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

• Market Cap: HK$85.37M
• Dividend Yield: N/A
• Average Volume (3M): 108.67K
• Price to Earnings (P/E): 68.2
• Beta (1Y): 0.10
• Revenue Growth: -8.34%
• EPS Growth: -8828.57%
• Country: HK
• Employees: 190
• Sector: Technology
• Sector Strength: 83
• Industry: Semiconductors
• EPS (TTM): -0.06
• Shares Outstanding: 705,500,060
• 10 Day Avg. Volume: 143,500
• 30 Day Avg. Volume: 108,666
• PEG Ratio: 0.02
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.88
• 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

• Rating: 39 Underperform
• Price Target: HK$0.00 ▼(-100.00%Downside)

Niche-Tech Semiconductor Materials Limited's overall stock score is primarily influenced by its poor financial performance, underscored by declining revenue, negative profit margins, and inefficient cash flow management. Technical analysis reflects bearish sentiment, further impacting the score. Valuation concerns arise due to a negative P/E ratio and lack of dividend yield, making the stock less attractive to investors.

Niche-Tech Semiconductor Materials Limited Business Overview & Revenue Model

Company Description

Niche-Tech Semiconductor Materials Limited (8490) is a company engaged in the research, development, production, and distribution of semiconductor materials. These materials are critical components in the manufacturing of electronic devices, serving industries such as telecommunications, consumer electronics, and information technology. The company's product portfolio includes a range of high-performance materials designed to enhance the efficiency and performance of semiconductors.

How the Company Makes Money

Niche-Tech Semiconductor Materials Limited generates revenue primarily through the sale of its semiconductor materials to manufacturers and producers in the electronics industry. The company leverages its expertise in material science to create high-quality products that meet the specific needs of its clients. Key revenue streams include the direct sale of these materials to semiconductor manufacturers, as well as potential licensing agreements for proprietary technologies. Strategic partnerships with major players in the electronics sector can also contribute to their earnings by expanding market reach and creating new opportunities for product application.

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. While there are concerns across all financial areas, there may be opportunities for improvement with strategic management interventions.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
194.87M	212.59M	217.86M	249.04M	171.56M
	Gross Profit
35.13M	54.91M	57.99M	58.34M	34.36M
	EBIT
-31.35M	5.59M	11.79M	11.81M	-4.72M
	EBITDA
-28.10M	15.77M	17.50M	18.41M	-4.86M
	Net Income Common Stockholders
-43.08M	510.00K	8.64M	6.85M	-14.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.26M	26.97M	40.22M	32.71M	58.69M
	Total Assets
333.82M	358.13M	311.67M	331.82M	304.85M
	Total Debt
147.43M	110.01M	46.48M	52.32M	47.25M
	Net Debt
127.74M	83.04M	6.26M	19.61M	-11.45M
	Total Liabilities
161.28M	137.19M	83.02M	88.64M	72.79M
	Stockholders Equity
172.54M	220.94M	228.65M	243.19M	232.06M
Cash Flow		Free Cash Flow
-99.96M	-143.66M	-72.71M	-64.33M	-34.17M
	Operating Cash Flow
-97.43M	-81.38M	-48.38M	-46.51M	-15.08M
	Investing Cash Flow
-13.79M	-61.50M	-23.86M	-17.76M	-11.47M
	Financing Cash Flow
128.13M	111.92M	86.19M	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: Neutral
• 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 0.14, below the 50-day MA of 0.14, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 31.29 is Neutral, neither overbought nor oversold. The STOCH value of 7.14 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 *	62 Neutral	$11.80B	10.37	-7.10%	2.91%	7.41%	-7.94%
1478	57 Neutral	HK$8.05B	26.52	5.64%	1.48%	26.76%	237.96%
0460	51 Neutral	HK$9.61B	―	-4.93%	2.04%	-0.11%	-290.77%
0776	44 Neutral	HK$731.56M	―		―	-29.01%	67.40%
8490	39 Underperform	HK$85.37M	68.18	-21.90%	―	-8.34%	-8828.57%
1393	34 Underperform	€262.50M	―	-44.69%	―	-13.27%	14.98%