Tree Holdings Ltd. (8395) AI Stock Analysis

• Market Cap: HK$332.64M
• Dividend Yield: N/A
• Average Volume (3M): 444.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -13.93%
• EPS Growth: 75.32%
• Country: HK
• Employees: 79
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Specialty Retail
• EPS (TTM): >-0.01
• Shares Outstanding: 1,584,000,000
• 10 Day Avg. Volume: 696,000
• 30 Day Avg. Volume: 444,000
• PEG Ratio: 0.33
• Price to Book (P/B): 22.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -564.59
• 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

• Rating: 36 Underperform
• Price Target: ―

Tree Holdings Ltd. receives a low stock score due to significant financial challenges, including declining revenue, negative profitability, and increasing leverage. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold conditions. The valuation is also unattractive due to a negative P/E ratio and lack of dividends, further weighing on the stock's appeal.

Tree Holdings Ltd. Business Overview & Revenue Model

Company Description

Tree Holdings Ltd. (8395) is a company engaged in the provision of financial services. It operates primarily in the sectors of asset management and financial consultancy, offering a range of services designed to cater to the investment and financial planning needs of its clientele.

How the Company Makes Money

Tree Holdings Ltd. generates revenue through a combination of management fees, performance fees, and consultancy charges. The company earns management fees by overseeing investment portfolios and charging clients a percentage of the assets under management. Performance fees are collected based on the achievement of specific investment benchmarks or returns. Additionally, Tree Holdings provides financial consultancy services, charging fees for strategic financial planning and advisory services. Strategic partnerships with financial institutions and a strong client base further support its revenue streams.

Tree Holdings Ltd. Financial Statement Overview

Summary

Tree Holdings Ltd. is experiencing financial difficulties with declining revenue, negative profitability, and increased leverage. The income statement shows deteriorating margins, while the balance sheet indicates higher debt levels and reduced equity. Cash flow challenges further affect the company's financial stability.

Income Statement

Tree Holdings Ltd. has faced declining revenue and profitability over the past few years. The revenue decreased significantly from 2021 to 2024, with a notable drop in gross profit margin from previous levels. The net profit margin has turned negative due to consistent net losses, and the EBIT and EBITDA margins reflect operating challenges. These factors indicate financial instability and declining business performance.

Balance Sheet

The balance sheet shows a concerning trend with decreasing stockholders' equity and increasing debt levels, leading to a rising debt-to-equity ratio. The equity ratio has also decreased, indicating higher leverage and potential solvency issues. However, the company maintains a reasonable level of cash and short-term investments, providing some liquidity cushion.

Cash Flow

Cash flow analysis reveals inconsistent operating cash flow, with recent periods showing a minimal positive cash flow, contrasting sharply with previous years' stronger performance. Free cash flow growth is negative, reflecting cash constraints. The operating cash flow to net income ratio is low, indicating cash flow challenges relative to earnings.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
60.37M	64.97M	78.19M	95.91M	120.55M	91.10M
	Gross Profit
38.05M	41.86M	51.58M	63.52M	74.22M	65.26M
	EBIT
-6.10M	-14.76M	-3.83M	3.76M	17.31M	11.55M
	EBITDA
-5.54M	-4.89M	1.79M	19.07M	32.73M	17.92M
	Net Income Common Stockholders
-5.97M	-17.27M	-11.05M	5.23M	14.56M	5.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.30M	12.19M	9.48M	22.18M	29.14M	16.77M
	Total Assets
108.76M	106.81M	99.79M	114.97M	138.27M	129.13M
	Total Debt
28.78M	32.82M	19.34M	20.94M	22.56M	25.91M
	Net Debt
26.98M	20.63M	9.86M	-1.25M	-6.58M	9.14M
	Total Liabilities
74.96M	71.54M	48.11M	52.29M	67.88M	73.58M
	Stockholders Equity
33.80M	35.27M	51.68M	62.68M	70.39M	55.55M
Cash Flow		Free Cash Flow
12.94M	-922.00K	-2.02M	26.21M	34.77M	1.65M
	Operating Cash Flow
13.09M	78.00K	-1.50M	26.77M	35.22M	2.48M
	Investing Cash Flow
3.11M	-1.27M	-522.00K	-7.61M	-12.78M	-4.33M
	Financing Cash Flow
-17.52M	3.98M	-10.73M	-25.82M	-10.12M	-4.17M

Tree Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.22 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.23, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.15 is Neutral, neither overbought nor oversold. The STOCH value of 25.38 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
8473	76 Outperform	HK$128.80M	12.78	7.02%	90.43%	-17.13%	-51.35%
Sector *	62 Neutral	$6.76B	11.07	2.80%	6.34%	2.68%	-24.87%
8427	53 Neutral	HK$351.56M	889.83	0.83%	―	4.23%	-40.55%
8411	51 Neutral	HK$57.83M	―	-5.25%	34.48%	-25.44%	41.67%
8430	47 Neutral	HK$19.85M	―	-2.91%	―	10.22%	92.89%
8395	36 Underperform	HK$332.64M	―	-16.42%	―	-13.93%	75.32%