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Nexion Technologies Limited (HK:8420)
:8420
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Nexion Technologies Limited
(8420)
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Rating:31Underperform
Price Target:―
Nexion Technologies Limited faces significant financial challenges with declining revenue, persistent losses, and negative cash flows, resulting in a low financial performance score. The stock exhibits bearish technical indicators, and its valuation is unattractive due to negative earnings and lack of dividends. These factors contribute to an overall low score, reflecting concerns about the company's financial stability and future prospects.
Nexion Technologies Limited (8420) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$36.40M
Dividend YieldN/A
Average Volume (3M)203.00K
Price to Earnings (P/E)―
Beta (1Y)-0.17
Revenue Growth24.41%
EPS Growth-150.25%
CountryHK
Employees16
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding887,760,000
10 Day Avg. Volume149,000
30 Day Avg. Volume203,000
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Nexion Technologies Limited Business Overview & Revenue Model
Company DescriptionNexion Technologies Limited (8420) is a technology company primarily engaged in the provision of cyber infrastructure and cybersecurity solutions. The company operates in the information technology sector, offering a suite of products and services designed to enhance the security and efficiency of digital communications and data management. Nexion focuses on advanced technologies such as cloud computing, network security, and big data analytics to serve clients across various industries.
How the Company Makes MoneyNexion Technologies Limited generates revenue through the sale and implementation of its cybersecurity and cyber infrastructure solutions. The company offers a range of products including software and hardware that enhance network security and data protection. Revenue streams include one-time sales of products, subscription-based services for ongoing support and updates, and consulting fees for tailored cybersecurity solutions. Nexion may also engage in strategic partnerships with other technology firms to expand its service offerings and reach a broader client base.
Nexion Technologies Limited Financial Statement Overview
Summary
Nexion Technologies Limited is grappling with significant financial challenges, reflected in its declining revenue, persistent losses, and negative cash flows. While the company has minimal debt, the erosion of equity and diminishing asset base indicate financial instability. The negative profitability margins and inability to generate positive cash flows raise concerns about the company's ability to sustain operations in the long term.Income Statement
Nexion Technologies Limited has experienced a significant decline in revenue, with a 79.5% drop from 2020 to 2024. The company has consistently reported negative net income, with a net loss of $1,892,064 in 2024. Additionally, the gross profit margin has turned negative in 2024, indicating cost overruns. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and challenges in the business model.15
Very Negative
Balance Sheet
The company's balance sheet reveals a concerning trend of diminishing stockholders' equity, which decreased from $9,435,000 in 2020 to $2,159,618 in 2024. The equity ratio stood at 64.8% in 2024, indicating a moderate reliance on equity financing. However, the absence of substantial debt suggests limited leverage risk. Despite this, the declining asset base and equity indicate underlying financial challenges.30
Negative
Cash Flow
Nexion Technologies Limited has faced challenges in generating positive cash flow, with a negative operating cash flow of $660,902 in 2024. The free cash flow remains negative, reflecting ongoing cash outflows. The inability to generate sufficient cash to cover net income and capital expenditures highlights liquidity issues and potential sustainability concerns.20
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.36M | 1.96M | 1.63M | 5.43M | 6.96M | 8.63M |
| Gross Profit | 174.44K | -635.79K | 907.00K | 1.50M | 1.68M | 1.09M |
| EBITDA | -1.14M | -1.46M | -780.00K | -38.00K | -2.35M | -4.09M |
| Net Income | -1.72M | -1.89M | -1.76M | -1.16M | -3.08M | -5.87M |
Balance Sheet | ||||||
| Total Assets | 4.67M | 3.33M | 5.23M | 7.17M | 13.59M | 11.90M |
| Cash, Cash Equivalents and Short-Term Investments | 2.77M | 1.67M | 2.26M | 3.41M | 5.28M | 5.19M |
| Total Debt | ― | 6.00K | 5.00K | 54.00K | 101.00K | 0.00 |
| Total Liabilities | 1.08M | 1.24M | 1.08M | 1.72M | 7.17M | 2.52M |
| Stockholders Equity | 3.57M | 2.16M | 4.10M | 5.43M | 6.46M | 9.44M |
Cash Flow | ||||||
| Free Cash Flow | -476.25K | -823.13K | -1.45M | -2.89M | 864.00K | -2.11M |
| Operating Cash Flow | -473.06K | -660.90K | -1.27M | -2.89M | 941.00K | -611.00K |
| Investing Cash Flow | 0.00 | -268.97K | -168.00K | 1.14M | -790.00K | -537.00K |
| Financing Cash Flow | 0.00 | ― | 381.00K | -79.00K | -23.00K | 155.00K |
Nexion Technologies Limited Technical Analysis
Positive
0.04
Price Trends
0.04
Positive
0.03
Positive
0.03
Positive
Market Momentum
<0.01
Positive
57.55
Neutral
37.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8420, the sentiment is Positive. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.55 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8420.
Nexion Technologies Limited Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | 5.38B | -58.57 | -17.45% | ― | 3.97% | -211.11% | |
55 Neutral | 197.71M | -25.00 | -0.58% | ― | 5.35% | 83.77% | |
53 Neutral | 617.09M | -45.96 | 1006.76% | ― | 144.88% | -302.04% | |
47 Neutral | 22.69M | -2.23 | -23.86% | ― | 8.14% | 83.10% | |
45 Neutral | 136.80M | -6.23 | ― | ― | -86.40% | 53.43% | |
31 Underperform | HK$36.40M | ― | -75.20% | ― | 24.41% | -150.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
HK:8420
Nexion Technologies Limited
0.04
0.02
100.00%
DE:G9D
Goldpac Group Ltd.
0.11
<0.01
10.00%
HK:1410
Edvance International Holdings Ltd.
0.31
0.09
40.91%
HK:8017
TradeGo FinTech Ltd.
1.96
1.73
752.17%
HK:8062
EFT Solutions Holdings Ltd
0.27
0.01
3.85%
HK:8613
Oriental Payment Group Holdings Limited
0.07
>-0.01
-12.50%
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.