i.century Holding Limited (8507) AI Stock Analysis

• Market Cap: HK$160.00M
• Dividend Yield: N/A
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 55.7
• Beta (1Y): 0.80
• Revenue Growth: 10.57%
• EPS Growth: N/A
• Country: HK
• Employees: 44
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.01
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 2,248,800
• 30 Day Avg. Volume: 2,549,466
• PEG Ratio: -0.51
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 3.05
• 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: 46 Neutral
• Price Target: HK$0.50 ▲(31.58% Upside)

The overall stock score reflects significant financial challenges, including weak profitability and cash flow, and high leverage. Technical indicators suggest a neutral market position, but the high P/E ratio raises concerns about overvaluation.

Positive Factors

Revenue Growth

The company's ability to achieve a revenue growth rate of nearly 9% indicates a positive trend in market demand and business expansion, which can contribute to long-term sustainability and competitiveness in the technology sector.

Market Position

Positioning in high-demand sectors like digital transformation and cloud services aligns with industry trends, potentially driving sustained growth and enhancing competitive advantage in the technology market.

Diversified Revenue Streams

Diversified revenue streams from software, IT consulting, and telecom services provide resilience against market fluctuations, supporting stable cash flow and reducing dependency on a single income source.

Negative Factors

High Leverage

A high debt-to-equity ratio indicates significant leverage, which can increase financial risk and limit the company's ability to invest in growth opportunities, potentially affecting long-term financial stability.

Weak Profitability

Weak profitability margins suggest challenges in cost management and efficiency, which can hinder the company's ability to reinvest in the business and compete effectively over the long term.

Declining Cash Flow

A significant decline in free cash flow growth indicates potential liquidity issues, limiting the company's ability to fund operations, invest in growth, and meet financial obligations.

i.century Holding Limited Business Overview & Revenue Model

Company Description

i.century Holding Limited (8507) is a diversified holding company primarily engaged in the provision of technology-related services and products. Operating within the sectors of digital solutions, telecommunications, and information technology, the company focuses on delivering innovative software, hardware, and integrated services tailored to meet the needs of various industries. Its core offerings include software development, IT consulting, and telecommunications solutions, catering to both individual consumers and corporate clients.

How the Company Makes Money

i.century Holding Limited generates revenue through multiple streams, including the sale of software products, IT consulting fees, and recurring income from telecommunications services. The company engages in the development of proprietary software solutions, which are licensed to businesses, creating a steady income from license fees and ongoing support services. Additionally, i.century partners with other technology firms to enhance its service offerings and expand its market reach, which can lead to joint ventures that further contribute to its revenue. The company's focus on high-demand sectors such as digital transformation and cloud services positions it well for sustained growth and profitability.

i.century Holding Limited Financial Statement Overview

Summary

The company shows modest revenue growth but struggles with profitability, as indicated by low net profit and EBIT margins. High leverage and low return on equity pose financial risks, and cash flow is weak with a significant decline in free cash flow.

Income Statement

The company shows a modest revenue growth rate of 8.995% in the latest year, recovering from previous declines. However, profitability remains a concern with a low net profit margin of 0.37% and an EBIT margin of 1.02%. The gross profit margin is stable at around 22.98%, indicating some control over production costs. Overall, the income statement reflects a company struggling to convert revenue growth into significant profit.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.20, indicating significant leverage, which could pose risks if not managed properly. The return on equity is low at 3.55%, suggesting limited returns for shareholders. The equity ratio is not provided, but the available data suggests a need for improved financial stability.

Cash Flow

The cash flow statement reveals a concerning free cash flow growth rate of -476.19%, indicating a significant decline. The operating cash flow to net income ratio is 0.22, showing limited cash generation relative to net income. The free cash flow to net income ratio is nearly 1, suggesting that most of the net income is being converted into free cash flow, but the overall cash flow position is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	204.49M	164.81M	118.83M	149.75M	170.57M	94.51M
Gross Profit	46.36M	37.88M	27.23M	32.61M	34.13M	16.41M
EBITDA	6.61M	4.37M	-14.02M	-3.85M	21.13M	-14.01M
Net Income	2.01M	604.00K	-17.60M	-4.96M	19.21M	-16.69M
Balance Sheet
Total Assets	65.73M	65.04M	59.94M	68.15M	73.95M	64.88M
Cash, Cash Equivalents and Short-Term Investments	8.77M	14.53M	10.19M	17.11M	27.18M	10.27M
Total Debt	15.17M	20.38M	25.58M	21.39M	13.91M	26.38M
Total Liabilities	44.68M	48.01M	43.74M	34.43M	35.37M	45.49M
Stockholders Equity	21.05M	17.02M	16.20M	33.72M	38.58M	19.38M
Cash Flow
Free Cash Flow	10.08M	10.36M	-9.03M	-24.88M	9.18M	-16.03M
Operating Cash Flow	10.08M	10.38M	188.00K	-8.92M	9.18M	-15.93M
Investing Cash Flow	1.44M	68.00K	-9.13M	-8.31M	22.74M	-9.09M
Financing Cash Flow	-9.89M	-6.32M	1.94M	15.63M	-1.46M	2.87M

i.century Holding Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8507, the sentiment is Negative. The current price of 0.38 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.50, and above the 200-day MA of 0.23, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 34.41 is Neutral, neither overbought nor oversold. The STOCH value of 23.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8507.

i.century Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8507	46 Neutral	HK$160.00M	55.71	14.33%	―	10.57%	―
1825	46 Neutral	HK$33.52M	-1.98	-59.04%	―	-26.68%	-60.46%
0130	44 Neutral	HK$45.78M	-0.89	-15.16%	―	-18.61%	8.67%
8297	40 Underperform	HK$50.45M	-1.48	―	―	―	―
8456	39 Underperform	HK$40.32M	-1.85	-46.20%	―	-19.39%	3.51%