Reach New Holdings Ltd. (8471) AI Stock Analysis

• Market Cap: HK$94.40M
• Dividend Yield: N/A
• Average Volume (3M): 509.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.18
• Revenue Growth: 24.72%
• EPS Growth: 78.31%
• Country: HK
• Employees: 219
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 1,226,000,000
• 10 Day Avg. Volume: 238,000
• 30 Day Avg. Volume: 509,333
• PEG Ratio: 0.64
• Price to Book (P/B): 10.17
• Price to Sales (P/S): 3.86
• P/FCF Ratio: -29.63
• 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: 47 Neutral
• Price Target: HK$0.08 ▼(-30.91% Downside)

Overall score is weighed down primarily by ongoing unprofitability and inconsistent operating cash flow (financial performance), plus a clear bearish price trend with negative momentum (technical analysis). Valuation provides limited support due to negative earnings and no dividend yield data.

Positive Factors

Diversified business model

A holding structure spanning technology, real estate and healthcare provides multiple, uncorrelated revenue channels and flexibility to reallocate capital to higher-return areas. That diversification reduces single-sector exposure and supports steadier portfolio returns over the medium term.

Recent revenue acceleration

A reported ~24.7% revenue increase indicates improving top-line momentum and portfolio performance. If sustained via investment returns and rental/service income, this supports margin recovery and reduces reliance on asset sales, improving durable cash generation prospects over 2–6 months.

Low leverage / strong equity base

A healthy equity position and low debt-to-equity ratio provide financial flexibility to fund acquisitions or support portfolio companies without heavy refinancing risk. Lower leverage reduces solvency pressure and preserves strategic optionality through economic cycles.

Negative Factors

Persistent unprofitability

Negative EBIT and net margins mean operations are not generating surplus to fund growth or pay down capital. Persistent unprofitability forces reliance on external financing or asset dispositions, limiting sustainable shareholder value creation until operational margins turn positive.

Inconsistent operating cash flow

Chronic negative operating cash flow, despite a 2024 FCF improvement, shows earnings have not reliably converted to cash. This weakens the firm's ability to self-fund investments, heightens liquidity reliance on financing, and increases risk to sustainable growth plans.

Multi-year revenue decline prior to 2024

A multiyear revenue decline before the recent uptick suggests structural demand or execution challenges. The 2024 rebound may be nascent; until revenue growth is consistent, margin recovery and durable returns remain uncertain, exposing strategy execution risk over the medium term.

Reach New Holdings Ltd. Business Overview & Revenue Model

Company Description

Reach New Holdings Limited, together with its subsidiaries, manufactures and supplies labeling products and garment accessories in the People's Republic of China. It offers printed products, as well as woven and printed labels. The company also sources and sells other garment accessories comprising tapes, hanging tablets, string locks, leather badges, buttons, and metal products. It serves garment brand companies, sourcing companies, and garment manufacturers. The company was incorporated in 2016 and is headquartered in Huizhou, China. Reach New Holdings Limited is a subsidiary of Neo Concept Holdings Limited.

How the Company Makes Money

Reach New Holdings Ltd. generates revenue through a multi-faceted approach involving equity investments, dividends from portfolio companies, and capital appreciation. The company's primary revenue streams include returns on investments in growth-oriented sectors, rental income from real estate holdings, and service fees from advisory roles in joint ventures. Significant partnerships with industry leaders facilitate access to lucrative investment opportunities, while a focus on high-potential startups allows the company to capitalize on emerging trends. Additionally, strategic divestments of underperforming assets contribute to overall profitability, ensuring a balanced and resilient revenue model.

Reach New Holdings Ltd. Financial Statement Overview

Summary

Financials are mixed: the balance sheet is relatively strong with low leverage (Balance Sheet Score 60), but profitability remains weak with negative EBIT/net margins and only a recent revenue uptick (Income Statement Score 45). Cash generation has been inconsistent with recent free-cash-flow improvement but weak operating cash flow history (Cash Flow Score 50).

Income Statement

The company has shown a declining trend in revenue over the past few years, with a recent increase in 2024. Despite this, the company remains unprofitable with negative EBIT and net income margins, indicating ongoing operational challenges. The gross profit margin has improved slightly, but overall profitability remains weak.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. However, the company's return on equity is negative due to persistent losses. The equity ratio is healthy, suggesting a solid capital structure.

Cash Flow

The company has struggled with negative operating cash flow in recent years, although there was a significant improvement in free cash flow in 2024. The free cash flow to net income ratio is negative, reflecting the company's inability to generate positive cash flow from operations consistently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.84M	91.71M	66.32M	67.25M	74.41M	60.56M
Gross Profit	25.80M	25.50M	17.74M	19.75M	17.93M	13.76M
EBITDA	-6.41M	-7.04M	-19.30M	-1.06M	-3.65M	-7.72M
Net Income	-7.08M	-8.26M	-21.63M	-6.75M	-1.41M	-13.60M
Balance Sheet
Total Assets	67.66M	51.75M	40.46M	63.91M	70.39M	73.60M
Cash, Cash Equivalents and Short-Term Investments	28.22M	21.06M	19.73M	34.81M	34.21M	31.37M
Total Debt	1.82M	2.03M	726.00K	0.00	2.88M	5.65M
Total Liabilities	19.63M	16.95M	12.09M	13.77M	13.49M	15.28M
Stockholders Equity	47.94M	34.80M	28.37M	50.01M	56.75M	58.16M
Cash Flow
Free Cash Flow	-3.71M	-11.95M	-15.09M	8.33M	91.00K	-10.52M
Operating Cash Flow	-2.25M	-8.72M	-13.70M	9.61M	3.31M	-8.77M
Investing Cash Flow	-3.21M	-3.02M	-1.02M	-1.22M	-2.46M	-3.46M
Financing Cash Flow	17.90M	13.12M	-255.00K	-2.88M	-2.77M	2.83M

Reach New Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.11
• 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:8471, the sentiment is Negative. The current price of 0.11 is above the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.12, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 33.02 is Neutral, neither overbought nor oversold. The STOCH value of 35.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8471.

Reach New Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8480	71 Outperform	HK$136.65M	3.89	9.42%	6.67%	18.97%	-4.28%
1433	70 Outperform	HK$188.00M	3.42	23.94%	7.89%	14.30%	125.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8471	47 Neutral	HK$94.40M	-10.69	-17.00%	―	24.72%	78.31%
0844	46 Neutral	HK$219.98M	-8.08	-10.34%	―	-5.02%	-323.85%
1388	45 Neutral	HK$166.85M	-0.48	-18.57%	―	-6.47%	-118.56%
0311	40 Underperform	HK$206.82M	-1.12	-14.53%	―	0.34%	-47.98%