Geotech Holdings Ltd. (1707) AI Stock Analysis

• Market Cap: HK$181.44M
• Dividend Yield: N/A
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -40.18%
• EPS Growth: 3.09%
• Country: HK
• Employees: 60
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 1,680,000,000
• 10 Day Avg. Volume: 205,600
• 30 Day Avg. Volume: 1,979,200
• PEG Ratio: -0.89
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.16
• 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: 51 Neutral
• Price Target: ―

Geotech Holdings Ltd.'s stock score reflects its challenging financial position characterized by declining revenues and consistent losses, despite a solid equity base. Technical analysis indicates short-term positive momentum, albeit with caution due to overbought signals. Valuation remains weak with a negative P/E ratio, adding to the overall risk profile.

Geotech Holdings Ltd. Business Overview & Revenue Model

Company Description

Geotech Holdings Ltd. (1707) is a construction company based in Hong Kong, specializing in providing geotechnical engineering services. The company's core services include site investigation, slope works, tunneling, and the construction of foundations and retaining walls. Geotech Holdings is known for its expertise in tackling complex geological conditions, offering comprehensive solutions that ensure stability and safety in infrastructure projects.

How the Company Makes Money

Geotech Holdings Ltd. generates revenue primarily through contracts for geotechnical engineering services. The company earns money by securing both private and public sector projects, often involving large-scale infrastructure developments. Key revenue streams include fees for site investigations, design and construction of foundations, and slope stabilization works. The company may also engage in subcontracting work, where it partners with larger construction firms to handle specialized geotechnical components of broader projects. Revenue is influenced by the availability of construction projects in Hong Kong and the surrounding regions, as well as the company's ability to maintain competitive pricing and secure contracts.

Geotech Holdings Ltd. Financial Statement Overview

Summary

Geotech Holdings Ltd. faces significant financial challenges with declining revenues and persistent unprofitability. While the balance sheet shows a strong equity position and low debt levels, operational inefficiencies lead to volatile and negative cash flows. The financial stability is underserved by poor asset management and revenue generation.

Income Statement

Geotech Holdings Ltd. has experienced a declining revenue trend over the years, with significant revenue drops from $355M in 2019 to $81M in 2024. The company also has persistent negative net income, indicating ongoing unprofitability, with a net loss margin worsening over time. Despite achieving a gross profit margin of around 6.7% in 2024, operating and net profit margins remain negative, reflecting inefficient cost management and operational challenges.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio of approximately 0.004, indicating minimal reliance on debt financing. The equity ratio remains high at around 85.7%, showcasing strong financial stability. However, the declining total assets and equity over the years suggest potential issues in asset management and capital preservation.

Cash Flow

Operating cash flow is highly volatile, with significant negative cash flows noted in recent years, reflecting operational inefficiencies. The free cash flow has shown periods of both positive and negative values, highlighting inconsistency in cash generation ability. The absence of positive free cash flow growth further indicates financial strain.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
80.50M	134.57M	281.51M	384.40M	331.65M
	Gross Profit
5.39M	3.58M	3.77M	2.64M	5.21M
	EBIT
-19.10M	-21.19M	-13.53M	-19.75M	-12.85M
	EBITDA
-18.65M	-15.86M	-31.73M	-11.81M	-24.77M
	Net Income Common Stockholders
-15.81M	-16.37M	-31.69M	-14.28M	-28.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
121.41M	137.24M	167.21M	186.27M	156.34M
	Total Assets
188.33M	211.47M	226.46M	300.02M	299.58M
	Total Debt
675.00K	1.38M	516.00K	1.44M	2.99M
	Net Debt
-120.73M	-135.85M	-166.69M	-184.83M	-153.34M
	Total Liabilities
26.86M	34.54M	32.75M	74.33M	59.61M
	Stockholders Equity
161.47M	176.93M	193.71M	225.69M	239.98M
Cash Flow		Free Cash Flow
0.00	-31.88M	-19.19M	43.27M	15.76M
	Operating Cash Flow
-15.63M	-27.23M	-19.18M	43.58M	16.26M
	Investing Cash Flow
0.00	-2.16M	1.00M	-10.81M	1.12M
	Financing Cash Flow
0.00	-577.00K	-891.00K	-2.83M	-4.35M

Geotech Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1707, the sentiment is Positive. The current price of 0.11 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.16 is Neutral, neither overbought nor oversold. The STOCH value of 11.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1707.

Geotech Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6169	75 Outperform	HK$2.20B	2.76	7.75%	―	1.32%	-20.13%
1908	74 Outperform	HK$29.25B	5.07	20.50%	8.28%	5.92%	-12.18%
3316	71 Outperform	HK$6.94B	11.89	36.29%	7.20%	25.93%	8.97%
1666	69 Neutral	$6.53B	11.55	7.39%	3.86%	4.70%	-13.82%
Sector *	66 Neutral	$4.49B	12.28	5.32%	248.53%	4.08%	-12.00%
1707	51 Neutral	HK$181.44M	―	-9.34%	―	-40.18%	3.09%
1726	46 Neutral	HK$1.44B	―	-62.57%	―	37.20%	5.04%

Geotech Holdings Ltd. Corporate Events

Geotech Holdings Ltd. Announces Annual General Meeting and Key Resolutions

Geotech Holdings Ltd. has announced its upcoming annual general meeting scheduled for June 25, 2025, where shareholders will discuss and vote on key matters including the adoption of financial statements, re-election of directors, and re-appointment of auditors. The meeting will also consider resolutions to authorize the directors to issue additional shares, which could impact the company’s capital structure and shareholder value, reflecting Geotech’s strategic planning and governance practices.

Geotech Holdings Announces Executive Board Changes

Geotech Holdings Ltd. announced a change in its executive board, with Mr. Qiu resigning as an executive director to focus on personal and other business commitments, and Mr. Wei being appointed as the new executive director effective April 15, 2025. Mr. Wei brings over 20 years of experience in the luxury jewelry and watches sector and is expected to drive the strategic development of the company’s luxury products business, potentially enhancing its market position and offering new opportunities for stakeholders.

Geotech Holdings Ltd. Announces Board and Committee Structure

Geotech Holdings Ltd. has announced the composition of its board of directors and the roles within its various committees. The announcement outlines the leadership structure, which includes Chen Zhi as Chairman and Wei Weizhan as an executive director, along with independent non-executive directors. This update provides clarity on the governance and oversight roles within the company, potentially impacting its strategic direction and stakeholder confidence.

Geotech Holdings Ltd. Reports 2024 Financial Results

Geotech Holdings Ltd. reported its annual financial results for the year ending December 31, 2024. The company experienced a significant decline in revenue, which dropped to approximately HK$80.5 million from HK$134.6 million in 2023. Despite this, the gross profit increased to HK$5.4 million from HK$3.6 million the previous year. The loss attributable to equity holders slightly decreased to HK$15.8 million from HK$16.4 million in 2023. The financial results indicate a challenging year for Geotech Holdings, with reduced revenue but improved gross profit margins, suggesting potential operational efficiencies or cost management improvements.

Geotech Holdings Ltd. Schedules Board Meeting to Review Annual Results

Geotech Holdings Ltd. has announced that its Board of Directors will meet on March 24, 2025, to review and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the declaration of a final dividend, which could impact shareholder returns and reflect the company’s financial health and strategic direction.