Freetech Road Recycling Technology (Holdings) Ltd. (6888) AI Stock Analysis

• Market Cap: HK$160.37M
• Dividend Yield: N/A
• Average Volume (3M): 155.30K
• Price to Earnings (P/E): 35.9
• Beta (1Y): 0.18
• Revenue Growth: -78.51%
• EPS Growth: 388.89%
• Country: HK
• Employees: 295
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): -0.01
• Shares Outstanding: 1,079,000,100
• 10 Day Avg. Volume: 232,800
• 30 Day Avg. Volume: 155,300
• PEG Ratio: -0.11
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.95
• P/FCF Ratio: -11.46
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score reflects significant financial challenges, particularly in revenue and cash flow generation, despite a strong balance sheet. Technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Freetech Road Recycling Technology (Holdings) Ltd. Business Overview & Revenue Model

Company Description

Freetech Road Recycling Technology (Holdings) Limited, an investment holding company, manufactures and sells road maintenance equipment in the People's Republic of China. The company operates through Maintenance Services, Sale of Equipment, and Properties segments. It also provides road maintenance services. In addition, the company offers asphalt pavement maintenance (APM) equipment; and APM services to repair damaged asphalt pavement surfaces under the Road Doctor brand. Further, it is involved in sale and leasing of properties. Freetech Road Recycling Technology (Holdings) Limited was founded in 1993 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

The company generates revenue mainly through the provision of road maintenance services that employ its proprietary recycling technologies. Freetech Road Recycling Technology offers a range of services, including hot-in-place recycling and other environmentally friendly pavement repair solutions. Key revenue streams include contracts with municipal and provincial governments for road maintenance projects. Additionally, the company may earn income from the sale or leasing of its specialized road maintenance equipment and technology to third parties. Partnerships with local governments and construction firms are significant factors contributing to its earnings, as these collaborations help secure long-term contracts and expand its market reach.

Freetech Road Recycling Technology (Holdings) Ltd. Financial Statement Overview

Summary

The company faces challenges with declining revenue and zero cash flow generation, despite improved net profit margins and a strong balance sheet. The low debt-to-equity ratio indicates financial stability, but the lack of cash flow is a significant risk.

Income Statement

The company has shown a significant decline in revenue from 2023 to 2024. Despite the lower revenue, the net profit margin improved due to a significant reduction in expenses, leading to a higher net income in 2024 compared to 2023. However, the drop in revenue is concerning for future growth. Gross profit margins have also declined, indicating pressure on cost management.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio, highlighting financial stability. However, the decline in total assets over the period needs attention. The equity ratio remains robust, indicating the company is not overly leveraged, which is positive for long-term sustainability.

Cash Flow

The company reported zero operating and free cash flow in 2024, which raises concerns about its ability to generate cash from operations. Historical data shows fluctuations in cash flow, indicating potential volatility in cash management. The lack of positive cash flow growth is a significant risk factor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	114.87M	187.96M	543.10M	478.26M	511.62M	541.91M
Gross Profit	86.64M	89.97M	80.91M	97.92M	127.50M	118.14M
EBITDA	-2.95M	21.93M	57.25M	5.75M	89.77M	71.96M
Net Income	4.37M	12.56M	11.68M	-32.48M	31.95M	31.64M
Balance Sheet
Total Assets	960.07M	983.29M	1.24B	1.27B	1.34B	1.33B
Cash, Cash Equivalents and Short-Term Investments	241.56M	279.26M	246.69M	274.30M	277.57M	254.43M
Total Debt	130.79M	118.49M	101.72M	96.27M	97.50M	103.48M
Total Liabilities	245.51M	274.53M	472.93M	519.34M	476.46M	527.14M
Stockholders Equity	705.01M	699.17M	715.36M	722.29M	818.99M	775.60M
Cash Flow
Free Cash Flow	-63.47M	-15.52M	-34.97M	-1.96M	38.98M	42.46M
Operating Cash Flow	-41.29M	6.35M	-21.68M	2.44M	61.12M	58.12M
Investing Cash Flow	-31.94M	21.33M	20.89M	9.56M	-10.51M	18.20M
Financing Cash Flow	-5.47M	13.62M	1.17M	-3.66M	-21.87M	-26.14M

Freetech Road Recycling Technology (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6888, the sentiment is Positive. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.15, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 64.44 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6888.

Freetech Road Recycling Technology (Holdings) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1785	72 Outperform	HK$3.35B	6.27	10.26%	5.28%	3.43%	-17.34%
1576	64 Neutral	HK$3.64B	7.72	10.92%	5.95%	-21.80%	-8.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2258	60 Neutral	HK$164.62M	2.16	10.40%	5.60%	-13.98%	―
1823	54 Neutral	HK$474.50M	-10.05	-5.81%	―	-44.12%	-3110.53%
6888	52 Neutral	HK$160.37M	35.91	0.63%	―	-78.51%	388.89%
0269	40 Underperform	HK$106.44M	-0.32	―	―	-2.61%	-119.48%

Freetech Road Recycling Technology (Holdings) Ltd. Corporate Events

Freetech Road Recycling Announces Headquarters Relocation

Freetech Road Recycling Technology (Holdings) Ltd. has announced a change in the address of its headquarters and principal place of business in Hong Kong, effective from September 5, 2025. This move to the Citicorp Centre in Causeway Bay reflects the company’s ongoing efforts to optimize its operations and potentially enhance its market presence in the region.

Freetech Road Recycling Reports Increased Revenue but Faces Growing Losses

Freetech Road Recycling Technology (Holdings) Ltd. reported its unaudited consolidated interim results for the six-month period ending June 30, 2025. The company experienced a 17.2% increase in revenue compared to the previous year, reaching HK$82,386,000. Despite this revenue growth, the company reported a loss of HK$9,414,000 attributable to its owners, marking a 10.7% increase in losses from the previous year. The gross profit margin decreased slightly to 42.2% from 44.9% in the prior period. The results indicate challenges in maintaining profitability despite increased revenue, which may impact the company’s financial stability and investor confidence.

Freetech Road Recycling Announces Upcoming Board Meeting for Interim Results

Freetech Road Recycling Technology (Holdings) Ltd. has announced a board meeting scheduled for August 29, 2025, to discuss and approve the interim results for the six months ending June 30, 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.