Deleveraging ProgressSustained reduction in total debt improves financial flexibility and lowers interest burdens, helping management allocate cash to operations or strategic initiatives. Over 2-6 months this trend supports solvency, credit access and reduces refinancing risk versus peers with rising leverage.

Positive Gross Margin At Product LevelA near-14% gross margin indicates product-level pricing power or cost control on direct costs. If maintained, this margin allows the business to cover fixed overheads and provides a foundation for margin recovery as volumes normalize, supporting durable operating leverage potential.

Moderate Equity CushionAn equity ratio near one-third provides a persistent solvency buffer against creditors and cyclical revenue swings. This capital structure supports longer-term resilience, enabling the company to absorb operating shocks and pursue restructuring or modest investment without immediate dilution.

Bears Say

Persistent Negative ProfitabilityOngoing net losses and negative operating margins indicate structural profitability issues from operations or cost base. Over months this erodes retained earnings, limits reinvestment capacity, and weakens the firm’s ability to self-fund growth or withstand prolonged demand downturns.

Zero Operating And Free Cash Flow In 2024A lack of operating and free cash flow is a durable concern: it forces reliance on external finance to fund working capital, capex, and debt service. Sustained zero cash generation limits strategic options and increases refinancing and liquidity risk over the medium term.

High Leverage And Declining EquityPersistently high leverage combined with shrinking equity raises solvency and covenant risks, constraining investment and R&D. This structural weakness increases the chance of restrictive financing terms and limits the company’s ability to compete or invest through industry cycles.

8418 FAQ

What was Optima Automobile Group Holdings Limited’s price range in the past 12 months?

Optima Automobile Group Holdings Limited lowest stock price was HK$0.26 and its highest was HK$2.50 in the past 12 months.

What is Optima Automobile Group Holdings Limited’s market cap?

Optima Automobile Group Holdings Limited’s market cap is HK$2.01B.

When is Optima Automobile Group Holdings Limited’s upcoming earnings report date?

Optima Automobile Group Holdings Limited’s upcoming earnings report date is Mar 26, 2026 which is in 30 days.

How were Optima Automobile Group Holdings Limited’s earnings last quarter?

Currently, no data Available

Is Optima Automobile Group Holdings Limited overvalued?

According to Wall Street analysts Optima Automobile Group Holdings Limited’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Optima Automobile Group Holdings Limited pay dividends?

Optima Automobile Group Holdings Limited does not currently pay dividends.

What is Optima Automobile Group Holdings Limited’s EPS estimate?

Optima Automobile Group Holdings Limited’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Optima Automobile Group Holdings Limited have?

Optima Automobile Group Holdings Limited has 850,000,000 shares outstanding.

What happened to Optima Automobile Group Holdings Limited’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of Optima Automobile Group Holdings Limited?

Currently, no hedge funds are holding shares in HK:8418

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Optima Automobile Group Holdings Limited Stock Smart Score

Outperform

Technicals

Fundamentals

Return on Equity

-25.40%

Trailing 12-Months

Asset Growth

-24.44%

Trailing 12-Months

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Company Description

Optima Automobile Group Holdings Limited

Optima Automobile Group Holdings Limited, an investment holding company, provides after-market automotive services. It operates through four segments: After-market Automotive Services, Car Rental Services, Automotive Supply Business, and Education Business Service. The After-market Automotive Services segment provides automotive inspection, maintenance, and repair services. The Car Rental Services segment offers car rental services. The Automotive Supply Business segment trades in motor vehicles; and supplies passenger car spare parts, accessories, and automotive equipment in Singapore, Sri Lanka, and Myanmar. The Education Business Service segment is involved in the data collection and provision of management platform services. The company also offers franchise agency services; and spray printing services for motor vehicles. Optima Automobile Group Holdings Limited was founded in 2012 and is headquartered in Singapore.