Optima Automobile Group Holdings Limited (8418) AI Stock Analysis

• Market Cap: HK$493.00M
• Dividend Yield: N/A
• Average Volume (3M): 228.07K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.10
• 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: 50 Neutral
• Price Target: HK$0.50 ▼(-16.67% Downside)

The overall stock score is primarily impacted by financial performance challenges, including negative profitability and high leverage. While technical analysis shows a bullish trend, overbought indicators suggest caution. Valuation metrics are unattractive due to negative earnings and lack of dividends.

Positive Factors

Diversified Revenue Streams

Optima's diverse revenue streams from vehicle sales, financing, and after-sales services provide a robust foundation, reducing dependency on a single income source and enhancing resilience against market fluctuations.

Strategic Partnerships

Strategic alliances with manufacturers and service providers allow Optima to offer exclusive products and services, fostering customer loyalty and potentially increasing market share.

Focus on Customer Experience

Optima's emphasis on customer experience can drive repeat business and strengthen brand loyalty, crucial for long-term success in the competitive automotive industry.

Negative Factors

High Leverage

A high debt-to-equity ratio suggests financial risk, as excessive leverage can limit the company's ability to invest in growth opportunities and weather economic downturns.

Negative Profitability

Consistent losses and operational inefficiencies indicate challenges in achieving profitability, which could hinder long-term financial sustainability and investor confidence.

Cash Flow Volatility

Volatile cash flow and lack of free cash flow indicate potential liquidity issues, limiting Optima's ability to fund operations and invest in growth without external financing.

Optima Automobile Group Holdings Limited Business Overview & Revenue Model

Company Description

Optima Automobile Group Holdings Limited (8418) is a prominent player in the automotive industry, primarily engaged in the distribution and retail of vehicles, automotive parts, and accessories. The company operates in various sectors, including new and used car sales, vehicle financing, and after-sales services, catering to a diverse clientele. With a focus on enhancing customer experience, Optima aims to provide a comprehensive suite of automotive solutions, ensuring a robust presence in the competitive market.

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

Optima Automobile Group Holdings Limited faces significant challenges in revenue growth, profitability, and cash flow generation. The negative net income and operating inefficiencies highlight profitability issues. The balance sheet shows high leverage and declining equity, posing financial stability 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: Neutral
• 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 above the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.45, and above the 200-day MA of 0.44, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 63.46 is Neutral, neither overbought nor oversold. The STOCH value of 73.11 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$257.40M	13.62	4.80%	1.89%	3.40%	20.78%
8418	50 Neutral	HK$493.00M	-58.18	-25.40%	―	-5.10%	-35.80%
6830	47 Neutral	HK$433.45M	8.28	3.56%	1.22%	14.93%	19.84%
6162	41 Neutral	HK$432.00M	-1,030.00	-0.12%	―	23.71%	-112.50%
1991	37 Underperform	HK$130.73M	-1.83	-169.48%	―	-38.26%	35.05%