Lianlian DigiTech Co., Ltd. Class H (2598) AI Stock Analysis

• Market Cap: HK$16.94B
• Dividend Yield: N/A
• Average Volume (3M): 12.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 1,103
• Sector: General
• Sector Strength: N/A
• Industry: Software - Infrastructure
• EPS (TTM): 1.52
• Shares Outstanding: 457,068,760
• 10 Day Avg. Volume: 8,779,644
• 30 Day Avg. Volume: 12,939,019
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: HK$10.50
• Price Target Upside: -7.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: HK$10.50 ▼(-7.89% Downside)

Lianlian DigiTech's overall stock score is primarily impacted by its weak financial performance, characterized by negative profitability and cash flow challenges. Technical analysis suggests a bearish trend, while valuation metrics highlight significant concerns with a negative P/E ratio. The absence of earnings call data and corporate events means these factors do not influence the score.

Lianlian DigiTech Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Lianlian DigiTech Co., Ltd., together with its subsidiaries, provides digital payment services and value-added services to merchants and enterprises in China. It also provides property rental and management, micro-loan, and factoring services, as well as digital marketing, operation support, and referral services; and e-wallet, software development, and information technology services. The company was incorporated in 2009 and is based in Hangzhou, China.

How the Company Makes Money

Lianlian DigiTech Co., Ltd. makes money through multiple revenue streams rooted in its fintech solutions. The primary source of income is transaction fees generated from processing payments for merchants and consumers. The company earns a percentage of each transaction processed through its platform, whether domestic or international. Additionally, Lianlian DigiTech provides value-added services such as currency exchange and financial management tools, which contribute to its revenue. Strategic partnerships with banks, financial institutions, and e-commerce platforms further bolster its earnings by expanding its user base and transaction volumes. The company's focus on innovation and technology also enables it to offer premium services, such as enhanced security features, for a fee, adding to its revenue streams.

Lianlian DigiTech Co., Ltd. Class H Financial Statement Overview

Summary

Lianlian DigiTech faces significant challenges in financial performance. Despite a 27.9% revenue increase, negative EBIT, EBITDA, and net profit margins indicate profitability issues. The balance sheet is moderately stable with a manageable debt-to-equity ratio but low equity. Cash flow challenges are evident, with negative free cash flow growth and inefficiencies in cash generation.

Income Statement

The income statement reveals significant challenges. While revenue grew by 27.9% in the most recent year, the company is struggling with profitability, as indicated by negative EBIT and EBITDA margins, and a negative net profit margin. This reflects ongoing operational difficulties despite revenue growth.

Balance Sheet

The balance sheet shows moderate stability, with a debt-to-equity ratio of 0.41, indicating manageable leverage. However, the equity ratio is low at 8.45%, suggesting limited equity relative to total assets. The company needs to improve its equity base to enhance its financial health.

Cash Flow

Cash flow analysis indicates a negative free cash flow growth rate, reflecting cash outflows and operational challenges. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting earnings into cash. The company must improve cash generation from its operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31B	1.03B	921.21M	786.98M	674.63M
Gross Profit	682.52M	577.35M	573.31M	516.53M	408.67M
EBITDA	-433.03M	-607.38M	9.79M	28.22M	18.02M
Net Income	-168.22M	-656.06M	-111.20M	-52.04M	-11.72M
Balance Sheet
Total Assets	14.54B	10.47B	128.39M	12.39M	7.38M
Cash, Cash Equivalents and Short-Term Investments	805.89M	382.16M	10.21B	9.21B	9.83B
Total Debt	506.77M	455.02M	14.14M	16.79M	14.14M
Total Liabilities	13.30B	9.87B	1.14B	1.24B	1.20B
Stockholders Equity	1.23B	589.30M	11.39B	10.37B	10.94B
Cash Flow
Free Cash Flow	-125.30M	89.84M	2.59B	-120.00M	3.42B
Operating Cash Flow	-111.06M	94.65M	2.61B	-93.25M	3.43B
Investing Cash Flow	-131.03M	-201.80M	-1.09B	-614.24M	-555.50M
Financing Cash Flow	569.13M	149.18M	282.96M	-7.99M	1.47B

Lianlian DigiTech Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2598, the sentiment is Positive. The current price of 11.4 is above the 20-day moving average (MA) of 10.53, above the 50-day MA of 11.20, and above the 200-day MA of 9.33, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 54.82 is Neutral, neither overbought nor oversold. The STOCH value of 77.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2598.

Lianlian DigiTech Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9923	61 Neutral	HK$5.59B	50.15	3.35%	―	-9.32%	477.27%
0818	59 Neutral	HK$1.44B	10.12	1.98%	―	-17.60%	-6.20%
Sector *	56 Neutral	$6.56B	-1.65	0.45%	6.25%	14.92%	10.98%
9959	55 Neutral	HK$4.82B	―	-12.22%	―	11.43%	-94.89%
2598	47 Neutral	HK$16.94B	―		―	―	―
6B5	―	€975.63M	15.87	5.87%	―	―	―
6682	54 Neutral	HK$31.17B	―	-3.20%	―	―	―

Lianlian DigiTech Co., Ltd. Class H Corporate Events

Lianlian DigiTech Schedules Board Meeting to Review Interim Results

Lianlian DigiTech Co., Ltd. has announced a board meeting scheduled for August 26, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation for an interim dividend, highlighting the company’s ongoing financial performance and potential returns for stakeholders.

Lianlian DigiTech Announces Executive Resignation

Lianlian DigiTech Co., Ltd. announced the resignation of Mr. Wang Yu from his roles as an executive director, deputy general manager, and chief technology officer, effective July 28, 2025, due to personal work arrangements. The company expressed gratitude for Mr. Wang’s contributions, and his departure is not expected to cause any disruptions, as there are no disagreements or unresolved matters with the board.

Lianlian DigiTech Announces Board Composition and Committee Roles

Lianlian DigiTech Co., Ltd. has announced the composition of its board of directors and their respective roles within the company. The board comprises both executive and independent non-executive directors, with specific members assigned to various committees such as Audit, Remuneration and Assessment, Nomination, Compliance and Risk Management, and Strategy. This announcement is crucial for stakeholders as it outlines the governance structure and leadership roles that will guide the company’s strategic direction and operational oversight.

Lianlian DigiTech Announces Key Company Secretarial Changes

Lianlian DigiTech Co., Ltd. has announced changes in its key company secretarial positions. Ms. Chan Yuen Mui and Mr. Yan Hao have resigned from their roles as joint company secretaries and other related positions, effective July 28, 2025. Ms. Leung Hoi Yan and Ms. Xu Yedan have been appointed as their replacements. Ms. Leung brings over 14 years of experience in company secretarial services, and Ms. Xu, who has been with the company since 2015, will focus on corporate governance and strategic investments. The company has received a waiver from strict compliance with certain listing rules, allowing Ms. Xu to serve despite not meeting specific qualification requirements, due to her extensive experience and familiarity with the company’s operations.

Lianlian DigiTech Completes Strategic H Share Placement

Lianlian DigiTech Co., Ltd. has successfully completed the placement of 38,400,000 new H Shares, increasing its total issued shares to 1,117,460,000. This strategic move, completed on July 21, 2025, aims to strengthen the company’s capital base and expand its market presence, with the shares being allotted to independent professional and institutional investors.

Lianlian DigiTech Announces New H Shares Placement to Fund Innovation and Expansion

Lianlian DigiTech Co., Ltd. announced a new placement of H shares under a general mandate, with the potential to raise approximately HK$387.25 million in net proceeds. The funds are intended to support innovation in blockchain technology, global business expansion, and general corporate purposes, enhancing the company’s market positioning and operational capabilities.

Lianlian DigiTech Approves Key Resolutions at 2024 AGM

Lianlian DigiTech Co., Ltd. successfully held its 2024 Annual General Meeting on June 6, 2025, in Hangzhou, China. All proposed resolutions, including the approval of the 2024 annual reports, financial statements, and the re-appointment of PricewaterhouseCoopers as the auditor, were passed with significant shareholder support. The meeting also granted the board mandates to issue and repurchase shares, indicating strong confidence in the company’s strategic direction.

The most recent analyst rating on (HK:2598) stock is a Buy with a HK$12.00 price target. To see the full list of analyst forecasts on Lianlian DigiTech Co., Ltd. Class H stock, see the HK:2598 Stock Forecast page.

Lianlian DigiTech Shareholder’s Shares Frozen Amid Legal Dispute

Lianlian DigiTech Co., Ltd. announced that an additional 72,115,995 unlisted shares held by Mr. Lu Zhonglin, a controlling shareholder, have been judicially frozen due to civil case disputes. This freezing, executed by the Xihu District People’s Court of Hangzhou City, represents approximately 6.68% of the company’s total shares and will last until April 27, 2028. Despite this, the company assures stakeholders that the freezing will not affect its controlling shareholders or impact its business operations, governance, or daily management.

The most recent analyst rating on (HK:2598) stock is a Buy with a HK$12.00 price target. To see the full list of analyst forecasts on Lianlian DigiTech Co., Ltd. Class H stock, see the HK:2598 Stock Forecast page.