Optima Automobile Group Holdings Limited (8418) AI Stock Analysis

• Market Cap: HK$1.65B
• Dividend Yield: N/A
• Average Volume (3M): 228.07K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.04
• Revenue Growth: -5.10%
• EPS Growth: -35.80%
• Country: HK
• Employees: 120
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 850,000,000
• 10 Day Avg. Volume: 278,200
• 30 Day Avg. Volume: 228,066
• PEG Ratio: -0.73
• Price to Book (P/B): 8.86
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 63.61
• 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: 49 Neutral
• Price Target: HK$2.00 ▲(233.33% Upside)

The score is held down primarily by weak financial performance: ongoing losses, negative operating metrics, and zero operating/free cash flow in 2024, alongside leverage and declining equity. Technicals are supportive due to strong trend and positive MACD, but extremely overbought RSI/Stoch readings raise near-term reversal risk. Valuation provides limited support because the company is loss-making and has no stated dividend yield.

Positive Factors

Deleveraging progress

Sustained 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 level

A 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 cushion

An 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.

Negative Factors

Persistent negative profitability

Ongoing 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 2024

A 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 equity

Persistently 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.

Optima Automobile Group Holdings Limited Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Optima Automobile Group Holdings Limited generates revenue through multiple streams, primarily from the sale of new and used vehicles, which constitutes a significant portion of its income. The company also earns money through the provision of financing options for vehicle purchases, often partnering with financial institutions to offer competitive loan products to customers. Additionally, revenue is generated through the sale of automotive parts and accessories, as well as after-sales services such as repairs and maintenance. Strategic partnerships with manufacturers and service providers further enhance its revenue potential, allowing the company to offer exclusive products and services, thereby driving customer loyalty and repeat business.

Optima Automobile Group Holdings Limited Financial Statement Overview

Summary

Income statement shows declining revenue in 2024 vs 2023 with ongoing net losses and negative EBIT/EBITDA margins, pointing to weak profitability and operating efficiency. Balance sheet indicates leverage risk (high debt-to-equity) alongside declining equity and negative ROE. Cash flow is a key concern with zero operating and free cash flow reported in 2024, raising liquidity and sustainability risks.

Income Statement

The company has experienced fluctuating revenues with a significant drop in 2024 compared to 2023. The gross profit margin decreased slightly from 12.14% in 2023 to 13.99% in 2024, indicating some cost control issues. The net profit margin was negative, with net losses recorded over the years, highlighting ongoing profitability challenges. EBIT and EBITDA margins were also negative, reflecting operational inefficiencies.

Balance Sheet

The company has managed to reduce total debt over the years, but the debt-to-equity ratio remains high, indicating leverage risk. Stockholders' equity has decreased, which is a concern for long-term financial health. The equity ratio has remained around 33.3% in 2024, suggesting moderate reliance on equity financing. Return on equity is negative due to consistent losses.

Cash Flow

The operating cash flow has fluctuated, with zero cash flow reported in 2024, indicating potential liquidity issues. Free cash flow has shown volatility, with no free cash flow recorded in 2024, raising concerns about the company's ability to generate cash from operations. The ratio of operating cash flow to net income was not available due to zero operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.33M	87.84M	105.07M	81.30M	57.14M	22.30M
Gross Profit	10.92M	12.29M	12.75M	10.83M	10.34M	9.24M
EBITDA	753.25K	1.40M	2.83M	2.99M	3.03M	2.57M
Net Income	-1.59M	-1.51M	-1.26M	-1.49M	-426.00K	-789.00K
Balance Sheet
Total Assets	15.76M	18.75M	22.81M	25.61M	27.77M	22.56M
Cash, Cash Equivalents and Short-Term Investments	5.45M	7.35M	4.87M	6.25M	8.12M	3.33M
Total Debt	3.33M	4.43M	8.36M	9.68M	9.81M	7.64M
Total Liabilities	9.53M	12.52M	16.63M	17.26M	17.15M	11.64M
Stockholders Equity	6.23M	6.24M	6.18M	8.01M	9.90M	10.93M
Cash Flow
Free Cash Flow	659.00K	869.00K	1.56M	487.00K	446.00K	2.12M
Operating Cash Flow	1.06M	1.27M	2.84M	2.17M	3.32M	2.81M
Investing Cash Flow	5.93M	4.08M	654.00K	-273.00K	-4.57M	-3.23M
Financing Cash Flow	-3.76M	-4.80M	-3.39M	-2.17M	2.40M	-2.60M

Optima Automobile Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8418, the sentiment is Positive. The current price of 0.6 is below the 20-day moving average (MA) of 1.20, below the 50-day MA of 0.79, and above the 200-day MA of 0.53, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 85.41 is Negative, neither overbought nor oversold. The STOCH value of 69.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8418.

Optima Automobile Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0096	69 Neutral	HK$356.47M	3.65	9.50%	2.54%	4.51%	3.23%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1930	58 Neutral	HK$254.10M	13.80	4.80%	1.89%	3.40%	20.78%
8418	49 Neutral	HK$1.65B	-176.36	-25.40%	―	-5.10%	-35.80%
1991	44 Neutral	HK$142.77M	-1.94	-169.48%	―	-38.26%	35.05%
6830	44 Neutral	HK$398.07M	7.45	3.56%	1.22%	14.93%	19.84%
6162	42 Neutral	HK$498.00M	-1,245.00	-0.12%	―	23.71%	-112.50%