EDICO Holdings Limited (8450) AI Stock Analysis

• Market Cap: HK$129.00M
• Dividend Yield: N/A
• Average Volume (3M): 744.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.24
• Revenue Growth: -30.12%
• EPS Growth: -208.11%
• Country: HK
• Employees: 58
• Sector: Industrials
• Sector Strength: 89
• Industry: Specialty Business Services
• EPS (TTM): >-0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 896,000
• 30 Day Avg. Volume: 744,333
• PEG Ratio: -1.60
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.16
• 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: 53 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is influenced by weak financial performance due to declining revenue and consistent net losses, despite a strong equity position and improved cash flow. Technical analysis shows positive momentum but potential overbought conditions. Valuation is a significant concern with a negative P/E ratio, emphasizing the importance of addressing profitability issues.

EDICO Holdings Limited Business Overview & Revenue Model

Company Description

EDICO Holdings Limited, an investment holding company, provides integrated pre and post printing services to financial and capital markets primarily in Hong Kong. Its integrated services include typesetting and proofreading, translation, design, printing and binding, distribution, and media placement. The company handles a range of documents, including listing-related documents, periodical reporting documents, compliance documents, and other miscellaneous and marketing collaterals. It serves listing applicants and listed companies. The company was founded in 2009 and is headquartered in Central, Hong Kong. EDICO Holdings Limited is a subsidiary of Achiever Choice Limited.

How the Company Makes Money

EDICO Holdings Limited generates revenue through fees charged for its underwriting and consultancy services. The company earns money by assisting corporate clients in public offerings, including initial public offerings (IPOs), where it provides advisory services and manages the issuance process. Additional revenue streams include placing services, where the company facilitates the sale of securities, and consultancy services, offering strategic advice to clients. Significant factors contributing to its earnings include its expertise in the Hong Kong financial market and its ability to form strategic partnerships with other financial institutions to enhance its service offerings.

EDICO Holdings Limited Financial Statement Overview

Summary

EDICO Holdings Limited shows a stable financial structure with low debt levels and improved cash flow management. However, the company faces significant challenges due to declining revenue, consistent net losses, and a shrinking asset base, which require strategic adjustments for sustainability.

Income Statement

EDICO Holdings Limited has seen a decline in revenue from HKD 73.21 million in 2020 to HKD 40.07 million in 2024, indicating a negative growth trend. The company reported a consistent net loss over the years, with a net profit margin of -18.2% in 2024. The gross profit margin remains healthy at 48% for 2024, suggesting some operational efficiency despite overall losses. The absence of EBIT indicates potential challenges in core profitability.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 70.1% in 2024, suggesting a solid financial foundation. However, the declining total assets and equity over the years highlight potential issues in asset management. The debt-to-equity ratio is low at 0.05, indicating low leverage and reduced risk from debt obligations. Return on equity is negative due to net losses.

Cash Flow

EDICO Holdings has managed to maintain a positive operating cash flow of HKD 6.28 million in 2024, a significant improvement from previous years. Free cash flow showed positive growth, indicating improved cash management. However, the free cash flow to net income ratio is not favorable due to consistent net losses.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	40.07M	46.50M	45.40M	57.53M	73.21M
Gross Profit	19.25M	22.55M	22.69M	29.59M	35.58M
EBITDA	2.94M	2.54M	6.39M	11.67M	17.66M
Net Income	-7.30M	-7.68M	-2.78M	-1.73M	3.05M
Balance Sheet
Total Assets	71.53M	90.05M	105.78M	91.41M	107.91M
Cash, Cash Equivalents and Short-Term Investments	60.20M	60.56M	68.48M	65.91M	69.66M
Total Debt	2.74M	11.71M	19.62M	5.02M	17.26M
Total Liabilities	21.37M	32.60M	40.64M	23.49M	35.08M
Stockholders Equity	50.16M	57.46M	65.14M	67.92M	72.84M
Cash Flow
Free Cash Flow	6.28M	182.00K	11.20M	8.98M	33.87M
Operating Cash Flow	6.28M	356.00K	11.20M	9.44M	34.17M
Investing Cash Flow	20.06M	-3.21M	-44.53M	-274.00K	437.00K
Financing Cash Flow	-9.34M	-9.39M	-8.77M	-12.91M	-12.35M

EDICO Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 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:8450, the sentiment is Positive. The current price of 0.13 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.29 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8450.

EDICO Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	70 Neutral	¥167.64B	10.53	4.42%	3.17%	5.63%	-31.54%
1631	70 Neutral	HK$156.16M	31.22	7.44%	―	-14.25%	-51.75%
1841	65 Neutral	HK$87.60M	16.98	-1.47%	―	-14.57%	-72.26%
8416	54 Neutral	HK$41.72M	8.71	-9.16%	20.20%	-11.05%	-222.58%
8450	53 Neutral	HK$129.00M	―	-23.68%	―	-30.12%	-208.11%
8448	42 Neutral	HK$22.45M	―	-818.26%	―	93.85%	66.62%
8385	41 Neutral	HK$9.08M	―	-363.24%	―	-65.76%	-84.78%