Optima Automobile Group Holdings Limited (8418) AI Stock Analysis

• Market Cap: HK$369.75M
• Dividend Yield: N/A
• Average Volume (3M): 180.07K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.13
• Revenue Growth: -16.14%
• EPS Growth: N/A
• Country: HK
• Employees: 120
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Auto - Parts
• EPS (TTM): -0.01
• Shares Outstanding: 850,000,000
• 10 Day Avg. Volume: 157,600
• 30 Day Avg. Volume: 180,066
• PEG Ratio: N/A
• Price to Book (P/B): 9.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 117.32
• 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: 45 Neutral
• Price Target: HK$0.50 ▲(13.64%Upside)

The most significant factor affecting the stock score is the company's weak financial performance, characterized by ongoing losses and high leverage. Technical indicators provide mixed signals, but do not significantly improve the outlook. The valuation metrics are negative, largely due to the company's lack of profitability, resulting in an overall score on the lower end of the scale.

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 various channels within the automotive after-market sector. The primary revenue streams include fees charged for vehicle inspection, maintenance, and repair services. The company also earns revenue from the sale and distribution of automotive parts and accessories, which are integral to its repair services. Additionally, Optima offers automotive insurance services, further diversifying its income sources. Strategic partnerships with automotive manufacturers and parts suppliers enhance its service offerings and contribute to its revenue by expanding its customer base and service capabilities.

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	87.84M	105.07M	81.30M	57.14M	22.30M
Gross Profit	12.29M	12.75M	11.57M	10.34M	9.24M
EBITDA	1.40M	2.83M	2.99M	3.03M	2.57M
Net Income	-1.51M	-1.26M	-1.84M	-659.00K	-789.00K
Balance Sheet
Total Assets	18.75M	22.81M	25.61M	27.77M	22.56M
Cash, Cash Equivalents and Short-Term Investments	7.35M	4.87M	4.77M	4.49M	3.33M
Total Debt	4.43M	8.36M	9.68M	9.81M	7.64M
Total Liabilities	12.52M	16.63M	17.26M	17.15M	11.64M
Stockholders Equity	6.24M	6.18M	8.01M	9.90M	10.93M
Cash Flow
Free Cash Flow	869.00K	1.56M	487.00K	446.00K	2.12M
Operating Cash Flow	1.27M	2.84M	2.17M	3.32M	2.81M
Investing Cash Flow	4.08M	654.00K	-273.00K	-4.57M	-3.23M
Financing Cash Flow	-4.80M	-3.39M	-2.17M	2.40M	-2.60M

Optima Automobile Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.44
• 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 0.44 is above the 20-day moving average (MA) of 0.43, above the 50-day MA of 0.42, and below the 200-day MA of 0.44, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 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	71 Outperform	HK$343.74M	3.53	9.77%	2.64%	2.35%	12.59%
1930	67 Neutral	HK$270.60M	15.53	4.62%	1.75%	6.62%	-23.92%
Sector *	62 Neutral	C$5.16B	8.78	20.23%	3.49%	3.08%	9.19%
6830	50 Neutral	HK$477.68M	10.12	3.02%	1.13%	-2.00%	7.08%
6162	48 Neutral	HK$260.00M	118.18	0.80%	―	-2.97%	-42.11%
8418	45 Neutral	HK$369.75M	―	-24.67%	―	-16.14%	―
1991	38 Underperform	HK$104.64M	―	-137.28%	―	-20.08%	27.74%