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

• Market Cap: HK$15.64B
• Dividend Yield: N/A
• Average Volume (3M): 11.63M
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 1,103
• Sector: General
• Sector Strength: N/A
• Industry: Software - Infrastructure
• EPS (TTM): -0.19
• Shares Outstanding: 418,668,760
• 10 Day Avg. Volume: 22,527,822
• 30 Day Avg. Volume: 11,628,126
• PEG Ratio: -0.67
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.27
• 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: 55 Neutral
• Price Target: HK$11.00 ▲(10.55%Upside)

Lianlian DigiTech's overall stock score is primarily impacted by its financial struggles, including negative profitability and cash flow inefficiencies. Despite these challenges, the stock benefits from positive market momentum, suggesting potential for trend continuation. However, poor valuation metrics pose significant risks.

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. generates revenue through a diverse set of financial services tailored to various market needs. Its primary revenue streams include transaction fees charged to merchants and users for processing payments through its platform. The company also earns from providing value-added services such as credit and financing solutions, leveraging data analytics to offer personalized financial products. Additionally, Lianlian DigiTech benefits from strategic partnerships with banks, financial institutions, and global payment networks, which enable the company to expand its service offerings and tap into new markets, contributing significantly to its revenue growth.

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

Summary

Lianlian DigiTech faces substantial challenges across its financial statements. Despite revenue growth, profitability remains elusive, with negative margins impacting overall performance. The balance sheet shows moderate leverage but limited equity, and cash flow issues underscore operational inefficiencies.

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
	EBIT
-267.82M	-353.03M	35.08M	31.83M	38.59M
	EBITDA
-433.03M	-607.38M	9.79M	28.22M	18.02M
	Net Income Common Stockholders
-168.22M	-656.06M	-111.20M	-52.04M	-11.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
805.89M	382.16M	10.21B	9.21B	9.83B
	Total Assets
14.54B	10.47B	128.39M	12.39M	7.38M
	Total Debt
506.77M	455.02M	14.14M	16.79M	14.14M
	Net Debt
-15.48M	-8.92B	-9.98B	-8.96B	-9.39B
	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: 9.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 9.95 is above the 20-day moving average (MA) of 9.58, above the 50-day MA of 7.56, and above the 200-day MA of 8.92, indicating a bullish trend. The MACD of 0.71 indicates Positive momentum. The RSI at 54.16 is Neutral, neither overbought nor oversold. The STOCH value of 65.05 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	63 Neutral	HK$5.82B	58.49	3.07%	―	-23.46%	358.07%
0818	61 Neutral	HK$1.39B	8.45	2.20%	―	-13.19%	-66.35%
Sector *	58 Neutral	$4.96B	18.76	-16.94%	9.99%	13.73%	-24.47%
2598	55 Neutral	HK$15.64B	―		―	―	―
6B5		€754.99M	12.64	5.87%	―	―	―
9959	55 Neutral	HK$4.11B	―	-9.86%	―	16.81%	-87.15%
6682	54 Neutral	HK$23.91B	―		―	―	―

Lianlian DigiTech Co., Ltd. Class H Corporate Events

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.

Lianlian DigiTech Schedules AGM with Key Resolutions on Agenda

Lianlian DigiTech Co., Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for June 6, 2025, where shareholders will consider and approve various resolutions. These include the approval of the 2024 financial reports, an annual loss recovery plan, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, special resolutions will be discussed, granting the Board mandates to issue and repurchase shares, which could impact the company’s financial strategy and shareholder value.

Lianlian DigiTech Faces Judicial Freezing of Shares

Lianlian DigiTech Co., Ltd. announced that 20,200,560 unlisted shares held by Mr. Lu Zhonglin, a controlling shareholder, have been judicially frozen due to civil disputes. This freezing, executed by the Yuhang District People’s Court of Hangzhou City, represents approximately 1.87% of the company’s total shares and will last until March 27, 2028. The company assures that this action will not affect its operations, corporate governance, or management, and there will be no change in the controlling shareholders.

Lianlian DigiTech Announces Share Repurchase Plan

Lianlian DigiTech Co., Ltd. has announced its intention to repurchase up to 10% of its issued H Shares on the Hong Kong Stock Exchange, subject to market conditions, under a general mandate granted by shareholders. The company believes its current share price undervalues its intrinsic worth and growth prospects, and the repurchase plan aims to enhance shareholder value while maintaining financial stability.