EDICO Holdings Limited (8450) AI Stock Analysis

• Market Cap: HK$100.00M
• Dividend Yield: N/A
• Average Volume (3M): 198.67K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.13
• Revenue Growth: -30.12%
• EPS Growth: -208.11%
• Country: HK
• Employees: 58
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): >-0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 147,000
• 30 Day Avg. Volume: 198,666
• PEG Ratio: 1.32
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 7.97
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.09 ▲(3.33% Upside)

EDICO Holdings Limited's overall stock score is primarily impacted by its financial performance and technical analysis. The company's stable financial structure is overshadowed by declining revenue and consistent net losses. Technical indicators suggest bearish momentum, further contributing to a lower score. The negative P/E ratio and lack of dividend yield also weigh down the valuation score.

Positive Factors

Low Debt Levels

Low debt levels reduce financial risk and provide flexibility in managing operations and investments, supporting long-term stability.

Healthy Gross Profit Margin

A strong gross profit margin indicates operational efficiency, allowing the company to maintain profitability potential despite revenue challenges.

Improved Cash Flow Management

Improved cash flow management enhances liquidity and supports the company's ability to invest in growth opportunities and meet obligations.

Negative Factors

Declining Revenue

A consistent decline in revenue suggests challenges in market demand or competitive positioning, impacting long-term growth prospects.

Consistent Net Losses

Ongoing net losses indicate challenges in achieving profitability, which can strain resources and limit future strategic initiatives.

Shrinking Asset Base

A shrinking asset base may reflect underinvestment or asset management issues, potentially hindering the company's ability to scale operations.

EDICO Holdings Limited Business Overview & Revenue Model

Company Description

EDICO Holdings Limited (8450) is a diversified investment holding company based in Hong Kong, primarily engaged in the sectors of technology, consumer products, and financial services. The company focuses on developing innovative solutions and products that cater to various market needs, with an emphasis on enhancing consumer experience and operational efficiency through technology-driven initiatives.

How the Company Makes Money

EDICO Holdings Limited generates revenue through multiple streams including the sale of technology products and services, as well as consumer goods. The company leverages its expertise in technology to create proprietary software and hardware solutions that are marketed to various industries. Additionally, EDICO engages in strategic partnerships with other companies to expand its market reach and enhance its product offerings. These collaborations often lead to joint ventures or co-marketing agreements that contribute to revenue growth. The firm also explores investment opportunities in emerging markets and sectors, allowing it to diversify its income sources and reduce risks associated with market fluctuations.

EDICO Holdings Limited Financial Statement Overview

Summary

EDICO Holdings Limited shows a stable financial structure with low debt levels and a strong equity position. However, the company faces challenges with declining revenue, consistent net losses, and a shrinking asset base. Despite improved cash flow management, the lack of profitability remains a significant concern.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.73M	40.07M	46.50M	45.40M	57.53M	73.21M
Gross Profit	12.84M	19.25M	22.55M	22.69M	29.59M	35.58M
EBITDA	-12.37M	2.94M	2.54M	6.39M	11.67M	17.66M
Net Income	-11.41M	-7.30M	-7.68M	-2.78M	-1.73M	4.10M
Balance Sheet
Total Assets	75.53M	71.53M	90.05M	105.78M	91.41M	107.91M
Cash, Cash Equivalents and Short-Term Investments	47.26M	60.20M	60.56M	68.48M	65.91M	69.66M
Total Debt	15.18M	2.74M	11.71M	19.62M	5.02M	17.26M
Total Liabilities	33.04M	21.37M	32.60M	40.64M	23.49M	35.08M
Stockholders Equity	42.49M	50.16M	57.46M	65.14M	67.92M	72.84M
Cash Flow
Free Cash Flow	-7.51M	6.28M	182.00K	11.20M	8.98M	33.87M
Operating Cash Flow	-7.36M	6.28M	356.00K	11.20M	9.44M	34.17M
Investing Cash Flow	43.32M	20.06M	-3.21M	-44.53M	-274.00K	437.00K
Financing Cash Flow	-12.15M	-9.34M	-9.39M	-8.77M	-12.91M	-12.35M

EDICO Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.11, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 35.37 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1631	60 Neutral	HK$101.12M	20.90	5.97%	―	-13.63%	-30.26%
1841	53 Neutral	HK$88.00M	―	-3.56%	―	-14.40%	-180.62%
8385	52 Neutral	HK$33.40M	―	―	―	-92.47%	14.17%
8416	50 Neutral	HK$36.24M	-6.37	-6.35%	26.67%	-16.78%	-233.66%
8450	46 Neutral	HK$100.00M	-8.77	-23.68%	―	-30.12%	-208.11%
8448	41 Neutral	HK$47.90M	77.42	8.43%	―	-6.56%	―