Hi Sun Technology (China) Limited (0818) AI Stock Analysis

• Market Cap: HK$1.33B
• Dividend Yield: N/A
• Average Volume (3M): 7.87M
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.84
• Revenue Growth: -13.19%
• EPS Growth: -66.35%
• Country: HK
• Employees: 2,411
• Sector: Technology
• Sector Strength: 81
• Industry: Software - Infrastructure
• EPS (TTM): 0.06
• Shares Outstanding: 2,776,833,700
• 10 Day Avg. Volume: 4,908,000
• 30 Day Avg. Volume: 7,869,913
• PEG Ratio: 2.09
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.07
• 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: 61 Neutral
• Price Target: HK$0.50 ▲(4.17%Upside)

The overall score of 61 reflects Hi Sun Technology's mixed financial performance, with strong balance sheet stability countered by declining revenue and negative cash flow trends. Technical analysis suggests strong momentum, though overbought conditions could lead to a short-term pullback. An attractive P/E ratio enhances the stock's valuation appeal.

Hi Sun Technology (China) Limited Business Overview & Revenue Model

Company Description

Hi Sun Technology (China) Limited (0818) is a leading technology solutions provider headquartered in China. The company operates in several key sectors, including payment processing, financial solutions, and telecommunication technology. Hi Sun Technology offers a range of products and services such as payment terminals, transaction software, and network solutions to support its clients across various industries.

How the Company Makes Money

Hi Sun Technology (China) Limited generates revenue through its diversified business segments. The company primarily earns money from its payment processing services, which include the sale and maintenance of payment terminals and transaction software. Additionally, it provides financial solutions to banks and financial institutions, which involve system integration and software development services. The telecommunication technology segment contributes to its revenue by offering network solutions and related services. Key partnerships with financial institutions and telecom companies enhance its market presence and support its revenue streams.

Hi Sun Technology (China) Limited Financial Statement Overview

Summary

Hi Sun Technology faces revenue growth and profitability challenges, with shrinking income and gross profit margins. The balance sheet is strong, with low debt levels and a high equity ratio, but negative cash flow trends pose significant liquidity concerns.

Income Statement

The income statement shows a decline in revenue over the past few years, dropping from HKD 5.58 billion in 2019 to HKD 2.34 billion in 2024. Gross profit margin has also decreased, indicating potential challenges in maintaining cost efficiency. The net income has shown significant fluctuations, with a peak in 2021 due to an exceptional net income of HKD 3.52 billion. Overall, the income statement reflects declining revenue and profitability challenges.

Balance Sheet

The balance sheet is relatively strong with a high equity ratio and low debt levels. The debt-to-equity ratio remains low, indicating low leverage with total debt at HKD 118 million against equity of HKD 7.13 billion in 2024. However, there has been a decline in total assets over the years, which could pose risks if not addressed. Overall, the company maintains a robust equity position and low leverage.

Cash Flow

Cash flow analysis reveals challenges in cash generation, with negative operating and free cash flow in 2024. This contrasts with previous years where operating cash flow was positive, such as HKD 1.21 billion in 2023. The free cash flow has also turned negative, reflecting issues in cash efficiency and potential liquidity constraints. The cash flow position presents a concerning trend that needs attention.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.34B	2.71B	3.43B	4.18B	3.84B
	Gross Profit
862.03M	947.89M	1.24B	1.17B	954.89M
	EBIT
6.54M	74.55M	295.08M	350.25M	286.46M
	EBITDA
-83.38M	109.16M	490.18M	3.66B	832.10M
	Net Income Common Stockholders
157.60M	463.43M	510.08M	3.52B	656.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.45B	3.71B	4.60B	4.03B	4.63B
	Total Assets
11.86B	13.03B	11.46B	10.82B	9.72B
	Total Debt
118.00M	86.17M	350.63M	34.02M	53.48M
	Net Debt
-2.89B	-3.40B	-4.25B	-3.99B	-4.57B
	Total Liabilities
4.14B	5.25B	3.90B	3.33B	3.35B
	Stockholders Equity
7.13B	7.19B	6.62B	6.42B	5.54B
Cash Flow		Free Cash Flow
-517.60M	1.17B	545.39M	-738.57M	-15.15M
	Operating Cash Flow
-482.84M	1.21B	609.01M	-569.10M	219.23M
	Investing Cash Flow
73.38M	-38.57M	-51.09M	-48.50M	-146.72M
	Financing Cash Flow
314.00K	-1.16B	229.85M	-30.16M	-44.88M

Hi Sun Technology (China) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 50DMA: Positive
• 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:0818, the sentiment is Positive. The current price of 0.48 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.38, and above the 200-day MA of 0.37, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 57.81 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0818.

Hi Sun Technology (China) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1686	80 Outperform	HK$16.56B	17.18	19.23%	1.59%	12.91%	5.31%
Sector *	62 Neutral	$11.89B	9.95	-7.22%	4.98%	7.31%	-8.91%
0818	61 Neutral	HK$1.33B	8.36	2.20%	―	-13.19%	-66.35%
1268	52 Neutral	$2.88B	40.67	-56.58%	2.25%	-23.89%	-1698.95%
1382	50 Neutral	$1.81B	12.15	4.99%	21.54%	10.66%	3.88%
2350	46 Neutral		―	-17.91%	―	-30.88%	-346.88%
1823	44 Neutral	HK$173.30M	128.95	-1.10%	―	-52.67%	-102.48%

Hi Sun Technology (China) Limited Corporate Events

Hi Sun Technology Secures Shareholder Approval at AGM

Hi Sun Technology (China) Limited announced the successful conclusion of its Annual General Meeting held on May 21, 2025, where all proposed resolutions were approved by shareholders. Key resolutions included the re-election of directors, the re-appointment of PricewaterhouseCoopers as auditors, and the granting of mandates to the directors to issue and repurchase shares. This approval reflects strong shareholder support and positions the company for continued strategic initiatives and operational stability.

Hi Sun Technology Announces Asset-Backed Securities Issuance

Hi Sun Technology (China) Limited has announced the issuance of asset-backed securities (ABS) through its subsidiary, Ronghui Zhida Factoring, under the Suixin Cloud Chain-E Credit Supply Chain Financial Asset-backed Special Scheme. The ABS, which are backed by factoring loan receivables, have a maximum issue size of RMB2 billion and will be issued in multiple tranches. The first phase, with an issue size of RMB335 million, has been established, with the priority tranche to be traded on the Shanghai Stock Exchange. This move aims to widen the company’s fund-raising channels, providing low-cost capital to improve its financing structure and support its fintech services business. The board believes the issuance will not adversely impact the company’s financial position or shareholder interests.

Hi Sun Technology Announces 2025 Annual General Meeting

Hi Sun Technology (China) Limited has announced its upcoming annual general meeting scheduled for May 21, 2025, where key agenda items include the adoption of financial statements for the year ending December 31, 2024, re-election of directors, and re-appointment of auditors. The meeting will also consider resolutions to authorize the board to manage the company’s share capital, which could impact the company’s strategic financial operations and shareholder value.

Hi Sun Technology Approves Share Option Grants at Special General Meeting

Hi Sun Technology (China) Limited announced the approval of several resolutions at its Special General Meeting, concerning the grant of options under the VBill (Cayman) Share Option Scheme. The resolutions, which were passed with over 75% approval, involve granting options to various directors and stakeholders, indicating a strategic move to align interests and potentially enhance company performance.