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Automated Systems Holdings Limited (0771) AI Stock Analysis
Automated Systems Holdings Limited
(HKEX:0771)
The overall score is driven primarily by solid financial strength and attractive valuation, offset by recent cash flow weakness and bearish technicals. The most significant positive factor is the company’s robust balance sheet, with very low leverage and growing equity providing resilience despite modest profitability and margin compression. Valuation is another key support, with a low P/E and a roughly 4.4% dividend yield offering a compelling combination of value and income if earnings and distributions can be maintained. On the risk side, negative operating and free cash flow in 2025 and falling margins signal operational pressure and reduce confidence in the durability of current returns. Technically, the stock is trading below all major moving averages with negative momentum indicators, reflecting a prevailing downtrend rather than a strong recovery phase. Taken together, these elements justify an overall score in the upper-mid range, recognizing underlying financial stability and value while clearly flagging cash conversion and share-price trend risks.
Automated Systems Holdings Limited (0771) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 604.39M
- Dividend Yield
- 4.17%
- Average Volume (3M)
- 63.53K
- Price to Earnings (P/E)
- -2.4
- Beta (1Y)
- 0.68
- Revenue Growth
- 4.44%
- EPS Growth
- -266.43%
- Country
- Hong Kong
- Employees
- 1,610
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Information Technology Services
Automated Systems Holdings Limited Business Overview & Revenue Model
Company Description
Automated Systems Holdings Limited (ASH) functions as an investment holding company, dedicated to providing a full spectrum of information technology (IT) services for businesses. Its operations are organized into two primary segments: IT Products an...
How the Company Makes Money
The company makes money mainly by delivering and supporting enterprise IT projects and ongoing IT operations for customers. Key revenue streams typically include: (1) Systems integration and project-based delivery: fees earned from designing, impleme...
Automated Systems Holdings Limited Financial Statement Overview
Summary
Overall financial performance is moderately strong, supported by steady revenue growth and an exceptionally low debt balance sheet, but meaningfully restrained by weak 2025 cash generation. Income Statement strength (score 72.0) reflects consistent top-line expansion from HK$2.05B in 2021 to HK$2.61B in 2025 and continued profitability, though net margin fell to 3.2% and gross margin to 9.8%, signaling pressure on earnings quality. The Balance Sheet is a clear highlight (score 88.0), with debt-to-equity improving to just 1.1% and equity rising to HK$2.35B, giving the company high financial stability despite modest ROE. Cash Flow is a key drag (score 45.0): operating cash flow turned negative in 2025 and free cash flow followed, introducing volatility and potential working capital stress. Taken together, the mix of strong solvency but deteriorating margins and cash conversion justifies a cautious but above-average financial performance score.
Income Statement
72PositiveBalance Sheet
88Very PositiveCash Flow
45Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.59B | 2.61B | 2.37B | 2.36B | 2.22B | 2.05B |
| Gross Profit | 245.01M | 255.09M | 245.99M | 245.96M | 273.29M | 231.19M |
| EBITDA | 96.83M | 102.28M | 191.82M | 177.00M | 209.80M | 87.81M |
| Net Income | -256.04M | 82.39M | 149.32M | 131.32M | 101.58M | 4.13M |
Balance Sheet | ||||||
| Total Assets | 2.92B | 3.32B | 3.28B | 3.11B | 3.03B | 2.89B |
| Cash, Cash Equivalents and Short-Term Investments | 961.75M | 634.10M | 720.00M | 539.62M | 547.63M | 603.95M |
| Total Debt | 10.48M | 26.46M | 8.14M | 22.42M | 66.08M | 113.23M |
| Total Liabilities | 965.11M | 974.90M | 999.51M | 933.58M | 972.46M | 896.35M |
| Stockholders Equity | 1.95B | 2.35B | 2.28B | 2.18B | 2.06B | 1.99B |
Cash Flow | ||||||
| Free Cash Flow | 148.30M | -62.66M | 104.83M | 59.24M | 34.19M | 11.68M |
| Operating Cash Flow | 163.95M | -50.63M | 114.31M | 69.27M | 88.71M | 21.02M |
| Investing Cash Flow | -266.42M | -19.48M | -22.94M | -284.99M | -59.57M | 488.69M |
| Financing Cash Flow | -115.75M | -11.88M | -43.72M | -80.04M | -79.82M | -277.21M |
Automated Systems Holdings Limited Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0771, the sentiment is Neutral. The current price of 0.72 is above the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.72, and below the 200-day MA of 0.74, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0771.
Automated Systems Holdings Limited Peers Comparison
Overall Rating
- HK:077168.55Neutral
HK:107567Neutral
HK:152259.75Neutral
HK:190057.9Neutral
HK:035447Neutral
HK:086143Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:0771 | 69Neutral | HKD 604.39M | -2.38 | -11.90% | 4.17% | 4.44% | -266.43% |
| HK:1075 | 67Neutral | HKD 504.27M | 5.46 | 6.36% | 4.56% | 8.36% | 286.36% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| HK:1522 | 60Neutral | HKD 417.33M | 7.96 | 1.79% | 10.05% | -6.58% | -71.22% |
| HK:1900 | 58Neutral | HKD 240.83M | -0.77 | -14.17% | ― | -7.04% | -163.40% |
| HK:0354 | 47Neutral | HKD 8.72B | 19.19 | 2.97% | 1.44% | 3.18% | -31.38% |
| HK:0861 | 43Neutral | HKD 3.25B | -40.63 | -0.96% | 1.85% | 16.16% | 83.77% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:0771 | Automated Systems Holdings Limited | 0.72 | -0.05 | -6.98% | |
| HK:0354 | Chinasoft International | 3.23 | -2.63 | -44.94% | |
| HK:0861 | Digital China Holdings | 1.95 | -1.02 | -34.39% | |
| HK:1075 | Capinfo Co., Ltd. Class H | 1.74 | -1.40 | -44.60% | |
| HK:1522 | BII Railway Transportation Technology Holdings Co., Ltd. | 0.20 | -0.13 | -40.24% | |
| HK:1900 | China ITS Holdings Co., Ltd. | 0.14 | -0.20 | -58.82% |
Automated Systems Holdings Limited Corporate Events
Automated Systems Swings to Interim Loss on Associate Impairment Despite Stable Revenue
Automated Systems Holdings Limited reported interim revenue of HK$1.32 billion for the six months ended 30 June 2026, broadly flat year-on-year, but swung to a net loss of HK$296.9 million from a profit of HK$41.5 million, driven largely by a HK$606....
Automated Systems Sets August Board Meeting to Approve Interim Results
Automated Systems Holdings Limited has scheduled a board meeting for 26 August 2026 to review and approve the unaudited interim results for the six months ended 30 June 2026. The board will also consider whether to recommend the payment of an interim...
Automated Systems Warns of Major Non-Cash Loss on Grid Dynamics Stake
Automated Systems Holdings Limited, a Bermuda-incorporated group listed in Hong Kong, holds an associate stake in Grid Dynamics Holdings, Inc. The company reports that despite expected accounting losses linked to this investment, its cash position re...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 06, 2026