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

Kinetix Systems Holdings Limited (8606) AI Stock Analysis

Compare
1 Followers

Top Page

HK:8606

Kinetix Systems Holdings Limited

(8606)

Select Model
Select Model
Select Model
Neutral 51 (OpenAI - 4o)
Rating:51Neutral
Price Target:
HK$0.00
▼(-100.00% Downside)
The overall stock score of 51 reflects significant challenges in profitability and bearish technical indicators. While there is some positive momentum in revenue growth and cash flow, the negative P/E ratio and lack of dividend yield weigh heavily on the stock's attractiveness.

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, an investment holding company, provides information technology (IT) services in Hong Kong and Macau. The company operates through IT Infrastructure Solutions Services, IT Development Solutions Services, IT Maintenance and Support Services, and Entertainment Products segments. It provides IT infrastructure solutions services to its clients by advising them the hardware and/or software that their IT systems would require and procuring the hardware and/or software from a range of authorized distributors or third party suppliers and integrating them with clients' IT systems. The company also offers IT development solutions services, including system analysis and design, software development, and technology consultancy services; and IT maintenance and support services. In addition, it engages in the e-commerce business, which includes the trading of entertainment products; and provision of human resources services. It serves customers in private and public sectors, including government and statutory bodies, banks and financial institutions, technology, media and telecom companies, transportation and logistics companies, etc. The company was founded in 1998 and is based in Kwun Tong, Hong Kong. Kinetix Systems Holdings Limited is a subsidiary of Vigorous King Limited.
How the Company Makes MoneyKinetix Systems Holdings Limited generates revenue primarily through the provision of IT solutions and services. The company's key revenue streams include the sale of IT infrastructure solutions, which involves the design and implementation of IT systems for clients; IT development solutions, which include custom software development and system integration services; and IT maintenance and support services, which provide ongoing technical support and system management for clients' IT infrastructures. The company may also engage in strategic partnerships with technology vendors and service providers to enhance its service offerings, thereby contributing to its earnings.

Kinetix Systems Holdings Limited Financial Statement Overview

Summary
Kinetix Systems Holdings Limited exhibits mixed financial performance with steady revenue growth and improved cash flows. However, profitability remains a challenge with negative EBIT and net income, and increasing leverage on the balance sheet poses additional risks.
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
Negative
Last Price0.08
Price Trends
50DMA
0.09
Negative
100DMA
0.10
Negative
200DMA
0.11
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
32.48
Neutral
STOCH
44.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8606, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.09, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 32.48 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8606.

Kinetix Systems Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
90.77M6.497.90%7.26%-9.11%-8.90%
53
Neutral
617.09M-45.961006.76%144.88%-302.04%
51
Neutral
HK$117.11M-1.95%5.01%82.54%
46
Neutral
324.90M-17.00-10.86%-9.21%-4.52%
46
Neutral
262.50M-17.48-15.63%-6.11%-16.26%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8606
Kinetix Systems Holdings Limited
0.08
0.00
0.00%
HK:1402
i-Control Holdings Limited
0.25
-0.09
-26.47%
HK:8050
Quantum Thinking Limited
0.46
0.32
228.57%
HK:8229
Future Data Group Ltd.
0.59
0.19
47.50%
HK:8319
Expert Systems Holdings Ltd.
0.11
<0.01
10.00%
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: Sep 20, 2025