Futong Technology Development Holdings Ltd. (0465) AI Stock Analysis

• Market Cap: HK$155.62M
• Dividend Yield: N/A
• Average Volume (3M): 36.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -18.19%
• EPS Growth: 4.52%
• Country: HK
• Employees: 280
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.11
• Shares Outstanding: 311,249,970
• 10 Day Avg. Volume: 29,600
• 30 Day Avg. Volume: 36,000
• PEG Ratio: 0.08
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -1.52
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: HK$0.50 ▲(8.70% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenue and consistent net losses. Despite positive technical indicators suggesting short-term bullish momentum, the negative P/E ratio and lack of dividend yield highlight valuation concerns. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Equity Position

A strong equity base with low debt levels provides financial stability and flexibility, allowing the company to weather economic downturns and invest in growth opportunities.

Diverse Client Base

A diverse client base reduces dependency on any single customer, enhancing revenue stability and providing opportunities for cross-selling and long-term contracts.

Industry Focus

Specialization in optical communication products positions the company well within the growing telecommunications sector, benefiting from increasing demand for digital infrastructure.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in market competitiveness and product demand, which could hinder long-term growth and profitability.

Consistent Net Losses

Ongoing net losses suggest operational inefficiencies and an inability to cover costs, threatening financial health and limiting reinvestment capacity.

Volatile Cash Flow

Inconsistent cash flow generation undermines the company's ability to fund operations and growth initiatives, posing risks to financial sustainability.

Futong Technology Development Holdings Ltd. Business Overview & Revenue Model

Company Description

Futong Technology Development Holdings Limited, an investment holding company, provides enterprise digital transformation services in the People's Republic of China and Hong Kong. The company offers enterprise IT infrastructure products, services, and solutions; cloud computing management products; and intelligent digitalized application products. It also offers system integration and related services. The company was founded in 1996 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Futong Technology generates revenue primarily through the sale of its optical communication products, including fiber optic cables and accessories. The company benefits from a diverse client base, including telecommunications operators, system integrators, and large enterprises. Key revenue streams include direct product sales, long-term contracts with telecommunications companies, and partnerships with industry players that enhance its market reach. Additionally, Futong may engage in providing value-added services such as installation and technical support, which contribute to its earnings. The company's ability to innovate and adapt to emerging technologies in the telecommunications industry further strengthens its revenue model.

Futong Technology Development Holdings Ltd. Financial Statement Overview

Summary

Futong Technology Development Holdings Ltd. faces financial difficulties with declining revenue and consistent net losses. Despite a strong equity position and low leverage, the company struggles with cash flow generation and operational profitability. This poses risks to future financial stability and growth potential.

Income Statement

The company's income statement reflects significant challenges with consistent net losses over the years, along with negative EBIT and EBITDA margins, indicating operational inefficiencies. Revenue has sharply declined from 2019 to 2024, signifying a lack of growth and potential market challenges.

Balance Sheet

The balance sheet shows a strong equity base and low debt levels, resulting in a favorable debt-to-equity ratio. However, the declining stockholders' equity over time and the decrease in total assets are concerning and suggest potential stability issues.

Cash Flow

Cash flow analysis indicates volatile free cash flow with recent years showing zero or negative free cash flow, which is a concern for sustainability. The operating cash flow has also fluctuated significantly, impacting the company’s ability to reinvest in its operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	141.83M	150.55M	145.56M	343.06M	235.23M	616.27M
Gross Profit	9.01M	15.64M	24.61M	31.22M	29.71M	85.79M
EBITDA	-75.72M	-66.77M	-64.55M	-61.11M	-51.10M	6.47M
Net Income	-73.00M	-70.83M	-83.30M	-75.55M	-72.69M	2.97M
Balance Sheet
Total Assets	275.09M	306.33M	383.11M	498.47M	617.72M	758.57M
Cash, Cash Equivalents and Short-Term Investments	177.11M	202.92M	246.22M	233.68M	352.65M	444.82M
Total Debt	921.00K	1.84M	3.52M	3.29M	2.26M	4.34M
Total Liabilities	58.91M	57.48M	63.60M	96.11M	140.62M	209.80M
Stockholders Equity	211.62M	244.28M	314.90M	397.77M	472.49M	544.29M
Cash Flow
Free Cash Flow	-38.87M	-52.01M	6.35M	-95.75M	-88.93M	79.29M
Operating Cash Flow	-38.75M	-44.21M	22.28M	-95.35M	-86.84M	82.59M
Investing Cash Flow	-1.90M	2.67M	-7.13M	-20.03M	-21.44M	-3.64M
Financing Cash Flow	-2.01M	-1.85M	-1.70M	-1.74M	-2.12M	-13.38M

Futong Technology Development Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0465, the sentiment is Neutral. The current price of 0.46 is below the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.44, and above the 200-day MA of 0.34, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.88 is Neutral, neither overbought nor oversold. The STOCH value of 15.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0465.

Futong Technology Development Holdings Ltd. 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	7.12%	6.47%	3.21%	-12.00%
0318	69 Neutral	HK$108.33M	10.28	2.10%	―	4.19%	-52.73%
8033	66 Neutral	HK$78.86M	5.42	6.73%	8.06%	-1.57%	-18.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0465	53 Neutral	HK$155.62M	-1.97	-29.34%	―	-18.19%	4.52%
8606	48 Neutral	HK$91.09M	―	-1.95%	―	5.01%	82.54%

Futong Technology Development Holdings Ltd. Corporate Events

Futong Technology Addresses Non-Disclosure of CEO Emoluments

Futong Technology Development Holdings Ltd. has issued a supplemental announcement regarding the emoluments of its former CEO, Mr. Zhao Wei, which were not disclosed in the annual reports from 2017 to 2024, constituting a breach of the Listing Rules. The company acknowledges this oversight as inadvertent and has outlined remedial measures to prevent future non-compliance, including enhanced training and strengthened internal controls for financial disclosure.

The most recent analyst rating on (HK:0465) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Futong Technology Development Holdings Ltd. stock, see the HK:0465 Stock Forecast page.

Futong Technology Reports Increased Losses in 2025 Interim Results

Futong Technology Development Holdings Ltd. announced its unaudited interim financial results for the six-month period ending June 30, 2025. The company reported a decrease in revenue from RMB 66,992,000 in 2024 to RMB 58,280,000 in 2025, with a corresponding decline in gross profit. The company faced a loss from operations amounting to RMB 32,641,000, which was higher than the previous year’s loss. The results indicate challenges in maintaining profitability, which may impact stakeholders’ confidence.

The most recent analyst rating on (HK:0465) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Futong Technology Development Holdings Ltd. stock, see the HK:0465 Stock Forecast page.