Auto Italia Holdings (0720) AI Stock Analysis

• Market Cap: HK$1.14B
• Dividend Yield: N/A
• Average Volume (3M): 657.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: -6.86%
• EPS Growth: 87.79%
• Country: HK
• Employees: 30
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Real Estate - Services
• EPS (TTM): <0.01
• Shares Outstanding: 6,092,515,600
• 10 Day Avg. Volume: 1,118,514
• 30 Day Avg. Volume: 657,525
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 1

• Rating: 48 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by the company's weak financial performance and poor valuation metrics. Despite strong technical indicators suggesting bullish momentum, the overbought conditions and negative earnings outlook weigh heavily on the stock's attractiveness.

Auto Italia Holdings Business Overview & Revenue Model

Company Description

Auto Italia Holdings Limited (0720) is a Hong Kong-based company primarily engaged in the import, distribution, and service of luxury and performance automobiles. The company operates through various segments, including the automotive segment, which focuses on the sale of high-end car brands such as Maserati and Ferrari, and the financial investments and services segment. Auto Italia Holdings is known for its expertise in providing comprehensive automotive solutions, including maintenance, repair, and parts supply, catering to a niche market of luxury car enthusiasts.

How the Company Makes Money

Auto Italia Holdings makes money primarily through the import, distribution, and sale of luxury automobiles. The company generates revenue by acting as an exclusive distributor for high-end car brands, facilitating the sale of these vehicles to affluent customers in Hong Kong and Macau. Additionally, the company earns income from after-sales services, including maintenance and repairs, which are crucial for luxury car owners. Another revenue stream comes from financial investments and services, which may include investments in securities, property, or other financial products. Key partnerships with luxury car manufacturers and a focus on customer service excellence contribute significantly to its earnings.

Auto Italia Holdings Financial Statement Overview

Summary

Auto Italia Holdings faces challenges with inconsistent revenue growth and significant leverage. Despite a strong gross profit margin due to unique accounting, the negative net profit margin and high debt-to-equity ratio are concerning. Improved cash flow management is a positive, but overall financial health remains under stress.

Income Statement

The company has shown inconsistent revenue growth with a recent decline in total revenue from the previous year. The gross profit margin remains strong at 100% due to a unique accounting setup, but profitability is a concern with a negative net profit margin of -326% in the latest year. Operating profits are minimal, and EBITDA is negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 0.93, which indicates significant leverage. The equity ratio stands at 26.7%, showing a stable capital structure, but the return on equity is negative due to consistent net losses, which reflects poorly on shareholder returns.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate, albeit from a low base. Operating cash flow has improved, and the operating cash flow to net income ratio is positive, suggesting better cash management. However, free cash flow remains low compared to net income, indicating limited cash reserves for expansion or debt repayment.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.32M	47.50M	28.14M	24.69M	5.04M
Gross Profit	20.50M	29.04M	22.85M	20.24M	-78.43M
EBITDA	-60.00M	-174.78M	-72.79M	13.56M	-13.81M
Net Income	-102.14M	-179.28M	-63.41M	-7.14M	-89.05M
Balance Sheet
Total Assets	797.21M	628.54M	782.26M	902.31M	534.73M
Cash, Cash Equivalents and Short-Term Investments	34.08M	36.68M	58.78M	39.27M	72.51M
Total Debt	487.27M	397.18M	372.75M	388.23M	89.63M
Total Liabilities	529.70M	417.26M	391.34M	407.26M	131.69M
Stockholders Equity	212.59M	164.63M	322.06M	391.66M	403.03M
Cash Flow
Free Cash Flow	226.00K	-5.19M	-9.48M	45.57M	113.69M
Operating Cash Flow	8.24M	-4.42M	-9.37M	45.94M	119.76M
Investing Cash Flow	-2.44M	-6.88M	-1.60M	6.55M	-246.77M
Financing Cash Flow	-9.25M	-14.34M	18.23M	-85.93M	50.71M

Auto Italia Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0720, the sentiment is Positive. The current price of 0.19 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.15, and above the 200-day MA of 0.18, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 72.79 is Negative, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0720.

Auto Italia Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1502	71 Outperform	885.19M	7.44	8.94%	7.23%	16.65%	-8.74%
6093	62 Neutral	442.40M	22.77	7.85%	―	3.93%	-71.60%
2215	59 Neutral	454.35M	13.31	5.65%	―	-7.17%	-22.01%
0798	51 Neutral	1.74B	20.34	1.20%	10.42%	-19.65%	-81.68%
0237	50 Neutral	826.20M	-3.11	―	3.92%	0.15%	-116.51%
0720	48 Neutral	HK$1.14B	―	-10.42%	―	-6.86%	87.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Auto Italia Holdings Corporate Events

Auto Italia Holdings Announces Nomination Committee Changes

Auto Italia Holdings Limited, a company incorporated in Bermuda, has announced a change in the composition of its Nomination Committee. Ms. Hang Qingli, a non-executive director, will join the committee effective July 1, 2025, expanding the committee to five members. This change reflects the company’s ongoing efforts to strengthen its governance structure and enhance decision-making processes.

Auto Italia Holdings Announces New Board Structure

Auto Italia Holdings Limited has announced changes to its board of directors, effective from July 1, 2025. The new board structure includes Mr. Chong Tin Lung Benny as the Executive Chairman and CEO, along with other executive, non-executive, and independent non-executive directors. These changes are expected to enhance the company’s governance and strategic direction, potentially impacting its market positioning and stakeholder relations positively.

Auto Italia Holdings Secures Four Utility Model Patents to Boost NEV Business

Auto Italia Holdings Limited has announced the acquisition of four utility model patents granted by the China National Intellectual Property Administration. These patents, particularly the Truck Partition Structure, are expected to enhance the company’s NEV business by improving vehicle safety, adaptability, and market competitiveness. The innovative designs align with smart and green logistics trends and may influence industry standards, potentially expanding the company’s market share and strengthening its intellectual property portfolio.

Auto Italia Holdings AGM Resolutions Passed Unanimously

Auto Italia Holdings Limited announced the results of its Annual General Meeting held on May 16, 2025. All proposed resolutions were passed unanimously, including the re-election of directors, the re-appointment of Deloitte Touche Tohmatsu as independent auditor, and the granting of mandates to the directors for share allotment and buyback. This unanimous approval reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility.