Vertical International Holdings Ltd. (8375) AI Stock Analysis

• Market Cap: HK$679.68M
• Dividend Yield: N/A
• Average Volume (3M): 73.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -0.23%
• EPS Growth: -98.74%
• Country: HK
• Employees: 151
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.03
• Shares Outstanding: 288,000,000
• 10 Day Avg. Volume: 79,000
• 30 Day Avg. Volume: 73,533
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$3.50
• Price Target Upside: 48.31% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• Price Target: HK$3.50 ▲(48.31% Upside)

Vertical International Holdings Ltd. faces significant financial difficulties, with declining revenues and negative profitability heavily impacting the score. Technical analysis reinforces a bearish outlook, while poor valuation metrics underscore concerns about the stock's attractiveness.

Vertical International Holdings Ltd. Business Overview & Revenue Model

Company Description

Vertical International Holdings Ltd. (8375) is a company primarily engaged in the manufacturing and trading of aluminum electrolytic capacitors and related electronic components. The company's products are widely used in consumer electronics, industrial equipment, and automotive electronics, providing essential components for electronic circuits and systems.

How the Company Makes Money

Vertical International Holdings Ltd. generates revenue through the production and sale of aluminum electrolytic capacitors and other electronic components. The company earns money by supplying these components to manufacturers in various industries, including consumer electronics, industrial machinery, and automotive sectors. Their revenue model relies on maintaining strong relationships with original equipment manufacturers (OEMs) and continuously innovating to meet the evolving technological demands of their clients. Additionally, any strategic partnerships with key suppliers or distributors can enhance their market reach and contribute to revenue growth.

Vertical International Holdings Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenues and negative profit margins. While the balance sheet shows low leverage, cash flow issues raise concerns about liquidity and operational efficiency.

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
EBITDA	-8.21M	-8.91M	-16.25M	9.00M	3.30M
Net Income	-5.48M	-12.19M	-18.55M	5.08M	804.00K
Balance Sheet
Total Assets	96.62M	107.60M	133.66M	157.31M	132.78M
Cash, Cash Equivalents and Short-Term Investments	25.70M	30.45M	41.07M	40.08M	27.62M
Total Debt	6.84M	8.63M	14.63M	16.73M	6.73M
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	-6.47M	1.59M	-8.40M	-631.00K	1.08M
Operating Cash Flow	-1.79M	8.50M	816.00K	11.03M	6.75M
Investing Cash Flow	1.70M	-3.72M	-9.98M	-12.60M	-4.41M
Financing Cash Flow	-4.88M	-19.59M	10.86M	12.49M	-9.51M

Vertical International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8375, the sentiment is Negative. The current price of 2.36 is below the 20-day moving average (MA) of 2.85, below the 50-day MA of 3.38, and below the 200-day MA of 4.07, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 23.34 is Positive, neither overbought nor oversold. The STOCH value of 22.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
0259	80 Outperform	4.84B	1.77	77.81%	35.31%	10.88%	1523.33%
0040	66 Neutral	604.67M	19.58	3.00%	3.73%	5.79%	―
0580	64 Neutral	2.97B	17.44	5.33%	0.52%	46.98%	130.04%
0894	60 Neutral	316.35M	32.16	0.53%	0.74%	5.72%	-57.39%
0532	51 Neutral	222.62M	-1.90	-13.54%	―	6.32%	28.39%
8375	40 Underperform	HK$679.68M	―	-19.83%	―	-0.23%	-98.74%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%