Liabilities | 356.27M | 375.43M | 114.70M | 119.19M | 108.35M | 76.01M |
| Stockholders Equity | -32.72M | 1.24M | 105.44M | 52.40M | 62.30M | 63.46M |
Cash Flow | ||||||
| Free Cash Flow | -89.43M | -83.92M | -132.25M | -65.02M | -74.67M | -15.48M |
| Operating Cash Flow | -55.71M | -38.30M | -95.19M | -32.62M | -64.67M | -6.13M |
| Investing Cash Flow | -158.69M | -121.23M | -39.35M | -32.76M | -13.85M | -20.98M |
| Financing Cash Flow | 265.81M | 188.40M | 147.39M | 59.28M | 61.93M | 11.54M |
Cornerstone Technologies Holdings Limited Technical Analysis
Negative
0.56
Price Trends
0.60
Negative
0.64
Negative
0.53
Negative
Market Momentum
-0.04
Negative
43.49
Neutral
67.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8391, the sentiment is Negative. The current price of 0.56 is above the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.60, and above the 200-day MA of 0.53, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 43.49 is Neutral, neither overbought nor oversold. The STOCH value of 67.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8391.
Cornerstone Technologies Holdings Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$119.04M | 24.60 | 5.97% | ― | -13.63% | -30.26% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | HK$180.00M | -2.03 | -20.83% | 8.60% | -26.30% | -617.37% | |
45 Neutral | HK$61.05M | 74.00 | 0.37% | ― | -10.78% | ― | |
42 Neutral | HK$87.00M | -7.63 | -23.68% | ― | -30.12% | -208.11% | |
41 Neutral | HK$72.04M | -21.11 | ― | ― | 80.22% | 53.85% | |
39 Underperform | HK$530.68M | -3.43 | -566.49% | ― | 83.87% | -10.49% |
* Industrials Sector Average
HK:8391
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.