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

• Market Cap: HK$245.89M
• Dividend Yield: N/A
• Average Volume (3M): 36.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$0.70 ▲(22.81% Upside)

The overall stock score reflects significant financial challenges, including declining revenue and consistent net losses, which are major concerns. Despite strong technical indicators suggesting bullish momentum, the overbought status and negative valuation metrics, such as a negative P/E ratio, weigh heavily on the stock's attractiveness.

Positive Factors

Strong Equity Position

A strong equity base and low debt levels provide financial stability and flexibility, enabling the company to withstand economic fluctuations.

Diverse Client Base

A diverse client base reduces dependency on a single revenue stream, enhancing resilience against sector-specific downturns and fostering stable revenue.

Innovation in Telecommunications

Innovation and adaptation to new technologies ensure long-term competitiveness and relevance in the rapidly evolving telecommunications sector.

Negative Factors

Declining Revenue

Consistent revenue decline indicates potential loss of market share and challenges in maintaining competitive positioning, impacting long-term growth.

Consistent Net Losses

Ongoing net losses and negative margins highlight operational inefficiencies, threatening the company's ability to achieve profitability and sustain operations.

Volatile Cash Flow

Volatile cash flow limits the company's ability to reinvest in growth opportunities and manage financial obligations, posing risks to long-term sustainability.

Futong Technology Development Holdings Ltd. Business Overview & Revenue Model

Company Description

Futong Technology Development Holdings Ltd. (0465) is a Hong Kong-based company primarily engaged in the development and production of optical communication products and solutions. The company operates in the telecommunications sector, focusing on providing high-quality fiber optic cables, connectors, and related accessories. Futong's core products cater to both domestic and international markets, supporting infrastructure development in various sectors such as telecommunications, data centers, and other digital communication platforms.

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: Positive
• Last Price: 0.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0465, the sentiment is Positive. The current price of 0.57 is below the 20-day moving average (MA) of 0.68, equal to the 50-day MA of 0.57, and above the 200-day MA of 0.39, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 69.86 is Neutral, neither overbought nor oversold. The STOCH value of 82.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$94.79M	7.66	7.12%	6.41%	3.21%	-12.00%
0318	69 Neutral	HK$181.60M	15.44	2.10%	―	4.19%	-52.73%
8033	66 Neutral	HK$74.55M	5.13	6.73%	7.87%	-1.57%	-18.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8606	59 Neutral	HK$102.66M	-70.91	-1.95%	―	5.01%	82.54%
0465	50 Neutral	HK$245.89M	-2.96	-29.34%	―	-18.19%	4.52%