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

• Market Cap: HK$94.93M
• Dividend Yield: N/A
• Average Volume (3M): 35.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: 2.50%
• EPS Growth: 16.40%
• Country: HK
• Employees: 280
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): -0.14
• Shares Outstanding: 311,249,970
• 10 Day Avg. Volume: 92,400
• 30 Day Avg. Volume: 35,200
• PEG Ratio: -0.16
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.87
• 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: 46 Neutral
• Price Target: HK$0.50 ▲(66.67%Upside)

The most significant factor affecting the stock score is the poor financial performance, characterized by consistent net losses and declining revenue. Technical analysis provides some optimism with short-term positive momentum, but this is overshadowed by a negative valuation outlook due to a negative P/E ratio. Overall, the stock faces significant risks with limited growth potential.

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
EBITDA	-66.77M	-64.55M	-61.11M	-51.10M	6.47M
Net Income	-70.83M	-83.30M	-75.55M	-72.69M	2.97M
Balance Sheet
Total Assets	306.33M	383.11M	498.47M	617.72M	758.57M
Cash, Cash Equivalents and Short-Term Investments	202.92M	246.22M	233.68M	352.65M	444.82M
Total Debt	1.84M	3.52M	3.29M	2.26M	4.34M
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	-52.01M	6.35M	-95.75M	-88.93M	79.29M
Operating Cash Flow	-44.21M	22.28M	-95.35M	-86.84M	82.59M
Investing Cash Flow	2.67M	-7.13M	-20.03M	-21.44M	-3.64M
Financing Cash Flow	-1.85M	-1.70M	-1.74M	-2.12M	-13.38M

Futong Technology Development Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.3 is above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.30, and above the 200-day MA of 0.29, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 61.77 is Neutral, neither overbought nor oversold. The STOCH value of 50.83 is Neutral, 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
0318	75 Outperform	HK$131.35M	5.33	4.60%	―	-0.22%	61.69%
8033	71 Outperform	HK$76.40M	7.43	4.70%	8.06%	14.53%	57.55%
8319	69 Neutral	HK$92.38M	6.61	8.06%	7.13%	-8.25%	-14.22%
1037	61 Neutral	€172.58M	―		―	-19.22%	24.71%
Sector *	57 Neutral	HK$14.23B	4.94	-5.75%	5.29%	9.34%	-42.23%
8606	53 Neutral	HK$138.80M	―	-6.08%	―	8.50%	67.35%
0465	46 Neutral	HK$94.93M	―	-25.32%	―	2.50%	16.40%

Futong Technology Development Holdings Ltd. Corporate Events

Futong Technology Announces Board Changes and New Executive Appointment

Futong Technology Development Holdings Ltd. has announced significant changes to its board, with the retirement of non-executive director Ms. Chen Jing and the appointment of Ms. Chen Xiaoxuan as an executive director and a member of the Nomination Committee, effective June 30, 2025. Ms. Chen Xiaoxuan, who has extensive experience in AI, big data, and cloud computing, is expected to bring valuable expertise to the company, potentially strengthening its market position and operational capabilities.

Futong Technology Announces Board and Committee Roles

Futong Technology Development Holdings Ltd. has announced the composition of its board of directors and the roles within its three established committees: Audit, Remuneration, and Nomination. This announcement reflects the company’s governance structure and may impact its strategic direction and operational oversight, which is crucial for stakeholders and investors monitoring the company’s leadership dynamics.

Futong Technology Updates Nomination Committee Terms

Futong Technology Development Holdings Limited has revised the terms of reference for its Nomination Committee, which was initially established in 2009. The committee is responsible for overseeing the nomination procedures for the appointment, reappointment, and removal of directors, ensuring board diversity, and assessing directors’ contributions and responsibilities. The changes aim to enhance the governance structure by ensuring a diverse and independent committee composition, with meetings held at least once a year to review and recommend board candidates and policies.

Futong Technology AGM Approves Key Resolutions

Futong Technology Development Holdings Ltd. successfully held its Annual General Meeting on May 22, 2025, where all proposed resolutions were approved by shareholders. Key resolutions included the re-election of directors, the re-appointment of auditors, and granting the board mandates to issue and repurchase shares, reflecting strong shareholder support and potentially enhancing the company’s operational flexibility and market positioning.

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.