Reach New Holdings Ltd. (8471) AI Stock Analysis

• Market Cap: HK$218.23M
• Dividend Yield: N/A
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.27
• Revenue Growth: 24.72%
• EPS Growth: 78.31%
• Country: HK
• Employees: 219
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): >-0.01
• Shares Outstanding: 1,226,000,000
• 10 Day Avg. Volume: 975,000
• 30 Day Avg. Volume: 2,237,333
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 0

• Rating: 50 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily driven by financial performance challenges and valuation concerns. The company struggles with profitability and cash flow, which is reflected in its negative P/E ratio. The technical analysis provides mixed signals, with longer-term averages pointing to a bearish outlook. Immediate improvements in operational efficiency and revenue growth are necessary for an improved score.

Reach New Holdings Ltd. Business Overview & Revenue Model

Company Description

Reach New Holdings Ltd. (8471) is a Hong Kong-based company that primarily engages in the provision of financial printing services. The company offers a comprehensive range of printing solutions, including the printing of financial documents, marketing materials, and other commercial printing services. It serves clients from various sectors, focusing on delivering high-quality printing outputs tailored to meet the specific needs of financial institutions and other corporate clients.

How the Company Makes Money

Reach New Holdings Ltd. generates revenue through its financial printing services, which include the preparation and printing of prospectuses, annual reports, and other regulatory documents required by companies for compliance and investor communication. The company's revenue streams are primarily driven by contracts with businesses that require these specialized document services, with a particular emphasis on clients from the financial services industry. Significant factors contributing to its earnings include its ability to secure long-term service agreements, maintain high-quality standards, and build strong client relationships. Additionally, any partnerships with technology providers to enhance their printing capabilities can also influence their revenue generation.

Reach New Holdings Ltd. Financial Statement Overview

Summary

Reach New Holdings Ltd. shows mixed financial health. The company experienced significant revenue growth of 38.3%, but persistent negative net income and EBIT margins indicate ongoing profitability issues. The balance sheet is stable with a high equity ratio of 67.3% and low debt-to-equity ratio of 0.06, but declining stockholders' equity and negative cash flow are concerning.

Income Statement

The company has shown a substantial increase in revenue from 2023 to 2024, with a revenue growth rate of approximately 38.3%. However, persistent negative net income and EBIT margins indicate ongoing profitability challenges. The gross profit margin improved to 27.8% in 2024, suggesting some operational efficiencies, but the negative EBITDA and EBIT margins reflect significant cost and operational pressures.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of 67.3% as of 2024, indicating financial stability. The debt-to-equity ratio remains low at 0.06, suggesting minimal leverage risk. However, a declining stockholders' equity and high net debt position may constrain future financial flexibility.

Cash Flow

The cash flow statement reflects cash management issues, with an absence of free cash flow and operating cash flow in 2024. The operating cash flow to net income ratio was negative in 2023, indicating challenges in generating cash from operations. This raises concerns about the company's ability to sustain operations without external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.71M	66.32M	67.25M	74.41M	60.56M
Gross Profit	25.50M	17.74M	19.75M	17.93M	13.76M
EBITDA	-7.04M	-19.30M	-1.06M	-618.00K	-7.72M
Net Income	-8.26M	-21.63M	-6.75M	-1.44M	-15.41M
Balance Sheet
Total Assets	51.75M	40.46M	63.91M	70.39M	73.60M
Cash, Cash Equivalents and Short-Term Investments	21.06M	19.73M	34.81M	34.21M	31.37M
Total Debt	2.03M	726.00K	0.00	2.88M	5.65M
Total Liabilities	16.95M	12.09M	13.77M	13.49M	15.28M
Stockholders Equity	34.80M	28.37M	50.01M	56.75M	58.16M
Cash Flow
Free Cash Flow	-11.95M	-15.09M	8.33M	91.00K	-10.52M
Operating Cash Flow	-8.72M	-13.70M	9.61M	3.31M	-8.77M
Investing Cash Flow	-3.02M	-1.02M	-1.22M	-2.46M	-3.46M
Financing Cash Flow	13.12M	-255.00K	-2.88M	-2.77M	2.83M

Reach New Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8471, the sentiment is Neutral. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.15, and below the 200-day MA of 0.21, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.38 is Neutral, neither overbought nor oversold. The STOCH value of 46.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8471.

Reach New Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8480	69 Neutral	171.74M	4.89	6.33%	5.38%	18.97%	-4.28%
1433	67 Neutral	202.00M	3.67	0.00%	7.43%	14.30%	125.41%
0311	51 Neutral	257.49M	-1.39	-21.73%	―	0.34%	-47.98%
8471	50 Neutral	HK$218.23M	―	-17.00%	―	24.72%	78.31%
0844	47 Neutral	197.73M	-7.26	-5.68%	―	-5.02%	-323.85%
1388	44 Neutral	181.64M	-0.52	0.00%	―	-6.47%	-118.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%