Beijing Fourth Paradigm Technology Co. Ltd. Class H (6682) AI Stock Analysis

• Market Cap: HK$24.38B
• Dividend Yield: N/A
• Average Volume (3M): 4.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 967
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.15
• Shares Outstanding: 320,809,500
• 10 Day Avg. Volume: 4,988,018
• 30 Day Avg. Volume: 4,888,345
• PEG Ratio: 1.04
• Price to Book (P/B): 4.38
• Price to Sales (P/S): 4.22
• P/FCF Ratio: -34.10
• 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$80.15
• Price Target Upside: 53.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.29
• Revenue Forecast (FY): HK$53.96B

• Rating: 43 Neutral
• Price Target: HK$45.00 ▼(-13.71% Downside)

The overall stock score is primarily influenced by financial performance challenges, including profitability issues and negative cash flows. Technical indicators suggest bearish momentum, while valuation metrics highlight unprofitability. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for the company's AI solutions, supporting its market position and potential for future expansion.

Low Leverage

Low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities and weather economic downturns.

Healthy Gross Profit Margin

A healthy gross profit margin reflects efficient cost management in core operations, supporting long-term profitability as the company scales.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which could hinder reinvestment in growth and affect long-term sustainability.

Negative Operating Cash Flows

Negative operating cash flows suggest liquidity issues, potentially limiting the company's ability to fund operations and invest in growth without external financing.

High Operating Expenses

Elevated operating expenses reduce net margins, challenging the company's ability to achieve profitability and necessitating cost control measures.

Beijing Fourth Paradigm Technology Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Beijing Fourth Paradigm Technology Co. Ltd. is a leading artificial intelligence company specializing in machine learning and data analysis solutions. The company provides a suite of products and services designed to enhance data-driven decision making across various sectors, including finance, healthcare, and manufacturing. Its core offerings include AI algorithms, predictive analytics tools, and customized solutions that enable organizations to optimize their operations and gain valuable insights from large datasets.

How the Company Makes Money

Beijing Fourth Paradigm Technology Co. Ltd. generates revenue primarily through the sale of its AI software products and analytics services. Key revenue streams include licensing fees for its proprietary machine learning platforms, subscription-based models for ongoing access to its analytics tools, and consulting services that tailor AI solutions to specific business needs. Additionally, the company has established significant partnerships with various enterprises and government agencies, which contribute to its earnings through collaborative projects and joint ventures in AI development and implementation.

Beijing Fourth Paradigm Technology Co. Ltd. Class H Financial Statement Overview

Summary

Beijing Fourth Paradigm Technology Co. Ltd. shows strong revenue growth and improving equity, but faces significant challenges with profitability and negative operating cash flows. The low leverage is a positive aspect for financial stability.

Income Statement

The company has shown significant revenue growth, with a compound annual growth rate from 2020 to 2024. However, it remains unprofitable with negative EBIT and net income, indicating operational and profitability challenges. The gross profit margin is healthy, suggesting solid core operations, but high operating expenses are impacting overall profitability.

Balance Sheet

The company's balance sheet shows a strong equity position in 2023 and 2024, with a return to positive equity. The debt-to-equity ratio is low, indicating minimal leverage, which is a positive sign for financial stability. However, historical negative equity and liabilities exceeding assets in previous years indicate past financial stress.

Cash Flow

Cash flow statements indicate challenges with operating cash flows, consistently negative over the years, which could impact liquidity. The absence of free cash flow growth and reliance on financing activities to manage cash flows are concerns. Positive changes in investing and financing cash flows in recent years are notable but do not offset operational cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.02B	5.26B	4.20B	3.08B	2.02B	942.24M
Gross Profit	2.45B	2.24B	1.98B	1.49B	953.48M	429.74M
EBITDA	-161.29M	-318.20M	-418.66M	-1.06B	-1.24B	-575.23M
Net Income	-184.16M	-268.79M	-908.72M	-1.64B	-1.80B	-750.21M
Balance Sheet
Total Assets	7.76B	7.59B	7.15B	6.72B	6.45B	2.02B
Cash, Cash Equivalents and Short-Term Investments	2.73B	1.89B	3.03B	2.66B	3.85B	1.32B
Total Debt	18.56M	28.36M	154.63M	144.59M	54.12M	38.77M
Total Liabilities	1.50B	2.52B	1.69B	8.18B	6.70B	3.20B
Stockholders Equity	6.28B	5.06B	5.35B	-1.57B	-351.02M	-1.18B
Cash Flow
Free Cash Flow	-457.03M	-650.31M	-1.04B	-795.11M	-791.15M	-504.21M
Operating Cash Flow	-439.15M	-622.00M	-998.58M	-779.59M	-770.01M	-452.94M
Investing Cash Flow	138.78M	-474.17M	723.41M	822.39M	-3.20B	-139.08M
Financing Cash Flow	622.33M	-30.93M	930.72M	-9.01M	4.21B	942.43M

Beijing Fourth Paradigm Technology Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6682, the sentiment is Negative. The current price of 52.15 is above the 20-day moving average (MA) of 48.30, below the 50-day MA of 54.56, and above the 200-day MA of 50.82, indicating a bearish trend. The MACD of -2.62 indicates Positive momentum. The RSI at 31.64 is Neutral, neither overbought nor oversold. The STOCH value of 14.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6682.

Beijing Fourth Paradigm Technology Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6608	67 Neutral	€7.15B	12.69	7.02%	―	16.43%	17.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2598	58 Neutral	HK$7.31B	3.84	94.40%	―	―	―
9923	54 Neutral	HK$3.97B	35.60	3.35%	―	-9.32%	477.27%
6682	43 Neutral	HK$24.38B	―	-3.20%	―	―	―
9959	41 Neutral	HK$5.19B	―	-12.22%	―	11.43%	-94.89%
2121	40 Underperform	HK$3.42B	-6.69	-27.20%	―	-3.78%	20.83%

Beijing Fourth Paradigm Technology Co. Ltd. Class H Corporate Events

Fourth Paradigm Unveils Strategic AI Initiatives to Drive Industry Growth

Beijing Fourth Paradigm Technology Co., Ltd. has announced strategic initiatives to address the growing demand for AI computing power and applications. The company has launched ModelHub XC and EngineX to bridge the gap between computing power and AI models, aiming to unlock substantial growth potential in the AI application market. Additionally, the company is positioning its 4ParadigmSage AI Platform as a core operating system for AI applications, leveraging the ‘AI+’ initiative to integrate AI across industries. The launch of the Phancy AI smart module aims to revolutionize the consumer electronics industry by enabling diverse brands to create AI-powered smart devices, potentially unlocking a trillion-RMB market space.

The most recent analyst rating on (HK:6682) stock is a Hold with a HK$57.00 price target. To see the full list of analyst forecasts on Beijing Fourth Paradigm Technology Co. Ltd. Class H stock, see the HK:6682 Stock Forecast page.