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Reach New Holdings Ltd. (8471) AI Stock Analysis

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HK:8471

Reach New Holdings Ltd.

(HKEX:8471)

Select Model
Rating:39Underperform
Price Target:HKD 0.21â–¼(-5.38% Downside)
Action:downgraded
Date:10/27/26

The score is driven primarily by structurally weak profitability and cash generation, reinforced by a pronounced technical downtrend and loss-based valuation. Positive equity and low leverage provide limited support, while oversold momentum may offer only a potential short-term counterpoint.

Positive Factors
Revenue ReboundThe strong TTM revenue rebound indicates that demand or sales execution has improved from the prior annual period. If sustained, this topline recovery can provide operating leverage and a larger base from which the company may eventually rebuild profitability.
Negative Factors
Persistent UnprofitabilityOngoing operating and net losses show that current revenue levels are not translating into sustainable earnings. The negative margin limits internally generated capital, reduces resilience if performance weakens, and means the revenue recovery has not yet produced a durable improvement in shareholder returns.

Reach New Holdings Ltd. (8471) vs. iShares MSCI Hong Kong ETF (EWH)

-100%-80%-60%-40%-20%0%20%HK:8471-93.16%EWH+8.17%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
HKD 16.40M
Dividend Yield
―
Average Volume (3M)
185.74K
Price to Earnings (P/E)
-1.0
Beta (1Y)
-0.39
Revenue Growth
-0.77%
EPS Growth
-48.38%
Country
Hong Kong
Employees
214
Sector
Consumer Cyclical
Sector Strength
61
Industry
Manufacturing - Textiles

Reach New Holdings Ltd. Business Overview & Revenue Model

Company Description

Operating within the People's Republic of China, Reach New Holdings Limited, along with its subsidiaries, specializes in the production and distribution of an array of labeling products and garment accessories. The company's offerings feature printed...

Reach New Holdings Ltd. Financial Statement Overview

Summary

Persistent operating and net losses, negative operating and free cash flow, declining margins, and ongoing cash burn outweigh the relative strength of positive equity and low leverage.

Income Statement

24Negative

Balance Sheet

45Neutral

Cash Flow

22Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue86.16M80.38M91.71M66.32M67.25M74.41M
Gross Profit21.65M20.02M25.50M17.74M19.75M17.93M
EBITDA-10.70M-13.50M-7.76M-19.30M-1.06M-1.08M
Net Income-11.69M-13.89M-8.26M-21.63M-6.75M-1.41M
Balance Sheet
Total Assets59.84M63.92M51.75M40.46M63.91M70.39M
Cash, Cash Equivalents and Short-Term Investments17.95M18.05M21.06M19.73M34.81M34.21M
Total Debt2.95M1.74M2.03M726.00K02.88M
Total Liabilities19.05M24.10M16.95M12.09M13.77M13.49M
Stockholders Equity40.84M39.83M34.80M28.37M50.01M56.75M
Cash Flow
Free Cash Flow-4.81M-11.35M-11.95M-15.09M8.33M91.00K
Operating Cash Flow-2.10M-8.74M-8.72M-13.70M9.61M3.31M
Investing Cash Flow-17.13M-12.07M-3.02M-1.02M-1.22M-2.46M
Financing Cash Flow7.18M18.14M13.12M-255.00K-2.88M-2.77M

Reach New Holdings Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price0.22

Price Trends

50DMA0.29Negative
100DMA0.31Negative
200DMA0.62Negative

Market Momentum

MACD-0.02Positive
RSI21.43Positive
STOCH-0.00Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8471, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.29, and below the 200-day MA of 0.62, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 21.43 is Positive, neither overbought nor oversold. The STOCH value of -0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8471.

Reach New Holdings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

HK:8471 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
HK:2199HK:219961NeutralHKD 3.06B10.879.33%6.40%-1.56%53.99%
HK:2313HK:231358NeutralHKD 63.83B11.9912.10%4.90%1.86%-27.58%
HK:1234HK:123457NeutralHKD 3.13B5.5511.18%11.45%20.57%16.02%
HK:0311HK:031150NeutralHKD 351.60M4.176.65%7.38%0.41%―
HK:1382HK:138249NeutralHKD 969.69M11.832.83%9.93%-0.86%-50.37%
HK:8471HK:847139UnderperformHKD 16.40M-0.96-28.99%―-0.77%-48.38%

* Consumer Cyclical Sector Average

Performance Comparison

-50%0%50%100%HK:8471HK:1382HK:2313HK:0311HK:1234HK:2199Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
HK:8471 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:8471Reach New Holdings Ltd.0.22-3.16-93.40%
HK:1382Pacific Textiles Holdings 0.70-0.50-41.45%
HK:2313Shenzhou International Group Holdings 42.46-24.87-36.94%
HK:0311Luen Thai Holdings Limited0.340.1578.95%
HK:1234China Lilang Ltd.2.62-0.50-15.97%
HK:2199Regina Miracle International (Holdings) Limited2.500.5024.81%
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.

Date of analysis: Oct 27, 2026