tiprankstipranks
Trending News
More News >
Optima Automobile Group Holdings Limited (HK:8418)
:8418
Hong Kong Market
Advertisement

Optima Automobile Group Holdings Limited (8418) AI Stock Analysis

Compare
0 Followers

Top Page

HK:8418

Optima Automobile Group Holdings Limited

(8418)

Rating:49Neutral
Price Target:
HK$0.50
▲(6.38% Upside)
The stock's overall score reflects significant financial challenges, including negative profitability and high leverage, which weigh heavily on its performance. Although technical indicators suggest some positive momentum, the valuation remains unattractive due to the negative P/E ratio and lack of dividends. Improving financial stability and profitability are crucial for enhancing the stock's attractiveness.

Optima Automobile Group Holdings Limited (8418) vs. iShares MSCI Hong Kong ETF (EWH)

Optima Automobile Group Holdings Limited Business Overview & Revenue Model

Company DescriptionOptima Automobile Group Holdings Limited (8418) is a company engaged in the automotive sector, providing a range of services primarily focused on the after-sales market. The company operates through various segments, including vehicle repair and maintenance, vehicle leasing, and distribution of automotive parts and accessories. Optima Automobile Group Holdings Limited aims to deliver high-quality services to enhance the lifespan and performance of vehicles for individual and corporate clients.
How the Company Makes MoneyOptima Automobile Group Holdings Limited generates revenue through several key streams. The primary source of income is its vehicle repair and maintenance services, where the company charges customers for diagnostics, repairs, and routine maintenance of automobiles. Another significant revenue stream is vehicle leasing, where the company provides leasing options to corporate and individual clients, generating income through rental fees. Additionally, the distribution and sale of automotive parts and accessories contribute to the company's earnings. This involves sourcing and supplying a wide range of automotive components to both retail and wholesale customers. The company's partnerships with automotive manufacturers and parts suppliers also play a crucial role in ensuring a steady supply chain and enhancing its service offerings.

Optima Automobile Group Holdings Limited Financial Statement Overview

Summary
The company is facing significant challenges in revenue growth, profitability, and cash flow generation. The negative net income and operational inefficiencies highlight profitability issues. The balance sheet shows high leverage and declining equity, posing financial stability risks. Improving cash flow management and operational efficiency will be crucial for future resilience.
Income Statement
45
Neutral
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
50
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue87.84M105.07M81.30M57.14M22.30M
Gross Profit12.29M12.75M11.57M10.34M9.24M
EBITDA1.40M2.83M2.99M3.03M2.57M
Net Income-1.51M-1.26M-1.84M-659.00K-789.00K
Balance Sheet
Total Assets18.75M22.81M25.61M27.77M22.56M
Cash, Cash Equivalents and Short-Term Investments7.35M4.87M4.77M4.49M3.33M
Total Debt4.43M8.36M9.68M9.81M7.64M
Total Liabilities12.52M16.63M17.26M17.15M11.64M
Stockholders Equity6.24M6.18M8.01M9.90M10.93M
Cash Flow
Free Cash Flow869.00K1.56M487.00K446.00K2.12M
Operating Cash Flow1.27M2.84M2.17M3.32M2.81M
Investing Cash Flow4.08M654.00K-273.00K-4.57M-3.23M
Financing Cash Flow-4.80M-3.39M-2.17M2.40M-2.60M

Optima Automobile Group Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.47
Price Trends
50DMA
0.42
Positive
100DMA
0.42
Positive
200DMA
0.44
Positive
Market Momentum
MACD
0.02
Negative
RSI
64.40
Neutral
STOCH
46.69
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 0.47 is above the 20-day moving average (MA) of 0.46, above the 50-day MA of 0.42, and above the 200-day MA of 0.44, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.40 is Neutral, neither overbought nor oversold. The STOCH value of 46.69 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$381.93M3.939.77%2.37%2.35%12.59%
60
Neutral
HK$260.70M14.964.62%1.80%6.62%-23.92%
56
Neutral
HK$24.68B3.78-3.23%5.89%0.25%-59.97%
54
Neutral
HK$513.07M11.283.02%1.07%-2.00%7.08%
49
Neutral
HK$403.75M-24.67%-16.14%
48
Neutral
HK$230.00M104.550.80%-2.97%-42.11%
38
Underperform
HK$118.98M-137.28%-20.08%27.74%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8418
Optima Automobile Group Holdings Limited
0.47
-0.13
-21.67%
HK:6830
Huazhong In-Vehicle Holdings Company Limited
0.28
-2.03
-87.88%
HK:6162
China Tianrui Automotive Interiors Co., Ltd.
0.12
0.03
33.33%
HK:1991
Ta Yang Group Holdings Limited
1.05
-0.25
-19.23%
HK:1930
Shinelong Automotive Lightweight Application Limited
0.40
0.16
66.67%
HK:0096
Yusei Holdings Ltd.
0.60
0.06
11.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025