tiprankstipranks
Trending News
More News >
Kinetix Systems Holdings Limited (HK:8606)
:8606
Hong Kong Market

Kinetix Systems Holdings Limited (8606) AI Stock Analysis

Compare
0 Followers

Top Page

HK

Kinetix Systems Holdings Limited

(8606)

Rating:58Neutral
Price Target:
HK$0.00
▼(-100.00%Downside)
The overall stock score reflects mixed financial performance with improving revenue and cash flows but challenges in profitability and leverage. Technical analysis indicates moderate weakness, and valuation metrics are unattractive.

Kinetix Systems Holdings Limited (8606) vs. iShares MSCI Hong Kong ETF (EWH)

Kinetix Systems Holdings Limited Business Overview & Revenue Model

Company DescriptionKinetix Systems Holdings Limited (8606) is a Hong Kong-based company primarily engaged in the provision of information technology (IT) services. The company offers a broad range of IT solutions, including IT infrastructure solutions, IT development solutions, and IT maintenance and support services. It serves a diverse clientele across various industries, providing tailor-made solutions to meet the specific needs of its customers.
How the Company Makes MoneyKinetix Systems Holdings Limited generates revenue through multiple streams. The primary sources include fees charged for IT infrastructure solutions, where the company designs and implements IT systems for clients. Additionally, it earns from IT development solutions by creating customized software and applications. The company also has a significant revenue stream from IT maintenance and support services, where it provides ongoing technical support and system maintenance for its clients. Key partnerships with technology providers and vendors enhance its service offerings and contribute to its revenue growth.

Kinetix Systems Holdings Limited Financial Statement Overview

Summary
Kinetix Systems Holdings Limited displays a mixed financial performance. Revenue growth and cash flows are improving, but profitability remains a significant challenge. The balance sheet is stable, but increasing leverage needs careful management. The company should focus on enhancing profitability and managing debt levels to ensure sustainable growth.
Income Statement
60
Neutral
Kinetix Systems Holdings Limited has shown a steady increase in revenue over the past few years, with a notable revenue growth rate from 2023 to 2024. However, the company has faced challenges in profitability, as indicated by negative EBIT and net income in recent years. The gross profit margin has improved slightly, reflecting efficient cost management, but negative net profit margins remain a concern for long-term profitability.
Balance Sheet
65
Positive
The company's balance sheet shows a relatively stable equity base, with a favorable equity ratio indicating good asset management. However, the debt-to-equity ratio suggests a potential concern with increasing leverage, which could pose risks if not managed carefully. The return on equity remains negative due to continuous net losses, which affects overall shareholder returns.
Cash Flow
70
Positive
Kinetix Systems has demonstrated improvement in operating cash flows, turning positive in 2024 compared to previous years. The free cash flow has also shown a positive trend, indicating better cash management. However, the free cash flow to net income ratio reflects ongoing profitability challenges, and the company needs to maintain positive cash flow to support future growth.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue335.35M309.07M294.66M254.12M282.36M
Gross Profit66.50M59.15M50.29M49.68M47.56M
EBITDA-3.12M-7.68M-57.60M-10.20M14.68M
Net Income-4.70M-14.09M-69.91M-21.44M10.32M
Balance Sheet
Total Assets182.73M201.62M199.85M241.70M186.83M
Cash, Cash Equivalents and Short-Term Investments31.19M30.32M25.19M29.97M35.79M
Total Debt3.48M4.77M22.75M33.30M15.58M
Total Liabilities118.25M130.22M140.18M112.10M88.93M
Stockholders Equity74.98M79.74M64.83M131.92M99.12M
Cash Flow
Free Cash Flow5.15M-14.24M9.63M-4.17M-20.41M
Operating Cash Flow5.71M-13.50M10.45M8.01M-19.91M
Investing Cash Flow-769.00K-1.00M191.00K-12.22M-7.43M
Financing Cash Flow-4.03M20.51M-15.57M-1.52M3.16M

Kinetix Systems Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.13
Price Trends
50DMA
0.11
Positive
100DMA
0.13
Positive
200DMA
0.10
Positive
Market Momentum
MACD
<0.01
Negative
RSI
64.20
Neutral
STOCH
70.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8606, the sentiment is Positive. The current price of 0.13 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.20 is Neutral, neither overbought nor oversold. The STOCH value of 70.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8606.

Kinetix Systems Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$93.98M6.728.06%7.13%-8.25%-14.22%
58
Neutral
HK$179.29M-6.08%8.50%67.35%
57
Neutral
€173.98M
-19.22%24.71%
56
Neutral
HK$13.71B5.07-5.77%5.42%9.48%-42.73%
53
Neutral
HK$200.55M-9.44%2.00%-26.46%-3816.67%
44
Neutral
HK$191.34M-11.19%
44
Neutral
HK$191.34M-11.19%
39
Underperform
HK$149.19M-253.21%79.84%-219.70%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8606
Kinetix Systems Holdings Limited
0.12
0.05
71.43%
HK:8319
Expert Systems Holdings Ltd.
0.12
0.02
20.00%
HK:8229
Future Data Group Ltd.
0.35
-0.14
-28.57%
HK:8229
Future Data Group Ltd.
0.35
-0.14
-28.57%
HK:8050
Quantum Thinking Limited
0.11
-0.03
-21.43%
HK:1402
i-Control Holdings Limited
0.19
-0.05
-20.83%
HK:1037
Maxnerva Technology Services Limited
0.25
0.02
7.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 04, 2025