Tongdao Liepin Group (6100) AI Stock Analysis

• Market Cap: HK$1.97B
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 2.06
• Revenue Growth: -10.48%
• EPS Growth: 30250.00%
• Country: HK
• Employees: 4,122
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): N/A
• Shares Outstanding: 514,483,760
• 10 Day Avg. Volume: 1,300,590
• 30 Day Avg. Volume: 1,242,468
• PEG Ratio: <0.01
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 20.08
• 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
• EPS Forecast (FY): 2.65
• Revenue Forecast (FY): HK$15.91B

• Rating: 72 Outperform
• Price Target: HK$4.00 ▲(25.00% Upside)

Tongdao Liepin Group's overall stock score is driven primarily by its strong financial performance and attractive valuation. The company's robust gross margins and solid balance sheet provide a foundation for stability, while the low P/E ratio suggests potential undervaluation. However, technical indicators point to bearish momentum, which could pose short-term challenges. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Business Model Strength

The company's focus on digital platforms for recruitment enhances job matching efficiency, providing a competitive edge in the HR services sector.

Revenue Model

Diverse revenue streams, including partnerships with educational institutions, support stable income and growth potential in a digital recruitment market.

Balance Sheet Health

A strong balance sheet with low leverage and high equity ratio ensures financial stability and resilience against economic uncertainties.

Negative Factors

Revenue Growth Decline

Inconsistent revenue growth reflects market volatility or increased competition, posing challenges to maintaining long-term growth momentum.

Net Profit Margin Fluctuation

Volatile net profit margins indicate challenges in controlling non-operating expenses, affecting profitability and financial predictability.

Cash Flow Variability

Fluctuations in cash flow generation can impact the company's ability to fund operations and investments consistently, posing a risk to financial stability.

Tongdao Liepin Group Business Overview & Revenue Model

Company Description

Tongdao Liepin Group (6100) is a prominent player in the recruitment and human resource services sector in China. The company specializes in providing innovative career development solutions, including talent acquisition, job listings, and recruitment process outsourcing. Through its advanced digital platforms, Tongdao Liepin connects job seekers with employers across various industries, thereby streamlining the hiring process and enhancing job matching efficiency.

How the Company Makes Money

Tongdao Liepin Group primarily generates revenue through multiple streams, including subscription fees from employers for job postings and access to its candidate database. Additionally, the company earns income from premium services offered to both job seekers and companies, such as enhanced visibility for job listings and targeted recruitment solutions. Significant partnerships with educational institutions and industry organizations further bolster its revenue model by allowing access to a broader talent pool and facilitating specialized recruitment services. The growth in demand for digital recruitment tools and services in China's rapidly evolving job market also contributes to the company's financial performance.

Tongdao Liepin Group Financial Statement Overview

Summary

Tongdao Liepin Group demonstrates strong profitability and financial stability with robust gross margins and a solid balance sheet. However, the inconsistency in revenue growth and net profit margins highlights the need for improved cost control and competitive positioning. The company's cash flow position is generally positive, supporting its operational needs, but reflects some variability.

Income Statement

Tongdao Liepin Group's income statement shows solid gross profit margins, consistently above 75%, indicating strong cost management and pricing power. However, the net profit margin has fluctuated, with a significant drop in 2023, pointing to challenges in controlling non-operating expenses. Revenue growth has been erratic, with a decline in recent periods, reflecting market volatility or increased competition. EBIT and EBITDA margins are moderate, suggesting potential for operational improvements.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio indicating low financial leverage and a high equity ratio of over 60%, implying financial stability. Return on equity shows some volatility, affected by inconsistent net income. The company maintains a healthy cash position, providing a buffer against economic uncertainties.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow, albeit with fluctuations. The operating cash flow to net income ratio indicates efficient cash generation, but recent free cash flow growth suggests some instability in cash management. The company has been able to generate sufficient cash from operations to cover investment needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.00B	2.08B	2.28B	2.64B	2.65B	1.87B
Gross Profit	1.52B	1.58B	1.70B	2.05B	2.07B	1.46B
EBITDA	107.41M	126.07M	156.63M	259.94M	359.55M	226.69M
Net Income	168.42M	133.45M	750.00K	44.37M	134.43M	53.63M
Balance Sheet
Total Assets	4.35B	4.58B	4.53B	4.92B	4.89B	4.45B
Cash, Cash Equivalents and Short-Term Investments	1.79B	2.48B	2.28B	2.90B	1.43B	2.73B
Total Debt	163.33M	147.64M	133.98M	178.16M	146.93M	114.19M
Total Liabilities	1.22B	1.30B	1.36B	1.58B	1.69B	1.41B
Stockholders Equity	2.96B	3.06B	2.89B	3.07B	2.98B	2.87B
Cash Flow
Free Cash Flow	-46.51M	71.62M	5.79M	118.29M	661.75M	447.14M
Operating Cash Flow	-38.40M	92.54M	18.33M	143.10M	697.32M	466.29M
Investing Cash Flow	381.56M	179.11M	514.89M	60.68M	-551.21M	-90.72M
Financing Cash Flow	-262.67M	-129.13M	-343.33M	-226.48M	-166.38M	-215.86M

Tongdao Liepin Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.20
• 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:6100, the sentiment is Positive. The current price of 3.2 is below the 20-day moving average (MA) of 3.73, below the 50-day MA of 3.52, and below the 200-day MA of 3.87, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 47.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6100.

Tongdao Liepin Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2180	73 Outperform	HK$1.07B	7.05	11.29%	36.94%	17.49%	9.67%
6100	72 Outperform	HK$1.97B	12.82	―	―	-10.48%	30250.00%
8462	66 Neutral	HK$52.80M	5.24	7.43%	―	-11.47%	5.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8031	60 Neutral	HK$70.95M	-7.27	―	―	―	―
8042	59 Neutral	HK$33.60M	15.00	3.76%	―	50.80%	―
6919	46 Neutral	HK$612.17M	-10.60	-4.09%	2.25%	14.29%	-200.37%

Tongdao Liepin Group Corporate Events

Tongdao Liepin Group Invests in Wealth Management Products

Tongdao Liepin Group has announced a series of subscriptions to wealth management products through various subsidiaries, totaling several million RMB. These investments are part of the company’s strategy to utilize its surplus cash reserves, and they are structured as principal-guaranteed deposits with low risk and pegged to the EUR/USD exchange rate. The transactions are considered discloseable under the Hong Kong Stock Exchange’s listing rules, but they do not require shareholder approval.

Tongdao Liepin Group Engages in Significant Wealth Management Subscriptions

Tongdao Liepin Group has announced a series of subscriptions for principal-guaranteed, fixed-income wealth management products through its subsidiary, TD Elite (HK) Information Technology Co., Limited. These subscriptions, issued by CGMHI and Morgan Stanley Finance LLC, total $76 million and are set to be redeemed by October 2025. The transactions are considered discloseable under the Hong Kong Stock Exchange Listing Rules, as they exceed the 5% but remain below the 25% threshold, thus requiring notification and announcement but not shareholder approval.

Tongdao Liepin Group Engages in Strategic Wealth Management Subscriptions

Tongdao Liepin Group has announced multiple subscriptions of structured deposit products through its subsidiaries with XIB and BoH, totaling significant investments. These transactions are funded by the company’s surplus cash reserves and previously redeemed structured deposits, reflecting strategic financial management. The subscriptions, which exceed a 5% but less than 25% applicable percentage ratio, are classified as discloseable transactions under the Listing Rules, requiring notification and announcement but not shareholder approval.