1088:HKEX

Selvas AI Inc. is trading at 9,810 KRW, well below its 20‑day (11,463), 50‑day (11,987) and 200‑day (13,258) simple moving averages, indicating a strong bearish bias. The RSI of 33.5 suggests the stock is approaching oversold territory, yet the MACD histogram remains negative and the signal line is bearish, reinforcing downward momentum. Volume is currently rising, but the daily volume (≈72k) is far below its 3‑month average (≈340k), hinting at limited liquidity. The discounted cash flow model values the company at roughly 6,260 KRW, substantially lower than the market price, implying the stock is overvalued on a cash‑flow basis.
Fundamentally, the firm carries a high debt‑to‑equity ratio of 6.86 despite a massive cash pile of 103.9 bn KRW, and it reports negative profit margins (‑6.95%) and a negative ROE (‑1.7%). Earnings are nil, resulting in a PE of zero, and the recent 30‑day volatility of 72% combined with a low beta of 0.26 underscores a volatile yet relatively market‑neutral price movement. These mixed signals, together with a max drawdown of 43% and an industry PE average of 36.85, point to considerable upside risk if the company can translate its cash reserves into profitable AI solutions, but the current risk profile remains high.