CROSSTEC Group Holdings Ltd. (3893) AI Stock Analysis

CROSSTEC Group Holdings Ltd.

(HKEX:3893)

Select Model

Rating:47Neutral

Price Target:HKD 1.00▼(-25.93% Downside)

Action:reiterated

Date:07/07/26

The overall score is held down primarily by very weak fundamentals: sharply declining revenue, structurally negative margins, persistent net losses, negative shareholders’ equity, and chronically negative operating and free cash flow create significant going‑concern and refinancing risk with limited margin for error. Valuation does not offset these weaknesses, as the negative P/E and lack of dividend suggest investors are paying for a loss‑making business with no income support. Technicals offer only a partial positive counterweight, with the price trading above key moving averages and momentum indicators showing firm but not overextended strength, which helps keep the score from the absolute bottom of the range but does not overcome the severe financial strain.

Positive Factors

ICT enterprise services exposureOperating in enterprise IT services ties the company to durable structural demand for digital transformation and systems integration. Enterprise IT spending tends to be recurring and contract-driven, giving a pathway to stable revenue as the company stabilizes operations and wins clients.

Negative Factors

Severe revenue contractionA ~40% decline in revenue materially erodes scale and undermines core economics. Declining top line reduces ability to cover fixed costs, limits reinvestment in products and sales, and heightens risk of client losses; recovery of revenue will likely be gradual and resource-intensive.

CROSSTEC Group Holdings Ltd. (3893) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 1.41B
Dividend Yield: ―
Average Volume (3M): 675.55K
Price to Earnings (P/E): -2.0
Beta (1Y): 0.93
Revenue Growth: 17.87%
EPS Growth: -306.00%
Country: Hong Kong
Employees: 52
Sector: Industrials
Sector Strength: 63
Industry: Consulting Services

CROSSTEC Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Crosstec Group Holdings Limited, an investment holding company, provides various interior design solutions in Japan, Monaco, Hong Kong, the People’s Republic of China, Thailand, the United States, the United Kingdom, Vietnam, and internationally. The...

How the Company Makes Money

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CROSSTEC Group Holdings Ltd. Financial Statement Overview

Summary

The company’s financial performance is extremely weak, with revenue down about 40% year over year and a multi‑year negative growth trend, combined with deeply negative net, EBIT, and EBITDA margins that show the core business is far from breakeven. Gross margin has compressed from roughly 31–32% historically to about 17%, and shareholders’ equity is persistently negative with high leverage, pointing to elevated solvency and recapitalization risk. Operating and free cash flow are structurally negative across all reported years, with losses largely matched by cash outflows, indicating chronic cash burn and limited visibility on self‑funded improvement. These factors collectively warrant a score near the bottom of the range, with only limited support from the existence of a tangible asset base and some gross profit.

Income Statement

8Very Negative

Balance Sheet

5Very Negative

Cash Flow

10Very Negative

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	65.31M	65.31M	55.41M	73.81M	48.00M	40.01M
Gross Profit	11.23M	11.23M	9.50M	14.76M	-3.48M	11.65M
EBITDA	-15.00M	-15.00M	-14.78M	-3.37M	-48.23M	-16.76M
Net Income	-145.23M	-145.23M	-28.21M	-13.04M	-53.56M	-21.89M
Balance Sheet
Total Assets	93.85M	93.85M	67.19M	63.61M	59.47M	48.47M
Cash, Cash Equivalents and Short-Term Investments	12.44M	12.44M	9.72M	16.77M	31.00M	23.63M
Total Debt	63.68M	63.68M	88.39M	84.75M	77.79M	35.15M
Total Liabilities	105.72M	105.72M	132.87M	108.04M	113.57M	60.90M
Stockholders Equity	-13.72M	-13.72M	-65.68M	-44.43M	-54.10M	-12.42M
Cash Flow
Free Cash Flow	-20.14M	0	-13.43M	-40.36M	-37.27M	-12.68M
Operating Cash Flow	-20.05M	0	-13.43M	-39.77M	-35.36M	-12.62M
Investing Cash Flow	-92.00K	0	19.00K	-4.34M	227.00K	4.76M
Financing Cash Flow	21.15M	0	5.41M	31.20M	44.66M	16.56M

CROSSTEC Group Holdings Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1.35

Price Trends

50DMA1.36Negative

100DMA1.27Positive

200DMA1.17Positive

Market Momentum

MACD-0.00Positive

RSI51.41Neutral

STOCH26.95Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3893, the sentiment is Positive. The current price of 1.35 is above the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.36, and above the 200-day MA of 1.17, indicating a neutral trend. The MACD of -0.00 indicates Positive momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 26.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3893.

CROSSTEC Group Holdings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

HK:3893 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:1650	76Outperform	HKD 340.00M	30.76	6.98%	5.46%	12.20%	7.84%
HK:1568	71Outperform	HKD 1.32B	4.61	7.71%	8.26%	1.92%	-2.09%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HK:8501	55Neutral	HKD 138.56M	-6.87	-17.37%	―	-17.69%	-241.71%
HK:0393	54Neutral	HKD 2.00B	24.05	2.75%	7.37%	11.67%	20.48%
HK:8040	50Neutral	HKD 163.20M	-16.97	-27.66%	―	27.86%	75.80%
HK:3893	47Neutral	HKD 1.41B	-1.97	436.38%	―	17.87%	-306.00%

* Industrials Sector Average

Performance Comparison

HK:3893 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:3893	CROSSTEC Group Holdings Ltd.	1.33	0.45	51.70%
HK:1568	Sundart Holdings Ltd.	0.60	-0.07	-10.64%
HK:1650	Hygieia Group Limited	0.17	0.09	104.82%
HK:0393	Glorious Sun Enterprises Limited	1.33	0.08	5.98%
HK:8040	Coolpoint Innonism Holding Limited	0.48	0.18	60.00%
HK:8501	Sanbase Corporation Limited	0.70	0.20	41.41%

CROSSTEC Group Holdings Ltd. Corporate Events

CROSSTEC boosts share capital as MKI converts HK$8.8 million in bonds

May 28, 2026

CROSSTEC Group Holdings has issued 80,000,000 new shares following the partial conversion of its convertible bonds by major investor MKI, at a conversion price of HK$0.11 per share and a principal amount of HK$8.8 million. The company’s issued...

CROSSTEC boosts share capital as MKI converts HK$5.5 million in bonds

May 11, 2026

CROSSTEC Group Holdings Ltd. has announced the conversion of part of a tranche of convertible bonds held by MKI, resulting in the issue of 50,000,000 new shares at a conversion price of HK$0.11 per share. Following completion of the 11 May 2026 conve...

CROSSTEC Sees HK$12.1 Million Bond Conversion and Significant Share Capital Expansion

Apr 27, 2026

CROSSTEC Group Holdings Ltd. has announced the partial conversion of its outstanding convertible bonds by holder HIL, involving principal of HK$12.1 million at a conversion price of HK$0.11 per share, resulting in the issue of 110 million new shares...

CROSSTEC Expands Share Capital as MKI Converts HK$6.6 Million in Convertible Bonds

Apr 14, 2026

CROSSTEC Group Holdings reported the conversion of a portion of its outstanding convertible bonds held by MKI into equity. MKI converted HK$6.6 million in principal at a conversion price of HK$0.11 per share, resulting in the issuance of 60 million n...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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: Jul 07, 2026

CROSSTEC Group Holdings Ltd. AI Stock Analysis