Risecomm Group Holdings Limited (1679) AI Stock Analysis

• Market Cap: HK$39.64M
• Dividend Yield: N/A
• Average Volume (3M): 312.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: 27.19%
• EPS Growth: 54.51%
• Country: HK
• Employees: 67
• Sector: Technology
• Sector Strength: 81
• Industry: Semiconductors
• EPS (TTM): -0.31
• Shares Outstanding: 255,728,870
• 10 Day Avg. Volume: 236,700
• 30 Day Avg. Volume: 312,258
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.37
• 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

• Rating: 28 Underperform
• Price Target: ―

The overall stock score for HK:1679 is significantly low, reflecting substantial financial distress and weak technical indicators. The company's declining revenue, persistent net losses, and negative equity are major concerns. Furthermore, the stock's downward trend and lack of dividend yield make it unattractive to both growth and income investors. Immediate strategic interventions are necessary to address these challenges and improve the company's financial position.

Risecomm Group Holdings Limited Business Overview & Revenue Model

Company Description

Risecomm Group Holdings Limited, an investment holding company, designs and develops application-specific integrated circuits (ASICs) in the People's Republic of China. It operates through two segments, Automated Meter Reading (AMR) and Other Business; and Smart Manufacturing & Industrial Automation System (SMIA) Business. The AMR Business segment designs, develops, and sells power-line communication products; energy saving products; and environmental protection products and solutions that are used in streetlight control, building energy management, photovoltaic power management, etc. This segment also provides maintenance services in connection with the deployment and upgrading of AMR systems by power grid companies. The SMIA Business segment sells software license, production safety products, and construction contracts, as well as provides software post-contract customer support services, including smart manufacturing and industrial automation system. Risecomm Group Holdings Limited was founded in 2006 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

Risecomm Group Holdings Limited generates revenue through the sale of its PLC-based products and solutions. The company's key revenue streams include the development and sale of smart metering systems and AMI solutions to utility companies and other energy service providers. These products enable efficient energy management and data collection, which are critical for modernizing grid infrastructure and enhancing energy efficiency. Additionally, Risecomm may engage in partnerships with utility companies and technology firms to broaden its market reach and technology capabilities, contributing to its earnings. The company's focus on innovation and expanding its product offerings also plays a significant role in its revenue generation strategy.

Risecomm Group Holdings Limited Financial Statement Overview

Summary

Risecomm Group Holdings Limited is facing significant financial challenges, characterized by declining revenues, persistent losses, and negative equity. High leverage and negative cash flows exacerbate the company's financial instability. The semiconductor industry typically favors innovation and growth, but this company struggles with both profitability and liquidity. Immediate strategic changes are necessary to address these financial concerns and improve operational efficiency.

Income Statement

The company has experienced declining revenue over the past few years, with a significant drop from $248 million in 2021 to $122 million in 2024. Gross profit margin has been low and volatile, standing at around 30% in 2024. Net profit margins are deeply negative due to persistent net losses. Despite a reduction in EBIT losses compared to prior years, profitability remains a major concern.

Balance Sheet

The balance sheet shows high leverage, with a debt-to-equity ratio that is negative due to negative stockholders' equity in 2024. This indicates financial instability and potential solvency issues. The equity ratio is also negative, reflecting a dire financial position. The steep decline in stockholders' equity over recent years is alarming.

Cash Flow

Cash flow from operations is non-existent in 2024, following negative operating cash flow in previous years. Free cash flow has been negative or zero, indicating that the company struggles to generate cash. This poses risks to liquidity and financial flexibility. The inability to generate positive free cash flow suggests potential difficulties in funding operations without external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
122.30M	94.87M	149.85M	248.15M	212.73M
	Gross Profit
37.09M	15.57M	39.08M	43.01M	33.53M
	EBIT
-61.15M	-80.96M	-52.76M	-57.42M	-79.68M
	EBITDA
-47.50M	-89.33M	-41.42M	-20.66M	-53.22M
	Net Income Common Stockholders
-73.54M	-138.51M	-119.09M	-55.25M	-126.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.18M	35.92M	86.65M	91.70M	121.67M
	Total Assets
236.57M	250.49M	341.34M	471.55M	518.35M
	Total Debt
247.14M	193.98M	132.80M	133.52M	133.80M
	Net Debt
231.96M	158.06M	46.15M	41.81M	12.13M
	Total Liabilities
347.92M	285.02M	266.96M	277.75M	404.01M
	Stockholders Equity
-105.70M	-28.89M	74.89M	193.80M	114.34M
Cash Flow		Free Cash Flow
0.00	-68.22M	4.28M	-28.20M	-12.44M
	Operating Cash Flow
0.00	-62.84M	5.18M	-26.63M	-11.46M
	Investing Cash Flow
0.00	-64.78M	-4.97M	-116.19M	1.65M
	Financing Cash Flow
0.00	77.27M	-5.85M	112.72M	-12.25M

Risecomm Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1679, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.13, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 84.24 is Negative, neither overbought nor oversold. The STOCH value of 100.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1679.

Risecomm Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$11.50B	10.46	-6.94%	2.94%	7.57%	-9.03%
1679	28 Underperform	HK$39.64M	―		―	27.19%	54.51%
JLMKF		$3.99M	―	-132.74%	―	―	―
SNPTF		$8.83B	22.00	11.45%	0.35%	―	―
TCLHF		$3.29B	14.55	10.36%	1.51%	―	―
TOCOF		$234.58M	―		―	―	―
JTI		€106.45M	―	-10.39%	―	―	―

Risecomm Group Holdings Limited Corporate Events

Risecomm Group Holdings Announces 2025 Annual General Meeting

Risecomm Group Holdings Limited has announced its upcoming annual general meeting scheduled for June 20, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, re-appointment of auditors, and a resolution to authorize the repurchase of shares. This meeting is significant for stakeholders as it addresses critical governance and operational decisions that could impact the company’s strategic direction and shareholder value.

Risecomm Group Reports Revenue Growth Amid Mixed Segment Performance

Risecomm Group Holdings Limited reported a 28.9% increase in revenue for the year ending December 31, 2024, reaching approximately RMB122.3 million. The company saw significant growth in its AMR segment, which increased by 58%, while its SMIA segment experienced a 43% decline. The net loss attributable to equity shareholders decreased to approximately RMB73.5 million from RMB138.5 million in the previous year, indicating an improvement in financial performance despite the challenges faced in some business segments.

Risecomm Group Holdings Issues Profit Warning with Reduced Losses for 2024

Risecomm Group Holdings Limited has issued a profit warning, indicating an expected consolidated net loss of approximately RMB56 million for the year ended December 31, 2024, a significant improvement from the RMB146 million loss recorded in 2023. This reduction in losses is attributed to a decrease in impairment losses, suggesting a stabilization in operations. Stakeholders are advised to exercise caution and await the final audited results, which are expected by the end of March 2025.

Risecomm Group Holdings Schedules Board Meeting for Annual Results

Risecomm Group Holdings Limited has announced a board meeting scheduled for March 27, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the publication of these results and the potential payment of a final dividend, impacting the company’s financial disclosures and shareholder returns.