Reach New Holdings Ltd. (8471) AI Stock Analysis

• Market Cap: HK$188.80M
• Dividend Yield: N/A
• Average Volume (3M): 509.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.19
• 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: 43 Neutral
• Price Target: HK$0.13 ▼(-9.29% Downside)

The overall stock score is primarily impacted by weak financial performance and poor technical indicators. The company's negative P/E ratio and lack of dividend yield further contribute to a low valuation score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The company has demonstrated a strong revenue growth rate of 24.7%, indicating successful expansion in its investment sectors and potential for future profitability.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to pursue growth opportunities without significant financial strain.

Improved Free Cash Flow

The improvement in free cash flow suggests better cash management and operational efficiency, enhancing the company's ability to reinvest in growth and reduce debt.

Negative Factors

Profitability Challenges

Ongoing unprofitability with negative margins indicates operational inefficiencies, which could hinder long-term growth and shareholder value creation.

Negative Operating Cash Flow

Consistently negative operating cash flow reflects challenges in generating sufficient cash from core operations, potentially impacting liquidity and investment capacity.

Declining Revenue Trend

A historical decline in revenue suggests potential market challenges or competitive pressures, which could affect future growth prospects if not addressed.

Reach New Holdings Ltd. Business Overview & Revenue Model

Company Description

Reach New Holdings Ltd. (8471) is a diversified investment holding company focused on engaging in a variety of sectors including technology, real estate, and healthcare. The company aims to identify and invest in high-growth opportunities, leveraging strategic partnerships and innovative solutions to drive value creation across its portfolio. With a commitment to sustainable business practices, Reach New Holdings Ltd. seeks to enhance shareholder value while contributing positively to the communities in which it operates.

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

Reach New Holdings Ltd. faces significant challenges in achieving profitability and positive cash flow. Despite a strong balance sheet with low leverage, the income statement and cash flow statement highlight ongoing operational difficulties. The company needs to focus on improving operational efficiency and revenue growth to enhance financial performance.

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: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.14 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.18, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 31.34 is Neutral, neither overbought nor oversold. The STOCH value of -1.16 is Positive, 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	66 Neutral	HK$142.19M	4.05	9.42%	6.21%	18.97%	-4.28%
1433	64 Neutral	HK$182.00M	3.31	23.94%	8.15%	14.30%	125.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0844	46 Neutral	HK$232.34M	-8.53	-10.34%	―	-5.02%	-323.85%
1388	45 Neutral	HK$166.85M	―	-18.57%	―	-6.47%	-118.56%
8471	43 Neutral	HK$188.80M	―	-17.00%	―	24.72%	78.31%
0311	40 Underperform	€232.68M	―	-14.53%	―	0.34%	-47.98%