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

• Market Cap: HK$107.94M
• Dividend Yield: N/A
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): 68.2
• Beta (1Y): 0.18
• Revenue Growth: -26.02%
• EPS Growth: -4977.27%
• Country: HK
• Employees: 190
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.04
• Shares Outstanding: 705,500,060
• 10 Day Avg. Volume: 890,500
• 30 Day Avg. Volume: 1,688,000
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 44.6 reflects significant financial challenges, including declining revenues and profitability, as well as high leverage. Technical analysis shows mixed signals with potential for upward movement, but poor valuation due to negative earnings and lack of dividends weighs heavily on the score. The absence of earnings call data and corporate events limits further insights.

Niche-Tech Semiconductor Materials Limited Business Overview & Revenue Model

Company Description

Niche-Tech Group Limited, an investment holding company, develops, manufactures, and sells semiconductor packaging materials in the People's Republic of China and Hong Kong. It offers copper bonding wires, aluminum silicon bonding wires, heavy aluminum bonding wires, silver alloy bonding wires, palladium- coated copper wires, and gold alloy bonding wires; and encapsulant for LED filament and COB LED. The company also provides epoxy encapsulant products, such as glob top epoxy, LED epoxy encapsulant, and die attach adhesives; and soldering materials. It serves manufacturers of LEDs, camera modules, and ICs. The company was founded in 2006 and is headquartered in Tai Po, Hong Kong. Niche-Tech Group Limited is a subsidiary of Niche-Tech Investments Holdings Limited.

How the Company Makes Money

Niche-Tech Semiconductor Materials Limited generates revenue primarily through the sale of its semiconductor materials to manufacturers within the semiconductor industry. The company supplies products such as advanced chemical materials and engineering solutions that are used in the fabrication of semiconductor devices. Revenue streams include direct sales to semiconductor manufacturers and partnerships with technology firms that require specialized materials for their production processes. The company's growth and earnings are influenced by the demand for semiconductors in consumer electronics, automotive, and other technology-driven markets.

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	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	17.50M	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: 0.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 0.15 is below the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.15, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.75 is Neutral, neither overbought nor oversold. The STOCH value of 2.18 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
8257	70 Outperform	HK$91.00M	10.83	3.83%	―	-13.07%	-34.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2878	61 Neutral	€1.24B	23.91	4.98%	―	-25.16%	-51.97%
1967	55 Neutral	HK$135.00M	67.39	-2.32%	―	-6.45%	-596.43%
1912	46 Neutral	HK$102.78M	―	-42.18%	―	-6.19%	18.71%
8490	45 Neutral	HK$107.94M	68.18	-41.46%	―	-26.02%	-4977.27%
1679	44 Neutral	HK$248.57M	―	―	―	37.63%	56.51%