Novacon Technology Group Ltd (8635) AI Stock Analysis

• Market Cap: HK$248.00M
• Dividend Yield: 10.4%
• Average Volume (3M): 2.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -54.03%
• EPS Growth: -22.81%
• Country: HK
• Employees: 41
• Sector: Technology
• Sector Strength: 76
• Industry: Software - Application
• EPS (TTM): -0.04
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 986,400
• 30 Day Avg. Volume: 2,470,366
• PEG Ratio: 0.32
• Price to Book (P/B): 2.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.32
• 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

Novacon Technology Group Ltd faces significant financial performance challenges, particularly with revenue decline and cash flow issues. However, the strong cash position and absence of debt provide some stability. The stock shows positive technical momentum, and an attractive dividend yield offers potential investment value despite the negative P/E ratio.

Novacon Technology Group Ltd Business Overview & Revenue Model

Company Description

Novacon Technology Group Ltd (8635) is a company that specializes in providing comprehensive technology solutions and services. Operating primarily in the information technology sector, the company offers a range of products and services designed to enhance business processes and operational efficiency for its clients. These offerings include software development, IT consultancy, and systems integration services, aimed at catering to the needs of businesses across various industries.

How the Company Makes Money

Novacon Technology Group Ltd generates revenue through multiple streams associated with its core offerings. The primary revenue stream is derived from the sale of software products and solutions tailored to meet specific client requirements. Additionally, the company earns income from providing IT consultancy services, where they leverage their expertise to advise clients on optimizing their technology infrastructure and strategies. Systems integration services also contribute to the revenue, as Novacon assists businesses in seamlessly integrating new technologies with existing systems. Partnerships with other technology providers enhance the company's service offerings, allowing for expanded market reach and additional revenue opportunities.

Novacon Technology Group Ltd Financial Statement Overview

Summary

Novacon Technology Group Ltd is facing financial instability. The income statement shows a significant revenue decline and profitability challenges. The balance sheet is somewhat supportive with a strong cash position and no debt, but cash flow issues are severe, indicating potential liquidity threats.

Income Statement

Novacon Technology Group Ltd faced a massive downturn in its financial performance in the latest fiscal year. The revenue plummeted by 56.7%, from 52.58 million to 22.79 million, indicating severe market challenges or loss of customer base. The company also experienced a negative gross profit margin and a net loss, reflecting inefficiencies and high operational costs. The negative EBIT and EBITDA margins further highlight profitability issues.

Balance Sheet

The balance sheet shows a strong equity base with a debt-free structure, which is a positive aspect; however, the company's equity ratio decreased slightly due to a reduction in stockholders' equity. Despite the drop in total assets, the company maintains a solid cash position, providing some financial stability.

Cash Flow

Cash flows are under pressure due to a significant negative operating cash flow, reflecting operational challenges. The free cash flow also turned negative, indicating issues in generating cash from operations after capital expenditures. The cash flow to net income ratios are unfavorable, suggesting inefficiencies in translating accounting profits into cash.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
22.38M	22.79M	52.58M	50.03M	42.73M	42.96M
	Gross Profit
3.08M	-6.45M	47.32M	45.30M	38.33M	38.44M
	EBIT
-11.01M	-23.01M	4.97M	13.18M	13.27M	14.13M
	EBITDA
-5.58M	-14.73M	15.33M	21.06M	23.29M	16.09M
	Net Income Common Stockholders
-20.16M	-22.98M	5.71M	11.22M	13.03M	6.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.65M	44.42M	61.41M	58.19M	66.24M	57.67M
	Total Assets
66.67M	115.39M	137.38M	129.63M	130.76M	117.01M
	Total Debt
12.42M	0.00	504.00K	0.00	10.96M	11.50M
	Net Debt
-2.23M	-44.25M	-60.91M	-58.19M	-55.28M	-46.17M
	Total Liabilities
19.37M	9.05M	7.66M	4.83M	16.83M	16.42M
	Stockholders Equity
47.30M	106.33M	129.72M	124.80M	113.94M	100.58M
Cash Flow		Free Cash Flow
-9.95M	-24.43M	7.02M	3.61M	13.63M	4.07M
	Operating Cash Flow
-9.94M	-17.89M	12.43M	8.80M	20.59M	12.37M
	Investing Cash Flow
-5.50M	1.54M	-8.02M	-5.07M	-10.52M	-7.71M
	Financing Cash Flow
-981.00K	-804.00K	-1.18M	-11.78M	-1.49M	42.60M

Novacon Technology Group Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8635, the sentiment is Neutral. The current price of 0.62 is below the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.62, and above the 200-day MA of 0.22, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 55.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8635.

Novacon Technology Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$11.59B	10.39	-7.23%	2.94%	7.46%	-10.76%
8635	55 Neutral	HK$248.00M	―	-15.60%	10.40%	-54.03%	-22.81%
8613	47 Neutral	HK$262.17M	―	-146.66%	―	168.04%	―
8193	41 Neutral	HK$69.11M	―	-79.76%	―	-1.68%	49.77%
8163	40 Underperform	HK$65.27M	―		―	―	―
8431	39 Underperform	HK$10.37M	―	-34.57%	―	12.02%	91.93%
8391	35 Underperform	HK$414.81M	―	-270.38%	―	95.98%	-2.60%