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

• Market Cap: HK$1.36B
• Dividend Yield: N/A
• Average Volume (3M): 4.59M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.84
• Revenue Growth: -17.23%
• EPS Growth: -6.20%
• Country: HK
• Employees: 2,411
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 2,776,833,700
• 10 Day Avg. Volume: 9,976,500
• 30 Day Avg. Volume: 4,586,800
• PEG Ratio: -0.11
• Price to Book (P/B): 0.14
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -1.86
• 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: 54 Neutral
• Price Target: HK$0.50 ▲(0.00% Upside)

The overall stock score of 54 reflects significant financial challenges, particularly in revenue growth and cash flow efficiency, despite a strong balance sheet. Technical analysis indicates bearish momentum, further impacting the score. Valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to navigate economic challenges effectively.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single product line, enhancing resilience against market fluctuations and supporting long-term growth.

Strategic Partnerships

Strategic partnerships can drive collaborative revenue opportunities, expanding market reach and fostering innovation in payment solutions.

Negative Factors

Declining Revenue

A significant decline in revenue over the years indicates challenges in market competitiveness and product demand, impacting long-term growth potential.

Negative Cash Flow

Negative cash flow trends suggest potential liquidity issues, limiting the company's ability to invest in growth opportunities and manage financial obligations.

Profitability Challenges

Declining profitability indicates difficulties in maintaining cost efficiency and pricing power, which can hinder long-term financial health and competitiveness.

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

Company Description

Hi Sun Technology (China) Limited, an investment holding company, provides payment processing, platform operation, and financial solutions in the People's Republic of China. The company operates through Payment Processing Solutions; Fintech Solutions and Services; Platform Operation Solutions; and Financial Solutions segments. The Payment Processing Solutions segment offers payment processing services; and merchants recruiting and related products and solutions. The Fintech Solutions and Services segment provides micro lending, supply chain financing, factoring and credit assessment services, and related products and solutions. The Platform Operation Solutions segment offers telecommunication and mobile payment platform operation, and operation value-added services. The Financial Solutions segment provides information system consultancy, integration, and operation services; and sells information technology products to financial institutions and banks. It also manufactures and sells electronic power meters. Hi Sun Technology (China) Limited was incorporated in 2001 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

Hi Sun Technology generates revenue through multiple streams, primarily from the sale and leasing of its smart payment hardware, including POS terminals and related devices. The company also earns income from software licensing and transaction processing fees associated with its payment solutions. Additionally, Hi Sun Technology may engage in partnerships with financial institutions and retail chains to provide tailored payment solutions, which can create significant collaborative revenue opportunities. The growing demand for digital payment solutions in the Chinese market, driven by increasing consumer adoption of cashless transactions, further contributes to the company's earnings. Overall, its diverse product offerings and strategic partnerships play a crucial role in sustaining its revenue growth.

Hi Sun Technology (China) Limited Financial Statement Overview

Summary

Hi Sun Technology (China) Limited exhibits a mixed financial performance. The company faces challenges in revenue growth and profitability, as reflected in shrinking income and gross profit margins. The balance sheet remains strong with low debt levels and a high equity ratio, providing some stability. However, the negative cash flow trends are a significant concern, indicating 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.12B	2.34B	2.71B	3.43B	4.18B	3.84B
Gross Profit	819.48M	862.03M	947.89M	1.24B	1.17B	954.89M
EBITDA	-213.06M	-83.38M	610.77M	490.18M	3.66B	832.10M
Net Income	142.79M	157.60M	463.43M	510.08M	3.52B	656.68M
Balance Sheet
Total Assets	13.81B	11.86B	13.03B	11.46B	10.82B	9.72B
Cash, Cash Equivalents and Short-Term Investments	4.17B	3.45B	7.25B	4.60B	4.03B	4.63B
Total Debt	416.24M	118.00M	86.17M	350.63M	34.02M	53.48M
Total Liabilities	5.90B	4.14B	5.25B	3.90B	3.33B	3.35B
Stockholders Equity	7.32B	7.13B	7.19B	6.62B	6.42B	5.54B
Cash Flow
Free Cash Flow	-527.04M	-517.60M	1.17B	545.39M	-738.57M	-15.15M
Operating Cash Flow	-527.08M	-482.84M	1.21B	609.01M	-569.10M	219.23M
Investing Cash Flow	84.28M	73.38M	-38.57M	118.34M	131.60M	-277.70M
Financing Cash Flow	309.01M	314.00K	-1.16B	233.54M	100.36M	50.28M

Hi Sun Technology (China) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 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:0818, the sentiment is Positive. The current price of 0.5 is above the 20-day moving average (MA) of 0.49, below the 50-day MA of 0.51, and above the 200-day MA of 0.48, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.39 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 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	63 Neutral	HK$108.00M	-87.31	-0.93%	8.40%	-29.38%	-104.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3315	61 Neutral	HK$678.01M	14.58	2.23%	6.63%	-16.76%	-50.21%
9923	58 Neutral	HK$3.82B	35.97	3.35%	―	-9.32%	477.27%
2598	58 Neutral	HK$7.78B	4.07	94.40%	―	―	―
0818	54 Neutral	HK$1.36B	9.73	1.98%	―	-17.23%	-6.20%
8613	41 Neutral	HK$96.39M	-2.56	―	―	-43.10%	-5.98%

Hi Sun Technology (China) Limited Corporate Events

Hi Sun Technology Issues Profit Warning as Strategic Shift Drives 2025 Operating Loss

Hi Sun Technology (China) Limited has warned that it expects to report an operating loss for the year ended 31 December 2025, reversing from an operating profit of about HK$99.8 million in 2024. Based on unaudited management accounts for the eleven months to 30 November 2025, the Group recorded an operating loss of approximately HK$240.0 million versus an operating profit of around HK$106.5 million a year earlier, mainly due to non-cash share option expenses of about HK$198.6 million in its payment and digital services segment, the absence of an HK$88.4 million gain on disposal of subsidiaries recorded previously, and increased investment in overseas and cross-border businesses as digital payments displace traditional payment solutions. The board characterises these moves as a strategic adjustment aimed at laying a foundation for more stable long-term development, while cautioning shareholders and potential investors to exercise care when dealing in the company’s shares ahead of the audited 2025 results, expected in March 2026.

The most recent analyst rating on (HK:0818) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hi Sun Technology (China) Limited stock, see the HK:0818 Stock Forecast page.

Hi Sun Reviews Bid to Take Cloopen Private at Significant Premium

Hi Sun Technology (China) Limited has disclosed that Cloopen Group Holding Limited, in which it holds 55,677,341 Class A ordinary shares, has received a preliminary non-binding proposal from a buyer group led by Cloopen’s founder and Trustbridge Partners VII, L.P. to take the company private by acquiring all outstanding ordinary shares and ADSs at a significant premium to recent market prices. Hi Sun has written down the carrying value of its Cloopen stake to zero in recent financial statements and is currently reviewing the proposed going-private deal, which, if it proceeds, could transform the value of this investment and may constitute a notifiable transaction under Hong Kong listing rules, prompting further announcements as required.

The most recent analyst rating on (HK:0818) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hi Sun Technology (China) Limited stock, see the HK:0818 Stock Forecast page.

Hi Sun Technology Issues Phase 2 of Asset-Backed Securities

Hi Sun Technology (China) Limited has announced the issuance of Phase 2 of its asset-backed securities (ABS) scheme, with a total issue size of RMB151,000,000. The ABS are divided into priority and subordinated tranches, with the priority tranche being traded on the Shanghai Stock Exchange. The proceeds from this issuance will be used as general working capital for the company’s fintech services segment, aiming to enhance the company’s financing structure and operational activities. The board believes this move will not adversely affect the company’s financial standing or shareholder interests.

The most recent analyst rating on (HK:0818) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hi Sun Technology (China) Limited stock, see the HK:0818 Stock Forecast page.

Hi Sun Technology’s Subsidiaries Adopt Share Option Schemes

Hi Sun Technology (China) Limited announced the adoption of share option schemes by its subsidiaries, CoGoLinks and Resto, on December 12, 2025. CoGoLinks granted 2,701,000 options, while Resto granted 2,740,850 options to eligible participants, including directors and employees. These schemes aim to attract and retain high-caliber professionals crucial for the subsidiaries’ growth and development.

The most recent analyst rating on (HK:0818) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hi Sun Technology (China) Limited stock, see the HK:0818 Stock Forecast page.

Hi Sun Technology Affirms Director’s Competence Amid KWG Disciplinary Action

Hi Sun Technology (China) Limited announced that Mr. Tam Chun Fai, an independent non-executive director of the company, was involved in a disciplinary action related to his role at KWG Group Holdings Limited. The Stock Exchange’s Listing Committee found that Mr. Tam, along with other directors, failed to exercise reasonable skill and diligence in their duties. However, Hi Sun Technology’s board assessed that this incident does not impact Mr. Tam’s ability to serve as a director for Hi Sun, as it does not involve dishonesty or integrity issues, and Mr. Tam has agreed to comply with the required training.

The most recent analyst rating on (HK:0818) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hi Sun Technology (China) Limited stock, see the HK:0818 Stock Forecast page.