Tree Holdings Ltd. (8395) AI Stock Analysis

• Market Cap: HK$296.21M
• Dividend Yield: N/A
• Average Volume (3M): 558.67K
• Price to Earnings (P/E): 2796.0
• Beta (1Y): 0.11
• 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: 62 Neutral
• Price Target: HK$0.22 ▼(-6.09% Downside)
• Action: Reiterated Date: 01/15/26
• Date: Action: Reiterated 01/15/26

The score is primarily supported by improving fundamentals (strong revenue growth, healthy gross margin, and reduced leverage) but is tempered by low profitability and cash flow softness. Technicals are weak with the stock trading below major moving averages and negative MACD, and valuation looks demanding with a P/E around 30 and no dividend yield data to offset it.

Positive Factors

Revenue Growth & Gross Margin

Sustained 64% revenue growth with a 69% gross margin indicates the company can expand top-line while retaining strong product-level profitability. This supports scalable unit economics, funds reinvestment into growth areas, and underpins durable competitive positioning across business cycles.

Improving Operating Margins

Meaningful improvement in EBIT and EBITDA margins shows management is extracting operating leverage and improving cost discipline or product mix. Sustained higher operating margins increase free cash flow potential and reduce sensitivity to revenue swings, strengthening long-term resilience.

Lower Financial Leverage

A reduced debt-to-equity ratio (0.62) and stable equity ratio reflect stronger capitalization and lower financial risk. Lower leverage improves flexibility to fund investments, absorb shocks, and pursue strategic opportunities without materially increasing interest burden over the medium term.

Negative Factors

Low Net Profitability

Net margin of ~1.6% and weak ROE indicate limited ability to convert strong revenue into shareholder returns. Persistent low profitability constrains retained earnings for reinvestment and hampers long-term shareholder value creation despite top-line growth unless structural cost or pricing improvements occur.

Weak Cash Flow Conversion

Negative free cash flow growth and operating cash flow trailing net income signal poor cash conversion. This limits internal funding for capex, deleveraging, or dividends and may force reliance on external financing, raising medium-term liquidity and financing-cost risks if not addressed.

Multi-Segment Complexity

Operating across real estate, technology, and financial services provides diversification but increases execution complexity and overhead. Multi-sector management demands varied capabilities and can dilute strategic focus, making consistent margin expansion and integration of cash flows more challenging over time.

Tree Holdings Ltd. Business Overview & Revenue Model

Company Description

Tree Holdings Ltd. (8395) is a diversified investment holding company primarily engaged in various sectors, including real estate, technology, and financial services. The company focuses on acquiring, managing, and developing assets that deliver sustainable growth and value. Its core products and services encompass property management, technology solutions, and investment advisory, catering to a wide range of clients across different industries.

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

Strong revenue growth (64.35%) and a healthy gross margin (69.33%) support the score, alongside improved EBIT/EBITDA margins and reduced leverage (debt-to-equity 0.62). The score is held back by low net margin (1.62%), low ROE, and weakening free cash flow growth with operating cash flow not keeping pace with net income.

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	Mar 2025	Mar 2023	Mar 2022	Mar 2021	Mar 2021
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: Negative
• Last Price: 0.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8395, the sentiment is Negative. The current price of 0.23 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.20, and above the 200-day MA of 0.22, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.79 is Neutral, neither overbought nor oversold. The STOCH value of 63.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8395.

Tree Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8395	62 Neutral	HK$296.21M	2,796.00	35.74%	―	125.71%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1572	54 Neutral	HK$162.29M	138.35	-0.06%	―	-14.12%	-104.76%
1545	46 Neutral	HK$196.00M	-2.46	-4.46%	3.69%	-27.20%	-195.83%
1711	46 Neutral	HK$104.00M	-6.70	-87.26%	―	-12.97%	-20.77%
2122	45 Neutral	HK$333.55M	-0.22	―	―	-15.54%	16.04%
0620	41 Neutral	HK$380.49M	-3.69	-3.08%	―	-33.28%	91.18%