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Lianlian DigiTech Co., Ltd. Class H
(2598)
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Rating:61Neutral
Price Target:
HK$4.50
▼(-43.68% Downside)
Action:Reiterated
Date:06/25/26
The score is anchored by solid financial performance (strong revenue growth and substantially reduced leverage) and supported by a very low P/E valuation. Offsetting these positives, technical signals are clearly bearish with price below all key moving averages and a negative MACD, and financials show meaningful risks around earnings quality (high 2025 net margin despite negative EBIT) and historically volatile cash flow.
Positive Factors
Sustained multi-year revenue growth
Consistent double-digit top-line growth across multiple years signals durable demand for payments and fintech services. Sustained revenue expansion supports scale economics, platform investment and market share gains, improving the firm's ability to fund growth without relying solely on external capital.
Negative Factors
Earnings quality concerns (net vs operating)
A large net-profit swing driven while EBIT remains negative suggests non-operating items materially influenced reported profits. This raises doubts about recurring core earnings, complicates forecasting and undermines confidence that the 2025 profitability level is sustainable from operating activities alone.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained multi-year revenue growth
Consistent double-digit top-line growth across multiple years signals durable demand for payments and fintech services. Sustained revenue expansion supports scale economics, platform investment and market share gains, improving the firm's ability to fund growth without relying solely on external capital.
Read all positive factors
Lianlian DigiTech Co., Ltd. Class H (2598) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$4.50B
Dividend YieldN/A
Average Volume (3M)2.14M
Price to Earnings (P/E)2.3
Beta (1Y)0.52
Revenue Growth135.34%
EPS GrowthN/A
CountryHK
Employees1,103
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.58
Shares Outstanding468,442,260
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$9.89Price Target Upside23.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.04
Revenue Forecast (FY)HK$2.11B
Lianlian DigiTech Co., Ltd. Class H Business Overview & Revenue Model
Company Description
Lianlian DigiTech Co., Ltd., along with its affiliated entities, delivers a comprehensive suite of digital payment and value-added services to businesses and commercial clients throughout China. The company's diverse offerings also extend to prope...
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
Negative
7.99
Price Trends
5.32
Negative
5.94
Negative
6.94
Negative
Market Momentum
-0.35
Positive
23.21
Positive
8.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2598, the sentiment is Negative. The current price of 7.99 is above the 20-day moving average (MA) of 4.58, above the 50-day MA of 5.32, and above the 200-day MA of 6.94, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 23.21 is Positive, neither overbought nor oversold. The STOCH value of 8.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | HK$697.50M | 10.28 | 16.17% | ― | 43.85% | -15.29% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | HK$4.50B | 2.35 | 67.29% | ― | 135.34% | ― | |
55 Neutral | HK$2.20B | 18.95 | 3.13% | ― | 7.28% | 6.77% | |
54 Neutral | HK$3.65B | -6.84 | -6.21% | ― | -4.47% | 43.95% | |
50 Neutral | HK$2.14B | 28.59 | 7.02% | ― | -0.39% | -74.19% | |
46 Neutral | HK$71.33M | -1.29 | 402.84% | ― | -56.52% | 6.67% |
* Technology Sector Average
HK:2598
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Lianlian DigiTech Co., Ltd. Class H Corporate Events
Lianlian DigiTech Shareholders Approve AGM Resolutions, New Auditor and Capital Mandates
Jun 5, 2026
Lianlian DigiTech Co., Ltd. held its 2025 annual general meeting on June 5, 2026 in Hangzhou, confirming that the meeting was validly convened under PRC law and listing rules, with all directors in attendance either in person or electronically. Sh...
Lianlian DigiTech Details Board and Committee Structure
Jun 5, 2026
Lianlian DigiTech Co., Ltd. has announced the current composition of its board of directors, which includes four executive directors and three independent non-executive directors. The structure underscores a balance between management and independ...
Lianlian DigiTech Secures DFSA Payment License to Expand in Dubai Financial Hub
May 19, 2026
Lianlian DigiTech Co., Ltd. has secured a Category 3D Payment License from the Dubai Financial Services Authority, allowing it to operate a range of regulated payment activities in the Dubai International Financial Centre. The authorization covers...
Lianlian DigiTech Sets June 2026 AGM to Decide Auditor Change, Board Mandates
May 13, 2026
Lianlian DigiTech Co., Ltd. has called its annual general meeting for June 5, 2026 in Hangzhou, where shareholders will review the 2025 board, supervisory committee and financial reports, as well as the annual profit distribution plan. The agenda ...
Lianlian DigiTech Moves to Replace PwC With Deloitte as Auditor in Governance-Driven Rotation
May 13, 2026
Lianlian DigiTech Co., Ltd. announced that PricewaterhouseCoopers will retire as its auditor after the annual general meeting on June 5, 2026, ending a mandate that began in 2017. The board and audit committee said the move reflects a policy of pe...
Lianlian DigiTech Secures Canadian MSB License via Acquisition
Apr 27, 2026
Lianlian DigiTech Co., Ltd. has obtained Money Services Business registration from Canada’s financial intelligence unit FINTRAC by acquiring a registered entity. The authorization allows the group to conduct regulated foreign exchange, money...
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...
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.