Sing Lee Software (Group) Ltd. (8076) AI Stock Analysis

• Market Cap: HK$39.52M
• Dividend Yield: N/A
• Average Volume (3M): 654.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -28.13%
• EPS Growth: -300.00%
• Country: HK
• Employees: 418
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 1,317,240,100
• 10 Day Avg. Volume: 506,000
• 30 Day Avg. Volume: 654,000
• PEG Ratio: -0.06
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -3.86
• 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: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by the company's poor financial performance, characterized by declining revenues, negative profitability, and high leverage. Technical analysis provides some neutral signals, but the valuation metrics highlight significant concerns due to the negative P/E ratio and lack of dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Sing Lee Software (Group) Ltd. Business Overview & Revenue Model

Company Description

Sing Lee Software (Group) Ltd. (8076) is a company engaged in the development and provision of software solutions. It operates primarily in the sectors of information technology and software services, offering a range of products and services designed to meet the needs of various industries. The company's core offerings include software development, system integration, and IT consultancy services.

How the Company Makes Money

Sing Lee Software (Group) Ltd. generates revenue through several streams, primarily driven by its software and IT services. The company earns income by charging clients for custom software development projects, which involve creating tailored software solutions to meet specific business requirements. Additionally, it provides system integration services, enabling clients to seamlessly incorporate new software into their existing IT infrastructure, for which it charges integration fees. The company also offers IT consultancy services, advising organizations on technology strategies and solutions, which generates consulting fees. Sing Lee Software may also partner with other technology firms to enhance its service offerings, potentially sharing revenues from joint projects or receiving commissions for service referrals. These diverse revenue streams allow the company to maintain a steady flow of income and capitalize on its expertise in the technology sector.

Sing Lee Software (Group) Ltd. Financial Statement Overview

Summary

Sing Lee Software (Group) Ltd. presents a challenging financial picture, with declining revenues, negative profitability, high leverage, and poor cash flow performance. The consistent losses and negative margins across key financial metrics indicate significant operational and financial challenges. The company must address these issues to improve its financial health and stability, especially focusing on reversing revenue declines and managing debt levels.

Income Statement

The company has experienced a significant decline in revenue over the past five years, with revenue dropping from 129.67 million in 2019 to 58.81 million in 2024. The gross profit margin has also decreased, with the most recent year showing a margin of 13.04%, down from 42.46% in 2019. Net profit margins are negative, indicating consistent losses, with the latest net profit margin at -19.75%. The EBIT and EBITDA margins are also deeply negative, reflecting operational challenges. Overall, the income statement shows a concerning trend of declining revenues and profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.60, indicating significant leverage, which poses a risk given the company's negative earnings. The equity ratio stands at 32.51%, showing that a reasonable portion of the assets is funded by equity. However, the return on equity is negative at -59.34%, highlighting the lack of profitability and return for shareholders. The company's financial stability is concerning due to high leverage and persistent losses.

Cash Flow

The cash flow statements show a troubling picture with negative operating and free cash flows in recent years. Although there was a positive free cash flow in 2022, the overall trend is negative, reflecting the company's ongoing operational struggles. The absence of positive free cash flow growth and the inability to generate cash from operations suggest cash flow issues that may impact the company's liquidity and ability to sustain operations without additional financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.01M	58.81M	70.38M	84.95M	94.41M	85.53M
Gross Profit	8.19M	7.67M	14.57M	12.70M	916.00K	6.76M
EBITDA	-7.68M	-9.29M	-5.41M	-15.62M	-10.98M	-24.57M
Net Income	-8.85M	-11.62M	-8.26M	-18.38M	-13.77M	-31.20M
Balance Sheet
Total Assets	49.87M	60.20M	70.36M	95.81M	100.08M	151.20M
Cash, Cash Equivalents and Short-Term Investments	10.17M	28.72M	35.29M	55.08M	45.14M	58.53M
Total Debt	30.73M	31.24M	27.02M	42.83M	30.52M	64.24M
Total Liabilities	37.95M	40.63M	39.17M	56.36M	48.10M	85.45M
Stockholders Equity	11.92M	19.57M	31.19M	39.45M	51.98M	65.75M
Cash Flow
Free Cash Flow	-1.44M	-6.73M	-3.15M	2.98M	-20.41M	-13.05M
Operating Cash Flow	-1.39M	-6.68M	-2.50M	3.01M	-20.32M	-12.30M
Investing Cash Flow	52.00K	68.00K	-395.00K	149.00K	42.06M	-687.00K
Financing Cash Flow	-634.00K	38.00K	-16.89M	6.76M	-35.12M	-4.82M

Sing Lee Software (Group) Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8076, the sentiment is Positive. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.02, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8076.

Sing Lee Software (Group) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8319	68 Neutral	HK$89.97M	6.44	8.06%	6.70%	-9.11%	-8.90%
8033	68 Neutral	HK$81.94M	5.64	6.73%	7.58%	-1.57%	-18.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8050	53 Neutral	HK$583.19M	―	-253.21%	―	144.88%	-302.04%
8606	51 Neutral	HK$109.88M	―	-1.95%	―	5.01%	82.54%
8076	46 Neutral	HK$39.52M	―	-53.80%	―	-28.13%	-300.00%
8103	40 Underperform	HK$18.38M	―	―	―	-20.62%	-87.13%