i.century Holding Limited (8507) AI Stock Analysis

• Market Cap: HK$110.00M
• Dividend Yield: N/A
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 39.3
• Beta (1Y): 0.91
• 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: 44 Neutral
• Price Target: HK$0.27 ▼(-21.47% Downside)

The score is primarily held down by weak financial quality—thin margins, high leverage, and deteriorating free cash flow trends. Technicals add further pressure with price below key moving averages and a negative MACD, while valuation is also unfavorable given the high P/E and no stated dividend yield.

Positive Factors

Diversified revenue streams & recurring licenses

Multiple revenue streams including proprietary software licensing, consulting fees, and recurring telecom service income provide durable cash inflows and lower customer-concentration risk. Recurring license and service revenues support predictable revenue base and enable long-term planning and investment.

Positioned in high-demand structural markets

Exposure to secular trends like digital transformation and cloud services offers a sustained addressable market and long-term growth runway. These structural tailwinds support ongoing demand for software, integration and managed services, improving chances for prolonged revenue traction if execution is solid.

Stable gross margin (~23%)

A roughly 23% gross margin indicates underlying control over direct costs and some degree of pricing power for core offerings. Stable gross economics create scope for future operating leverage and margin recovery if fixed costs are optimized and higher‑margin services scale.

Negative Factors

Very thin profitability margins

Extremely low EBIT and net margins limit internal funding for R&D, sales expansion, and buffer against cost shocks. Even modest revenue growth struggles to translate into meaningful shareholder returns, constraining strategic flexibility and increasing sensitivity to margin pressure over the medium term.

High leverage on balance sheet

Elevated debt-to-equity raises financial risk and interest obligations, reducing capacity to invest or weather downturns. With thin profitability and weak cash flows, leverage magnifies solvency and refinancing risks, limiting strategic options until meaningful deleveraging or stronger cash generation occurs.

Severely deteriorated free cash flow

A dramatic decline in free cash flow and low operating cash flow conversion indicate earnings are not generating cash. This undermines ability to fund capex, reduce debt, or sustain operations without external financing, creating a persistent constraint on the company’s financial flexibility and execution.

i.century Holding Limited Business Overview & Revenue Model

Company Description

i.century Holding Limited, an investment holding company, provides apparel products and apparel supply chain management services in the United States, France, other European countries, Australia, Canada, Japan, and Internationally. It offers jackets, woven shirts, pullovers, pants, shorts, T-shirts, fleeces, woven bottoms, and knitted sweaters; other products, including dresses, tank top, and vests; and ladies fashion items, as well as accessories, such as face masks and bags. The company was founded in 2008 and is headquartered in Lai Chi Kok, Hong Kong. i.century Holding Limited is a subsidiary of Giant Treasure Development Limited.

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

Financial statement signals are weak overall: modest revenue growth (~9%) but very low profitability (net margin 0.37%, EBIT margin 1.02%). Leverage is elevated (debt-to-equity 1.20) with low ROE (3.55%), and cash flow is a key concern given the sharp free cash flow growth decline (-476%) and low operating cash flow to net income (0.22).

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: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 0.34 is above the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.40, and above the 200-day MA of 0.26, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 32.10 is Neutral, neither overbought nor oversold. The STOCH value of 10.58 is Positive, 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%
8456	48 Neutral	HK$52.88M	-2.43	-46.20%	―	-19.39%	3.51%
0130	44 Neutral	HK$50.68M	-0.98	-15.16%	―	-18.61%	8.67%
8507	44 Neutral	HK$110.00M	39.29	14.33%	―	10.57%	―
1825	43 Neutral	HK$39.81M	-1.96	-59.04%	―	-26.68%	-60.46%
8297	40 Underperform	HK$50.45M	-1.48	―	―	―	―