Mindtell Technology Limited (8611) AI Stock Analysis

• Market Cap: HK$299.52M
• Dividend Yield: N/A
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: 29.99%
• EPS Growth: -113.64%
• Country: HK
• Employees: 64
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 468,000,000
• 10 Day Avg. Volume: 2,887,500
• 30 Day Avg. Volume: 1,453,333
• PEG Ratio: 0.14
• Price to Book (P/B): 4.88
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 47.95
• 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: -21.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: HK$0.50 ▼(-21.88% Downside)

Mindtell Technology Limited's stock score is primarily impacted by its financial performance and technical analysis. The company shows some recovery in revenue and cash flow, but ongoing net losses and a declining equity ratio are significant concerns. The technical indicators suggest bearish momentum, and the negative P/E ratio reflects poor earnings performance. These factors contribute to a lower overall stock score.

Mindtell Technology Limited Business Overview & Revenue Model

Company Description

Mindtell Technology Limited (8611) is a technology company specializing in artificial intelligence and data analytics solutions. Operating primarily in the information technology sector, Mindtell develops innovative software applications and platforms designed to enhance decision-making processes for businesses across various industries. The company focuses on delivering advanced machine learning tools, predictive analytics, and customized software solutions that cater to the unique needs of its clients.

How the Company Makes Money

Mindtell Technology Limited generates revenue through multiple streams, including software licensing fees, subscription services, and consulting services. The company offers its AI and analytics software on a subscription basis, allowing clients to access its tools while providing a steady revenue flow. Additionally, Mindtell earns income from one-time licensing fees for its proprietary software, which clients can implement within their existing infrastructures. Consulting services further contribute to the company's earnings, as clients often require assistance with software integration, customization, and ongoing support. Furthermore, strategic partnerships with other technology firms and industry leaders can enhance Mindtell's market reach and profitability, enabling the company to tap into new markets and customer segments.

Mindtell Technology Limited Financial Statement Overview

Summary

Mindtell Technology Limited shows signs of recovery with improved revenue growth and cash flow metrics. However, ongoing net losses and a declining equity ratio highlight underlying financial weaknesses. The company needs to enhance profitability and maintain 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	18.26M	14.24M	12.17M	12.47M	17.18M	10.01M
Gross Profit	3.73M	4.10M	2.64M	3.38M	2.71M	1.49M
EBITDA	-2.11M	-383.00K	-2.71M	-6.14M	-2.56M	-8.78M
Net Income	-2.26M	-1.15M	-5.43M	-6.74M	-6.27M	-11.19M
Balance Sheet
Total Assets	11.90M	9.89M	11.31M	15.67M	31.32M	32.88M
Cash, Cash Equivalents and Short-Term Investments	4.50M	3.08M	3.56M	6.91M	15.22M	18.88M
Total Debt	1.66M	1.66M	1.60M	1.80M	2.06M	1.82M
Total Liabilities	8.02M	7.32M	7.52M	6.38M	15.53M	10.80M
Stockholders Equity	3.88M	2.56M	3.79M	9.29M	15.79M	22.07M
Cash Flow
Free Cash Flow	-1.87M	261.00K	-3.12M	-8.13M	-3.69M	2.75M
Operating Cash Flow	-1.78M	337.00K	-2.85M	-4.68M	-712.00K	6.47M
Investing Cash Flow	-10.00K	12.00K	-187.00K	-3.41M	-2.79M	-3.57M
Financing Cash Flow	1.58M	-475.00K	-392.00K	-358.00K	-284.00K	-289.00K

Mindtell Technology Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 0.64 is below the 20-day moving average (MA) of 0.80, below the 50-day MA of 0.76, and below the 200-day MA of 0.68, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 31.86 is Neutral, neither overbought nor oversold. The STOCH value of 4.96 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
0046	77 Outperform	HK$393.14M	13.34	5.83%	6.79%	-1.26%	-10.80%
1900	72 Outperform	HK$576.26M	1.27	20.36%	6.78%	27.05%	842.50%
1460	70 Outperform	HK$272.05M	10.58	4.67%	3.39%	5.87%	54.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8611	47 Neutral	HK$299.52M	―	-57.46%	―	29.99%	-113.64%
1949	46 Neutral	HK$192.96M	20.59	-83.97%	―	-78.41%	-3511.76%
8229	46 Neutral	HK$341.42M	―	-11.66%	―	-9.21%	-4.52%