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

• Market Cap: HK$1.53B
• Dividend Yield: N/A
• Average Volume (3M): 4.66M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.88
• Revenue Growth: -13.19%
• EPS Growth: -66.35%
• Country: HK
• Employees: 2,411
• Sector: Technology
• Sector Strength: 93
• Industry: Software - Infrastructure
• EPS (TTM): 0.06
• Shares Outstanding: 2,776,833,700
• 10 Day Avg. Volume: 2,580,200
• 30 Day Avg. Volume: 4,660,166
• PEG Ratio: 2.12
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.13
• 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: HK$0.50
• Price Target Upside: -3.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: HK$0.50 ▼(-3.85%Downside)

The overall score of 65 reflects a balance between strong technical indicators and low valuation, offset by financial performance challenges, particularly in cash flow and revenue growth. The stock shows potential for capital appreciation, but liquidity concerns need addressing for long-term stability.

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 challenges in revenue growth and profitability, with declining income and gross profit margins. The balance sheet is strong, with low debt levels and a high equity ratio, but negative cash flow trends indicate potential liquidity issues.

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
EBITDA	-83.38M	109.16M	490.18M	3.66B	832.10M
Net Income	157.60M	463.43M	510.08M	3.52B	656.68M
Balance Sheet
Total Assets	11.86B	13.03B	11.46B	10.82B	9.72B
Cash, Cash Equivalents and Short-Term Investments	3.45B	3.71B	4.60B	4.03B	4.63B
Total Debt	118.00M	86.17M	350.63M	34.02M	53.48M
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: 0.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.52 is above the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.45, and above the 200-day MA of 0.39, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 56.88 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 is Neutral, 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
8062	74 Outperform	HK$146.40M	26.07	4.10%	13.11%	11.81%	49.64%
3315	74 Outperform	€757.77M	13.91	2.46%	5.79%	-24.27%	-62.16%
0818	65 Neutral	HK$1.53B	9.15	2.20%	―	-13.19%	-66.35%
9923	63 Neutral	HK$6.42B	66.73	3.07%	―	-23.46%	358.07%
2598	57 Neutral	HK$21.72B	―		―	―	―
Sector *	57 Neutral	HK$14.14B	5.06	-5.75%	5.40%	9.34%	-42.23%
8613	47 Neutral	HK$165.78M	―	-380.55%	―	168.04%	―

Hi Sun Technology (China) Limited Corporate Events

Hi Sun Technology Issues Profit Warning Amid Strategic Shift

Hi Sun Technology (China) Limited has issued a profit warning for the first half of 2025, anticipating an operating loss compared to a profit in the same period the previous year. This downturn is primarily due to non-cash share option expenses and strategic investments in digital payment solutions and international expansion. Despite the expected loss, the company views these changes as foundational for future stability and growth.

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.