Edensoft Holdings Limited (1147) AI Stock Analysis

• Market Cap: HK$274.02M
• Dividend Yield: 1.2%
• Average Volume (3M): 8.71M
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.60
• Revenue Growth: 28.18%
• EPS Growth: 47.50%
• Country: HK
• Employees: 231
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): <0.01
• Shares Outstanding: 2,044,947,400
• 10 Day Avg. Volume: 9,191,000
• 30 Day Avg. Volume: 8,713,666
• PEG Ratio: 0.57
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 1.45
• 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: 53 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Edensoft Holdings Limited's stock score is primarily influenced by its financial performance, which shows strong revenue growth but is offset by cash flow challenges. Technical analysis indicates bearish momentum, and valuation metrics suggest the stock may be overvalued. These factors contribute to a moderate overall stock score.

Edensoft Holdings Limited Business Overview & Revenue Model

Company Description

Edensoft Holdings Limited (1147) is a dynamic company primarily focused on providing innovative software solutions and technology services. Operating in the information technology sector, the company specializes in software development, IT consultancy, and digital transformation services tailored to meet the needs of various industries. Edensoft Holdings aims to enhance operational efficiency and drive growth for its clients through advanced technological solutions and robust software applications.

How the Company Makes Money

Edensoft Holdings generates revenue through multiple streams, including software licensing, subscription services, and consulting fees. The company primarily earns income by selling proprietary software solutions to businesses, which are often customized to meet specific client needs. Additionally, Edensoft offers subscription-based services that provide ongoing support and updates for its software products. The consulting arm of the business contributes to revenue by providing expert advice and technology implementation services, helping organizations transition to digital platforms. Strategic partnerships with other tech firms and service providers also play a crucial role in enhancing its offerings and expanding market reach, thereby contributing to the company's overall earnings.

Edensoft Holdings Limited Financial Statement Overview

Summary

Edensoft Holdings Limited shows solid revenue growth and a transition to positive EBIT, signaling upward momentum in profitability. However, low EBIT and EBITDA margins and negative cash flows are areas of concern that need addressing. A strong balance sheet with low leverage contributes to financial stability.

Income Statement

Edensoft Holdings Limited showed solid revenue growth of 38.88% in the latest year, with a consistent improvement in net profit margin from previous losses. The gross profit margin stood at a healthy 9.91%, and the company successfully turned a negative EBIT in 2022 into a positive EBIT margin of 1.02% in 2024. However, the EBIT and EBITDA margins remain relatively low, indicating room for operational efficiency improvements.

Balance Sheet

The company maintains a strong equity base, with a debt-to-equity ratio of 0.21, indicating low leverage and financial stability. The equity ratio of 45.88% suggests a balanced capital structure. However, the return on equity has been modest at approximately 4.00%, signaling potential for enhanced shareholder returns.

Cash Flow

Cash flow from operations was negative in recent years, reflecting challenges in cash generation despite positive net income. The absence of free cash flow growth and negative cash flow metrics highlight concerns regarding cash management and liquidity. The company needs to focus on improving operational cash flows relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	856.83M	1.13B	815.33M	680.32M	800.51M	690.72M
Gross Profit	77.43M	112.29M	99.14M	75.56M	102.01M	71.30M
EBITDA	8.50M	11.76M	11.70M	-34.66M	25.80M	23.91M
Net Income	5.72M	8.02M	6.14M	-27.77M	19.43M	16.02M
Balance Sheet
Total Assets	341.06M	437.65M	435.00M	323.26M	376.19M	367.89M
Cash, Cash Equivalents and Short-Term Investments	71.30M	94.59M	20.78M	60.31M	140.84M	105.31M
Total Debt	2.34M	41.29M	55.31M	25.66M	6.30M	7.33M
Total Liabilities	133.49M	236.85M	243.42M	138.13M	167.78M	177.00M
Stockholders Equity	207.58M	200.79M	191.63M	185.13M	208.40M	190.90M
Cash Flow
Free Cash Flow	-56.48M	94.09M	-77.70M	-93.54M	14.35M	35.22M
Operating Cash Flow	-56.40M	94.13M	-77.68M	-93.15M	14.52M	35.65M
Investing Cash Flow	341.00K	319.00K	6.66M	12.15M	5.03M	-24.32M
Financing Cash Flow	-41.46M	-14.64M	22.36M	13.39M	-2.83M	76.24M

Edensoft Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1147, the sentiment is Negative. The current price of 0.15 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.16, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 23.46 is Positive, neither overbought nor oversold. The STOCH value of 1.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1147.

Edensoft Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
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%
8050	53 Neutral	HK$596.75M	―	-253.21%	―	144.88%	-302.04%
1147	53 Neutral	HK$274.02M	22.71	5.44%	1.20%	28.18%	47.50%
8611	52 Neutral	HK$299.52M	―	-57.46%	―	29.99%	-113.64%
8606	51 Neutral	HK$99.76M	―	-1.95%	―	5.01%	82.54%
8178	37 Underperform	HK$46.84M	―	-37.29%	―	―	―

Edensoft Holdings Limited Corporate Events

Edensoft Holdings Announces Board Meeting to Review Interim Results

Edensoft Holdings Limited has announced a board meeting scheduled for August 22, 2025, to discuss and approve the company’s unaudited interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it could impact the company’s financial strategy and stakeholder interests, potentially influencing its market positioning and investor confidence.

Edensoft Holdings Unanimously Approves AGM Resolutions

Edensoft Holdings Limited held its Annual General Meeting on May 23, 2025, where all proposed resolutions were approved unanimously. The resolutions included the adoption of financial statements, approval of a final dividend, re-appointment of auditors, re-election of directors, and authorization for the board to fix directors’ remuneration, reflecting strong shareholder support and stable governance.