Tradelink Electronic Commerce Limited (0536) AI Stock Analysis

• Market Cap: HK$810.53M
• Dividend Yield: 9.9%
• Average Volume (3M): 529.67K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.18
• Revenue Growth: -6.93%
• EPS Growth: -18.99%
• Country: HK
• Employees: 223
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.05
• Shares Outstanding: 794,633,700
• 10 Day Avg. Volume: 502,000
• 30 Day Avg. Volume: 529,666
• PEG Ratio: -0.39
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 2.96
• P/FCF Ratio: 10.65
• 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: 72 Outperform
• Price Target: HK$1.00 ▲(0.00% Upside)

Tradelink Electronic Commerce Limited demonstrates strong financial health with robust profitability and minimal leverage, contributing significantly to its score. The attractive valuation, with a low P/E ratio and high dividend yield, further supports the stock's appeal. However, the technical indicators suggest a neutral market sentiment, which slightly tempers the overall score.

Tradelink Electronic Commerce Limited Business Overview & Revenue Model

Company Description

Tradelink Electronic Commerce Limited (stock code: 0536) is a leading provider of electronic commerce solutions in Hong Kong, focusing primarily on the logistics and trade sectors. The company specializes in offering a comprehensive suite of services, including electronic document interchange, customs declaration solutions, and supply chain management tools. By leveraging technology, Tradelink facilitates efficient trade processes for businesses, enhancing their operational efficiency and reducing transaction costs.

How the Company Makes Money

Tradelink generates revenue primarily through its electronic services and solutions offered to various stakeholders in the logistics and trade industries. Key revenue streams include fees for electronic document submissions, subscription fees for access to its online platforms, and service charges for customized solutions tailored to specific client needs. Additionally, the company may benefit from strategic partnerships with government bodies and trade organizations, which can enhance its service offerings and expand its customer base. The growth of e-commerce and increasing demand for digitized trade processes also contribute significantly to Tradelink's earnings.

Tradelink Electronic Commerce Limited Financial Statement Overview

Summary

Tradelink Electronic Commerce Limited presents a strong financial position with robust profitability and efficient cash flow management. The minimal leverage adds to its financial stability, though the declining revenue growth and slight reduction in free cash flow highlight areas that may need strategic focus.

Income Statement

Tradelink Electronic Commerce Limited has shown consistent profitability with a healthy gross profit margin of approximately 43.2% in 2024. However, the revenue has experienced a decline over the past year with a revenue growth rate of -7.1%, which is a concern. The company maintains strong net profit and EBIT margins at 33.1% and 27.2% respectively, indicating operational efficiency.

Balance Sheet

The company has a very low debt-to-equity ratio of 0.004, suggesting minimal financial leverage and a strong equity position. With a high equity ratio of 70.6%, Tradelink displays robust financial stability. However, the decline in total assets and stockholders' equity from the previous year warrants attention.

Cash Flow

Tradelink has shown a strong free cash flow to net income ratio of 0.84, indicating efficient cash conversion. However, the free cash flow has decreased from the previous year by 4.6%, reflecting a potential area of concern. The operating cash flow to net income ratio remains stable at 0.95, showcasing solid cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	246.02M	247.63M	266.61M	258.81M	273.82M	261.21M
Gross Profit	106.09M	107.07M	112.62M	113.56M	120.24M	107.51M
EBITDA	73.24M	81.09M	119.27M	88.57M	99.47M	92.87M
Net Income	83.04M	81.96M	100.64M	52.33M	73.65M	72.80M
Balance Sheet
Total Assets	530.47M	536.14M	545.58M	532.56M	564.53M	586.25M
Cash, Cash Equivalents and Short-Term Investments	453.34M	453.05M	444.70M	436.52M	440.57M	394.24M
Total Debt	1.19M	1.51M	1.47M	884.00K	1.20M	2.42M
Total Liabilities	160.66M	157.34M	169.38M	168.15M	185.90M	201.92M
Stockholders Equity	369.81M	378.80M	376.20M	364.41M	378.63M	384.33M
Cash Flow
Free Cash Flow	75.03M	68.77M	72.09M	61.23M	99.20M	74.72M
Operating Cash Flow	84.48M	78.22M	85.75M	66.94M	107.16M	81.36M
Investing Cash Flow	-140.76M	-197.59M	-86.35M	205.84M	42.05M	-41.30M
Financing Cash Flow	-81.47M	-80.68M	-89.61M	-67.04M	-81.12M	-68.30M

Tradelink Electronic Commerce Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.00
• 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:0536, the sentiment is Positive. The current price of 1 is below the 20-day moving average (MA) of 1.01, below the 50-day MA of 1.02, and above the 200-day MA of 0.92, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.88 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0536.

Tradelink Electronic Commerce Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0536	72 Outperform	HK$810.53M	9.76	23.35%	9.90%	-6.93%	-18.99%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1808	60 Neutral	HK$685.69M	6.41	27.53%	―	421.56%	328.43%
1450	56 Neutral	HK$1.58B	27.27	11.90%	―	-1.52%	-67.16%
8148	54 Neutral	HK$788.02M	-138.71	-31.21%	―	1.55%	39.81%
9600	42 Neutral	HK$204.81M	-1.86	-14.03%	―	15.44%	10.57%
6610	39 Underperform	HK$348.12M	-1.00	-16.28%	―	-15.20%	-206.58%

Tradelink Electronic Commerce Limited Corporate Events

Tradelink Reports Stable Interim Profits Amid Revenue Dip

Tradelink Electronic Commerce Limited reported its unaudited interim results for the six months ended June 30, 2025, showing a slight decrease in revenue to HK$121,045,000 compared to the previous year. Despite the revenue drop, the company achieved a profit of HK$41,773,000, indicating stable performance with a slight increase in profit before taxation. The results reflect the company’s ability to maintain profitability amidst fluctuating revenue, which is crucial for its stakeholders and market positioning.

Tradelink Announces Interim Dividend for 2025

Tradelink Electronic Commerce Limited announced an interim dividend of HKD 0.037 per share for the six months ending June 30, 2025. This decision reflects the company’s financial performance and commitment to returning value to shareholders, with the payment date set for October 8, 2025, and the record date on September 22, 2025.