Bairong, Inc. Class B (6608) AI Stock Analysis

• Market Cap: HK$8.39B
• Dividend Yield: N/A
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.28
• Revenue Growth: 16.43%
• EPS Growth: 17.05%
• Country: HK
• Employees: 1,445
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.60
• Shares Outstanding: 394,459,840
• 10 Day Avg. Volume: 1,349,809
• 30 Day Avg. Volume: 1,402,829
• PEG Ratio: -1.00
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 16.10
• 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$16.62
• Price Target Upside: 55.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$12.00 ▲(12.15% Upside)

Bairong, Inc. demonstrates a solid financial position with strong revenue growth and efficient cash management, contributing significantly to the score. Technical analysis indicates positive momentum, although caution is advised due to potential overbought conditions. The valuation is reasonable, but the lack of a dividend yield may deter income investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Bairong's expanding market presence and successful product adoption, enhancing long-term business stability.

Cash Flow Management

Strong cash flow management ensures Bairong can invest in growth opportunities and maintain financial flexibility, supporting sustainable operations.

Balance Sheet Health

A healthy balance sheet with low leverage reduces financial risk and enhances Bairong's ability to withstand economic fluctuations.

Negative Factors

Net Profit Margin

A low net profit margin suggests limited profitability, which could hinder Bairong's ability to reinvest in business growth and innovation.

Dividend Yield

Without a dividend yield, Bairong may be less appealing to income investors, potentially limiting its investor base and market appeal.

Return on Equity

A moderate return on equity suggests that Bairong could improve its efficiency in generating profits from shareholders' equity, impacting long-term growth potential.

Bairong, Inc. Class B Business Overview & Revenue Model

Company Description

Bairong, Inc. Class B (6608) is a prominent technology company specializing in artificial intelligence (AI) and big data solutions. Operating primarily in the financial technology sector, the company develops innovative software products that enhance decision-making processes for businesses and financial institutions. Bairong's core offerings include credit assessment tools, risk management solutions, and customer analytics services, aimed at optimizing financial operations and improving customer experiences.

How the Company Makes Money

Bairong generates revenue through a diversified model that includes subscription fees for its software solutions, transaction-based fees from its financial services tools, and consulting services for implementation and optimization of its technologies. The company partners with various financial institutions, leveraging their data to provide tailored services, which enhances the value proposition of its products. Additionally, Bairong's strategic alliances with other tech firms and financial organizations contribute to its earnings by expanding its market reach and enhancing product offerings.

Bairong, Inc. Class B Financial Statement Overview

Summary

Bairong, Inc. exhibits a solid financial position with strong revenue growth and efficient cost management. The balance sheet is stable with low leverage, and cash flow metrics indicate effective cash management. While profitability margins can be improved, the company is well-positioned for future growth.

Income Statement

Bairong, Inc. shows a strong revenue growth trajectory with a 4.72% increase in TTM. The gross profit margin remains robust at approximately 72.87%, indicating efficient cost management. However, the net profit margin is relatively low at 9.09%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, reflecting stable operational performance.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.028, indicating minimal leverage and financial risk. The return on equity is reasonable at 6.84%, showcasing effective use of equity to generate profits. The equity ratio is strong, highlighting a solid capital structure.

Cash Flow

Bairong, Inc. demonstrates strong cash flow management with a significant free cash flow growth rate of 31.28% in TTM. The operating cash flow to net income ratio is healthy, indicating efficient cash conversion. The free cash flow to net income ratio of 1.0 suggests robust cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.22B	2.93B	2.68B	2.05B	1.62B	1.14B
Gross Profit	2.35B	2.13B	1.95B	1.48B	1.19B	837.95M
EBITDA	235.91M	203.19M	429.74M	130.67M	191.41M	24.37M
Net Income	316.49M	266.18M	340.46M	239.66M	-3.60B	-110.56M
Balance Sheet
Total Assets	5.61B	5.70B	5.51B	5.27B	4.87B	1.33B
Cash, Cash Equivalents and Short-Term Investments	3.57B	3.46B	2.04B	1.74B	3.85B	865.27M
Total Debt	113.03M	126.89M	144.51M	131.52M	158.16M	131.34M
Total Liabilities	859.08M	1.17B	1.06B	956.87M	718.56M	2.58B
Stockholders Equity	4.74B	4.52B	4.44B	4.30B	4.13B	-1.27B
Cash Flow
Free Cash Flow	578.45M	244.07M	310.90M	277.99M	244.02M	190.39M
Operating Cash Flow	580.20M	302.78M	339.16M	302.45M	265.14M	208.76M
Investing Cash Flow	-24.93M	30.12M	-39.27M	-2.56B	141.10M	-251.78M
Financing Cash Flow	-346.19M	-468.90M	-270.68M	-221.59M	3.00B	-65.17M

Bairong, Inc. Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6608, the sentiment is Positive. The current price of 10.7 is above the 20-day moving average (MA) of 9.48, above the 50-day MA of 9.58, and above the 200-day MA of 9.31, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 71.44 is Negative, neither overbought nor oversold. The STOCH value of 90.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6608.

Bairong, Inc. Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6608	73 Outperform	HK$8.39B	14.61	7.02%	―	16.43%	17.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9923	58 Neutral	HK$3.73B	33.78	3.35%	―	-9.32%	477.27%
2598	58 Neutral	HK$7.27B	3.83	94.40%	―	―	―
0818	54 Neutral	HK$1.33B	9.24	1.98%	―	-17.23%	-6.20%
6682	43 Neutral	HK$22.54B	-100.33	-3.20%	―	―	―
9959	41 Neutral	HK$4.98B	-4.44	-12.22%	―	11.43%	-94.89%

Bairong, Inc. Class B Corporate Events

Bairong Inc. Announces HK$450 Million Share Repurchase Plan

Bairong Inc. has announced its intention to repurchase up to HK$450 million worth of its Class B shares in the open market over the next 12 months. This move, approved by shareholders, is aimed at demonstrating confidence in the company’s business prospects and enhancing shareholder value, while maintaining a strong financial position. The repurchase will be conducted in accordance with relevant laws and regulations, but its execution will depend on market conditions and the discretion of the board.