Niche-Tech Semiconductor Materials Limited (8490) AI Stock Analysis

• Market Cap: HK$86.78M
• Dividend Yield: N/A
• Average Volume (3M): 473.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: -26.02%
• EPS Growth: -4977.27%
• Country: HK
• Employees: 190
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 705,500,060
• 10 Day Avg. Volume: 155,500
• 30 Day Avg. Volume: 473,000
• PEG Ratio: <0.01
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.65
• P/FCF Ratio: -1.26
• 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: 41 Neutral
• Price Target: HK$0.12 ▼(-3.33% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues, negative profit margins, and increased leverage. Technical analysis indicates a bearish trend, further weighing on the score. Valuation concerns, highlighted by a negative P/E ratio and lack of dividend yield, also contribute to the low score.

Positive Factors

Strategic Partnerships

These partnerships can drive innovation and expand market access, providing a competitive edge and supporting long-term revenue growth.

Market Position

Diversification across multiple high-demand sectors reduces dependency on a single market, enhancing resilience and growth potential.

Product Demand

Core products are critical to semiconductor manufacturing, ensuring sustained demand as the industry evolves and expands.

Negative Factors

Revenue Decline

A declining revenue trend indicates challenges in market competitiveness and product demand, affecting long-term growth prospects.

Negative Profit Margins

Falling profit margins suggest cost management issues and pricing pressure, which can undermine profitability and financial health.

Rising Leverage

Higher leverage increases financial risk, potentially limiting the company's ability to invest in growth and weather industry volatility.

Niche-Tech Semiconductor Materials Limited Business Overview & Revenue Model

Company Description

Niche-Tech Semiconductor Materials Limited (8490) is a leading provider of specialized materials and solutions for the semiconductor industry. The company focuses on the development and manufacturing of high-purity chemical compounds, advanced materials, and substrates essential for the production of semiconductor devices. Operating in a rapidly evolving sector, Niche-Tech serves various markets including consumer electronics, automotive, and telecommunications, ensuring that its products meet the stringent quality and performance standards required by semiconductor manufacturers.

How the Company Makes Money

Niche-Tech Semiconductor Materials Limited generates revenue primarily through the sale of its semiconductor materials and chemical products. The company's revenue model is based on direct sales to semiconductor manufacturers and technology companies, with key revenue streams coming from high-purity chemicals, specialty gases, and advanced substrates. Niche-Tech also engages in long-term contracts with major players in the semiconductor industry, providing a steady stream of income. Additionally, strategic partnerships with research institutions and technology firms enhance its product offerings and market reach, contributing significantly to its overall earnings.

Niche-Tech Semiconductor Materials Limited Financial Statement Overview

Summary

Niche-Tech Semiconductor Materials Limited faces several financial challenges, including declining revenues, negative profit margins, and increased leverage. The deteriorating income metrics reflect difficulties in sustaining growth and profitability. The balance sheet shows higher leverage, which could pose risks in a volatile industry. Cash flow issues further underscore operational inefficiencies.

Income Statement

The company has experienced a significant decline in total revenue from HK$212.59M in 2023 to HK$194.87M in 2024, marking a negative revenue growth trend. Gross profit margin also deteriorated from 25.8% in 2023 to 15.14% in 2024. The net profit margin is negative, with net income falling from HK$0.51M in 2023 to a loss of HK$43.08M in 2024. These results indicate considerable challenges in maintaining profitability and revenue growth, which are crucial for stability in the semiconductor industry.

Balance Sheet

The company's debt-to-equity ratio increased from 0.50 in 2023 to 0.85 in 2024, indicating higher leverage and potential financial risk. Return on equity turned negative with -24.96% in 2024 compared to 0.23% in 2023, reflecting significant losses impacting shareholders' returns. However, the equity ratio remains relatively stable at 51.69% in 2024, suggesting a moderate level of equity financing. Despite some stability in the equity structure, the rising leverage and declining ROE are concerning.

Cash Flow

The company's operating cash flow remains negative, worsening from -HK$81.38M in 2023 to -HK$97.43M in 2024, indicating challenges in generating cash from operations. Free cash flow also decreased from -HK$143.66M in 2023 to -HK$99.96M in 2024, showing some improvement but still negative. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting earnings to cash flows. Overall, cash flow management appears to be a significant area of concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	162.75M	194.87M	212.59M	217.86M	249.04M	171.56M
Gross Profit	13.96M	35.13M	54.91M	57.99M	58.34M	34.36M
EBITDA	-17.23M	-28.10M	15.77M	21.80M	18.41M	-4.86M
Net Income	-75.70M	-43.08M	510.00K	8.64M	6.85M	-14.11M
Balance Sheet
Total Assets	313.55M	333.82M	358.13M	311.67M	331.82M	304.85M
Cash, Cash Equivalents and Short-Term Investments	8.11M	20.26M	26.97M	40.22M	32.71M	58.69M
Total Debt	139.76M	147.43M	110.01M	46.48M	52.32M	47.25M
Total Liabilities	165.95M	161.28M	137.19M	83.02M	88.64M	72.79M
Stockholders Equity	147.61M	172.54M	220.94M	228.65M	243.19M	232.06M
Cash Flow
Free Cash Flow	-93.90M	-99.96M	-143.66M	-72.71M	-64.33M	-34.17M
Operating Cash Flow	-91.37M	-97.43M	-81.38M	-48.38M	-46.51M	-15.08M
Investing Cash Flow	3.21M	-13.79M	-61.50M	-23.58M	-17.76M	-11.47M
Financing Cash Flow	75.30M	128.13M	111.92M	85.49M	47.23M	11.65M

Niche-Tech Semiconductor Materials Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8490, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.15, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 28.45 is Positive, neither overbought nor oversold. The STOCH value of -19.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8490.

Niche-Tech Semiconductor Materials Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8257	59 Neutral	HK$233.00M	27.74	3.83%	―	-13.07%	-34.88%
2878	56 Neutral	HK$1.10B	21.26	4.98%	―	-25.16%	-51.97%
1967	52 Neutral	HK$130.50M	-15.65	-2.32%	―	-6.45%	-596.43%
1912	43 Neutral	HK$92.24M	―	―	―	―	―
8490	41 Neutral	HK$86.78M	―	-41.46%	―	-26.02%	-4977.27%
1679	39 Underperform	HK$125.17M	-0.95	―	―	37.63%	56.51%