Novacon Technology Group Ltd (8635) AI Stock Analysis

• Market Cap: HK$724.80M
• Dividend Yield: 3.93%
• Average Volume (3M): 15.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -21.29%
• EPS Growth: 15.16%
• Country: HK
• Employees: 31
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 480,000,000
• 10 Day Avg. Volume: 17,445,200
• 30 Day Avg. Volume: 15,646,633
• PEG Ratio: 0.83
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 13.60
• P/FCF Ratio: -23.14
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ―

Novacon Technology Group Ltd faces significant financial performance challenges, particularly with revenue decline and cash flow issues. However, the strong cash position and absence of debt provide some stability. The stock shows positive technical momentum, and an attractive dividend yield offers potential investment value despite the negative P/E ratio.

Novacon Technology Group Ltd Business Overview & Revenue Model

Company Description

Novacon Technology Group Ltd (8635) is a company that specializes in providing comprehensive technology solutions and services. Operating primarily in the information technology sector, the company offers a range of products and services designed to enhance business processes and operational efficiency for its clients. These offerings include software development, IT consultancy, and systems integration services, aimed at catering to the needs of businesses across various industries.

How the Company Makes Money

Novacon Technology Group Ltd generates revenue through multiple streams associated with its core offerings. The primary revenue stream is derived from the sale of software products and solutions tailored to meet specific client requirements. Additionally, the company earns income from providing IT consultancy services, where they leverage their expertise to advise clients on optimizing their technology infrastructure and strategies. Systems integration services also contribute to the revenue, as Novacon assists businesses in seamlessly integrating new technologies with existing systems. Partnerships with other technology providers enhance the company's service offerings, allowing for expanded market reach and additional revenue opportunities.

Novacon Technology Group Ltd Financial Statement Overview

Summary

Novacon Technology Group Ltd is facing financial instability. The income statement shows a significant revenue decline and profitability challenges. The balance sheet is somewhat supportive with a strong cash position and no debt, but cash flow issues are severe, indicating potential liquidity threats.

Income Statement

Novacon Technology Group Ltd faced a massive downturn in its financial performance in the latest fiscal year. The revenue plummeted by 56.7%, from 52.58 million to 22.79 million, indicating severe market challenges or loss of customer base. The company also experienced a negative gross profit margin and a net loss, reflecting inefficiencies and high operational costs. The negative EBIT and EBITDA margins further highlight profitability issues.

Balance Sheet

The balance sheet shows a strong equity base with a debt-free structure, which is a positive aspect; however, the company's equity ratio decreased slightly due to a reduction in stockholders' equity. Despite the drop in total assets, the company maintains a solid cash position, providing some financial stability.

Cash Flow

Cash flows are under pressure due to a significant negative operating cash flow, reflecting operational challenges. The free cash flow also turned negative, indicating issues in generating cash from operations after capital expenditures. The cash flow to net income ratios are unfavorable, suggesting inefficiencies in translating accounting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.91M	17.94M	22.79M	52.58M	50.03M	42.73M
Gross Profit	-9.96M	-678.00K	-6.45M	47.32M	45.30M	38.33M
EBITDA	-18.07M	-12.49M	-14.73M	15.33M	21.06M	23.29M
Net Income	-29.20M	-19.46M	-22.98M	5.71M	11.22M	13.03M
Balance Sheet
Total Assets	70.05M	70.05M	115.39M	137.38M	129.63M	130.76M
Cash, Cash Equivalents and Short-Term Investments	18.23M	18.23M	44.42M	61.41M	58.19M	66.24M
Total Debt	0.00	0.00	0.00	504.00K	0.00	10.96M
Total Liabilities	8.47M	8.47M	9.05M	7.66M	4.83M	16.83M
Stockholders Equity	61.23M	61.23M	106.33M	129.72M	124.80M	113.94M
Cash Flow
Free Cash Flow	-6.84M	-10.54M	-24.43M	7.02M	3.61M	13.63M
Operating Cash Flow	-6.83M	-6.83M	-17.89M	12.43M	8.80M	20.59M
Investing Cash Flow	6.59M	6.59M	1.54M	-8.02M	-5.07M	-10.52M
Financing Cash Flow	-25.80M	-25.80M	-804.00K	-1.18M	-11.78M	-1.49M

Novacon Technology Group Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8635, the sentiment is Positive. The current price of 1.64 is above the 20-day moving average (MA) of 1.56, above the 50-day MA of 1.25, and above the 200-day MA of 0.70, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 69.60 is Neutral, neither overbought nor oversold. The STOCH value of 68.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8635.

Novacon Technology Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8635	55 Neutral	HK$724.80M	-31.01	-23.23%	3.93%	-21.29%	15.16%
8100	52 Neutral	HK$97.78M	-20.95	-2.72%	1.00%	-13.40%	76.97%
1933	47 Neutral	HK$80.26M	―	-14.54%	―	-23.84%	-544.02%
8156	45 Neutral	HK$183.77M	―	―	―	48.39%	88.30%
9600	42 Neutral	HK$204.81M	-1.86	-14.03%	―	15.44%	10.57%
8071	39 Underperform	HK$89.03M	―	-97.49%	―	-49.86%	15.00%