Kinetix Systems Holdings Limited (8606) AI Stock Analysis

• Market Cap: HK$98.32M
• Dividend Yield: N/A
• Average Volume (3M): 398.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 5.01%
• EPS Growth: 82.54%
• Country: HK
• Employees: 164
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): <0.01
• Shares Outstanding: 1,445,850,000
• 10 Day Avg. Volume: 19,000
• 30 Day Avg. Volume: 398,666
• PEG Ratio: 0.45
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 28.06
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Kinetix Systems Holdings Limited's stock score is primarily influenced by its mixed financial performance and bearish technical indicators. While there is revenue growth and improved cash flow, significant profitability challenges and increasing leverage are concerns. The technical analysis suggests a bearish trend, and the negative P/E ratio reflects ongoing financial struggles.

Kinetix Systems Holdings Limited Business Overview & Revenue Model

Company Description

Kinetix Systems Holdings Limited, an investment holding company, provides information technology (IT) services in Hong Kong and Macau. The company operates through IT Infrastructure Solutions Services, IT Development Solutions Services, IT Maintenance and Support Services, and Entertainment Products segments. It provides IT infrastructure solutions services to its clients by advising them the hardware and/or software that their IT systems would require and procuring the hardware and/or software from a range of authorized distributors or third party suppliers and integrating them with clients' IT systems. The company also offers IT development solutions services, including system analysis and design, software development, and technology consultancy services; and IT maintenance and support services. In addition, it engages in the e-commerce business, which includes the trading of entertainment products; and provision of human resources services. It serves customers in private and public sectors, including government and statutory bodies, banks and financial institutions, technology, media and telecom companies, transportation and logistics companies, etc. The company was founded in 1998 and is based in Kwun Tong, Hong Kong. Kinetix Systems Holdings Limited is a subsidiary of Vigorous King Limited.

How the Company Makes Money

Kinetix Systems Holdings Limited generates revenue through multiple streams, primarily from the sale of its software solutions and technology services. The company provides customized software development, which allows it to charge clients on a project basis or through ongoing service agreements. Additionally, Kinetix earns income from consulting services that help businesses implement and optimize their technology infrastructure. Strategic partnerships with other technology firms and industry players also contribute to revenue, as these alliances can create joint offerings and expand market reach. Moreover, recurring revenue from maintenance and support contracts enhances financial stability and predictability in earnings.

Kinetix Systems Holdings Limited Financial Statement Overview

Summary

Kinetix Systems Holdings Limited shows mixed financial performance. Revenue growth and cash flow improvements are positive, but ongoing profitability challenges and increasing leverage are concerns. The company needs to focus on enhancing profitability and managing debt levels.

Income Statement

Kinetix Systems Holdings Limited has shown a steady increase in revenue over the past few years, with a notable revenue growth rate from 2023 to 2024. However, the company has faced challenges in profitability, as indicated by negative EBIT and net income in recent years. The gross profit margin has improved slightly, reflecting efficient cost management, but negative net profit margins remain a concern for long-term profitability.

Balance Sheet

The company's balance sheet shows a relatively stable equity base, with a favorable equity ratio indicating good asset management. However, the debt-to-equity ratio suggests a potential concern with increasing leverage, which could pose risks if not managed carefully. The return on equity remains negative due to continuous net losses, which affects overall shareholder returns.

Cash Flow

Kinetix Systems has demonstrated improvement in operating cash flows, turning positive in 2024 compared to previous years. The free cash flow has also shown a positive trend, indicating better cash management. However, the free cash flow to net income ratio reflects ongoing profitability challenges, and the company needs to maintain positive cash flow to support future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	369.90M	335.35M	309.07M	294.66M	254.12M	282.36M
Gross Profit	69.91M	66.50M	59.15M	50.29M	49.68M	47.56M
EBITDA	-2.94M	-3.12M	-7.68M	-57.60M	-10.20M	14.76M
Net Income	-1.53M	-4.70M	-14.09M	-67.06M	-20.34M	10.32M
Balance Sheet
Total Assets	272.45M	182.73M	201.62M	199.85M	241.70M	186.83M
Cash, Cash Equivalents and Short-Term Investments	56.82M	31.19M	30.32M	25.19M	29.97M	35.79M
Total Debt	12.65M	3.48M	4.77M	22.75M	33.30M	15.58M
Total Liabilities	204.94M	118.25M	130.22M	140.18M	112.10M	88.93M
Stockholders Equity	77.42M	74.98M	79.74M	64.83M	131.92M	99.12M
Cash Flow
Free Cash Flow	17.61M	5.15M	-14.24M	9.63M	-4.17M	-20.41M
Operating Cash Flow	18.70M	5.71M	-13.50M	10.45M	8.01M	-19.91M
Investing Cash Flow	-1.73M	-769.00K	-1.00M	191.00K	-12.22M	-7.43M
Financing Cash Flow	-5.32M	-4.03M	20.51M	-15.57M	-1.52M	3.16M

Kinetix Systems Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8606, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.08, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 30.33 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8606.

Kinetix Systems Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8319	71 Outperform	HK$99.61M	7.13	8.06%	6.05%	-9.11%	-8.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1402	53 Neutral	HK$238.35M	-15.87	-9.44%	―	-6.11%	-16.26%
8606	51 Neutral	HK$98.32M	―	-1.95%	―	5.01%	82.54%
8050	51 Neutral	HK$610.31M	―	-253.21%	―	144.88%	-302.04%
8229	46 Neutral	HK$330.41M	―	―	―	-9.21%	-4.52%