Mindtell Technology Limited (8611) AI Stock Analysis

• Market Cap: HK$238.68M
• Dividend Yield: N/A
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: 14.28%
• EPS Growth: 78.69%
• Country: HK
• Employees: 64
• Sector: Technology
• Sector Strength: 89
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 468,000,000
• 10 Day Avg. Volume: 494,000
• 30 Day Avg. Volume: 1,713,000
• PEG Ratio: -0.31
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.91
• 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: HK$0.50
• Price Target Upside: -1.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: HK$0.50 ▼(-1.96%Downside)

The overall score is primarily affected by financial performance and technical analysis. Despite some recovery in financial metrics, the stock is struggling with negative valuation indicators and bearish technical signals. The lack of profitability and poor market momentum are significant concerns.

Mindtell Technology Limited Business Overview & Revenue Model

Company Description

Mindtell Technology Limited, listed on the Hong Kong Stock Exchange under the ticker 8611, is a company that specializes in providing IT solutions and services. The company operates primarily in the sectors of information technology and communications, focusing on delivering a range of services including software development, system integration, and IT consultancy. Mindtell Technology Limited prides itself on leveraging cutting-edge technologies to enhance business operations and drive innovation for its clients.

How the Company Makes Money

Mindtell Technology Limited generates revenue through a diverse range of IT-related services. Its primary revenue streams include fees from software development projects, where they create custom software solutions tailored to client needs. The company also earns income from system integration services, helping businesses to seamlessly integrate new IT solutions with existing systems. Additionally, Mindtell Technology Limited offers IT consultancy services, providing expert advice to assist businesses in optimizing their IT infrastructure. Significant partnerships with technology providers and business clients further contribute to the company's earnings, allowing it to expand its market reach and service offerings.

Mindtell Technology Limited Financial Statement Overview

Summary

Mindtell Technology Limited is showing signs of recovery with improved revenue growth and a positive shift in cash flow. However, ongoing net losses and a declining equity ratio highlight underlying financial weaknesses, requiring focus on profitability enhancement and financial stability.

Income Statement

Mindtell Technology Limited has seen a positive revenue growth rate of 17% over the past year, indicating recovery from its previous declines. However, the company is still struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin has improved to 28.8%, but the net income remains negative, showing continued operational challenges.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio of 0.65, suggesting manageable leverage. However, the equity ratio has decreased to 25.9%, indicating reduced financial stability. Despite this, the company has a positive cash position, which provides some financial flexibility.

Cash Flow

There is a significant improvement in free cash flow, turning positive from the previous year's negative figures. The operating cash flow has improved significantly, aiding cash flow to net income ratios. This indicates better cash management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.83M	14.24M	12.17M	12.47M	17.18M	10.01M
Gross Profit	3.93M	4.10M	2.64M	3.38M	2.71M	1.49M
EBITDA	-683.75K	-383.00K	-2.71M	-2.30M	-2.56M	-8.78M
Net Income	-1.01M	-1.15M	-5.43M	-6.74M	-6.27M	-14.26M
Balance Sheet
Total Assets	9.63M	9.89M	11.31M	15.67M	31.32M	32.88M
Cash, Cash Equivalents and Short-Term Investments	4.94M	3.08M	3.56M	6.64M	15.09M	18.88M
Total Debt	1.45M	1.66M	1.60M	1.80M	2.06M	1.82M
Total Liabilities	5.65M	7.32M	7.52M	6.38M	15.53M	10.80M
Stockholders Equity	3.99M	2.56M	3.79M	9.29M	15.79M	22.07M
Cash Flow
Free Cash Flow	1.65M	261.00K	-3.12M	-8.13M	-3.69M	2.75M
Operating Cash Flow	1.67M	337.00K	-2.85M	-4.68M	-712.00K	6.47M
Investing Cash Flow	2.00K	12.00K	-187.00K	-3.41M	-2.79M	-3.57M
Financing Cash Flow	-181.00K	-475.00K	-392.00K	-358.00K	-284.00K	-289.00K

Mindtell Technology Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8611, the sentiment is Negative. The current price of 0.51 is below the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.64, and above the 200-day MA of 0.45, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.35 is Neutral, neither overbought nor oversold. The STOCH value of 13.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8611.

Mindtell Technology Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1460	78 Outperform	HK$236.95M	9.22	4.67%	3.70%	7.39%	142.61%
0046	74 Outperform	HK$364.02M	12.64	5.78%	7.28%	1.39%	-11.89%
1900	73 Outperform	HK$356.08M	14.21	1.16%	10.97%	-5.81%	-84.80%
Sector *	56 Neutral	HK$13.86B	5.36	-5.75%	5.41%	9.34%	-42.23%
1949	47 Neutral	HK$56.80M	20.59	-70.43%	―	-77.93%	-3076.47%
8611	46 Neutral	HK$238.68M	―	-37.23%	―	14.28%	78.69%
8229	41 Neutral	HK$188.60M	―	-11.66%	―	-9.21%	-4.52%