BC Technology Group Limited (0863) AI Stock Analysis

• Market Cap: HK$7.33B
• Dividend Yield: N/A
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): 161.0
• Beta (1Y): 0.18
• Revenue Growth: 78.59%
• EPS Growth: N/A
• Country: HK
• Employees: 258
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.10
• Shares Outstanding: 626,353,200
• 10 Day Avg. Volume: 2,651,701
• 30 Day Avg. Volume: 1,611,060
• PEG Ratio: N/A
• Price to Book (P/B): 5.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.94
• 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: 63 Neutral
• Price Target: HK$13.50 ▲(15.38%Upside)

The overall stock score of 63 reflects strong technical momentum and financial performance, tempered by significant valuation concerns. While the company shows promising revenue growth and profitability improvements, the high P/E ratio suggests potential overvaluation risks. Investors should be cautious of cash flow challenges despite the robust technical indicators.

BC Technology Group Limited Business Overview & Revenue Model

Company Description

BC Technology Group Limited (0863) is a Hong Kong-based investment holding company primarily engaged in the digital asset business. The company operates through its subsidiaries, offering a range of services including digital asset trading, brokerage, and technology solutions. BC Technology Group is known for its OSL platform, which is a leading digital asset platform in Asia, providing a secure and compliant environment for trading cryptocurrencies and other digital assets.

How the Company Makes Money

BC Technology Group Limited makes money through a variety of revenue streams centered around its digital asset services. The company's primary source of income is derived from transaction fees charged to users trading on its OSL platform. Additionally, BC Technology Group generates revenue from its brokerage services, where it earns commissions by facilitating trades for institutional clients. The company also monetizes its technology solutions by licensing its proprietary trading technology and providing software as a service (SaaS) to other financial institutions. Strategic partnerships with other financial entities enhance its service offerings and expand its market reach, contributing to its overall earnings.

BC Technology Group Limited Financial Statement Overview

Summary

BC Technology Group Limited shows promising top-line growth and a return to profitability, with improved margins and a solid capital structure. However, ongoing cash flow challenges and historical equity volatility suggest areas for caution. Continued focus on operational efficiencies and cash management will be key to sustaining financial stability and growth.

Income Statement

The company achieved significant revenue growth of 78.58% from 2023 to 2024, indicating robust top-line expansion. Gross profit margin improved to 48.52%, up from 91.60% last year. The net profit margin turned positive at 12.71%, a stark improvement from negative margins in previous years, showing enhanced profitability. However, EBIT and EBITDA margins remain areas for improvement, with EBIT margin at 12.64% and EBITDA margin at 23.98%. Overall, the income statement reflects strong revenue growth and a return to profitability, albeit with room for margin enhancement.

Balance Sheet

The company's balance sheet shows a favorable debt-to-equity ratio of 0.05, indicating low leverage. Return on equity has turned positive at 3.69%, reflecting improved earnings relative to equity. The equity ratio stands at 69.36%, suggesting a strong capital structure. While these metrics indicate a stable financial position, the substantial fluctuations in stockholders' equity over the years signal potential volatility. Overall, the balance sheet is strong, but historical volatility warrants monitoring.

Cash Flow

Operating cash flow remains negative at -319.76 million, but financing cash flow has strongly supported liquidity with 695.9 million. Free cash flow remains negative at -322.81 million, reflecting ongoing cash utilization. The operating cash flow to net income ratio is negative, indicating challenges in converting earnings into cash. Despite improved financing activities, persistent negative cash flows highlight a need for better cash management and operational efficiency.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
207.24M	374.75M	209.84M	115.84M	352.02M	256.90M
	Gross Profit
79.76M	181.86M	192.24M	92.53M	302.63M	207.09M
	EBIT
-143.38M	47.38M	-227.07M	-532.94M	-321.34M	―
	EBITDA
-92.08M	89.90M	-185.82M	-486.24M	-262.47M	-182.67M
	Net Income Common Stockholders
-186.88M	47.65M	-263.86M	-550.11M	-369.24M	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
412.00M	812.41M	218.66M	1.01B	954.52M	414.01M
	Total Assets
1.90B	1.86B	1.44B	2.51B	5.28B	4.04B
	Total Debt
49.30M	58.82M	17.35M	139.75M	275.18M	757.18M
	Net Debt
-362.70M	-753.59M	-201.31M	-869.41M	-679.34M	343.18M
	Total Liabilities
1.41B	579.37M	1.05B	1.85B	4.09B	3.88B
	Stockholders Equity
500.58M	1.29B	411.74M	672.10M	1.19B	169.27M
Cash Flow		Free Cash Flow
-365.83M	-322.81M	-686.40M	169.23M	-461.98M	―
	Operating Cash Flow
-365.60M	-319.76M	-686.40M	171.07M	-415.34M	―
	Investing Cash Flow
-6.44M	3.19M	6.30M	14.96M	-104.32M	―
	Financing Cash Flow
661.43M	695.90M	-80.94M	-124.50M	1.06B	251.18M

BC Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.70
• 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:0863, the sentiment is Neutral. The current price of 11.7 is below the 20-day moving average (MA) of 12.03, above the 50-day MA of 10.93, and above the 200-day MA of 8.26, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 38.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0863.

BC Technology Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0669	82 Outperform	$168.40B	19.22	18.52%	2.71%	6.13%	14.88%
2388	78 Outperform	HK$361.59B	9.46	11.58%	5.04%	8.61%	16.84%
1093	76 Outperform	$101.88B	22.16	13.20%	4.42%	-9.60%	-27.18%
2318	72 Outperform	$964.10B	6.55		6.13%	11.71%	37.04%
0863	63 Neutral	HK$7.33B	160.96	6.56%	―	78.59%	―
0606	63 Neutral	HK$493.42M	7.99	2.12%	―	-4.66%	-77.08%
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%

BC Technology Group Limited Corporate Events

OSL Group Limited Proposes Change of Auditor to Deloitte

OSL Group Limited, a company incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, announced a proposed change of auditor. The current auditor, PricewaterhouseCoopers, will retire after the upcoming annual general meeting in June 2025. The Board, with the Audit Committee’s recommendation, proposes appointing Deloitte Touche Tohmatsu as the new auditor, citing their experience, resources, and independence as key factors for the selection. This change aims to enhance the independence of the external audit, which is considered beneficial for the company and its shareholders.

OSL Group Limited Announces Annual General Meeting for Strategic Decisions

BC Technology Group Limited has announced the upcoming annual general meeting of its subsidiary, OSL Group Limited, to be held on June 27, 2025. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, appointment of auditors, and authorization for directors to issue additional shares. This meeting is crucial for stakeholders as it will determine the company’s future governance structure and financial strategies.

BC Technology Group to Acquire Majority Stake in Target Company

BC Technology Group Limited, through its wholly-owned subsidiary, has entered into a Share Purchase Agreement to acquire 90% of the issued shares of a target company for approximately US$15 million. This acquisition will be settled through the issuance of new shares under the company’s General Mandate, which allows for the issuance of up to 20% of the company’s share capital. The transaction will result in the target company becoming an indirect subsidiary, with its financial results consolidated into BC Technology Group’s financial statements. This strategic acquisition is expected to enhance the company’s market position and operational capabilities.

BC Technology Group Adjusts Europe Acquisition Strategy Amid Regulatory Changes

BC Technology Group Limited, through its subsidiary OSL Group Limited, operates in the digital assets and blockchain platform industry, focusing on the exchange, purchase, and sale of cryptocurrencies in Europe. The company announced a revised strategy for its Europe Acquisition due to regulatory changes in Lithuania, opting to purchase Customer Agreements instead of the entire corporate capital of its Lithuanian subsidiary. This approach allows the company to efficiently acquire core assets, accelerate customer initiatives, and enhance revenue potential while shifting the burden of regulatory compliance and customer consent to the vendor.

OSL Group Limited Announces Share Grant Under 2025 Scheme

BC Technology Group Limited, operating under OSL Group Limited, has announced the grant of 3,406,250 awarded shares to 26 eligible participants as part of its 2025 Share Award Scheme. This initiative, which involves key company executives and employees, aims to incentivize and retain talent by offering shares at no purchase price, with a vesting period ranging from 12 to 28 months.

OSL Group Limited Approves 2025 Share Award Scheme at EGM

OSL Group Limited announced that all resolutions proposed at its extraordinary general meeting on May 8, 2025, were approved by shareholders. This includes the adoption of the 2025 Share Award Scheme, which allows the company to issue shares and make necessary amendments to the scheme as per regulatory requirements. The approval of this scheme is expected to enhance the company’s ability to attract and retain talent, thereby strengthening its position in the competitive digital asset trading industry.

OSL Group Limited Proposes New Share Award Scheme to Enhance Stakeholder Alignment

OSL Group Limited has announced an extraordinary general meeting to approve the 2025 Share Award Scheme, which aims to incentivize eligible participants through share awards. This move involves terminating previous share award and option schemes from 2018 and 2021, signaling a strategic shift in the company’s approach to employee and service provider compensation. The new scheme is expected to enhance the company’s competitive positioning in the digital asset sector by aligning stakeholder interests with company performance.

BC Technology Group Adjusts Strategy Amid Regulatory Changes

BC Technology Group Limited, through its subsidiary OSL Group Limited, is involved in the digital assets and blockchain platform industry. The company has recently completed acquisitions in Europe, making Lithuanian and Canadian subsidiaries wholly-owned. However, due to new regulations in Lithuania affecting digital asset operations, the timeline for further completion is uncertain. To address this, the company has restructured its acquisition strategy, terminating the sale of one Lithuanian subsidiary while transferring its customer agreements to an Italian subsidiary, ensuring continuity in operations.