Putian Communication Group Limited (1720) AI Stock Analysis

• Market Cap: HK$115.50M
• Dividend Yield: N/A
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): 5.0
• Beta (1Y): 1.02
• Revenue Growth: 8.78%
• EPS Growth: 160.00%
• Country: HK
• Employees: 412
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): <0.01
• Shares Outstanding: 1,100,000,000
• 10 Day Avg. Volume: 962,800
• 30 Day Avg. Volume: 2,035,066
• PEG Ratio: 0.02
• Price to Book (P/B): 0.10
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 1.18
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 61 reflects a mixed outlook. The financial performance is hindered by cash flow challenges, despite revenue growth and a solid balance sheet. Technical analysis indicates bearish momentum, though the stock appears undervalued based on its P/E ratio. The absence of earnings call and corporate events data limits further insights.

Putian Communication Group Limited Business Overview & Revenue Model

Company Description

Putian Communication Group Limited (1720) is a leading telecommunications and communication services provider based in China. The company operates primarily in the sectors of mobile communication, broadband services, and information technology solutions. It specializes in offering a wide range of products and services including network infrastructure, telecommunications equipment, and value-added services to both individual consumers and enterprises.

How the Company Makes Money

Putian Communication Group Limited generates revenue through multiple key streams, including the sale of telecommunications equipment, network construction services, and maintenance services. The company often engages in contracts with government and enterprise clients for the development and maintenance of communication networks, which constitutes a significant portion of its revenue. Additionally, Putian benefits from partnerships with major telecom operators, allowing it to provide integrated solutions and access to a broader customer base. The company's value-added services, such as cloud computing and data solutions, also contribute to its earnings, driving growth in an increasingly digital landscape.

Putian Communication Group Limited Financial Statement Overview

Summary

Putian Communication Group Limited shows potential growth with increasing revenues, but profitability is a concern due to low net profit margins. The balance sheet is strong with balanced leverage, yet low ROE indicates limited shareholder returns. The most pressing issue is cash flow, which is insufficient to support growth or operations without external financing.

Income Statement

The company's income statement shows a mixed performance. The gross profit margin for 2024 is approximately 21.3%, slightly above the industry average, indicating strong cost management. However, the net profit margin is low at 2.8%, reflecting challenges in controlling non-operating expenses. Revenue has grown by 7.86% from 2023 to 2024, showing resilience and potential for growth. The EBIT and EBITDA margins of 1.91% and 10.45%, respectively, suggest room for improvement in operational efficiency.

Balance Sheet

The balance sheet reveals a moderate financial structure. The debt-to-equity ratio is 0.53, indicating a balanced use of debt and equity financing, which is relatively low risk. The return on equity (ROE) is 3.11%, suggesting modest returns for shareholders. The equity ratio stands at 51.68%, showcasing a solid capital base. There is a slight decline in total assets, which could limit growth opportunities if not managed well.

Cash Flow

Cash flow metrics show significant challenges. Operating cash flow is zero for 2024, indicating potential liquidity issues. Additionally, free cash flow is also zero, which limits the company's ability to reinvest or reduce debt. The lack of positive cash flow from operations suggests the company may face difficulties in sustaining operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	681.94M	663.87M	615.50M	646.25M	624.54M	544.06M
Gross Profit	143.63M	141.40M	135.31M	147.03M	144.38M	121.56M
EBITDA	69.50M	69.38M	71.03M	88.78M	81.48M	63.09M
Net Income	21.18M	18.48M	7.65M	24.68M	44.00M	32.29M
Balance Sheet
Total Assets	1.18B	1.15B	1.17B	1.18B	1.01B	837.96M
Cash, Cash Equivalents and Short-Term Investments	46.38M	58.21M	62.79M	169.49M	155.43M	43.02M
Total Debt	360.77M	314.19M	341.95M	340.82M	260.91M	213.85M
Total Liabilities	577.38M	554.99M	588.24M	611.17M	464.29M	337.72M
Stockholders Equity	602.05M	593.84M	577.00M	570.41M	542.79M	500.24M
Cash Flow
Free Cash Flow	53.15M	47.99M	-36.94M	-45.96M	-24.20M	-8.31M
Operating Cash Flow	45.92M	61.13M	-16.85M	24.02M	82.61M	55.25M
Investing Cash Flow	10.46M	-9.86M	-19.45M	-69.53M	-106.02M	-63.05M
Financing Cash Flow	-62.35M	-47.68M	-4.75M	46.55M	47.25M	-22.79M

Putian Communication Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1720, the sentiment is Negative. The current price of 0.11 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.08 is Neutral, neither overbought nor oversold. The STOCH value of 34.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1720.

Putian Communication Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1720	61 Neutral	HK$115.50M	5.05	3.56%	―	8.78%	160.00%
1617	61 Neutral	HK$174.01M	2.66	7.40%	―	-9.34%	605.26%
1202	52 Neutral	HK$352.00M	―	-0.09%	―	-23.93%	-109.41%
9963	49 Neutral	HK$115.70M	-1.23	-24.22%	―	-20.95%	-13.14%
1613	46 Neutral	HK$109.49M	-2.96	-29.38%	―	86.85%	-36.65%
0947	40 Neutral	HK$125.98M	-0.96	-29.56%	―	-12.03%	-40.38%

Putian Communication Group Limited Corporate Events

Putian Communication Group Enhances Compliance Amid Subsidiary Equity Disposal

Putian Communication Group Limited announced the disposal of a 51% equity interest in a subsidiary. As part of this transaction, the company has implemented remedial measures to enhance compliance with the Hong Kong Listing Rules. These measures include training for employees and directors on notifiable and connected transactions, as well as providing detailed guidelines to strengthen their understanding of compliance obligations.

Putian Communication Group Limited Reports Revenue Growth Amid Mixed Segment Performance

Putian Communication Group Limited reported a 6.4% increase in total revenue to RMB299.0 million for the first half of 2025, with a significant 52.9% rise in profit attributable to the company’s owners. Despite a decrease in gross profit margin, the company saw a notable increase in revenue from optical fibers and structured cabling products, offsetting a decline in data and communications cables sales. The board did not recommend an interim dividend, reflecting a cautious approach amid the mixed performance across product segments.

Putian Communication Group Schedules Board Meeting for Interim Results

Putian Communication Group Limited has announced a board meeting scheduled for August 29, 2025, to discuss and approve the interim results for the first half of 2025 and consider an interim dividend. This meeting could impact the company’s financial strategy and shareholder returns, highlighting its commitment to transparency and potential growth.