Putian Communication Group Limited (1720) AI Stock Analysis

• Market Cap: HK$114.40M
• Dividend Yield: N/A
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.88
• Revenue Growth: 6.07%
• EPS Growth: 136.36%
• Country: HK
• Employees: 412
• Sector: Communication Services
• Sector Strength: 85
• Industry: Communication Equipment
• EPS (TTM): 0.01
• Shares Outstanding: 1,100,000,000
• 10 Day Avg. Volume: 1,905,200
• 30 Day Avg. Volume: 1,078,133
• PEG Ratio: -0.13
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.06
• 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: 60 Neutral
• Price Target: ―

Putian Communication Group Limited's stock receives an overall score of 60, reflecting a mixed financial performance with potential growth in revenues but significant challenges in cash flow management. The technical analysis suggests a neutral to slightly bearish trend, while the valuation looks attractive with a low P/E ratio. However, without dividend yield, the stock might not appeal to all investors. No recent earnings call or corporate events information significantly impacts this assessment.

Putian Communication Group Limited Business Overview & Revenue Model

Company Description

Putian Communication Group Limited, an investment holding company, produces and sells optical fiber cables, communication copper cables, and structured cabling system products under the Hanphy brand name in Mainland China. It offers its optical fiber cables and communication copper cables to telecommunications network operators for network construction and maintenance applications. The company also offers communication copper cables can be used in transmission and distribution of electric energy, which normally used in the city's underground electric network; power station as an extraction line, also can be found in the industrial and mining enterprises for the internal power supply and over the river or sea of underwater transmission lines; and it can also be used as the network cabling for residential and commercial buildings. In addition, it provides structured cabling system products, including optical and copper jumper wires; and connection and distribution components, such as distribution frames, wiring closets, and data and audio modules and faceplates used in buildings for the information transmission. The company was founded in 2001 and is based in Nanchang, the People's Republic of China.

How the Company Makes Money

Putian Communication Group Limited generates revenue primarily through the sale of its communication systems and services. The company's key revenue streams include the sale of hardware products such as networking equipment, communication devices, and related accessories. Additionally, the company offers various communication services, including installation, maintenance, and technical support, which provide a recurring revenue component. The company may also engage in strategic partnerships with other technology and telecommunications companies to enhance its product offerings and expand its market reach, contributing to its overall earnings.

Putian Communication Group Limited Financial Statement Overview

Summary

Putian Communication Group Limited presents a mixed financial outlook. The income statement shows potential growth with increasing revenues, yet profitability remains a concern with low net profit margins. The balance sheet is relatively strong with a balanced leverage position, but the low ROE highlights limited shareholder returns. The most pressing issue is the cash flow, which is currently insufficient to support growth or operational needs 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
663.87M	615.50M	646.25M	624.54M	544.06M
	Gross Profit
141.40M	135.31M	147.03M	144.38M	121.56M
	EBIT
12.69M	24.65M	53.89M	58.69M	43.18M
	EBITDA
69.38M	71.03M	88.78M	81.48M	63.09M
	Net Income Common Stockholders
18.48M	7.65M	24.68M	44.00M	32.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
58.21M	181.03M	69.39M	65.40M	43.02M
	Total Assets
1.15B	1.17B	1.18B	1.01B	837.96M
	Total Debt
314.19M	341.95M	340.82M	260.91M	213.85M
	Net Debt
284.95M	314.67M	271.43M	195.51M	170.83M
	Total Liabilities
554.99M	588.24M	611.17M	464.29M	337.72M
	Stockholders Equity
593.84M	577.00M	570.41M	542.79M	500.24M
Cash Flow		Free Cash Flow
0.00	-36.94M	-45.96M	-24.20M	-8.31M
	Operating Cash Flow
0.00	-16.85M	24.02M	82.61M	55.25M
	Investing Cash Flow
0.00	-19.45M	-69.53M	-106.02M	-63.05M
	Financing Cash Flow
0.00	-4.75M	46.55M	47.25M	-22.79M

Putian Communication Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 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:1720, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and above the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 21.24 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	$14.56B	5.82	-4.02%	6.41%	2.72%	-31.67%
1720	60 Neutral	HK$114.40M	5.71	3.16%	―	6.07%	136.36%
CHWTF		$43.30M	―	-12.94%	―	―	―
COBJF		$656.85M	―	-18.09%	1.29%	―	―
YZOFF		$2.58B	11.70	6.68%	4.72%	―	―

Putian Communication Group Limited Corporate Events

Putian Communication Group Announces Annual General Meeting

Putian Communication Group Limited announced its upcoming annual general meeting scheduled for June 18, 2025, where shareholders will consider several resolutions. These include approving the company’s audited financial statements for 2024, re-electing directors, re-appointing auditors, and authorizing the board to manage share allotments. The meeting’s outcomes could impact the company’s governance and financial strategies, influencing its market position and stakeholder interests.

Putian Communication Group Reports Strong Revenue and Profit Growth for 2024

Putian Communication Group Limited announced its annual results for the year ending December 31, 2024, reporting a 7.9% increase in total revenue to RMB663.9 million and a significant 141.6% rise in profit attributable to owners to RMB18.5 million. Despite the growth in revenue and profit, the gross profit margin slightly decreased to 21.3%, and the Board did not recommend a final dividend for the year. The increase in revenue was driven by a substantial 41.7% rise in sales of optical fibers and optical fiber cables.

Putian Communication Group Limited Sells Majority Stake in Subsidiary

Putian Communication Group Limited has entered into an agreement to dispose of a 51% equity interest in a subsidiary engaged in building smart products manufacturing, for RMB 3,004,800. This transaction allows the company to realize gains from an underperforming investment while maintaining a 49% interest, potentially benefiting if the subsidiary’s operations improve under new management.

Putian Communication Group Schedules Board Meeting for Annual Results

Putian Communication Group Limited has announced a board meeting scheduled for March 31, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation for a final dividend, which could impact the company’s financial strategy and shareholder returns.