CNT Group Limited (0701) AI Stock Analysis

• Market Cap: HK$375.03M
• Dividend Yield: N/A
• Average Volume (3M): 11.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: -24.13%
• EPS Growth: -27.54%
• Country: HK
• Employees: 459
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.02
• Shares Outstanding: 1,903,685,700
• 10 Day Avg. Volume: 21,336
• 30 Day Avg. Volume: 11,445
• PEG Ratio: -0.45
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 1.29
• P/FCF Ratio: -41.65
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$0.21 ▲(2.50% Upside)

The overall stock score of 49 reflects significant financial challenges, including declining revenues and negative profitability, which are the most impactful factors. Technical analysis suggests weak momentum, and the valuation is unattractive due to a negative P/E ratio and no dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Equity Base

A strong equity base provides financial stability and can support the company in weathering financial challenges, offering a buffer against losses.

Market Position in Technology

CNT Group's focus on innovation in telecommunications and smart city solutions positions it well in a growing digital market, supporting long-term growth.

Strategic Partnerships

Strategic partnerships enhance CNT Group's ability to offer comprehensive solutions, expanding its market reach and reinforcing its competitive edge.

Negative Factors

Declining Revenues

Declining revenues indicate potential market share loss and operational challenges, which could hinder long-term growth and profitability.

Negative Cash Flow

Negative cash flow raises concerns about the company's ability to sustain operations and invest in growth without external financing.

Consistent Losses

Ongoing losses reflect operational inefficiencies and could limit the company's ability to invest in future growth and innovation.

CNT Group Limited Business Overview & Revenue Model

Company Description

CNT Group Limited (0701) is a diversified investment holding company based in Hong Kong, primarily engaged in the telecommunications, technology, and infrastructure sectors. The company focuses on providing innovative solutions and services that enhance connectivity and operational efficiency across various industries. Its core products and services include telecommunications equipment, smart city solutions, and technology-driven infrastructure projects, aimed at meeting the demands of a rapidly evolving digital landscape.

How the Company Makes Money

CNT Group Limited generates revenue through multiple channels, primarily from the sale of telecommunications equipment and services, which constitute a significant portion of its income. The company also earns money through strategic partnerships with other technology firms, enabling it to offer comprehensive solutions in smart city initiatives and infrastructure development. Additionally, CNT Group capitalizes on government contracts and public sector projects, which provide a steady stream of revenue. The company's focus on innovation and technology-driven offerings enhances its market position and contributes to its earnings.

CNT Group Limited Financial Statement Overview

Summary

CNT Group Limited is facing significant financial challenges, marked by declining revenues, ongoing losses, and cash flow issues. While the balance sheet shows some strength due to a strong equity base, the negative profitability and cash flow trends highlight potential risks. The company needs to address operational inefficiencies and improve its revenue trajectory to enhance financial health.

Income Statement

The company has faced declining revenue over the years, with a sharp decrease in 2024. Gross profit margins have been relatively stable but low, and the net profit margin is negative, indicating consistent losses. EBIT and EBITDA margins are also negative, reflecting operational challenges and inefficiencies.

Balance Sheet

Despite high levels of debt, the debt-to-equity ratio remains manageable due to significant stockholders' equity. The equity ratio indicates a strong reliance on equity financing, which is a positive sign of financial stability. However, the return on equity (ROE) is negative due to ongoing losses.

Cash Flow

The company's cash flow situation is concerning, with operating cash flow dropping to zero in 2024. Historical free cash flow growth has been erratic, and the lack of operating cash flow in the most recent year raises concerns about the company's ability to sustain operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	303.83M	345.90M	495.65M	665.59M	885.47M	781.51M
Gross Profit	128.42M	144.56M	174.58M	156.16M	200.59M	247.69M
EBITDA	-17.88M	-14.35M	-46.88M	-76.36M	4.04M	-56.68M
Net Income	-100.46M	-77.38M	-68.58M	-94.08M	-20.63M	-94.24M
Balance Sheet
Total Assets	1.69B	1.72B	1.96B	2.30B	2.44B	2.40B
Cash, Cash Equivalents and Short-Term Investments	311.72M	286.74M	359.39M	429.48M	503.89M	504.70M
Total Debt	181.78M	144.02M	178.90M	297.90M	272.73M	274.47M
Total Liabilities	391.27M	393.79M	511.37M	714.33M	759.28M	663.08M
Stockholders Equity	1.20B	1.22B	1.32B	1.45B	1.55B	1.58B
Cash Flow
Free Cash Flow	-8.33M	-10.74M	92.58M	-40.26M	30.95M	4.51M
Operating Cash Flow	-5.95M	-8.57M	96.58M	-17.10M	49.27M	31.23M
Investing Cash Flow	-55.04M	53.54M	-85.78M	-15.68M	-46.36M	-18.95M
Financing Cash Flow	5.74M	-36.38M	-160.25M	-21.31M	-45.08M	9.37M

CNT Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0701, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.20, and below the 200-day MA of 0.21, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.33 is Neutral, neither overbought nor oversold. The STOCH value of 21.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0701.

CNT Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2116	68 Neutral	HK$244.80M	13.42	7.30%	1.96%	29.04%	-1.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1950	60 Neutral	HK$116.64M	4.62	3.61%	―	-12.19%	108.93%
0301	56 Neutral	HK$630.42M	-18.13	-14.53%	―	0.35%	-153.95%
1047	54 Neutral	HK$147.68M	444.44	0.07%	―	5.65%	―
0701	49 Neutral	HK$375.03M	-3.73	-8.05%	―	-24.13%	-27.54%
1932	48 Neutral	HK$130.00M	-2.09	-15.93%	―	-25.21%	12.04%

CNT Group Limited Corporate Events

CNT Group Limited Announces Change of Auditor to Enhance Cost-Effectiveness

CNT Group Limited has announced a change in its auditor, with Ernst & Young resigning due to a disagreement over audit fees for the financial year ending December 31, 2025. The company has appointed ZHONGHUI ANDA CPA Limited as the new auditor, citing competitive proposals and the firm’s industry experience and technical competence as reasons for the change. The Board believes this transition will enhance cost-effectiveness without impacting the annual audit. The change is seen as beneficial for the company and its shareholders.