Tree Holdings Ltd. (8395) AI Stock Analysis

• Market Cap: HK$331.06M
• Dividend Yield: N/A
• Average Volume (3M): 558.67K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.16
• Revenue Growth: 125.71%
• EPS Growth: N/A
• Country: HK
• Employees: 79
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 1,584,000,000
• 10 Day Avg. Volume: 710,000
• 30 Day Avg. Volume: 558,666
• PEG Ratio: -3.02
• Price to Book (P/B): 14.44
• Price to Sales (P/S): 5.35
• P/FCF Ratio: 171.78
• 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: 61 Neutral
• Price Target: HK$0.20 ▼(-7.27% Downside)

Tree Holdings Ltd. shows strong revenue growth and operational efficiency, but faces challenges with profitability and cash flow. The technical indicators suggest a bearish trend, and the valuation appears high, reducing the stock's attractiveness. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The robust revenue growth indicates successful market expansion and effective business strategies, supporting long-term sustainability.

Operational Efficiency

High operational efficiency suggests the company can maintain competitive pricing and profitability over time, enhancing its market position.

Leverage Management

Improved leverage management enhances financial stability and reduces risk, providing a solid foundation for future growth and investment.

Negative Factors

Profitability Concerns

Low profitability limits the company's ability to reinvest in growth and weather economic downturns, potentially impacting long-term viability.

Cash Flow Challenges

Declining cash flow generation can strain operations and limit the company's ability to fund new projects or manage debt effectively.

Return on Equity

Low return on equity indicates inefficient use of shareholder funds, which may deter investment and affect the company's growth prospects.

Tree Holdings Ltd. Business Overview & Revenue Model

Company Description

ZXZN Qi-House Holdings Limited sells and distributes furniture and home accessories in the People's Republic of China. It operates in Furniture Sale and Consultancy Services, and Furniture Agency Service segments. The company offers a range of furniture, including tables, chairs, storage solutions, sofas, and beds; and home accessories, such as kitchenware, bed and bathroom related products, jars, cushions, mattresses, utensils, and baskets. It also provides furniture agency and rental, as well as styling and consulting services. In addition, the company operates 2 cafes under the Flagship Store and Sha Tin store names. It serves customers through a network of retail stores and distributors. The company was founded in 2005 and is headquartered in Ap Lei Chau, Hong Kong. TREE Holdings Limited is a subsidiary of Tiptop Honour Limited.

How the Company Makes Money

Tree Holdings Ltd. generates revenue through several key streams. Primarily, the company earns income from its real estate holdings by leasing properties and managing rental agreements, providing a steady cash flow. Additionally, through its technology division, Tree Holdings offers software and IT solutions, creating income from licensing and service fees. The financial services segment contributes to revenue through investment management fees and advisory services. Significant partnerships with other firms enhance its market reach and capabilities, further bolstering its earnings potential.

Tree Holdings Ltd. Financial Statement Overview

Summary

Tree Holdings Ltd. demonstrates strong revenue growth and improved operational efficiency. The balance sheet reflects a stable capital structure with reduced leverage, though profitability remains a concern. Cash flow challenges persist, with declining free cash flow growth, but the company maintains efficient conversion of net income to free cash flow.

Income Statement

Tree Holdings Ltd. has shown a strong revenue growth rate of 64.35% in the latest period, indicating a robust recovery from previous declines. The gross profit margin is healthy at 69.33%, reflecting efficient cost management. However, the net profit margin is relatively low at 1.62%, suggesting challenges in converting revenue into profit. The EBIT and EBITDA margins have improved significantly, indicating better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has decreased to 0.62, showing improved leverage management compared to previous years. The equity ratio remains stable, indicating a solid capital structure. However, the return on equity is low, reflecting limited profitability relative to shareholder equity.

Cash Flow

The free cash flow growth rate is negative, indicating a decline in cash generation. The operating cash flow to net income ratio is low, suggesting that cash generation from operations is not keeping pace with net income. However, the free cash flow to net income ratio is nearly 1, indicating that the company is converting its net income into free cash flow efficiently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.37M	99.22M	64.97M	78.19M	95.91M	120.55M
Gross Profit	38.05M	68.79M	38.59M	51.58M	63.52M	74.22M
EBITDA	-5.54M	26.20M	-4.89M	1.79M	19.07M	32.73M
Net Income	-5.97M	1.61M	-17.27M	-11.05M	5.23M	14.56M
Balance Sheet
Total Assets	108.76M	118.71M	106.81M	99.79M	114.97M	138.27M
Cash, Cash Equivalents and Short-Term Investments	33.30M	961.00K	12.19M	9.48M	22.18M	29.14M
Total Debt	28.78M	22.83M	32.82M	19.34M	20.94M	22.56M
Total Liabilities	74.96M	81.97M	71.54M	46.99M	52.29M	67.88M
Stockholders Equity	33.80M	36.75M	35.27M	52.71M	62.68M	70.39M
Cash Flow
Free Cash Flow	12.94M	3.09M	-75.00K	-2.02M	26.21M	34.77M
Operating Cash Flow	13.09M	3.14M	78.00K	-1.50M	26.77M	35.22M
Investing Cash Flow	3.11M	-2.90M	-1.27M	-522.00K	-7.61M	-12.78M
Financing Cash Flow	-17.52M	-11.36M	3.98M	-10.73M	-25.82M	-10.12M

Tree Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8395, the sentiment is Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.21, and below the 200-day MA of 0.23, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.62 is Neutral, neither overbought nor oversold. The STOCH value of 17.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8395.

Tree Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8395	61 Neutral	HK$331.06M	28.10	35.74%	―	125.71%	―
1572	54 Neutral	HK$167.36M	-247.50	-0.06%	―	-14.12%	-104.76%
1711	48 Neutral	HK$92.80M	-2.85	-87.26%	―	-12.97%	-20.77%
1545	46 Neutral	HK$238.00M	-16.96	-4.46%	3.19%	-27.20%	-195.83%
2122	45 Neutral	HK$320.72M	-1.21	―	―	-15.54%	16.04%
0620	39 Underperform	HK$424.54M	-12.81	-3.08%	―	-33.28%	91.18%