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Reach New Holdings Ltd. (HK:8471)
:8471
Hong Kong Market
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Reach New Holdings Ltd. (8471) AI Stock Analysis

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HK:8471

Reach New Holdings Ltd.

(8471)

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Neutral 43 (OpenAI - 5.2)
Rating:43Neutral
Price Target:
HK$0.03
▼(-72.73% Downside)
Action:ReiteratedDate:05/09/26
The score is held down primarily by weak financial performance—recurring losses, declining 2025 revenue, and continued cash burn—despite low leverage. Technicals add further pressure with a clear downtrend and negative momentum. Valuation is only moderately supportive because the negative P/E is driven by losses and provides limited insight, with no dividend yield data to offset risk.
Positive Factors
Low Leverage / Balance Sheet
Debt-to-equity of roughly 4–6% materially reduces near-term refinancing pressure and gives the company durable financial flexibility. This balance-sheet strength provides runway to absorb cash volatility, maintain supplier relationships, and fund strategic adjustments over the next several months.
Negative Factors
Recurring Net Losses
The company reports recurring net losses across reported years, a structural profitability shortfall that erodes equity and limits internal funding for operations and growth. Without a durable turnaround, losses will continue to constrain strategic flexibility and shareholder value.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Balance Sheet
Debt-to-equity of roughly 4–6% materially reduces near-term refinancing pressure and gives the company durable financial flexibility. This balance-sheet strength provides runway to absorb cash volatility, maintain supplier relationships, and fund strategic adjustments over the next several months.
Read all positive factors

Reach New Holdings Ltd. (8471) vs. iShares MSCI Hong Kong ETF (EWH)

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 so...

Reach New Holdings Ltd. Financial Statement Overview

Summary
Financials are weak overall: the business is structurally unprofitable with recurring net losses, revenue declined again in 2025 (~13% YoY), and margins deteriorated (net margin back to roughly -17%). Cash flow is a major risk with sustained operating and free cash burn in 2023–2025. The main offset is a relatively strong balance sheet with low leverage (debt-to-equity ~4–6%), which reduces near-term refinancing pressure.
Income Statement
28
Negative
Balance Sheet
64
Positive
Cash Flow
24
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue78.30M91.71M66.32M67.25M74.41M
Gross Profit19.50M25.50M17.74M19.75M17.93M
EBITDA-13.15M-7.04M-19.30M-1.06M-3.65M
Net Income-13.53M-8.26M-21.63M-6.75M-1.41M
Balance Sheet
Total Assets63.92M51.75M40.46M63.91M70.39M
Cash, Cash Equivalents and Short-Term Investments18.05M21.06M19.73M34.81M34.21M
Total Debt1.74M2.03M726.00K0.002.88M
Total Liabilities24.10M16.95M12.09M13.77M13.49M
Stockholders Equity39.83M34.80M28.37M50.01M56.75M
Cash Flow
Free Cash Flow-11.35M-11.95M-15.09M8.33M91.00K
Operating Cash Flow-8.74M-8.72M-13.70M9.61M3.31M
Investing Cash Flow-12.07M-3.02M-1.02M-1.22M-2.46M
Financing Cash Flow18.14M13.12M-255.00K-2.88M-2.77M

Reach New Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.11
Price Trends
50DMA
0.06
Negative
100DMA
0.09
Negative
200DMA
0.12
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
35.91
Neutral
STOCH
17.95
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 0.11 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.06, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.91 is Neutral, neither overbought nor oversold. The STOCH value of 17.95 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$151.42M2.457.64%6.67%30.48%116.41%
74
Outperform
HK$162.00M1.5822.49%7.89%14.30%125.41%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
HK$258.53M1.76-14.53%-5.61%
46
Neutral
HK$219.98M-0.90-44.41%-10.88%-513.84%
44
Neutral
HK$135.17M-0.20-20.24%1.51%32.19%
43
Neutral
HK$38.01M-3.73-34.33%-12.29%-41.30%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8471
Reach New Holdings Ltd.
0.03
-0.09
-73.73%
HK:0311
Luen Thai Holdings Limited
0.25
0.09
56.25%
HK:1388
Embry Holdings Limited
0.32
-0.10
-23.81%
HK:1433
Cirtek Holdings Limited
0.08
<0.01
3.85%
HK:0844
Greatime International Holdings Limited
0.45
0.14
43.55%
HK:8480
Furniweb Holdings Limited
0.16
>-0.01
-5.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 09, 2026