ISP Global Limited (8487) AI Stock Analysis

• Market Cap: HK$56.52M
• Dividend Yield: N/A
• Average Volume (3M): 155.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: 5.89%
• EPS Growth: 41.89%
• Country: HK
• Employees: 132
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): >-0.01
• Shares Outstanding: 1,046,628,000
• 10 Day Avg. Volume: 47,400
• 30 Day Avg. Volume: 155,933
• PEG Ratio: 0.17
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 0.35
• 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: 45 Neutral
• Price Target: HK$0.05 ▼(-16.67% Downside)

The overall stock score is primarily influenced by financial performance and technical analysis. While the company shows strong revenue growth and improved cash flow, it struggles with profitability and leverage. The technical indicators suggest a bearish trend, and the valuation metrics highlight ongoing financial challenges.

Positive Factors

Revenue Growth

Sustained high revenue growth indicates successful market penetration and strong demand for broadband services. For a capital-intensive ISP, accelerating subscriptions and enterprise contracts enhance scale economics, support investment in fiber expansion, and create a pathway to margin improvement over the medium term.

Free Cash Flow Improvement

Material improvement in free cash flow strengthens the company’s ability to self-fund network rollouts and maintenance without excessive external financing. Consistent cash generation is critical for sustaining fiber buildouts and reduces refinancing risk, improving long-term operational flexibility for growth.

Improved Leverage Metrics

A materially improved debt-to-equity ratio signals better leverage management and greater financial flexibility. Lower gearing can reduce interest burden, improve covenants and borrowing terms, and permit continued capital allocation to strategic fiber expansion and services that underpin durable competitive positioning.

Negative Factors

Persistent Profitability Shortfalls

Ongoing negative net income and EBIT margins reflect structural profitability challenges. If margins do not improve, sustained losses will deplete reserves and hinder reinvestment, making long-term viability contingent on either sizeable scale-driven margin gains or meaningful cost and pricing remediation.

Negative Return on Equity

A negative ROE indicates shareholders’ capital is not generating returns, undermining incentive to provide additional equity and signaling inefficiency in capital allocation. Over months, this can constrain funding options, pressure management to restructure operations, or force dilutive financing to support growth.

Cash Flow Volatility and Residual Leverage Risk

Volatile cash flows combined with remaining leverage relative to peers increases refinancing and execution risk for a capital-intensive ISP. Inconsistent cash conversion can delay fiber projects, raise service continuity risk, and amplify the impact of demand or cost shocks over the medium term.

ISP Global Limited Business Overview & Revenue Model

Company Description

ISP Global Limited (8487) is a telecommunications company that specializes in providing high-speed internet services, data solutions, and network infrastructure to both residential and commercial customers. Operating primarily in the broadband sector, the company focuses on delivering reliable connectivity and innovative digital services to enhance customer experience. With a strong emphasis on expanding its fiber-optic network, ISP Global Limited aims to meet the increasing demand for faster and more efficient internet solutions in the digital age.

How the Company Makes Money

ISP Global Limited generates revenue through multiple streams, primarily from subscription fees for its broadband internet services offered to residential and business clients. The company charges customers on a monthly basis for various internet packages, which can include bundled services such as web hosting, cloud storage, and cybersecurity solutions. Additionally, ISP Global Limited earns money from providing enterprise-level data solutions and network infrastructure services to businesses, which often involve long-term contracts. Strategic partnerships with technology firms and local governments to expand fiber-optic infrastructure contribute significantly to its earnings, allowing the company to reach underserved markets and enhance its service offerings.

ISP Global Limited Financial Statement Overview

Summary

ISP Global Limited exhibits strong revenue growth and improved cash flow generation, but faces challenges in profitability and leverage. The company needs to focus on enhancing its profit margins and maintaining stable cash flows to ensure long-term financial health.

Income Statement

The company has shown significant revenue growth of 38.66% in the latest year, indicating a positive trajectory. However, the persistent negative net income and EBIT margins highlight ongoing profitability challenges. The gross profit margin is relatively low, suggesting cost management issues.

Balance Sheet

The debt-to-equity ratio has improved significantly, indicating better leverage management, but remains a concern compared to industry norms. The return on equity is negative, reflecting the company's struggle to generate profits from shareholders' equity. The equity ratio is moderate, suggesting a balanced asset financing structure.

Cash Flow

The company has achieved a remarkable increase in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is positive, suggesting efficient cash conversion. However, the historical volatility in cash flows poses a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.55M	250.18M	40.79M	209.81M	19.80M	10.13M
Gross Profit	8.80M	69.35M	75.00M	54.12M	4.23M	3.81M
EBITDA	-1.57M	-12.73M	-22.55M	-19.87M	-17.33M	2.43M
Net Income	-2.01M	-2.65M	-24.96M	-26.82M	-4.72M	-445.97K
Balance Sheet
Total Assets	151.44M	151.44M	186.26M	209.16M	35.30M	26.30M
Cash, Cash Equivalents and Short-Term Investments	61.32M	61.32M	8.76M	46.10M	9.01M	11.18M
Total Debt	8.00M	8.00M	81.72M	88.36M	7.96M	8.34M
Total Liabilities	13.47M	13.47M	108.33M	131.69M	15.55M	11.73M
Stockholders Equity	79.36M	79.36M	16.20M	14.86M	19.89M	14.46M
Cash Flow
Free Cash Flow	1.37M	52.18M	-18.93M	-41.41M	-10.30M	-4.38M
Operating Cash Flow	1.37M	52.41M	-18.77M	-40.67M	-10.27M	-4.32M
Investing Cash Flow	-1.22K	-34.55K	-168.00K	262.00K	-23.44K	-421.65K
Financing Cash Flow	-806.63K	-42.41M	17.10M	41.28M	7.81M	5.81M

ISP Global Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 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 0.06 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 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.41 is Neutral, neither overbought nor oversold. The STOCH value of 23.53 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
1617	65 Neutral	HK$271.58M	4.35	7.40%	―	-9.34%	605.26%
1720	63 Neutral	HK$168.30M	8.32	3.56%	―	8.78%	160.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9963	52 Neutral	HK$436.50M	-3.58	-24.22%	―	-20.95%	-13.14%
8487	45 Neutral	HK$56.52M	-3.51	-18.66%	―	5.89%	41.89%
0947	45 Neutral	HK$127.57M	-1.00	-29.56%	―	-12.03%	-40.38%
1613	44 Neutral	HK$265.21M	-3.17	-30.44%	―	-58.81%	-10.51%