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Contel Technology Company Limited (HK:1912)
:1912
Hong Kong Market
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Contel Technology Company Limited (1912) AI Stock Analysis

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HK:1912

Contel Technology Company Limited

(1912)

Rating:49Neutral
Price Target:
HK$0.00
▼(-100.00% Downside)
The most significant factor impacting Contel Technology's stock score is its poor financial performance, marked by declining revenues and consistent losses. Technical analysis provides some short-term stability, but the overall valuation is severely impacted by a negative P/E ratio, indicating challenges in achieving profitability.

Contel Technology Company Limited (1912) vs. iShares MSCI Hong Kong ETF (EWH)

Contel Technology Company Limited Business Overview & Revenue Model

Company DescriptionContel Technology Company Limited (1912) is a dynamic enterprise that operates within the technology sector, focusing primarily on providing innovative solutions and services. The company offers a diverse range of products, including telecommunications equipment, technology consulting services, and IT infrastructure solutions. With a commitment to driving technological advancements, Contel Technology aims to deliver cutting-edge products that meet the evolving needs of its customers.
How the Company Makes MoneyContel Technology Company Limited generates revenue through multiple streams, primarily by selling telecommunications equipment and providing technology consulting services. The sale of hardware products, such as networking devices and communication systems, constitutes a significant portion of its income. Additionally, the company offers consulting services to businesses seeking to enhance their IT capabilities, thereby generating service-based revenue. Strategic partnerships with other technology firms and ongoing contracts with corporate clients also contribute to the company's earnings, ensuring a steady flow of income from diverse sources.

Contel Technology Company Limited Financial Statement Overview

Summary
Contel Technology Company Limited is facing significant financial challenges characterized by declining revenue, consistent losses, and negative cash flow. While the balance sheet shows moderate leverage, the persistent negative profitability and cash flow issues indicate the need for substantial operational and financial restructuring to stabilize and improve the company's financial health.
Income Statement
45
Neutral
The company has experienced a significant decline in revenue over the last few years, with revenue dropping from 222 million in 2021 to 62 million in 2024. Gross profit margin stands at 3.8% for 2024, indicating low profitability. Net profit margin is negative, reflecting ongoing losses. EBIT and EBITDA margins are also negative, highlighting operational challenges. The overall income statement shows a concerning trend of declining revenue and profitability, requiring strategic adjustments.
Balance Sheet
50
Neutral
The debt-to-equity ratio is 1.02 for 2024, indicating a balanced leverage position. However, the equity ratio is 30.7%, suggesting moderate asset financing through equity. Return on equity is negative due to net losses, impacting investor returns. Although there is a stable equity base, the high debt levels and ongoing losses pose risks to financial stability.
Cash Flow
40
Negative
The company has faced persistent negative free cash flow in recent years, with zero free cash flow reported for 2024. Operating cash flow is also negative, indicating challenges in generating cash from core operations. The absence of positive cash flow metrics highlights liquidity concerns that need addressing.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue62.42M66.32M121.71M222.04M153.92M
Gross Profit2.37M2.93M8.40M12.59M9.38M
EBITDA-4.51M-5.56M124.00K4.95M4.07M
Net Income-7.95M-9.75M-1.58M2.17M2.02M
Balance Sheet
Total Assets49.26M54.19M65.81M77.20M67.79M
Cash, Cash Equivalents and Short-Term Investments2.56M2.54M2.34M7.67M6.04M
Total Debt15.49M12.89M11.60M17.56M13.69M
Total Liabilities34.14M31.59M31.33M42.87M35.84M
Stockholders Equity15.12M22.60M34.48M34.33M31.95M
Cash Flow
Free Cash Flow81.00K-9.55M419.00K-182.00K-3.56M
Operating Cash Flow2.17M-7.24M2.33M-125.00K-2.94M
Investing Cash Flow-2.45M-1.77M-2.81M-408.00K-292.00K
Financing Cash Flow-184.00K9.52M-4.73M1.98M3.58M

Contel Technology Company Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.08
Price Trends
50DMA
0.08
Negative
100DMA
0.08
Negative
200DMA
0.10
Negative
Market Momentum
MACD
<0.01
Positive
RSI
48.01
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1912, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.01 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1912.

Contel Technology Company Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
HK$66.00M11.003.01%-32.47%-74.03%
64
Neutral
HK$186.00M89.860.60%6.98%
57
Neutral
HK$14.02B9.25-2.83%4.87%9.29%-48.65%
49
Neutral
HK$86.75M-42.18%-6.19%18.71%
48
Neutral
HK$63.17M
27.19%54.51%
45
Neutral
HK$93.83M68.18-21.90%-8.34%-8828.57%
41
Neutral
HK$151.20M-3324.55%-45.66%-275.12%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1912
Contel Technology Company Limited
0.08
0.00
0.00%
HK:1679
Risecomm Group Holdings Limited
0.24
-0.08
-25.00%
HK:1967
Confidence Intelligence Holdings Limited
0.62
0.34
121.43%
HK:2203
Brainhole Technology Limited
0.19
0.11
137.50%
HK:8257
Genes Tech Group Holdings Company Limited
0.07
0.01
16.67%
HK:8490
Niche-Tech Semiconductor Materials Limited
0.13
-0.04
-23.53%

Contel Technology Company Limited Corporate Events

Contel Technology Clarifies Nomination Committee Changes
Jul 3, 2025

Contel Technology Company Limited announced a clarification regarding a clerical error in a previous announcement about changes in the composition of its Nomination Committee. Mr. Lai Man Shun will be appointed as the chairman of the Nomination Committee, replacing Mr. Lam Keung. This change reflects the company’s commitment to maintaining a balanced and independent board structure, which is crucial for its governance and strategic decision-making.

Contel Technology Announces Board Composition and Roles
Jul 3, 2025

Contel Technology Company Limited has announced the composition of its board of directors and their roles within the company, effective from July 3, 2025. This announcement outlines the members of the executive and independent non-executive directors, as well as their respective roles in the audit, nomination, and remuneration committees, which could influence the company’s governance and strategic decisions.

Contel Technology Reports Increased Revenue but Higher Losses for 2025
Jun 30, 2025

Contel Technology Company Limited announced its audited consolidated results for the fifteen months ending March 31, 2025. The company reported a revenue increase to US$76,963,000 from US$66,316,000 in the previous year, but also a higher loss of US$12,134,000 compared to US$9,749,000. Despite the revenue growth, the company faced challenges with increased costs and expenses, impacting its profitability.

Contel Technology Enhances Governance with New Nomination Committee
Jun 30, 2025

Contel Technology Company Limited has established a nomination committee as per a board resolution passed in June 2019. The committee is composed of at least three members, primarily independent non-executive directors, and aims to ensure compliance with the Hong Kong Stock Exchange’s listing rules. This move is expected to enhance governance and operational transparency, potentially impacting the company’s industry positioning positively.

Contel Technology Announces Changes to Nomination Committee
Jun 30, 2025

Contel Technology Company Limited has announced changes to its Nomination Committee, effective July 1, 2025. Ms. Cheng Yu Pik will join the committee as a member, while Mr. Lai Man Shun will take over as chairman from Mr. Lam Keung, who will remain a member. The board welcomes the new appointments and expresses gratitude to Mr. Lam for his contributions as chairman.

Contel Technology Announces New Board Roles and Functions
Jun 30, 2025

Contel Technology Company Limited has announced the composition of its board of directors and their respective roles, effective from July 1, 2025. The board includes both executive and independent non-executive directors, with specific members assigned to the Audit, Nomination, and Remuneration Committees. This announcement is significant as it outlines the governance structure and leadership roles within the company, which can impact its strategic direction and operational efficiency.

Contel Technology Issues Profit Warning Amid Economic Fluctuations
Jun 26, 2025

Contel Technology Company Limited has issued a profit warning, indicating an expected consolidated net loss of USD11.5 million to USD13.0 million for the fifteen months ending March 2025. This represents an increase in net loss compared to the previous twelve-month period ending December 2023. The increase is attributed to impairment losses on non-current assets, amortization of intangible assets, and expected credit losses on trade receivables due to economic fluctuations, as well as a change in the financial year-end date. Despite these losses being non-cash in nature, stakeholders are advised to exercise caution.

Contel Technology Schedules Board Meeting to Review Annual Results
Jun 18, 2025

Contel Technology Company Limited announced that its board of directors will convene on June 30, 2025, to review and approve the annual results for the fiscal year ending March 31, 2025. The meeting will also consider the recommendation for a final dividend, which could impact shareholder returns and reflect the company’s financial health.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2025