ISP Global Limited (8487) AI Stock Analysis

• Market Cap: HK$103.62M
• Dividend Yield: N/A
• Average Volume (3M): 112.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: -78.59%
• EPS Growth: 83.01%
• Country: HK
• Employees: 132
• Sector: Technology
• Sector Strength: 90
• Industry: Communication Equipment
• EPS (TTM): >-0.01
• Shares Outstanding: 1,046,628,000
• 10 Day Avg. Volume: 257,400
• 30 Day Avg. Volume: 112,200
• PEG Ratio: N/A
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.05
• 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

• Rating: 44 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is influenced primarily by financial performance and technical analysis. While there is revenue growth and improved gross profit margins, ongoing losses and weak cash flow are significant concerns. Technical indicators suggest bearish momentum, but there may be a potential buying opportunity. Valuation remains unattractive due to negative earnings, further impacting the stock's score.

ISP Global Limited Business Overview & Revenue Model

Company Description

ISP Global Limited (8487) is a Hong Kong-based company primarily engaged in the provision of network infrastructure solutions and services. The company specializes in offering a range of services including structured cabling systems, network security systems, and data center solutions. ISP Global Limited caters to various sectors such as commercial, industrial, and governmental entities, providing them with customized solutions to enhance their network capabilities and security.

How the Company Makes Money

ISP Global Limited generates revenue through the design, installation, and maintenance of network infrastructure solutions. Its key revenue streams include the sale of hardware components necessary for network setups, fees for installation and configuration services, and ongoing maintenance contracts to ensure system reliability and performance. The company may also earn income from consulting services, offering expertise in network optimization and security protocols. Strategic partnerships with hardware manufacturers and technology providers can contribute to its earnings, enabling access to cutting-edge technology and competitive pricing, which in turn attracts a diverse clientele seeking efficient and secure network solutions.

ISP Global Limited Financial Statement Overview

Summary

ISP Global Limited shows modest revenue growth and improved gross profit margins. However, the company is still not profitable, with negative net profit and EBITDA margins. The balance sheet reflects moderate leverage, but high debt levels pose a risk. Cash flow performance is weak with negative operating and free cash flows, indicating a need for operational improvements.

Income Statement

The company's revenue has shown a modest growth from HK$209.8 million in 2023 to HK$218.6 million in 2024, marking a growth rate of approximately 4.2%. However, profitability metrics such as the gross profit margin have improved slightly to 34.3% from 25.8% in the previous year. Despite this, the company is facing challenges in achieving profitability with a negative net profit margin of -11.4% in 2024, which is a slight improvement from -12.8% in 2023. The negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet shows a stable equity position with a debt-to-equity ratio of 0.94, indicating a moderate level of leverage. Stockholders' equity has increased to HK$86.84 million. The equity ratio is at 46.6%, suggesting a balanced capital structure. However, the total debt level remains high, which could pose a risk if cash flows do not improve.

Cash Flow

The cash flow statement indicates a challenging situation with negative operating cash flow of HK$18.77 million in 2024, although improved from the previous year's HK$40.67 million. Free cash flow remains negative at HK$18.93 million, but financing activities have provided some liquidity with HK$17.1 million. The company's ability to generate cash from operations remains a concern.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	218.61M	209.81M	20.16M	10.13M	6.70M
Gross Profit	75.00M	54.12M	4.37M	3.81M	2.66M
EBITDA	-22.55M	-19.87M	-17.33M	2.43M	1.05M
Net Income	-24.96M	-26.82M	-4.60M	-445.97K	284.22K
Balance Sheet
Total Assets	186.26M	209.16M	35.30M	26.30M	17.25M
Cash, Cash Equivalents and Short-Term Investments	44.05M	46.10M	8.46M	11.18M	10.02M
Total Debt	81.72M	88.36M	7.96M	3.54M	1.40M
Total Liabilities	108.33M	131.69M	15.55M	11.73M	2.34M
Stockholders Equity	86.84M	79.74M	19.89M	14.46M	14.91M
Cash Flow
Free Cash Flow	-18.93M	-41.41M	-10.30M	-4.38M	372.78K
Operating Cash Flow	-18.77M	-40.67M	-10.27M	-4.32M	400.64K
Investing Cash Flow	-168.00K	262.00K	-23.44K	-421.65K	-27.85K
Financing Cash Flow	17.10M	41.28M	7.81M	5.81M	-192.47K

ISP Global Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 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:8487, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.98 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8487.

ISP Global Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1720	65 Neutral	HK$125.40M	6.15	3.16%	―	6.07%	136.36%
1617	59 Neutral	HK$203.28M	4.70	5.02%	―	1.01%	660.00%
Sector *	57 Neutral	HK$14.47B	5.85	-5.77%	4.75%	9.65%	-43.80%
1613	46 Neutral	HK$108.15M	―	-29.38%	―	108.35%	58.07%
9963	46 Neutral	HK$104.00M	―	-23.56%	―	-15.03%	-47.69%
8487	44 Neutral	HK$103.62M	―	-30.67%	―	-78.59%	83.01%
0947	40 Underperform	HK$91.27M	―	-27.13%	―	-21.31%	-105.30%