Putian Communication Group Limited (1720) AI Stock Analysis

• Market Cap: HK$156.20M
• Dividend Yield: N/A
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 6.5
• Beta (1Y): 1.08
• 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: 1,000,000
• 30 Day Avg. Volume: 1,971,066
• 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

• Rating: 68 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 68 reflects a combination of strong technical momentum and reasonable valuation, tempered by financial performance concerns, particularly in cash flow. The stock's bullish technical indicators are a significant positive, but the financial challenges, especially in liquidity, present risks that need addressing.

Putian Communication Group Limited Business Overview & Revenue Model

Company Description

Putian Communication Group Limited (1720) is a company engaged in the telecommunications sector, primarily focusing on the design, development, and manufacturing of communication products and solutions. The company offers a range of telecommunications products including fiber optic cables, broadband access products, and wireless communication devices, catering to both domestic and international markets.

How the Company Makes Money

Putian Communication Group Limited generates revenue through the sale of its telecommunications products and solutions. Key revenue streams include the manufacturing and distribution of fiber optic cables, which are essential for modern telecommunications infrastructure, and broadband access products that facilitate internet connectivity. The company may also engage in partnerships or collaborations with telecom operators and other technology firms to expand its market reach and enhance its product offerings, thereby contributing to its 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	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: Neutral
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1720, the sentiment is Neutral. The current price of 0.14 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.14, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 10.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1720	68 Neutral	HK$156.20M	6.49	3.56%	―	8.78%	160.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1617	59 Neutral	HK$200.03M	2.86	7.40%	―	-9.34%	605.26%
1202	52 Neutral	HK$376.00M	351.61	-0.09%	―	-23.93%	-109.41%
0947	47 Neutral	HK$124.38M	―	-29.56%	―	-12.03%	-40.38%
1613	41 Neutral	HK$94.24M	―	-29.38%	―	86.85%	-36.65%
9963	39 Underperform	HK$109.20M	―	-24.22%	―	-20.95%	-13.14%

Putian Communication Group Limited Corporate Events

Putian Communication Group’s AGM Resolutions Unanimously Approved

Putian Communication Group Limited held its Annual General Meeting on June 18, 2025, where all proposed resolutions were unanimously approved by shareholders. These resolutions included the approval of financial statements, re-election of directors, reappointment of auditors, and granting of mandates to the board for share issuance and repurchase, reflecting strong shareholder support and potentially enhancing the company’s operational flexibility.

Putian Communication Group Sells Majority Stake in Subsidiary Amid Compliance Breach

Putian Communication Group Limited announced the disposal of a 51% equity interest in a subsidiary, aiming to realize part of its investment while retaining potential benefits if the purchaser improves the subsidiary’s operations. The company acknowledged a breach of listing rules due to administrative oversight and has proposed remedial measures, including training sessions to enhance compliance awareness among its employees.