Reach New Holdings Ltd. (8471) AI Stock Analysis

• Market Cap: HK$156.93M
• Dividend Yield: N/A
• Average Volume (3M): 712.67K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.07
• Revenue Growth: 35.51%
• EPS Growth: 66.67%
• Country: HK
• Employees: 219
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Apparel - Manufacturers
• EPS (TTM): >-0.01
• Shares Outstanding: 1,226,000,000
• 10 Day Avg. Volume: 221,000
• 30 Day Avg. Volume: 712,666
• PEG Ratio: -0.21
• Price to Book (P/B): 3.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.42
• 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: 46 Neutral
• Price Target: ―

The overall score is driven down by the company's financial challenges, including negative cash flows and ongoing losses, as well as weak technical indicators suggesting a bearish trend. Valuation concerns due to a negative P/E ratio and lack of dividend yield further impact the score. These factors outweigh the positives of revenue growth and a strong equity position.

Reach New Holdings Ltd. Business Overview & Revenue Model

Company Description

Reach New Holdings Ltd. (8471) is a Hong Kong-based investment holding company primarily engaged in the provision of comprehensive financial services. The company operates in various sectors, including financial consultancy, asset management, and securities trading. Its core services are designed to cater to a diverse clientele, ranging from individual investors to corporate entities, aiming to provide financial solutions that enhance wealth management and investment strategies.

How the Company Makes Money

The company generates revenue through multiple streams within the financial services sector. Its primary income sources include fees and commissions earned from financial consultancy services, asset management fees from managing client portfolios, and trading commissions from securities brokerage activities. Additionally, Reach New Holdings Ltd. may engage in proprietary trading, deriving profits from investments made on its own account. Strategic partnerships with financial institutions and other entities could also play a role in enhancing its service offerings and expanding its market reach, thereby contributing to its earnings.

Reach New Holdings Ltd. Financial Statement Overview

Summary

Revenue growth is a positive sign, yet ongoing losses and negative cash flows highlight operational and financial challenges. The low leverage and strong equity position provide some stability but are overshadowed by the need for strategic improvements in profitability and cash flow generation.

Income Statement

The company has shown a substantial increase in revenue from 2023 to 2024, with a revenue growth rate of approximately 38.3%. However, persistent negative net income and EBIT margins indicate ongoing profitability challenges. The gross profit margin improved to 27.8% in 2024, suggesting some operational efficiencies, but the negative EBITDA and EBIT margins reflect significant cost and operational pressures.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of 67.3% as of 2024, indicating financial stability. The debt-to-equity ratio remains low at 0.06, suggesting minimal leverage risk. However, a declining stockholders' equity and high net debt position may constrain future financial flexibility.

Cash Flow

The cash flow statement reflects cash management issues, with an absence of free cash flow and operating cash flow in 2024. The operating cash flow to net income ratio was negative in 2023, indicating challenges in generating cash from operations. This raises concerns about the company's ability to sustain operations without external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.71M	66.32M	67.25M	74.41M	60.56M
Gross Profit	25.50M	17.74M	19.75M	17.93M	13.76M
EBITDA	-7.04M	-19.30M	-1.06M	-618.00K	-7.72M
Net Income	-8.26M	-21.63M	-6.75M	-1.44M	-15.41M
Balance Sheet
Total Assets	51.75M	40.46M	63.91M	70.39M	73.60M
Cash, Cash Equivalents and Short-Term Investments	21.06M	19.73M	34.81M	34.21M	31.37M
Total Debt	2.03M	726.00K	0.00	2.88M	5.65M
Total Liabilities	16.95M	12.09M	13.77M	13.49M	15.28M
Stockholders Equity	34.80M	28.37M	50.01M	56.75M	58.16M
Cash Flow
Free Cash Flow	-11.95M	-15.09M	8.33M	91.00K	-10.52M
Operating Cash Flow	-8.72M	-13.70M	9.61M	3.31M	-8.77M
Investing Cash Flow	-3.02M	-1.02M	-1.22M	-2.46M	-3.46M
Financing Cash Flow	13.12M	-255.00K	-2.88M	-2.77M	2.83M

Reach New Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 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 0.13 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and below the 200-day MA of 0.26, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.31 is Neutral, neither overbought nor oversold. The STOCH value of 57.69 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
1433	67 Neutral	HK$156.00M	2.52	28.06%	9.62%	48.01%	―
8480	66 Neutral	HK$183.74M	7.77	6.39%	5.03%	-12.11%	-26.86%
Sector *	56 Neutral	HK$23.97B	4.08	-1.57%	8.88%	0.06%	-64.88%
0844	48 Neutral	HK$224.92M	―	-5.55%	―	-6.05%	-622.73%
8471	46 Neutral	HK$156.93M	―	-26.22%	―	35.51%	66.67%
1388	44 Neutral	HK$183.75M	―	-19.24%	―	-10.08%	-417.56%
0311	40 Underperform	€160.29M	―	-19.38%	―	-3.53%	-463.00%