Top Standard Corp. (8510) AI Stock Analysis

• Market Cap: HK$44.19M
• Dividend Yield: N/A
• Average Volume (3M): 44.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: 144.78%
• EPS Growth: 10.07%
• Country: HK
• Employees: 48
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 238,878,720
• 10 Day Avg. Volume: 44,000
• 30 Day Avg. Volume: 44,506
• PEG Ratio: <0.01
• Price to Book (P/B): -1.14
• Price to Sales (P/S): 0.92
• P/FCF Ratio: -10.58
• 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$0.19 ▼(-3.00% Downside)

Top Standard Corp.'s overall stock score is primarily impacted by its weak financial performance, with significant concerns about profitability and financial stability. While technical indicators show bullish momentum, the stock appears overbought, suggesting caution. The negative P/E ratio and lack of dividend yield further weigh on the valuation.

Positive Factors

Revenue Growth

The strong revenue growth indicates an expanding market presence and increasing demand for the company's products, which is a positive sign for long-term business sustainability.

Market Position

Strategic partnerships with industry leaders strengthen the company's market position, providing a competitive edge and potential for sustained revenue streams.

Product Diversification

Diversification into both manufacturing and technology sectors reduces dependency on a single market, enhancing resilience against sector-specific downturns.

Negative Factors

Profitability Challenges

Persistent profitability issues highlight cost management challenges, which could impact the company's ability to reinvest and grow sustainably.

Financial Stability

A weak balance sheet with negative equity poses significant risks to financial stability, potentially limiting access to capital and increasing vulnerability to economic fluctuations.

Cash Generation Ability

Declining cash generation capabilities hinder the company's ability to fund operations and invest in growth opportunities, threatening long-term financial health.

Top Standard Corp. Business Overview & Revenue Model

Company Description

Top Standard Corp. (8510) is a diversified company operating primarily in the manufacturing and technology sectors. The company specializes in producing high-quality industrial components and innovative technological solutions designed to enhance operational efficiency across various industries. With a commitment to excellence, Top Standard Corp. focuses on delivering products that meet rigorous safety and performance standards, catering to clients in automotive, aerospace, and electronics markets.

How the Company Makes Money

Top Standard Corp. generates revenue through multiple streams, primarily from the sale of its manufactured industrial components, which include precision-engineered parts and assemblies for automotive and aerospace applications. Additionally, the company offers technology solutions that comprise software and hardware designed to optimize manufacturing processes. Key revenue streams include direct sales to manufacturers, long-term contracts with industry partners, and service agreements for maintenance and support of their technology products. Significant partnerships with leading firms in the automotive and aerospace sectors enhance their market reach and contribute to steady revenue growth.

Top Standard Corp. Financial Statement Overview

Summary

Top Standard Corp. is experiencing strong revenue growth, but profitability and financial stability are major concerns. The company faces challenges with high costs, negative equity, and weak cash flow generation. To improve its financial health, the company should focus on cost control, restructuring its balance sheet, and enhancing cash flow management.

Income Statement

Top Standard Corp. has shown significant revenue growth of 39.68% in the latest year, indicating a positive trend in sales. However, the company is struggling with profitability, as evidenced by negative net profit margins (-68.41%) and EBIT margins (-97.22%). The gross profit margin is extremely low at 2.23%, suggesting high cost of goods sold relative to revenue. Overall, while revenue growth is a positive sign, the company needs to improve its cost management and profitability.

Balance Sheet

The company's balance sheet reveals a concerning financial structure with negative stockholders' equity, leading to a negative debt-to-equity ratio (-0.58). This indicates that liabilities exceed assets, posing a risk to financial stability. The return on equity is positive at 85.03%, but this is due to the negative equity, which distorts the metric. The equity ratio is not available due to negative equity, highlighting the need for financial restructuring.

Cash Flow

Cash flow analysis shows a negative free cash flow growth rate of -84.58%, indicating declining cash generation capabilities. The operating cash flow to net income ratio is low at 0.046, suggesting limited cash generation from operations relative to net income. The free cash flow to net income ratio is negative, reflecting challenges in converting profits into cash. The company needs to enhance its cash flow management to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.47M	14.33M	9.07M	12.48M	6.65M	29.21M
Gross Profit	3.94M	320.00K	-1.75M	1.14M	2.04M	9.58M
EBITDA	-9.26M	-10.55M	7.63M	-6.37M	-11.49M	-9.45M
Net Income	-10.56M	-9.80M	6.01M	-7.50M	-3.12M	-6.08M
Balance Sheet
Total Assets	5.98M	6.41M	15.47M	10.11M	16.71M	12.71M
Cash, Cash Equivalents and Short-Term Investments	922.00K	2.58M	2.42M	1.18M	2.98M	9.02M
Total Debt	5.50M	8.24M	9.42M	7.46M	6.54M	17.20M
Total Liabilities	26.83M	26.90M	23.74M	25.89M	23.69M	29.16M
Stockholders Equity	-12.15M	-11.53M	-4.88M	-14.36M	-6.89M	-16.45M
Cash Flow
Free Cash Flow	-2.68M	-1.25M	-8.49M	1.10M	-14.87M	-11.66M
Operating Cash Flow	-548.00K	1.06M	-2.11M	6.87M	-14.75M	-10.26M
Investing Cash Flow	-1.22M	-2.36M	-6.49M	-5.85M	-173.00K	-825.00K
Financing Cash Flow	5.37M	1.46M	9.83M	-3.06M	8.88M	19.03M

Top Standard Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8510, the sentiment is Positive. The current price of 0.2 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.14, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.24 is Neutral, neither overbought nor oversold. The STOCH value of 82.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8510.

Top Standard Corp. 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%
8096	49 Neutral	HK$25.41M	-5.64	-27.31%	―	14.18%	42.51%
8432	49 Neutral	HK$39.57M	-4.59	-48.61%	―	1.39%	-206.25%
8510	46 Neutral	HK$44.19M	-4.50	―	―	144.78%	10.07%
8367	44 Neutral	HK$30.24M	-1.31	-120.93%	―	2.67%	-264.58%
8475	38 Underperform	HK$4.70M	―	―	―	―	―
8493	26 Underperform	HK$10.16M	-0.23	―	―	-77.80%	-586.04%