Nanfang Communication Holdings Ltd. (1617) AI Stock Analysis

• Market Cap: HK$187.02M
• Dividend Yield: N/A
• Average Volume (3M): 3.27M
• Price to Earnings (P/E): 4.3
• Beta (1Y): 0.49
• Revenue Growth: 1.01%
• EPS Growth: 660.00%
• Country: HK
• Employees: 300
• Sector: Technology
• Sector Strength: 86
• Industry: Communication Equipment
• EPS (TTM): 0.03
• Shares Outstanding: 1,626,240,000
• 10 Day Avg. Volume: 7,137,200
• 30 Day Avg. Volume: 3,269,733
• PEG Ratio: 0.01
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -47.85
• 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: 59 Neutral
• Price Target: ―

The overall stock score reflects a mix of strengths and weaknesses. The company shows potential for growth with improvements in revenue and gross profit margins, supported by a solid balance sheet. However, the financial performance is hampered by net income volatility and negative cash flow issues. Technical analysis indicates bearish sentiment and oversold conditions, while the valuation suggests the stock might be undervalued. These factors combined result in a moderate score.

Nanfang Communication Holdings Ltd. Business Overview & Revenue Model

Company Description

Nanfang Communication Holdings Ltd. (1617) is a China-based company primarily involved in the manufacturing and sale of optical fiber cables. The company operates within the telecommunications sector, providing essential components for telecommunications infrastructure. Its core products include a variety of optical fiber cables and related accessories, which are crucial for high-speed data transmission in telecommunications networks.

How the Company Makes Money

Nanfang Communication Holdings Ltd. generates revenue primarily through the production and sale of optical fiber cables. These cables are supplied to telecommunications companies, network providers, and infrastructure projects that require reliable and high-capacity data transmission solutions. The company benefits from the increasing demand for faster internet speeds and more robust telecommunications infrastructure, driven by the growth of digital communication and broadband services. Key revenue streams include direct sales contracts with telecommunication providers, government and private infrastructure projects, and partnerships with technology companies to integrate advanced telecommunications solutions. The company's earnings are significantly influenced by technological advancements in fiber optics, market demand for internet services, and infrastructure development policies.

Nanfang Communication Holdings Ltd. Financial Statement Overview

Summary

Nanfang Communication Holdings Ltd. exhibits improvements in revenue and gross profit margins, showing potential for growth. The balance sheet remains solid with a healthy equity base. However, the volatility in net income and negative cash flows raise concerns about operational efficiency and cash management, indicating areas needing improvement.

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

Nanfang Communication Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1617, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.09, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 83.17 is Negative, neither overbought nor oversold. The STOCH value of 25.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
6088	68 Neutral	HK$16.37B	13.66	6.27%	―	5.75%	18.75%
1548	66 Neutral	$31.43B	0.97	-6.09%	―	―	―
Sector *	65 Neutral	S$573.67M	14.19	-0.76%	6.45%	4.26%	-65.16%
1617	59 Neutral	HK$187.02M	4.32	5.02%	―	1.01%	660.00%
2342	58 Neutral	HK$5.43B	―	-18.09%	1.26%	-24.30%	-10350.00%

Nanfang Communication Holdings Ltd. Corporate Events

Nanfang Communication Holdings Ltd. Announces AGM and Key Resolutions

Nanfang Communication Holdings Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for June 25, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, and re-appointment of auditors. Additionally, the company seeks approval to issue additional shares, potentially impacting its market positioning and shareholder value.

Nanfang Communication Holdings Ltd. Reports Strong Financial Growth in 2024

Nanfang Communication Holdings Ltd. reported a 3.0% increase in total revenue to approximately RMB538.1 million for the year ended December 31, 2024. The company’s gross profit rose significantly by 39.3% to approximately RMB98.5 million, with a gross profit margin increase of 4.8 percentage points to 18.3%. The profit attributable to the company’s owners surged to approximately RMB39.9 million, a substantial rise from the previous year’s RMB5.2 million. Despite these positive results, the board did not recommend a final dividend for the year.

Nanfang Communication Announces Board Committee Changes

Nanfang Communication Holdings Limited has announced changes in the composition of its board committees following the passing of Mr. Wu Wing Kuen. Mr. Yu Jinlai will join the Audit Committee, while Mr. Liu Cheng Yi will become the chairman of the Remuneration Committee, impacting the company’s governance structure.

Nanfang Communication Holdings Ltd. Announces Board Composition

Nanfang Communication Holdings Ltd. has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The announcement details the roles and functions of each board member, including their participation in various board committees, such as the Audit, Remuneration, and Nomination Committees.

Nanfang Communication Projects Significant Profit Increase for 2024

Nanfang Communication Holdings Ltd. has issued a positive profit alert, indicating a significant increase in profit and total comprehensive income for the year ending December 31, 2024, compared to the previous year. The improvement is attributed to decreased raw material costs and changes in the fair value of financial assets denominated in foreign currency. However, the results are based on preliminary unaudited assessments and may be subject to adjustments.

Nanfang Communication Holdings Schedules Board Meeting for Annual Results

Nanfang Communication Holdings Ltd. has announced that its board of directors will meet on March 28, 2025, to approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend or other distribution, which could have implications for the company’s financial strategy and shareholder returns.

Nanfang Communication Faces Compliance Challenge After Director’s Passing

Nanfang Communication Holdings Limited announced the passing of Mr. Wu Wing Kuen, an independent non-executive director, who served diligently since 2016. His death leaves the company temporarily non-compliant with the Hong Kong Stock Exchange’s listing rules due to a shortfall in independent directors and committee members, prompting an urgent search for a replacement.

Nanfang Communication Holdings Updates Board Composition

Nanfang Communication Holdings Ltd. announced the current composition of its board of directors, highlighting the executive, non-executive, and independent directors and their respective roles and committee memberships. This announcement reflects the company’s commitment to transparency and governance, potentially impacting investor confidence and its strategic positioning in the telecommunications market.