Nanfang Communication Holdings Ltd. (1617) AI Stock Analysis

• Market Cap: HK$162.62M
• Dividend Yield: N/A
• Average Volume (3M): 5.89M
• Price to Earnings (P/E): 2.5
• Beta (1Y): 0.62
• Revenue Growth: -9.34%
• EPS Growth: 605.26%
• Country: HK
• Employees: 300
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.02
• Shares Outstanding: 1,626,240,000
• 10 Day Avg. Volume: 2,788,800
• 30 Day Avg. Volume: 5,888,133
• PEG Ratio: <0.01
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -2.09
• 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: 61 Neutral
• Price Target: HK$0.12 ▲(19.00% Upside)

The stock's overall score is driven by its solid valuation, indicating potential undervaluation. However, financial performance concerns, particularly negative cash flows, and bearish technical indicators weigh on the score.

Positive Factors

Revenue Streams

Diverse revenue streams from product sales, service contracts, and partnerships provide a stable foundation for long-term growth and resilience.

Gross Profit Margins

Improved gross profit margins suggest effective cost control, enhancing profitability and competitive positioning over time.

Equity Position

A strong equity position with a reasonable debt-to-equity ratio provides financial stability and flexibility for future investments and growth.

Negative Factors

Revenue Growth

Negative revenue growth indicates challenges in market expansion or product demand, potentially impacting long-term business sustainability.

Cash Flow

Negative cash flow highlights operational inefficiencies, limiting the company's ability to fund growth initiatives and manage financial obligations.

Net Profit Margins

Volatile net profit margins suggest instability in profitability, which could affect investor confidence and long-term financial health.

Nanfang Communication Holdings Ltd. Business Overview & Revenue Model

Company Description

Nanfang Communication Holdings Limited, an investment holding company, manufactures and sells optical fiber cables and optical distribution network devices in the People's Republic of China. The company offers communication cable, as well as processes and sells pre-painted steel sheets. Its customers primarily include national and regional telecommunications network operators and telecommunications supporting services providers. The company was founded in 1992 and is headquartered in Changzhou, the People's Republic of China. Nanfang Communication Holdings Limited is a subsidiary of Pacific Mind Development Limited.

How the Company Makes Money

Nanfang Communication Holdings Ltd. generates revenue through multiple streams, primarily from the sale of its communication equipment and solutions. This includes a wide range of products such as optical fibers, cables, and wireless communication devices. The company also earns income through service contracts, providing maintenance and technical support for its products. Significant partnerships with telecommunications providers and technology firms enhance its market reach and drive revenue growth. Additionally, government contracts and participation in large-scale infrastructure projects contribute substantially to its earnings, allowing Nanfang to capitalize on the expanding demand for advanced communication technologies.

Nanfang Communication Holdings Ltd. Financial Statement Overview

Summary

The company shows positive revenue growth and improved gross profit margins. However, net profit margins are volatile, and negative cash flows indicate operational inefficiencies.

Income Statement

The company shows a positive trend in revenue growth, with a notable increase from the previous year. The gross profit margin has improved, indicating better cost management. However, net profit margins remain a concern, with significant fluctuations over the years, suggesting volatility in bottom-line profitability.

Balance Sheet

The company's balance sheet indicates a strong equity position with a reasonable debt-to-equity ratio, suggesting financial stability. The return on equity has improved substantially, reflecting better utilization of shareholders' equity. Nonetheless, the high level of total liabilities may pose potential risks.

Cash Flow

The cash flow situation is mixed, with recent periods of negative free cash flow, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is not available due to zero operating cash flow in the latest period, highlighting operational cash generation issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	466.87M	538.10M	522.26M	633.71M	438.32M	379.52M
Gross Profit	98.18M	98.47M	70.67M	57.36M	12.95M	38.73M
EBITDA	28.60M	21.68M	12.12M	-36.74M	-86.72M	-40.21M
Net Income	60.55M	39.94M	5.20M	-8.10M	-59.89M	-19.18M
Balance Sheet
Total Assets	1.40B	1.51B	1.42B	1.48B	1.36B	1.27B
Cash, Cash Equivalents and Short-Term Investments	271.07M	211.58M	247.77M	254.22M	372.11M	207.25M
Total Debt	259.00M	482.23M	310.21M	297.36M	280.43M	201.27M
Total Liabilities	552.02M	691.36M	641.85M	711.42M	592.49M	516.34M
Stockholders Equity	844.12M	817.98M	778.05M	772.85M	767.11M	755.85M
Cash Flow
Free Cash Flow	-66.96M	-70.75M	-68.11M	-15.21M	-86.85M	-96.43M
Operating Cash Flow	-27.98M	-8.19M	9.82M	12.89M	-84.79M	-82.62M
Investing Cash Flow	-56.20M	-77.95M	6.78M	-136.72M	109.68M	-73.66M
Financing Cash Flow	73.35M	39.46M	414.00K	3.40M	140.69M	44.80M

Nanfang Communication Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1617, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.11, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 31.06 is Neutral, neither overbought nor oversold. The STOCH value of 16.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1617.

Nanfang Communication Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1720	63 Neutral	HK$123.20M	5.96	3.56%	―	8.78%	160.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1617	61 Neutral	HK$162.62M	2.54	7.40%	―	-9.34%	605.26%
1202	52 Neutral	HK$356.00M	-463.16	-0.09%	―	-23.93%	-109.41%
9963	48 Neutral	HK$128.70M	-1.50	-24.22%	―	-20.95%	-13.14%
1300	45 Neutral	HK$539.85M	-21.03	-0.68%	―	6.88%	-49.48%
1613	41 Neutral	HK$70.70M	-2.15	-30.44%	―	-58.81%	-10.53%

Nanfang Communication Holdings Ltd. Corporate Events

Nanfang Communication Completes Major Asset Disposal

Nanfang Communication Holdings Limited, a company incorporated in the Cayman Islands, has announced the completion of a very substantial disposal as of October 24, 2025. This transaction, finalized under the amended Sale and Purchase Agreement, results in the company ceasing to hold any shareholding in the Target Company, potentially impacting its operational focus and market strategy.

Nanfang Communication Announces Further Variation to Disposal Terms

Nanfang Communication Holdings Limited announced a further variation to the terms of a very substantial disposal involving Pacific Smart and Dongshan Precision. The fourth supplemental agreement outlines the arrangements for withholding tax payments related to the sale and purchase agreement, including estimated and actual tax amounts, payment processes, and the return of a tax payment deposit.

Nanfang Communication Holdings Announces Further Variation to Disposal Terms

Nanfang Communication Holdings Ltd. has announced a further variation to the terms of a very substantial disposal, involving a third supplemental agreement with Pacific Smart and Dongshan Precision. The agreement confirms that the completion date for the disposal will be on or before October 31, 2025. This development is significant for the company’s operations as it marks a key step in the disposal process, potentially impacting its financial structure and strategic direction. Shareholders and potential investors will be informed upon completion of the disposal.

Nanfang Communication to Develop New Industrial Park in China

Nanfang Communication Holdings Ltd. announced plans to develop a Science and Technology Ecological Industrial Park by redeveloping its former factory sites in Changzhou City, Jiangsu Province, China. The project, with an investment of approximately RMB50 million, aims to consolidate production capacity, reduce costs, and create new revenue streams by leasing or selling parts of the park. This initiative aligns with the company’s long-term strategies and is expected to enhance its operational efficiency, attract talent, and improve its market image.

Nanfang Communication Holdings Announces Further Variation in Disposal Terms

Nanfang Communication Holdings Ltd. has announced a further variation to the terms of a very substantial disposal. The company has entered into a second supplemental agreement to amend the Sale and Purchase Agreement, confirming that the completion date will be on or before October 15, 2025. This move is expected to impact the company’s operations and could have implications for its shareholders and potential investors.

Nanfang Communication Implements Enhanced Internal Controls

Nanfang Communication Holdings Limited has announced the full implementation of enhanced internal control measures related to notifiable transactions. This move reaffirms the company’s commitment to maintaining strong corporate governance and compliance with the Listing Rules, which is expected to bolster its operational integrity and stakeholder confidence.

Nanfang Communication Announces Key Disposal Agreement Update

Nanfang Communication Holdings Limited has announced a variation to the terms of a very substantial disposal involving Pacific Smart, the Purchaser, and Dongshan Precision. The supplemental agreement confirms the completion date as 30 September 2025, with all conditions to be fulfilled or waived by then. The Purchaser Group will handle reorganization matters and indemnify Pacific Smart for related costs. This move is expected to streamline operations and potentially impact stakeholders by ensuring a smooth transition in the company’s strategic disposal.

Nanfang Communication Addresses Non-Compliance in Strategic Expansion

Nanfang Communication Holdings Ltd. announced a supplemental statement regarding its acquisition of lands and construction contracts, which are part of its strategy to expand production capacity in anticipation of a joint venture with Source Photonics. The company acknowledged non-compliance with certain listing rules due to a misjudgment of the transactions’ nature, but emphasized that this was unintentional and has taken remedial actions to address the issue.

Nanfang Communication Secures Shareholder Approval for Strategic Sale Agreement

Nanfang Communication Holdings Limited announced that during its extraordinary general meeting held on September 15, 2025, shareholders approved the Sale and Purchase Agreement involving the disposal of sale shares to Multek Group (Hong Kong) Limited and Suzhou Dongshan Precision Manufacturing Co., Ltd. The resolution was passed unanimously with 100% of the votes in favor, indicating strong shareholder support for the transaction, which is expected to impact the company’s strategic direction and operational focus.