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

• Market Cap: HK$96.49M
• Dividend Yield: N/A
• Average Volume (3M): 21.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: 2.50%
• EPS Growth: 16.40%
• Country: HK
• Employees: 280
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): -0.14
• Shares Outstanding: 311,249,970
• 10 Day Avg. Volume: 3,600
• 30 Day Avg. Volume: 21,933
• PEG Ratio: -0.26
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.90
• 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

• Rating: 42 Neutral
• Price Target: ―

The overall stock score for Futong Technology Development Holdings Ltd. is 42, indicating significant challenges. The primary concern is the financial performance, marked by declining revenue and consistent losses. Technical analysis provides a mixed outlook, with some medium-term indicators suggesting potential stability. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield. These factors suggest caution for potential investors.

Futong Technology Development Holdings Ltd. Business Overview & Revenue Model

Company Description

Futong Technology Development Holdings Ltd. (0465) is a company engaged in the business of providing IT solutions and services. The company primarily operates in the information technology sector, offering a range of products and services including software development, systems integration, and IT consultancy. Futong Technology serves various industries by helping businesses enhance their IT infrastructure and optimize their technological capabilities.

How the Company Makes Money

Futong Technology Development Holdings Ltd. generates revenue through multiple streams. Key revenue sources include the sale of software products and IT solutions, which encompass systems integration services that allow clients to streamline their operations and improve efficiency. Additionally, the company offers consultancy services, which provide expert advice and strategies for IT system enhancements and digital transformations. Futong Technology may also engage in partnerships with technology providers to expand its offerings, and these collaborations can lead to revenue from joint projects or licensing agreements. Its ability to adapt to the evolving technological landscape and provide comprehensive IT services contributes significantly to its earnings.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
150.55M	145.56M	343.06M	235.23M	616.27M
	Gross Profit
15.64M	24.61M	31.22M	29.71M	85.79M
	EBIT
-69.13M	-83.88M	-75.77M	-71.67M	4.05M
	EBITDA
-66.77M	-64.55M	-61.11M	-51.10M	6.47M
	Net Income Common Stockholders
-70.83M	-83.30M	-75.55M	-72.69M	2.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
202.92M	246.22M	233.68M	352.65M	444.82M
	Total Assets
306.33M	383.11M	498.47M	617.72M	758.57M
	Total Debt
1.84M	3.52M	3.29M	2.26M	4.34M
	Net Debt
-199.97M	-241.55M	-228.32M	-347.98M	-436.54M
	Total Liabilities
57.48M	63.60M	96.11M	140.62M	209.80M
	Stockholders Equity
244.28M	314.90M	397.77M	472.49M	544.29M
Cash Flow		Free Cash Flow
0.00	6.35M	-95.75M	-88.93M	79.29M
	Operating Cash Flow
0.00	22.28M	-95.35M	-86.84M	82.59M
	Investing Cash Flow
0.00	-7.13M	-20.03M	-21.44M	-3.64M
	Financing Cash Flow
0.00	-1.70M	-1.74M	-2.12M	-13.38M

Futong Technology Development Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.29 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.30, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1339	85 Outperform	HK$380.40B	5.54	17.85%	2.20%	4.62%	81.63%
1133	78 Outperform	€13.57B	7.43	11.35%	31.81%	30.12%	139.92%
2377	74 Outperform	HK$683.67M	3.21	7.52%	44.03%	-1.20%	-4.16%
1415	66 Neutral	HK$22.64B	24.37	25.73%	―	168.87%	150.80%
Sector *	55 Neutral	$3.08B	4.59	-5.40%	6.77%	8.17%	-52.13%
0465	42 Neutral	HK$96.49M	―	-25.32%	―	2.50%	16.40%
0813	39 Underperform	$2.77B	―	-380.16%	―	-1.39%	-66.84%

Futong Technology Development Holdings Ltd. Corporate Events

Futong Technology Announces AGM to Discuss Key Financial and Governance Matters

Futong Technology Development Holdings Ltd. has announced its upcoming annual general meeting (AGM) scheduled for May 22, 2025, in Hong Kong. The meeting will address several key items, including the approval of the company’s audited financial statements for 2024, the re-election of directors, and the reappointment of BDO Limited as auditors. Additionally, the AGM will consider a resolution to authorize the company’s directors to allot and issue shares, with certain limitations, during a specified period. This meeting is significant for stakeholders as it outlines the company’s governance and strategic financial decisions for the coming year.

Futong Technology Announces Grant of Share Options

Futong Technology Development Holdings Ltd. announced the grant of 2,500,000 share options to eligible participants under its Share Option Scheme, with a ten-year validity starting from April 7, 2025. The scheme aims to incentivize and reward participants for their contributions to the company, aligning with the company’s strategy to retain talent and enhance performance, despite the absence of performance targets or clawback mechanisms.

Futong Technology Reports Increased Losses in 2024 Annual Results

Futong Technology Development Holdings Ltd. reported its annual results for the year ended December 31, 2024, showing a decrease in revenue and an increase in net loss compared to the previous year. The company faced challenges with increased costs and impairment losses, impacting its financial performance and resulting in a loss attributable to owners of RMB 70,833,000.