Sanbase Corporation Limited (8501) AI Stock Analysis

• Market Cap: HK$97.98M
• Dividend Yield: N/A
• Average Volume (3M): 17.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: -2.17%
• EPS Growth: -188.41%
• Country: HK
• Employees: 68
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): >-0.01
• Shares Outstanding: 200,000,000
• 10 Day Avg. Volume: 5,400
• 30 Day Avg. Volume: 17,533
• PEG Ratio: -0.08
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -3.46
• 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$0.50 ▲(0.00% Upside)

Sanbase Corporation Limited's stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. While technical analysis indicates strong momentum, overbought conditions suggest caution. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield.

Sanbase Corporation Limited Business Overview & Revenue Model

Company Description

Sanbase Corporation Limited (8501) is a technology-driven company specializing in the development and provision of innovative solutions and services in the digital landscape. Operating primarily in the software and technology sectors, Sanbase focuses on delivering advanced software applications, cloud solutions, and IT consultancy services to a diverse range of industries. The company's core offerings include software development, system integration, and digital transformation solutions aimed at enhancing operational efficiency and driving business growth for its clients.

How the Company Makes Money

Sanbase Corporation Limited generates revenue through multiple key streams, primarily from its software development and IT consulting services. The company charges clients for custom software solutions and ongoing support services, which constitute a significant portion of its income. Additionally, Sanbase earns revenue from cloud-based solutions through subscription models, where clients pay for access to its platforms on a recurring basis. Strategic partnerships with other technology providers and enterprises also contribute to its revenue, enabling the company to expand its service offerings and reach new markets. Furthermore, Sanbase may engage in project-based contracts, providing tailored solutions for specific client needs, which can lead to substantial one-time revenue spikes. Overall, the combination of service diversity, repeat business from existing clients, and strategic alliances underpins the company's earnings model.

Sanbase Corporation Limited Financial Statement Overview

Summary

Sanbase Corporation Limited faces significant financial challenges, particularly in profitability and cash flow management. Despite some revenue growth, negative margins and returns, along with cash flow issues, pose risks. The balance sheet shows low leverage, but strategic improvements are needed.

Income Statement

Sanbase Corporation Limited has experienced fluctuating revenue growth, with a recent increase of 12.16% after a decline in the previous year. However, profitability remains a concern with negative net profit margins and EBIT margins, indicating operational challenges. The gross profit margin is relatively low, reflecting limited pricing power or cost management issues.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio, suggesting conservative leverage and potential financial stability. However, the negative return on equity indicates that the company is not generating sufficient returns on shareholder investments. The equity ratio is not provided, but the available data suggests a cautious approach to debt.

Cash Flow

Sanbase Corporation Limited's cash flow situation is challenging, with negative operating cash flow and free cash flow in the most recent period. Despite a significant increase in free cash flow growth, the operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The free cash flow to net income ratio is slightly above 1, suggesting some ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	555.09M	418.77M	428.08M	517.60M	413.12M	481.29M
Gross Profit	26.32M	19.76M	25.19M	33.16M	22.74M	25.85M
EBITDA	-1.54M	1.83M	4.45M	7.94M	-2.20M	4.04M
Net Income	-4.85M	-3.98M	-1.37M	751.00K	-5.74M	397.00K
Balance Sheet
Total Assets	281.79M	281.79M	266.36M	334.48M	287.04M	265.41M
Cash, Cash Equivalents and Short-Term Investments	103.62M	103.62M	139.64M	109.70M	119.78M	112.49M
Total Debt	2.55M	2.55M	4.12M	2.02M	3.57M	5.48M
Total Liabilities	141.78M	141.78M	122.38M	189.78M	144.89M	116.20M
Stockholders Equity	132.88M	132.88M	136.93M	137.63M	136.86M	142.48M
Cash Flow
Free Cash Flow	-18.23M	-18.23M	34.49M	-6.65M	10.54M	414.00K
Operating Cash Flow	-18.16M	-18.16M	34.57M	-6.48M	11.63M	628.00K
Investing Cash Flow	-6.39M	-12.64M	-78.00K	-173.00K	-1.09M	-1.49M
Financing Cash Flow	-7.88M	-5.25M	-4.20M	-2.89M	-3.32M	-7.20M

Sanbase Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8501, the sentiment is Positive. The current price of 0.5 is above the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.46, and above the 200-day MA of 0.36, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 73.95 is Negative, neither overbought nor oversold. The STOCH value of 90.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8501.

Sanbase Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8501	―	HK$97.98M	―	-2.95%	―	-2.17%	-188.41%
1376	―	HK$242.00M	-39.03	29.87%	―	1.93%	-158.33%
3893	―	HK$167.96M	―	―	―	-24.93%	-72.69%
8040	―	HK$105.40M	―	-48.06%	―	-10.74%	-81.54%
8173	―	HK$31.23M	―	-22.97%	―	-41.70%	12.59%
8455	―	HK$47.04M	―	-617.73%	―	-8.22%	-7.28%