Tradelink Electronic Commerce Limited (0536) AI Stock Analysis

• Market Cap: HK$794.63M
• Dividend Yield: 10.1%
• Average Volume (3M): 631.93K
• Price to Earnings (P/E): 9.7
• 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: 522,800
• 30 Day Avg. Volume: 631,933
• 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

• Rating: 72 Outperform
• Price Target: ―

Tradelink Electronic Commerce Limited demonstrates strong financial health with impressive profitability margins and low leverage. However, challenges in revenue growth and slightly declining cash flows suggest areas for improvement. Technical analysis shows a stable, albeit not strong, upward trend, while the attractive valuation, indicated by a low P/E ratio and high dividend yield, enhances its investment appeal. Overall, the stock is solid but requires attention to growth catalysts.

Tradelink Electronic Commerce Limited Business Overview & Revenue Model

Company Description

Tradelink Electronic Commerce Limited (0536) is a leading provider of government electronic commerce services and solutions in Hong Kong. The company primarily operates in the sectors of electronic commerce, supply chain management, and logistics-related services. Tradelink offers a variety of products and services, including electronic document management for trade and logistics, digital certification services, and supply chain management solutions, helping businesses streamline their operations and enhance efficiency.

How the Company Makes Money

Tradelink Electronic Commerce Limited generates revenue through a diversified business model focusing on several key streams. The core revenue comes from providing electronic commerce services to government and commercial clients, particularly in trade and logistics. This includes fees charged for electronic document processing and management services. Additionally, the company earns income from digital certification services, which are essential for secure electronic transactions. Tradelink's supply chain management solutions also contribute to its earnings by offering businesses tools to optimize their logistics and operational processes. Significant partnerships with government bodies and commercial enterprises further bolster the company's revenue, providing a stable and recurring income source.

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. Overall, the company demonstrates solid financial health with some room for improvement in growth dynamics.

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: Neutral
• Last Price: 1.00
• 50DMA: Negative
• 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:0536, the sentiment is Neutral. The current price of 1 is below the 20-day moving average (MA) of 1.01, below the 50-day MA of 1.00, and above the 200-day MA of 0.90, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.73 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$794.63M	9.67	23.35%	10.10%	-6.93%	-18.99%
1808	62 Neutral	HK$734.66M	6.86	27.53%	―	421.56%	328.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1450	59 Neutral	HK$1.32B	22.73	11.90%	―	-1.52%	-67.16%
9600	50 Neutral	HK$218.02M	―	-14.03%	―	15.44%	10.57%
8148	46 Neutral	HK$403.17M	955.56	-31.21%	―	1.55%	39.81%
6610	42 Neutral	HK$498.80M	2.14	-16.28%	―	-15.20%	-206.58%

Tradelink Electronic Commerce Limited Corporate Events

Tradelink Establishes Nomination Committee Guidelines

Tradelink Electronic Commerce Limited has outlined the terms of reference for its Nomination Committee, emphasizing a fair and transparent process for nominating and appointing directors. The committee will consist of at least three members, primarily independent non-executive directors, and will meet at least once a year to ensure compliance with the company’s governance standards and the Hong Kong Stock Exchange’s listing rules.