Hing Ming Holdings Ltd (8425) AI Stock Analysis

• Market Cap: HK$40.98M
• Dividend Yield: N/A
• Average Volume (3M): 232.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: 23.95%
• EPS Growth: -12.01%
• Country: HK
• Employees: 36
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): <0.01
• Shares Outstanding: 376,000,000
• 10 Day Avg. Volume: 42,000
• 30 Day Avg. Volume: 232,533
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -0.64
• 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: 56 Neutral
• Price Target: HK$0.11 ▲(1.82% Upside)

The overall stock score of 56 reflects significant financial challenges, including declining profitability and increased leverage, which are major concerns. However, positive technical indicators suggest some bullish momentum, partially offsetting the financial weaknesses. The valuation is a concern due to negative earnings and lack of dividend yield, further impacting the overall score.

Positive Factors

Revenue Growth

A nearly 24% revenue growth rate indicates strong demand for the company's products and services, suggesting a robust market position and potential for continued expansion.

Market Position

The company's focus on high-quality components and innovative solutions strengthens its competitive position in key industries like telecommunications and automotive.

Strategic Revenue Model

The direct sales model and long-term contracts provide stable revenue streams, enhancing financial predictability and reducing dependency on market fluctuations.

Negative Factors

Declining Profitability

Declining profitability with negative margins indicates operational challenges, which may hinder reinvestment and growth opportunities.

Increased Leverage

Increased leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth or weather economic downturns.

Negative Free Cash Flow

Challenges in generating free cash flow after capital expenditures can limit the company's ability to fund new projects or reduce debt, affecting long-term sustainability.

Hing Ming Holdings Ltd Business Overview & Revenue Model

Company Description

Hing Ming Holdings Ltd (8425) is a Hong Kong-based company primarily engaged in the trading and distribution of electrical and electronic components. The company operates in sectors such as manufacturing, logistics, and supply chain management, providing essential products and services to industries including telecommunications, consumer electronics, and automotive. Hing Ming Holdings focuses on delivering high-quality components and innovative solutions to meet the diverse needs of its clientele.

How the Company Makes Money

Hing Ming Holdings generates revenue primarily through the sale of electrical and electronic components to various industries. Its revenue model is based on direct sales to clients, which include manufacturers and distributors across multiple sectors. Key revenue streams include wholesale distribution of components, value-added services such as logistics and supply chain solutions, and potential partnerships with manufacturers for exclusive distribution agreements. The company may also engage in long-term contracts with clients to ensure steady revenue flow. Additionally, the strategic sourcing of high-demand products allows Hing Ming Holdings to maintain competitive pricing, contributing to its profitability.

Hing Ming Holdings Ltd Financial Statement Overview

Summary

Hing Ming Holdings Ltd faces financial pressures with declining profitability and increased leverage. The income statement shows declining profitability with negative net profit and EBIT margins, while the balance sheet reveals a high debt-to-equity ratio. Cash flow analysis indicates challenges in generating sufficient cash after capital expenditures.

Income Statement

The income statement shows declining profitability with a negative net profit margin and EBIT margin in the latest year, indicating operational challenges. Revenue slightly decreased from the previous year, and there is a significant drop in EBIT and EBITDA margins, reflecting increased operational costs or reduced efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which has increased significantly, indicating potential financial leverage risk. However, the company maintains a relatively stable equity ratio, suggesting that a reasonable portion of its assets is financed by equity. Stockholder's equity decreased, impacting the return on equity negatively.

Cash Flow

The cash flow analysis reveals a negative free cash flow growth rate, indicating challenges in generating sufficient cash after capital expenditures. Despite having a positive operating cash flow, the company struggles with high capital expenditure requirements, which significantly impacts free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	138.71M	106.06M	107.81M	98.23M	75.44M	52.37M
Gross Profit	31.46M	22.92M	23.92M	25.58M	18.85M	19.52M
EBITDA	1.63M	153.00K	22.43M	25.82M	15.34M	24.95M
Net Income	-32.95M	-24.70M	-568.00K	2.37M	-3.04M	4.58M
Balance Sheet
Total Assets	183.69M	183.69M	181.13M	178.66M	178.90M	142.46M
Cash, Cash Equivalents and Short-Term Investments	12.37M	12.37M	13.29M	14.21M	30.42M	13.80M
Total Debt	52.57M	52.57M	17.28M	19.50M	30.54M	3.28M
Total Liabilities	91.49M	91.49M	64.24M	61.20M	57.54M	18.07M
Stockholders Equity	92.19M	92.19M	116.89M	117.46M	121.35M	124.39M
Cash Flow
Free Cash Flow	-30.75M	-30.75M	12.08M	-6.68M	4.43M	-2.18M
Operating Cash Flow	24.79M	24.79M	31.65M	30.65M	15.38M	16.19M
Investing Cash Flow	-44.40M	-44.40M	-18.88M	-36.97M	-10.68M	-17.32M
Financing Cash Flow	18.69M	18.69M	-13.69M	-9.90M	11.92M	-7.56M

Hing Ming Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8425, the sentiment is Positive. The current price of 0.11 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.09, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 64.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8425.

Hing Ming Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1581	71 Outperform	HK$65.57M	1.92	8.86%	―	-12.78%	-20.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1496	62 Neutral	HK$133.92M	10.99	5.46%	5.97%	-13.83%	14.96%
8425	56 Neutral	HK$40.98M	-2.92	-13.79%	―	23.95%	-12.01%
8612	44 Neutral	HK$10.26M	―	-202.44%	―	1.88%	34.21%