Asia Tele-Net and Technology Corp Ltd (0679) AI Stock Analysis

• Market Cap: HK$366.66M
• Dividend Yield: 3.26%
• Average Volume (3M): 39.95K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: -0.29%
• EPS Growth: -113.17%
• Country: HK
• Employees: 327
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.04
• Shares Outstanding: 381,933,400
• 10 Day Avg. Volume: 24,050
• 30 Day Avg. Volume: 39,950
• PEG Ratio: 0.23
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 7.40
• 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: 46 Neutral
• Price Target: HK$1.00 ▲(1.01% Upside)

The overall stock score reflects significant challenges in financial performance and technical analysis, with negative profitability and weak market momentum. Valuation concerns are evident with a negative P/E ratio, although the dividend yield offers some investor appeal.

Positive Factors

Strong Equity Base

A strong equity base with a high equity ratio of 70.37% indicates financial stability and provides a buffer against potential losses, supporting long-term resilience.

Low Leverage

Low leverage reduces financial risk and interest burden, allowing the company more flexibility to invest in growth opportunities and withstand economic downturns.

Improved Gross Profit Margins

Improved gross profit margins reflect better cost management and operational efficiency, which can enhance profitability and competitive positioning over time.

Negative Factors

Negative Net Income

Negative net income indicates ongoing profitability challenges, which can hinder reinvestment in the business and affect long-term growth prospects.

Cash Flow Issues

Lack of positive cash flow raises concerns about liquidity and the company's ability to fund operations and growth initiatives without external financing.

Volatile EBIT Margins

Volatile EBIT margins suggest inconsistent operational performance, which can affect earnings predictability and investor confidence in the company's financial health.

Asia Tele-Net and Technology Corp Ltd Business Overview & Revenue Model

Company Description

Asia Tele-Net and Technology Corporation Limited, an investment holding company, designs, manufactures, and sells electroplating machinery and other industrial machinery. It also provides installation and after sale services for electroplating machines; and sells spare parts. The company is involved in securities trading, management, property holding and investment, software development, and money lending businesses. It operates in Hong Kong, China, Taiwan, the United States, Macedonia, Vietnam, the United Kingdom, Mexico, Canada, Singapore, Slovakia, Korea, India, Germany, Other European countries, the United Arab Emirates, and internationally. The company was formerly known as Process Automation (Holdings) Ltd and changed its name to Asia Tele-Net and Technology Corporation Limited in 1999. Asia Tele-Net and Technology Corporation Limited was founded in 1966 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Asia Tele-Net generates revenue through multiple streams, including the sale of telecommunication equipment, subscription services for network access, and consulting fees for technology solutions. The company benefits from long-term contracts with businesses and government entities for the provision of telecommunication infrastructure and services. Additionally, partnerships with technology providers and mobile network operators enable Asia Tele-Net to expand its service offerings and reach a broader customer base, further contributing to its earnings. Revenue is also supplemented by maintenance contracts and support services for the technologies deployed.

Asia Tele-Net and Technology Corp Ltd Financial Statement Overview

Summary

The company faces challenges in profitability and cash flow management despite having a solid equity base and low leverage. Revenue growth is a positive indicator, but negative net income and cash flow issues require strategic management attention.

Income Statement

The company's revenue has shown a mixed growth pattern with an increase from 319.67M in 2022 to 419.11M in 2024. However, profitability metrics such as net income were negative in 2024, and EBIT margins have been volatile. Gross profit margins improved to 28.77% in 2024 from 18.89% in 2022, indicating better cost management. Despite this, the net profit margin was negative in 2024, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a strong equity position with stockholders' equity of 1.41B in 2024 compared to total assets of 2.01B, resulting in an equity ratio of 70.37%. The debt-to-equity ratio remains low at 0.13, indicating minimal leverage risk. However, the return on equity is negative due to the net loss, highlighting profitability issues.

Cash Flow

The cash flow statement reveals zero free cash flow and operating cash flow in 2024, highlighting liquidity concerns. Previous years showed negative free cash flow, suggesting ongoing cash management issues. The lack of positive operating cash flow raises concerns about the company's ability to fund operations internally.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	435.48M	419.11M	431.29M	319.67M	364.63M	335.10M
Gross Profit	130.07M	120.55M	110.57M	29.66M	36.73M	63.74M
EBITDA	43.73M	37.48M	416.41M	9.06M	-1.11B	261.73M
Net Income	-28.68M	-14.10M	304.18M	-32.82M	-838.60M	138.77M
Balance Sheet
Total Assets	2.06B	2.01B	2.14B	1.81B	1.88B	2.87B
Cash, Cash Equivalents and Short-Term Investments	854.47M	771.36M	649.96M	753.27M	1.24B	1.02B
Total Debt	174.45M	182.64M	37.14M	7.56M	8.98M	8.39M
Total Liabilities	630.98M	594.66M	666.98M	626.59M	556.70M	756.27M
Stockholders Equity	1.43B	1.41B	1.47B	1.18B	1.32B	2.11B
Cash Flow
Free Cash Flow	91.27M	46.57M	-97.23M	22.12M	-222.14M	-288.81M
Operating Cash Flow	97.33M	52.63M	-89.69M	24.07M	-185.93M	-288.58M
Investing Cash Flow	2.21M	86.10M	3.33M	-171.16M	-552.68M	1.12B
Financing Cash Flow	-16.60M	-21.56M	-16.41M	-55.87M	179.70M	-20.91M

Asia Tele-Net and Technology Corp Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.99
• 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:0679, the sentiment is Positive. The current price of 0.99 is above the 20-day moving average (MA) of 0.94, above the 50-day MA of 0.93, and above the 200-day MA of 0.92, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.73 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0679.

Asia Tele-Net and Technology Corp Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3348	67 Neutral	HK$640.00M	7.61	8.36%	3.34%	-21.28%	-29.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3302	51 Neutral	HK$312.93M	-5.45	-10.85%	―	-0.51%	-922.95%
1645	48 Neutral	HK$2.07B	-107.31	-6.34%	―	-2.88%	44.39%
0679	46 Neutral	HK$366.66M	-12.82	-2.06%	3.26%	-0.29%	-113.17%
0365	46 Neutral	HK$421.95M	-24.17	-5.21%	―	18.71%	61.54%
1673	39 Underperform	HK$376.69M	-30.26	-2.71%	―	-4.33%	55.43%

Asia Tele-Net and Technology Corp Ltd Corporate Events

Asia Tele-Net Enhances Treasury Management Strategy for Growth

Asia Tele-Net and Technology Corporation Limited has released additional information regarding its treasury management segment for the interim period ending June 30, 2025. The company emphasizes its investment strategies, which include acquiring bonds and debt instruments for better returns compared to bank deposits and pursuing a balanced approach in stock investments for potential growth. Risk management measures are in place to mitigate concentration, counterparty, and liquidity risks, ensuring investments are regulated and have a secondary market for liquidity. This strategic focus aims to enhance the company’s financial stability and growth potential, impacting its market positioning positively.

The most recent analyst rating on (HK:0679) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Asia Tele-Net and Technology Corp Ltd stock, see the HK:0679 Stock Forecast page.