Sanbase Corporation Limited (8501) AI Stock Analysis

• Market Cap: HK$98.97M
• Dividend Yield: N/A
• Average Volume (3M): 17.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: 50.50%
• EPS Growth: 27.48%
• Country: HK
• Employees: 68
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): -0.03
• Shares Outstanding: 200,000,000
• 10 Day Avg. Volume: 5,400
• 30 Day Avg. Volume: 17,533
• PEG Ratio: -0.08
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -3.46
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.42 ▼(-15.80% Downside)

Sanbase Corporation Limited's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. Technical analysis indicates a bearish trend with potential volatility. Valuation concerns are highlighted by a negative P/E ratio and lack of dividend yield, further impacting the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and successful product adoption, supporting long-term business sustainability.

Low Leverage

Low leverage suggests financial stability and provides flexibility to invest in growth opportunities without excessive debt burden.

Strategic Partnerships

Partnerships expand market reach and enhance service offerings, strengthening competitive position and driving long-term growth.

Negative Factors

Negative Profit Margins

Negative profit margins indicate operational challenges, limiting the company's ability to reinvest in growth and impacting long-term viability.

Cash Flow Issues

Cash flow challenges can constrain the company's ability to fund operations and growth initiatives, posing risks to financial health.

Low Gross Profit Margin

A low gross profit margin suggests difficulties in cost management or pricing strategy, impacting profitability and competitive advantage.

Sanbase Corporation Limited Business Overview & Revenue Model

Company Description

Sanbase Corporation Limited, an investment holding company, provides interior fit-out solutions in Hong Kong and the People's Republic of China. The company offers construction management, design consultancy, project management, site selection, strategic planning, interior design, engineering, building, and move management services, as well as undertakes bare shell fit-out services in the interior space of vacant premises. It also provides restacking services, including upgrading and re-planning services, and modification works to existing interior structures; reinstatement services, which includes demolishing additional moveable structure; design services; churn works services; and maintenance and other services comprising minor repairs and general builder's maintenance work to the tenant's office facilities, pest control and emergency call services, project management services, and mechanical, electrical, and plumbing consultancy services. The company was founded in 2009 and is headquartered in Central, Hong Kong. Sanbase Corporation Limited is a subsidiary of Madison Square International Investment Limited.

How the Company Makes Money

Sanbase Corporation generates revenue through a combination of product sales, subscription services, and consultancy fees. The company's primary revenue stream comes from selling its proprietary analytics software to businesses seeking to improve their data management and analysis capabilities. Additionally, Sanbase offers subscription-based services for ongoing access to its platform, providing customers with continuous updates and support. Consultancy services also contribute to revenue, as the company helps clients implement its solutions effectively and optimize their data strategies. Strategic partnerships with other technology firms and industry leaders further bolster the company's earnings by expanding its market reach and enhancing its service offerings.

Sanbase Corporation Limited Financial Statement Overview

Summary

Sanbase Corporation Limited faces significant financial challenges, particularly in profitability and cash flow management. While revenue growth has shown improvement, the company struggles with negative margins and returns. The balance sheet is relatively stable with low leverage, but the lack of profitability and cash flow issues pose risks to financial health.

Income Statement

Sanbase Corporation Limited has experienced fluctuating revenue growth, with a recent increase of 12.16% after a decline in the previous year. However, profitability remains a concern with negative net profit margins and EBIT margins, indicating operational challenges. The gross profit margin is relatively low, reflecting limited pricing power or cost management issues.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio, suggesting conservative leverage and potential financial stability. However, the negative return on equity indicates that the company is not generating sufficient returns on shareholder investments. The equity ratio is not provided, but the available data suggests a cautious approach to debt.

Cash Flow

Sanbase Corporation Limited's cash flow situation is challenging, with negative operating cash flow and free cash flow in the most recent period. Despite a significant increase in free cash flow growth, the operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The free cash flow to net income ratio is slightly above 1, suggesting some ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	584.24M	418.77M	428.08M	517.60M	413.12M	481.29M
Gross Profit	20.02M	19.76M	25.19M	33.16M	22.74M	25.85M
EBITDA	-4.42M	1.83M	4.45M	7.94M	-2.20M	4.04M
Net Income	-8.64M	-3.98M	-1.37M	751.00K	-5.74M	397.00K
Balance Sheet
Total Assets	275.60M	281.79M	266.36M	334.48M	287.04M	265.41M
Cash, Cash Equivalents and Short-Term Investments	132.57M	103.62M	139.64M	109.70M	119.78M	112.49M
Total Debt	653.00K	2.55M	4.12M	2.02M	3.57M	5.48M
Total Liabilities	142.54M	141.78M	122.38M	189.78M	144.89M	116.20M
Stockholders Equity	127.10M	132.88M	136.93M	137.63M	136.86M	142.48M
Cash Flow
Free Cash Flow	19.61M	-18.23M	34.49M	-6.65M	10.54M	414.00K
Operating Cash Flow	19.68M	-18.16M	34.57M	-6.48M	11.63M	628.00K
Investing Cash Flow	-8.63M	-12.64M	-78.00K	-173.00K	-1.09M	-1.49M
Financing Cash Flow	-6.96M	-5.25M	-4.20M	-2.89M	-3.32M	-7.20M

Sanbase Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8501, the sentiment is Positive. The current price of 0.5 is above the 20-day moving average (MA) of 0.45, above the 50-day MA of 0.46, and above the 200-day MA of 0.38, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 71.41 is Negative, neither overbought nor oversold. The STOCH value of 54.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8501.

Sanbase Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8501	46 Neutral	HK$98.97M	-12.63	-5.93%	―	50.50%	27.48%
3893	46 Neutral	HK$242.49M	-6.06	―	―	-24.93%	-72.69%
8040	46 Neutral	HK$146.20M	-5.51	-57.83%	―	-3.47%	-57.53%
8455	45 Neutral	HK$83.52M	-7.77	-601.82%	―	4.00%	13.57%
1376	43 Neutral	HK$77.00M	-12.58	29.87%	―	1.93%	-158.33%
8173	41 Neutral	HK$24.76M	-4.86	-19.25%	―	46.11%	54.20%