Kinetix Systems Holdings Limited (8606) AI Stock Analysis

• Market Cap: HK$179.29M
• Dividend Yield: N/A
• Average Volume (3M): 255.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: 8.50%
• EPS Growth: 67.35%
• Country: HK
• Employees: 164
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 1,445,850,000
• 10 Day Avg. Volume: 57,000
• 30 Day Avg. Volume: 255,500
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.32
• 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: 58 Neutral
• 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 Business Overview & Revenue Model

Company Description

Kinetix 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 Money

Kinetix 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	335.35M	309.07M	294.66M	254.12M	282.36M
Gross Profit	66.50M	59.15M	50.29M	49.68M	47.56M
EBITDA	-3.12M	-7.68M	-57.60M	-10.20M	14.68M
Net Income	-4.70M	-14.09M	-69.91M	-21.44M	10.32M
Balance Sheet
Total Assets	182.73M	201.62M	199.85M	241.70M	186.83M
Cash, Cash Equivalents and Short-Term Investments	31.19M	30.32M	25.19M	29.97M	35.79M
Total Debt	3.48M	4.77M	22.75M	33.30M	15.58M
Total Liabilities	118.25M	130.22M	140.18M	112.10M	88.93M
Stockholders Equity	74.98M	79.74M	64.83M	131.92M	99.12M
Cash Flow
Free Cash Flow	5.15M	-14.24M	9.63M	-4.17M	-20.41M
Operating Cash Flow	5.71M	-13.50M	10.45M	8.01M	-19.91M
Investing Cash Flow	-769.00K	-1.00M	191.00K	-12.22M	-7.43M
Financing Cash Flow	-4.03M	20.51M	-15.57M	-1.52M	3.16M

Kinetix Systems Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8319	69 Neutral	HK$93.98M	6.72	8.06%	7.13%	-8.25%	-14.22%
8606	58 Neutral	HK$179.29M	―	-6.08%	―	8.50%	67.35%
1037	57 Neutral	€173.98M	―		―	-19.22%	24.71%
Sector *	56 Neutral	HK$13.71B	5.07	-5.77%	5.42%	9.48%	-42.73%
1402	53 Neutral	HK$200.55M	―	-9.44%	2.00%	-26.46%	-3816.67%
8229	44 Neutral	HK$191.34M	―	-11.19%	―	―	―
8229	44 Neutral	HK$191.34M	―	-11.19%	―	―	―
8050	39 Underperform	HK$149.19M	―	-253.21%	―	79.84%	-219.70%