Lianlian DigiTech Co., Ltd. Class H (HK:2598)
:2598
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Lianlian DigiTech Co., Ltd. Class H
(2598)
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Rating:67Neutral
Price Target:
HK$6.50
▼(-18.65% Downside)
Action:ReiteratedDate:04/14/26
The score is primarily supported by strong revenue growth and a significantly de-risked balance sheet, plus a low P/E valuation. It is held back by concerns about earnings quality and cash-flow consistency, and by weak technical trend signals with the stock trading below major moving averages.
Positive Factors
Sustained Revenue Growth
Multi-year top-line growth demonstrates durable demand for the company’s payments and value-added services. Consistent high single- to double-digit growth supports scale advantages, continued reinvestment in product and distribution, and a stronger competitive position over the next 2–6 months.
Negative Factors
Earnings Quality Concerns
A large net-profit swing driven while core EBIT remained negative suggests material non-operating or one-off items. This undermines confidence that 2025 profitability is repeatable and complicates forecasting of sustainable operating margins over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Multi-year top-line growth demonstrates durable demand for the company’s payments and value-added services. Consistent high single- to double-digit growth supports scale advantages, continued reinvestment in product and distribution, and a stronger competitive position over the next 2–6 months.
Read all positive factors
Lianlian DigiTech Co., Ltd. Class H (2598) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$6.73B
Dividend YieldN/A
Average Volume (3M)2.14M
Price to Earnings (P/E)3.9
Beta (1Y)0.36
Revenue Growth135.34%
EPS GrowthN/A
CountryHK
Employees1,103
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.16
Shares Outstanding465,753,270
10 Day Avg. Volume1,334,695
30 Day Avg. Volume2,142,479
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)2.06
Price to Sales (P/S)3.29
P/FCF Ratio74.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$9.57Price Target Upside19.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.03
Revenue Forecast (FY)HK$2.12B
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 ...
How the Company Makes Money
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Lianlian DigiTech Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.48B | 1.93B | 1.31B | 1.03B | 742.75M | 643.64M |
| Gross Profit | 763.82M | 1.02B | 682.52M | 577.35M | 465.97M | 444.23M |
| EBITDA | 44.32M | 2.08B | -433.03M | -607.38M | -118.74M | -63.53M |
| Net Income | 1.69B | 1.62B | -168.22M | -656.06M | -916.54M | -746.59M |
Balance Sheet | ||||||
| Total Assets | 19.15B | 22.95B | 14.54B | 10.47B | 10.15B | 8.48B |
| Cash, Cash Equivalents and Short-Term Investments | 1.84B | 21.45B | 13.41B | 10.53B | 9.09B | 1.06B |
| Total Debt | 348.13M | 172.83M | 506.77M | 455.02M | 278.20M | 21.94M |
| Total Liabilities | 16.53B | 19.88B | 13.30B | 9.87B | 9.09B | 6.56B |
| Stockholders Equity | 2.61B | 3.08B | 1.23B | 589.30M | 1.06B | 1.92B |
Cash Flow | ||||||
| Free Cash Flow | -39.55M | 84.65M | -125.30M | 89.84M | 2.59B | -120.00M |
| Operating Cash Flow | -29.31M | 97.79M | -111.06M | 94.65M | 2.61B | -93.25M |
| Investing Cash Flow | 1.48B | 1.34B | -131.03M | -201.80M | -941.07M | -528.25M |
| Financing Cash Flow | -467.77M | -351.79M | 569.13M | 149.18M | 242.59M | -6.26M |
Lianlian DigiTech Co., Ltd. Class H Technical Analysis
Positive
7.99
Price Trends
6.51
Negative
6.62
Negative
8.36
Negative
Market Momentum
-0.09
Negative
51.51
Neutral
51.18
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 7.99 is above the 20-day moving average (MA) of 6.00, above the 50-day MA of 6.51, and below the 200-day MA of 8.36, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 51.18 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$5.42B | 70.80 | 7.02% | ― | -0.39% | -73.89% | |
73 Outperform | HK$900.00M | 9.81 | 35.42% | ― | 146.18% | 1617.05% | |
67 Neutral | HK$6.73B | 3.91 | 74.52% | ― | 135.34% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | HK$2.90B | 31.81 | 3.10% | ― | 7.28% | 15.01% | |
42 Neutral | HK$61.69M | -1.62 | 402.84% | ― | -43.10% | -5.98% | |
41 Neutral | HK$4.29B | -18.48 | -6.10% | ― | -4.47% | 44.65% |
* Technology Sector Average
HK:2598
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Lianlian DigiTech Co., Ltd. Class H Corporate Events
Lianlian DigiTech Swings to Strong Profit on Surging 2025 Revenue
Mar 26, 2026
Lianlian DigiTech Co., Ltd. reported strong audited results for 2025, with revenue rising 31.9% year on year to RMB1.73 billion and gross profit up 28.0% to RMB873 million. The group swung from a loss to a profit, as profit before tax reached RMB2...
Lianlian DigiTech Reshapes Top Management With New Executive Director Nominations
Mar 26, 2026
Lianlian DigiTech Co., Ltd. announced that chief executive officer and executive director Xin Jie and financial director and executive director Wei Ping will resign as executive directors for family reasons, effective upon the election of new boar...
Lianlian DigiTech Sets March 26 Board Meeting to Approve 2025 Results
Mar 16, 2026
Lianlian DigiTech Co., Ltd. has scheduled a board meeting for March 26, 2026, to review and approve the annual results for the financial year ended December 31, 2025, for the company and its subsidiaries. The board will also consider whether to re...
Lianlian DigiTech Reports Partial Uplift of Judicial Freeze on Controlling Shareholder’s Stake
Mar 3, 2026
Lianlian DigiTech Co., Ltd. has disclosed that a significant portion of shares in the company held by controlling shareholder Lu Zhonglin is no longer subject to judicial freezing. Authorities have lifted restrictions on 73,715,995 unlisted shares...
Lianlian DigiTech Shareholders Approve Share Award Scheme, Capital Increase and Governance Overhaul
Jan 26, 2026
Lianlian DigiTech Co., Ltd. reported that its extraordinary general meeting held in Hangzhou on 26 January 2026 was duly convened in compliance with PRC laws, Hong Kong listing rules and the company’s articles, with all directors attending a...
Lianlian DigiTech Formalizes Audit Committee Mandate to Bolster Governance
Jan 26, 2026
Lianlian DigiTech Co., Ltd. has formalized the terms of reference for its Board-level Audit Committee to enhance corporate governance and strengthen oversight of its financial reporting and control environment. The committee, composed entirely of ...
Lianlian DigiTech Formalises Terms of Reference for Board Nomination Committee
Jan 26, 2026
Lianlian DigiTech Co., Ltd. has formally set out detailed terms of reference for its Board Nomination Committee, a specialised governance body tasked with proposing candidates for directors, including independent non-executive directors, and senio...
Lianlian DigiTech Sets Formal Mandate for Board Remuneration and Assessment Committee
Jan 26, 2026
Lianlian DigiTech Co., Ltd. has established a Remuneration and Assessment Committee under its board of directors, with formal terms of reference designed to standardise performance evaluation and remuneration management for directors and senior ma...
Lianlian DigiTech Pulls Three Share Award Resolutions from Upcoming EGM
Jan 22, 2026
Lianlian DigiTech Co., Ltd. has withdrawn three ordinary resolutions at its upcoming extraordinary general meeting that related to proposed grants of award shares to executive directors under its First Share Award Scheme, citing overall arrangemen...
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.