Universe Printshop Holdings Ltd. (8448) AI Stock Analysis

• Market Cap: HK$43.41M
• Dividend Yield: N/A
• Average Volume (3M): 10.53K
• Price to Earnings (P/E): 47.8
• Beta (1Y): -0.24
• Revenue Growth: -6.56%
• EPS Growth: N/A
• Country: HK
• Employees: 46
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.03
• Shares Outstanding: 99,800,000
• 10 Day Avg. Volume: 8,000
• 30 Day Avg. Volume: 10,533
• PEG Ratio: -0.22
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 18.62
• 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: 41 Neutral
• Price Target: HK$0.50 ▲(13.64% Upside)

The overall stock score is primarily influenced by weak financial performance and high valuation concerns. While technical analysis indicates strong bullish momentum, the stock appears overbought, and the high P/E ratio suggests overvaluation. The lack of earnings call data and corporate events further limits positive factors.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong demand for the company's services and successful market penetration, which can drive future expansion and stability.

Operating Cash Flow Improvement

Improved operating cash flow suggests better cash management and operational efficiency, providing more resources for investment and debt servicing.

Gross Profit Margin

An improved gross profit margin indicates better cost control and pricing power, which can enhance profitability and competitive positioning over time.

Negative Factors

High Leverage

High leverage increases financial risk and can constrain the company's ability to invest in growth opportunities, potentially impacting long-term stability.

Low Net Profit Margin

A low net profit margin indicates limited profitability, which can hinder the company's ability to reinvest in its business and weather economic downturns.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests challenges in generating cash after capital expenditures, limiting financial flexibility and investment capacity.

Universe Printshop Holdings Ltd. Business Overview & Revenue Model

Company Description

Universe Printshop Holdings Limited, an investment holding company, provides general printing services and trades in printing products in Hong Kong. The company's printing services include offset, ink-jet, and toner-based digital printing. It also provides business printing-related products, including stationery, advertisements, periodicals, directories, and catalogues; and other printing-related products, such as pre-ink stamps, plastic name-cards, printed eco-bags, and printed plastic folders. The company was founded in 2001 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

Universe Printshop Holdings Ltd. generates revenue through multiple key streams, primarily from the sale of printing services and products. The company operates on a business-to-business (B2B) model, where it serves a variety of sectors including retail, corporate, and promotional markets. Revenue is primarily derived from direct orders placed by businesses for promotional materials and corporate branding solutions. In addition, they have established significant partnerships with local businesses and advertising agencies that provide a steady flow of clients and projects. The company also offers online ordering services, which streamline the purchasing process and expand its customer base, contributing to increased sales. Seasonal promotions and bulk order discounts further enhance revenue, making it an attractive option for larger corporate clients looking for cost-effective printing solutions.

Universe Printshop Holdings Ltd. Financial Statement Overview

Summary

Universe Printshop Holdings Ltd. shows strong revenue growth, but profitability and cash flow generation remain weak. The high leverage and low equity ratio pose financial risks, while the improvement in operating cash flow is a positive sign. The company needs to focus on enhancing profitability and managing its debt levels to improve financial health.

Income Statement

Universe Printshop Holdings Ltd. has shown a significant revenue growth rate of 134.32% in the latest year, indicating a strong recovery from previous declines. However, the net profit margin remains very low at 0.38%, and the EBIT margin is also modest at 1.99%. The company has improved its gross profit margin to 21.34%, but profitability remains a concern due to low net income.

Balance Sheet

The company's debt-to-equity ratio is high at 2.87, indicating significant leverage, which poses a risk. The return on equity is positive at 7.87%, showing some profitability, but the equity ratio is low, suggesting limited financial stability. Overall, the balance sheet reflects a leveraged position with potential risks.

Cash Flow

Operating cash flow has improved, but the free cash flow growth rate is negative at -102.11%, indicating challenges in generating free cash. The operating cash flow to net income ratio is low at 0.067, and the free cash flow to net income ratio is 0.119, suggesting limited cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	146.81M	163.86M	69.93M	95.47M	113.65M	103.13M
Gross Profit	28.71M	34.97M	9.42M	14.69M	24.40M	20.30M
EBITDA	2.87M	10.66M	-19.95M	-9.36M	3.55M	-3.62M
Net Income	908.71K	618.89K	-28.44M	-20.50M	-4.45M	-12.54M
Balance Sheet
Total Assets	61.13M	109.35M	52.52M	32.81M	49.36M	54.64M
Cash, Cash Equivalents and Short-Term Investments	774.66K	1.77M	9.78M	4.96M	19.11M	23.65M
Total Debt	16.43M	22.59M	34.25M	11.29M	11.69M	13.27M
Total Liabilities	49.95M	101.61M	45.38M	33.49M	29.54M	30.37M
Stockholders Equity	11.29M	7.86M	7.32M	-680.82K	19.82M	24.27M
Cash Flow
Free Cash Flow	5.07M	734.89K	-36.76M	-6.46M	4.26M	1.67M
Operating Cash Flow	7.56M	6.15M	-32.84M	-511.57K	5.96M	5.07M
Investing Cash Flow	-3.57M	-5.32M	2.00M	-3.86M	-1.66M	-3.20M
Financing Cash Flow	-15.48M	-8.89M	35.66M	-9.78M	-8.83M	-9.49M

Universe Printshop Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.44
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8448, the sentiment is Negative. The current price of 0.44 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.48, and above the 200-day MA of 0.31, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 13.83 is Positive, neither overbought nor oversold. The STOCH value of 7.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8448.

Universe Printshop Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1540	74 Outperform	HK$219.42M	6.18	12.81%	18.18%	-7.56%	-2.06%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1841	53 Neutral	HK$90.80M	-21.83	-3.56%	―	-14.40%	-180.62%
0450	50 Neutral	HK$828.79M	-9.52	-3.21%	13.04%	-11.14%	-280.56%
8385	46 Neutral	HK$22.86M	-0.54	―	―	-92.47%	14.17%
1884	45 Neutral	HK$68.20M	82.67	0.37%	―	-10.78%	―
8448	41 Neutral	HK$43.41M	47.80	8.43%	―	-6.56%	―