Vertical International Holdings Ltd. (8375) AI Stock Analysis

• Market Cap: HK$1.61B
• Dividend Yield: N/A
• Average Volume (3M): 776.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -3.22%
• EPS Growth: 55.08%
• Country: HK
• Employees: 122
• Sector: Technology
• Sector Strength: 77
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.02
• Shares Outstanding: 288,000,000
• 10 Day Avg. Volume: 903,160
• 30 Day Avg. Volume: 776,076
• PEG Ratio: -6.54
• Price to Book (P/B): 21.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -500.95
• 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

The stock of Vertical International Holdings Ltd. is facing significant financial challenges with declining revenue and negative profitability, which heavily weighs on its score. However, technical indicators suggest positive momentum in the market, which provides some optimism. The valuation is unattractive due to a negative P/E ratio and lack of dividends, further impacting the overall score.

Vertical International Holdings Ltd. Business Overview & Revenue Model

Company Description

Vertical International Holdings Ltd. (8375) is a Hong Kong-based company primarily engaged in the manufacturing and trading of aluminum electrolytic capacitors. These components are widely used in various electronic products, including consumer electronics, computers, and communication devices. The company also provides technical and engineering services related to these products, ensuring quality and efficiency in their application.

How the Company Makes Money

Vertical International Holdings Ltd. generates revenue primarily through the sale of aluminum electrolytic capacitors. These capacitors are essential components in numerous electronic devices, and the company supplies them to manufacturers in the electronics industry. By maintaining robust relationships with suppliers and clients, Vertical International Holdings ensures a steady demand for its products. Additionally, the company offers technical services that add value to its core product offerings, thereby creating an additional revenue stream. The company's earnings are also influenced by its ability to efficiently manage production costs and supply chain logistics, which are crucial for maintaining competitive pricing in the market.

Vertical International Holdings Ltd. Financial Statement Overview

Summary

Vertical International Holdings Ltd. is facing financial challenges with declining revenues and negative margins. The balance sheet shows stability with low leverage, but the cash flow situation is concerning due to a lack of positive cash flow.

Income Statement

The company has experienced declining revenue over recent years, with a negative revenue growth rate of -3.22% from 2023 to 2024. Gross profit margin remains low at 7.53% in 2024, and the net profit margin is negative at -6.72%, indicating unprofitability. Both EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

The balance sheet shows a relatively stable equity position with an equity ratio of 72.10%. The debt-to-equity ratio is low at 0.10, suggesting conservative leverage. However, the return on equity is negative due to losses, indicating inefficiency in generating returns.

Cash Flow

Cash flow from operations was zero in 2024, down from positive cash flow in previous years. The free cash flow position is also concerning, with no free cash flow in the latest year. The operating cash flow to net income ratio is not meaningful due to zero operating cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
81.55M	84.26M	86.37M	132.48M	96.27M
	Gross Profit
6.14M	6.12M	5.06M	23.28M	15.17M
	EBIT
-10.38M	-13.64M	-12.65M	7.60M	2.51M
	EBITDA
-8.21M	-8.91M	-16.25M	9.00M	3.30M
	Net Income Common Stockholders
-5.48M	-12.19M	-18.55M	5.08M	804.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.70M	30.45M	41.07M	40.08M	27.62M
	Total Assets
96.62M	107.60M	133.66M	157.31M	132.78M
	Total Debt
6.84M	8.63M	14.63M	16.73M	6.73M
	Net Debt
-12.65M	-14.96M	-24.51M	-22.52M	-20.89M
	Total Liabilities
26.95M	30.98M	32.54M	46.16M	35.42M
	Stockholders Equity
69.67M	76.62M	101.12M	111.15M	97.36M
Cash Flow		Free Cash Flow
0.00	1.59M	-8.40M	-631.00K	1.08M
	Operating Cash Flow
0.00	8.50M	816.00K	11.03M	6.75M
	Investing Cash Flow
1.56M	-3.72M	-9.98M	-12.60M	-4.41M
	Financing Cash Flow
0.00	-19.59M	10.86M	12.49M	-9.51M

Vertical International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.59
• 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:8375, the sentiment is Positive. The current price of 5.59 is above the 20-day moving average (MA) of 5.15, above the 50-day MA of 4.61, and above the 200-day MA of 2.24, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 58.84 is Neutral, neither overbought nor oversold. The STOCH value of 15.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8375.

Vertical International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$11.60B	10.64	-6.04%	2.94%	7.87%	-11.74%
8128	54 Neutral	HK$183.44M	16.80	4.17%	―	2.61%	8.70%
8375	51 Neutral	HK$1.61B	―	-7.49%	―	-3.22%	55.08%
8196	40 Underperform	HK$18.21M	―	-9.50%	―	-58.07%	-331.12%
8163	40 Underperform	HK$65.88M	―		―	―	―