Time Interconnect Technology Limited (1729) AI Stock Analysis

• Market Cap: HK$15.27B
• Dividend Yield: 0.51%
• Average Volume (3M): 4.81M
• Price to Earnings (P/E): 33.8
• Beta (1Y): 0.78
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 6,031
• Sector: Industrials
• Sector Strength: 86
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.13
• Shares Outstanding: 1,952,560,000
• 10 Day Avg. Volume: 4,720,356
• 30 Day Avg. Volume: 4,808,599
• PEG Ratio: N/A
• Price to Book (P/B): 8.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 63 Neutral
• Price Target: HK$7.50 ▼(-4.09%Downside)

The overall score reflects strong market momentum supported by technical indicators, despite fundamental concerns regarding cash flow and valuation. The financial performance shows potential, but operational and liquidity challenges remain. The stock's current technical strength is a significant factor in its favor, balancing the relatively high valuation and cash flow concerns.

Time Interconnect Technology Limited Business Overview & Revenue Model

Company Description

Time Interconnect Technology Limited, an investment holding company, manufactures and sells cable assembly and networking cable products in the People's Republic of China, the United States, the Netherlands, Singapore, the United Kingdom, Hong Kong, Mexico, and internationally. The company offers copper and optical fiber cable assemblies, specialty cables, and servers; and manufactures and trades in robotic products, as well as develops and trades in computer software. It serves customers in the telecommunication, data center, industrial and medical equipment, and automotive wire harness sectors. The company was founded in 1992 and is headquartered in Sha Tin, Hong Kong. Time Interconnect Technology Limited operates as a subsidiary of Luxshare Precision Limited.

How the Company Makes Money

Time Interconnect Technology Limited generates revenue through the production and sale of its interconnect solutions, including customized and standard cables, wire harnesses, and other related components. The company capitalizes on its expertise in producing high-performance and cost-effective products, catering to both domestic and international markets. Revenue streams are bolstered by long-term partnerships with key players in the telecommunications and technology sectors, ensuring a steady demand for its products. Additionally, the company's focus on innovation and adherence to stringent quality standards helps maintain its competitive edge and attract repeat business from existing clients.

Time Interconnect Technology Limited Financial Statement Overview

Summary

Time Interconnect Technology Limited shows robust revenue growth and improved equity ratios, indicating operational strength and a stronger balance sheet. However, declining EBITDA margins and zero free cash flow highlight potential operational inefficiencies and liquidity issues. While the company is managing its debt better, cash flow challenges could impact future operations.

Income Statement

The company exhibits a strong revenue growth rate of 14.82% from 2023 to 2024, with a solid gross profit margin at 14.60% and a net profit margin at 6.10% as of 2024. However, a decline in EBITDA margin from 10.06% in 2023 to 8.71% in 2024 indicates rising operational costs. The EBIT margin remains stable at 7.73%.

Balance Sheet

The debt-to-equity ratio decreased to 0.82 in 2024, reflecting improved leverage management compared to 2023's 2.67. The equity ratio increased to 35.12% in 2024, showing a stronger equity base, and ROE improved to 25.52%. However, high debt levels continue to pose a risk.

Cash Flow

The company reported zero free cash flow in 2024, a significant decline from 2023's positive cash flow of 900.88 million. Operating cash flow was also non-existent in 2024, suggesting liquidity issues. The free cash flow to net income ratio dropped to zero, raising concerns about cash generation efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.92B	7.39B	6.43B	5.76B	3.59B	3.01B
Gross Profit	1.22B	1.08B	906.54M	624.66M	583.36M	566.59M
EBITDA	863.32M	710.55M	647.21M	325.99M	281.21M	389.49M
Net Income	494.08M	450.87M	369.52M	215.14M	168.22M	226.36M
Balance Sheet
Total Assets	6.16B	5.03B	6.16B	6.11B	3.18B	2.60B
Cash, Cash Equivalents and Short-Term Investments	1.30B	425.85M	1.30B	1.26B	226.68M	163.64M
Total Debt	3.63B	1.45B	3.63B	3.45B	1.17B	1.08B
Total Liabilities	4.79B	3.25B	4.79B	4.96B	2.12B	1.73B
Stockholders Equity	1.36B	1.77B	1.36B	1.13B	1.05B	852.47M
Cash Flow
Free Cash Flow	-1.69B	868.29M	900.88M	-1.70B	113.77M	55.89M
Operating Cash Flow	-1.47B	1.05B	981.37M	-1.49B	173.12M	102.64M
Investing Cash Flow	-1.76B	673.43M	-41.55M	-2.32B	-111.61M	-867.78M
Financing Cash Flow	3.07B	-1.65B	-901.37M	3.89B	-6.74M	537.37M

Time Interconnect Technology Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1729, the sentiment is Positive. The current price of 7.82 is above the 20-day moving average (MA) of 6.89, above the 50-day MA of 5.47, and above the 200-day MA of 4.73, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 79.48 is Negative, neither overbought nor oversold. The STOCH value of 97.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1729.

Time Interconnect Technology Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0842	80 Outperform	HK$3.55B	5.55	12.91%	5.60%	17.69%	3.08%
3393	77 Outperform	HK$8.52B	11.17	13.34%	4.39%	18.17%	33.08%
1979	70 Outperform	HK$1.71B	4.46	21.87%	7.23%	11.66%	16.73%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
1729	63 Neutral	HK$15.27B	33.77		0.51%	―	―
2V3		€198.79M	―	-13.31%	―	―	―

Time Interconnect Technology Limited Corporate Events

Time Interconnect Technology Aligns Accounting Policies with Luxshare

Time Interconnect Technology Limited has announced changes in its accounting policy and estimates, aligning with its parent company Luxshare Precision Limited. The shift to a cost model for leasehold land and buildings and a straight-line depreciation method for plant and machinery is expected to streamline internal reporting, reduce administrative costs, and enhance financial performance comparisons within Luxshare. These changes will result in retrospective adjustments to financial statements, including a decrease in total and net assets and an increase in net profit and earnings per share for the year ending December 2024.

Time Interconnect Technology Limited Passes Key Resolutions at AGM

Time Interconnect Technology Limited announced the successful passage of all proposed resolutions during its Annual General Meeting held on May 23, 2025. Key decisions included the adoption of the company’s financial statements, reappointment of BDO Limited as auditor, declaration of a final dividend, and re-election of several directors. The resolutions also granted the board mandates to issue and repurchase shares, reflecting strong shareholder support and potentially enhancing the company’s operational flexibility and market positioning.

Time Interconnect Enters Luxvisions Supply Agreement

Time Interconnect Technology Limited has entered into a Luxvisions Master Supply Agreement with Luxvisions, effective from May 6, 2025, to December 31, 2027. This agreement involves the sale of products by Time Interconnect to Luxvisions, with pricing determined based on market terms and a cost-plus basis. The transactions are classified as continuing connected transactions under the Listing Rules, requiring reporting and annual review but exempt from independent shareholders’ approval. Ms. Wang Laichun, a non-executive director with beneficial interests in Luxvisions, abstained from voting on the agreement.

Time Interconnect Technology Announces 2025 AGM and Key Resolutions

Time Interconnect Technology Limited has announced its upcoming annual general meeting to be held on May 23, 2025, in Hong Kong. Key resolutions include the adoption of financial statements, reappointment of BDO Limited as auditor, declaration of a final dividend, re-election of directors, and authorization for the board to manage director remuneration and share allotments. These resolutions aim to ensure the company’s continued compliance and strategic growth, potentially impacting shareholder value and market positioning.

Time Interconnect Technology Appoints New Independent Director

Time Interconnect Technology Limited has appointed Ms. Chan Kit Fun Fanny as an independent non-executive director, effective April 11, 2025. Ms. Chan, with over 30 years of experience in banking and manufacturing, will also serve as the chairman of the Nomination Committee and a member of the Audit and Remuneration Committees. This strategic appointment is expected to strengthen the company’s governance and operational oversight, potentially enhancing its market positioning and stakeholder confidence.

Time Interconnect Technology Limited Announces Board Composition and Committee Assignments

Time Interconnect Technology Limited has announced the composition of its board of directors, which includes a mix of executive, non-executive, and independent non-executive directors. The board has also established three committees: Audit, Remuneration, and Nomination, with specific directors assigned to each committee. This announcement highlights the company’s governance structure, which is crucial for stakeholders as it reflects the company’s commitment to transparent and effective management practices.