Sanbase Corporation Limited (8501) AI Stock Analysis

• Market Cap: HK$87.10M
• Dividend Yield: N/A
• Average Volume (3M): 9.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -2.17%
• EPS Growth: -188.41%
• Country: HK
• Employees: 68
• Sector: Industrials
• Sector Strength: 84
• Industry: Consulting Services
• EPS (TTM): >-0.01
• Shares Outstanding: 200,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 9,666
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: HK$0.50 ▲(13.64% Upside)

Sanbase Corporation Limited's overall stock score is primarily impacted by its financial challenges, including negative profitability and cash flow issues. While technical indicators show a positive trend, the high RSI suggests caution due to potential overbought conditions. The negative P/E ratio further underscores valuation concerns.

Sanbase Corporation Limited Business Overview & Revenue Model

Company Description

Sanbase Corporation Limited (8501) is a technology-driven company specializing in the development and provision of innovative solutions and services in the digital landscape. Operating primarily in the software and technology sectors, Sanbase focuses on delivering advanced software applications, cloud solutions, and IT consultancy services to a diverse range of industries. The company's core offerings include software development, system integration, and digital transformation solutions aimed at enhancing operational efficiency and driving business growth for its clients.

How the Company Makes Money

Sanbase Corporation Limited generates revenue through multiple key streams, primarily from its software development and IT consulting services. The company charges clients for custom software solutions and ongoing support services, which constitute a significant portion of its income. Additionally, Sanbase earns revenue from cloud-based solutions through subscription models, where clients pay for access to its platforms on a recurring basis. Strategic partnerships with other technology providers and enterprises also contribute to its revenue, enabling the company to expand its service offerings and reach new markets. Furthermore, Sanbase may engage in project-based contracts, providing tailored solutions for specific client needs, which can lead to substantial one-time revenue spikes. Overall, the combination of service diversity, repeat business from existing clients, and strategic alliances underpins the company's earnings model.

Sanbase Corporation Limited Financial Statement Overview

Summary

Sanbase Corporation Limited faces challenges in revenue and profitability with a declining income statement performance. The company maintains a strong balance sheet with low leverage and a healthy cash flow position, indicating resilience in cash generation despite operational difficulties. The focus should be on improving revenue growth and profitability to enhance financial stability.

Income Statement

Sanbase Corporation Limited has experienced significant fluctuations in revenue and profitability over the past few years. The gross profit margin has decreased to 5.76% in 2024 from 6.46% in 2023, indicating reduced profitability. The net profit margin turned negative, with net income falling to -1.37 million from 1.04 million, showcasing a challenging financial year. The revenue growth rate from 2023 to 2024 was -17.26%, reflecting a decline in sales. Additionally, the EBIT and EBITDA margins have decreased, highlighting operational challenges.

Balance Sheet

The balance sheet reveals a stable equity position with a debt-to-equity ratio of 0.03. The equity ratio remains strong at 51.40%, indicating a solid capital structure. Return on equity has turned negative due to the net loss, but the company maintains a low level of total debt, suggesting limited financial leverage and reduced risk from debt obligations.

Cash Flow

Sanbase Corporation Limited shows a robust cash flow position with a significant improvement in free cash flow, from -6.65 million in 2023 to 34.49 million in 2024. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also favorable, showing healthy cash flows despite reported net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	373.36M	418.77M	428.08M	517.60M	413.12M	481.29M
Gross Profit	15.07M	19.76M	24.66M	33.43M	22.74M	25.85M
EBITDA	-15.19M	1.83M	4.45M	7.94M	-2.20M	4.04M
Net Income	-14.80M	-3.98M	-1.37M	1.04M	-5.74M	397.00K
Balance Sheet
Total Assets	247.60M	281.79M	266.36M	334.48M	287.04M	265.41M
Cash, Cash Equivalents and Short-Term Investments	128.28M	103.62M	139.64M	109.70M	119.78M	112.49M
Total Debt	2.92M	2.55M	4.12M	2.02M	3.57M	5.48M
Total Liabilities	104.00M	141.78M	122.38M	189.78M	144.89M	116.20M
Stockholders Equity	134.88M	132.88M	136.93M	137.63M	136.86M	142.48M
Cash Flow
Free Cash Flow	-1.71M	-18.23M	34.49M	-6.65M	10.54M	414.00K
Operating Cash Flow	-1.64M	-18.16M	34.57M	-6.48M	11.63M	628.00K
Investing Cash Flow	-100.00K	-12.64M	-78.00K	-173.00K	-1.09M	-1.49M
Financing Cash Flow	-3.63M	-5.25M	-4.20M	-2.89M	-3.32M	-7.20M

Sanbase Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Positive

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 0.44 is above the 20-day moving average (MA) of 0.44, above the 50-day MA of 0.36, and above the 200-day MA of 0.32, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 89.22 is Negative, neither overbought nor oversold. The STOCH value of <0.01 is Positive, 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 *	58 Neutral	kr266.57B	10.92	-14.02%	2.05%	6.62%	-88.24%
1376	52 Neutral	HK$203.00M	―	5.82%	―	-48.30%	-395.18%
8501	49 Neutral	HK$87.10M	―	-2.95%	―	-2.17%	-188.41%
8040	49 Neutral	HK$117.30M	―	-48.06%	―	-10.74%	-81.54%
8173	47 Neutral	HK$41.99M	―	-22.97%	―	-42.53%	-232.12%
3893	46 Neutral	HK$30.05M	―		―	151.24%	46.43%
8455	41 Neutral	HK$54.72M	―	-617.73%	―	-8.22%	-7.28%