4Cs HD Co.Ltd. (3726) AI Stock Analysis

• Market Cap: ¥5.23B
• Dividend Yield: N/A
• Average Volume (3M): 150.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 8.12%
• EPS Growth: 18.59%
• Country: JP
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -8.00
• Shares Outstanding: 11,207,470
• 10 Day Avg. Volume: 123,220
• 30 Day Avg. Volume: 150,420
• PEG Ratio: 1.34
• Price to Book (P/B): 3.54
• Price to Sales (P/S): 1.84
• P/FCF Ratio: -11.50
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: ¥425.00 ▼(-18.11% Downside)

The overall stock score is heavily influenced by the company's poor financial performance, characterized by declining revenues, negative profit margins, and cash flow issues. Technical analysis also indicates bearish trends with the stock trading below key moving averages and showing oversold conditions. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, further impacting the stock's attractiveness.

Positive Factors

Business Model Diversification

A diversified business model with multiple revenue streams enhances resilience against market fluctuations and supports long-term growth.

Industry Focus

Focusing on high-definition technology positions the company well in a growing industry, potentially driving future demand and innovation.

Market Reach

Serving diverse markets enhances the company's market reach and potential for stable revenue streams across different sectors.

Negative Factors

Negative Profit Margins

Sustained negative profit margins suggest operational inefficiencies and challenges in achieving profitability, impacting long-term financial health.

Cash Flow Issues

Negative cash flows from operations indicate difficulties in generating cash, which can limit the company's ability to invest and grow.

Declining Revenue Trend

A declining revenue trend reflects potential market challenges and could hinder the company's ability to sustain growth and profitability.

4Cs HD Co.Ltd. Business Overview & Revenue Model

Company Description

4Cs HD Co. Ltd. (3726) is a prominent player in the Hong Kong stock market, specializing in the production and distribution of high-definition video and imaging products. The company operates primarily in the electronics sector, focusing on innovative solutions for visual technology, catering to both consumer and professional markets. Their core offerings include high-definition cameras, display systems, and associated accessories designed for a variety of applications, from home entertainment to commercial broadcasting.

How the Company Makes Money

4Cs HD Co. Ltd. generates revenue through multiple streams, primarily from the sales of its high-definition video and imaging products. The company earns income by marketing its products to both retail consumers and business clients, which includes collaborations with broadcasters, educational institutions, and corporate entities. Additionally, 4Cs HD may engage in licensing agreements or partnerships with other technology firms to expand its distribution channels and enhance its product offerings. The company also benefits from after-sales services, including maintenance and repair, which contribute to its overall revenue. Seasonal promotions and strategic marketing campaigns further bolster sales, ensuring a steady influx of income throughout the year.

4Cs HD Co.Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenue, negative profit margins, and consistent operational losses. The balance sheet shows moderate debt but is weakened by persistent liabilities and negative net income. Cash flow issues are evident with negative operating and free cash flows.

Income Statement

The company has shown a declining revenue trend over the years, with a negative revenue growth rate in the latest period. Gross profit margins remain relatively stable but low, while net profit margins are negative, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and challenges in achieving profitability.

Balance Sheet

The company has a moderate debt-to-equity ratio, indicating a balanced capital structure. However, the return on equity is negative due to consistent net losses. The equity ratio suggests a reasonable level of equity financing, but the overall financial health is weakened by persistent liabilities and negative net income.

Cash Flow

Operating cash flow is consistently negative, indicating cash flow issues from core operations. Free cash flow is also negative, highlighting challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is unfavorable, reflecting inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.37B	2.26B	2.14B	2.32B	2.47B	1.96B
Gross Profit	1.50B	1.49B	1.43B	1.58B	1.78B	1.39B
EBITDA	-99.57M	-200.25M	-206.57M	-96.21M	-122.10M	-399.48M
Net Income	-341.68M	-273.03M	-272.62M	-156.53M	-178.20M	-464.83M
Balance Sheet
Total Assets	2.88B	2.29B	1.64B	1.45B	1.82B	2.03B
Cash, Cash Equivalents and Short-Term Investments	236.92M	836.66M	539.51M	649.44M	820.21M	1.12B
Total Debt	819.50M	544.51M	757.77M	650.65M	793.95M	975.10M
Total Liabilities	1.42B	1.12B	1.13B	999.97M	1.23B	1.35B
Stockholders Equity	1.46B	1.17B	518.17M	454.12M	595.50M	673.84M
Cash Flow
Free Cash Flow	0.00	-361.36M	-332.50M	-45.12M	-141.96M	-261.11M
Operating Cash Flow	0.00	-361.11M	-324.39M	-41.26M	-106.13M	-233.16M
Investing Cash Flow	0.00	-50.12M	-102.93M	-4.71M	-8.78M	44.99M
Financing Cash Flow	0.00	708.38M	317.39M	-124.80M	-84.08M	-99.79M

4Cs HD Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 519.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3726, the sentiment is Positive. The current price of 519 is above the 20-day moving average (MA) of 496.65, above the 50-day MA of 509.20, and below the 200-day MA of 635.91, indicating a neutral trend. The MACD of 4.90 indicates Negative momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 76.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3726.

4Cs HD Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3560	70 Outperform	¥7.60B	16.96	―	2.86%	15.17%	12.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3135	61 Neutral	¥9.67B	19.91	―	―	25.60%	―
3396	60 Neutral	¥5.64B	16.18	―	1.78%	2.24%	―
2769	45 Neutral	¥8.08B	-2.03	―	―	-4.54%	-261.55%
3726	38 Underperform	¥5.23B	-13.79	―	―	8.12%	18.59%