Nexion Technologies Limited (8420) AI Stock Analysis

• Market Cap: HK$22.19M
• Dividend Yield: N/A
• Average Volume (3M): 168.17K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.10
• Revenue Growth: 829.89%
• EPS Growth: -855.56%
• Country: HK
• Employees: 16
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Infrastructure
• EPS (TTM): -0.13
• Shares Outstanding: 887,760,000
• 10 Day Avg. Volume: 43,500
• 30 Day Avg. Volume: 168,166
• PEG Ratio: 0.06
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.42
• Enterprise Value/Market Cap: 0.03
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 4.28
• Enterprise Value/Ebitda: -0.22
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 31 Underperform
• Price Target: ―

Nexion Technologies Limited faces significant financial challenges with declining revenue, persistent losses, and negative cash flows, resulting in a low financial performance score. The stock exhibits bearish technical indicators, and its valuation is unattractive due to negative earnings and lack of dividends. These factors contribute to an overall low score, reflecting concerns about the company's financial stability and future prospects.

Nexion Technologies Limited Business Overview & Revenue Model

Company Description

Nexion Technologies Limited (8420) is a technology company primarily engaged in the provision of cyber infrastructure and cybersecurity solutions. The company operates in the information technology sector, offering a suite of products and services designed to enhance the security and efficiency of digital communications and data management. Nexion focuses on advanced technologies such as cloud computing, network security, and big data analytics to serve clients across various industries.

How the Company Makes Money

Nexion Technologies Limited generates revenue through the sale and implementation of its cybersecurity and cyber infrastructure solutions. The company offers a range of products including software and hardware that enhance network security and data protection. Revenue streams include one-time sales of products, subscription-based services for ongoing support and updates, and consulting fees for tailored cybersecurity solutions. Nexion may also engage in strategic partnerships with other technology firms to expand its service offerings and reach a broader client base.

Nexion Technologies Limited Financial Statement Overview

Summary

Nexion Technologies Limited is grappling with significant financial challenges, reflected in its declining revenue, persistent losses, and negative cash flows. While the company has minimal debt, the erosion of equity and diminishing asset base indicate financial instability. The negative profitability margins and inability to generate positive cash flows raise concerns about the company's ability to sustain operations in the long term.

Income Statement

Nexion Technologies Limited has experienced a significant decline in revenue, with a 79.5% drop from 2020 to 2024. The company has consistently reported negative net income, with a net loss of $1,892,064 in 2024. Additionally, the gross profit margin has turned negative in 2024, indicating cost overruns. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and challenges in the business model.

Balance Sheet

The company's balance sheet reveals a concerning trend of diminishing stockholders' equity, which decreased from $9,435,000 in 2020 to $2,159,618 in 2024. The equity ratio stood at 64.8% in 2024, indicating a moderate reliance on equity financing. However, the absence of substantial debt suggests limited leverage risk. Despite this, the declining asset base and equity indicate underlying financial challenges.

Cash Flow

Nexion Technologies Limited has faced challenges in generating positive cash flow, with a negative operating cash flow of $660,902 in 2024. The free cash flow remains negative, reflecting ongoing cash outflows. The inability to generate sufficient cash to cover net income and capital expenditures highlights liquidity issues and potential sustainability concerns.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.36M	1.96M	1.63M	5.43M	6.96M	8.63M
	Gross Profit
174.44K	-635.79K	907.00K	1.50M	1.68M	1.09M
	EBIT
-982.13K	-1.96M	-1.04M	-1.06M	-2.71M	-1.92M
	EBITDA
-1.14M	-1.46M	-780.00K	-38.00K	-2.35M	-4.09M
	Net Income Common Stockholders
-1.72M	-1.89M	-1.76M	-1.16M	-3.08M	-5.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.77M	1.67M	2.26M	3.41M	5.28M	5.19M
	Total Assets
4.67M	3.33M	5.23M	7.17M	13.59M	11.90M
	Total Debt
―	6.00K	5.00K	54.00K	101.00K	0.00
	Net Debt
―	-10.61M	-2.25M	-3.36M	-5.17M	-5.19M
	Total Liabilities
1.08M	1.24M	1.08M	1.72M	7.17M	2.52M
	Stockholders Equity
3.57M	2.16M	4.10M	5.43M	6.46M	9.44M
Cash Flow		Free Cash Flow
-476.25K	-823.13K	-1.45M	-2.89M	864.00K	-2.11M
	Operating Cash Flow
-473.06K	-660.90K	-1.27M	-2.89M	941.00K	-611.00K
	Investing Cash Flow
0.00	-268.97K	-168.00K	1.14M	-790.00K	-537.00K
	Financing Cash Flow
0.00	―	381.00K	-79.00K	-23.00K	155.00K

Nexion Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8420, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 24.56 is Positive, neither overbought nor oversold. The STOCH value of -34.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8420.

Nexion Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
8083	50 Neutral	HK$3.02B	―	-16.87%	―	-2.35%	-837.50%
8080	46 Neutral	HK$131.81M	―	-0.21%	―	-22.84%	-103.13%
8172	45 Neutral	HK$126.27M	―	-26.83%	―	-81.56%	26.00%
8050	39 Underperform	HK$184.45M	―	-82.56%	―	79.84%	-219.70%
8018	38 Underperform	€12.61M	―	-27.10%	―	-6.25%	84.71%
8420	31 Underperform	HK$22.19M	―	-138.27%	―	829.89%	-855.56%