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

• Market Cap: HK$168.49M
• Dividend Yield: N/A
• Average Volume (3M): 166.83K
• Price to Earnings (P/E): 30.2
• Beta (1Y): 0.32
• Revenue Growth: -65.39%
• EPS Growth: -52.59%
• Country: HK
• Employees: 295
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.01
• Shares Outstanding: 1,079,000,100
• 10 Day Avg. Volume: 70,800
• 30 Day Avg. Volume: 166,833
• PEG Ratio: 0.10
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.33
• 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

• Rating: 50 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The company's overall score is primarily impacted by its financial challenges, particularly in revenue and cash flow generation, despite a strong balance sheet. The technical indicators point to a bearish trend without strong momentum. The valuation is stretched with a high P/E ratio and no dividend yield, reducing attractiveness.

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

Company Description

Freetech Road Recycling Technology (Holdings) Ltd. (6888) is a company specializing in the research, development, and provision of road recycling technology and services. It operates primarily in the construction and infrastructure sectors, offering sustainable and cost-effective solutions for road maintenance and rehabilitation. The company's core products and services include advanced road recycling equipment and road maintenance services that emphasize environmental protection and resource conservation.

How the Company Makes Money

Freetech Road Recycling Technology (Holdings) Ltd. generates revenue through the sale and leasing of its road recycling equipment, as well as through providing road maintenance and rehabilitation services. The company's revenue streams are primarily derived from contracts with government agencies and private sector clients who require efficient and environmentally friendly solutions for road repairs and maintenance. Key factors contributing to its earnings include its technological expertise, the growing demand for sustainable infrastructure solutions, and strategic partnerships or collaborations with other industry players or governmental bodies.

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

Summary

The company faces significant challenges in revenue growth and cash flow generation. Although profitability margins have improved, the absence of positive cash flow is concerning. The strong balance sheet with a low debt-to-equity ratio adds financial stability, but future liquidity risks remain due to lack of cash flow.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	187.96M	543.10M	478.26M	511.62M	541.91M
Gross Profit	89.97M	116.85M	97.92M	127.50M	118.14M
EBITDA	21.93M	57.25M	-329.00K	89.77M	71.96M
Net Income	12.56M	11.68M	-32.48M	31.95M	31.64M
Balance Sheet
Total Assets	983.29M	1.24B	1.27B	1.34B	1.33B
Cash, Cash Equivalents and Short-Term Investments	279.26M	246.69M	286.34M	310.29M	293.10M
Total Debt	118.49M	101.72M	102.75M	110.66M	135.96M
Total Liabilities	274.53M	472.93M	519.34M	476.46M	527.14M
Stockholders Equity	699.17M	715.36M	722.29M	818.99M	775.60M
Cash Flow
Free Cash Flow	-15.52M	-34.97M	-1.96M	38.98M	42.46M
Operating Cash Flow	6.35M	-21.68M	2.44M	61.12M	58.12M
Investing Cash Flow	21.33M	20.89M	-17.70M	-19.06M	20.90M
Financing Cash Flow	13.62M	1.17M	778.00K	-17.24M	-20.11M

Freetech Road Recycling Technology (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 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:6888, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.18, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.60 is Neutral, neither overbought nor oversold. The STOCH value of 12.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	78 Outperform	HK$3.59B	6.26	11.55%	5.01%	-2.20%	-12.73%
1576	69 Neutral	HK$4.30B	8.18	12.09%	7.65%	23.94%	-9.82%
Sector *	58 Neutral	$1.33B	4.19	-2.93%	7.46%	3.67%	-51.13%
2258	53 Neutral	HK$155.61M	―	-9.55%	5.37%	-29.77%	-321.55%
6888	50 Neutral	HK$168.49M	30.18	0.75%	―	-65.39%	-52.59%
1823	44 Neutral	HK$169.17M	128.95	-1.10%	―	-52.67%	-102.48%
0269	29 Underperform	HK$117.09M	0.15		―	-16.85%	1198.28%

Freetech Road Recycling Technology (Holdings) Ltd. Corporate Events

Freetech Expands Share Award Scheme with New Purchase

Freetech Road Recycling Technology (Holdings) Ltd. announced the purchase of an additional 200,000 shares as part of its Share Award Scheme. This acquisition represents approximately 0.019% of the company’s issued share capital, with a total consideration of HK$35,320. The move is part of the company’s ongoing efforts to manage its share award scheme, potentially impacting shareholder value and market perception.

Freetech Road Recycling Technology Successfully Passes All AGM Resolutions

Freetech Road Recycling Technology (Holdings) Ltd. held its Annual General Meeting on May 30, 2025, where all proposed resolutions were passed with overwhelming support. Key resolutions included the adoption of the company’s financial statements, re-election of directors, re-appointment of auditors, and granting mandates for share repurchase and issuance. This successful AGM reflects strong shareholder confidence and positions the company for continued strategic growth and operational stability.

Freetech Expands Share Award Scheme with New Purchase

Freetech Road Recycling Technology (Holdings) Ltd. announced the purchase of 1,600,000 shares as part of its Share Award Scheme, representing approximately 0.148% of the company’s issued share capital. This move, executed by the Trustee, reflects the company’s commitment to its share award scheme, potentially enhancing stakeholder value and reinforcing its market position.

Freetech Expands Share Award Scheme with New Share Purchase

Freetech Road Recycling Technology (Holdings) Ltd. announced that its Trustee has purchased an additional 1,400,000 shares on the market as part of its Share Award Scheme. This purchase represents approximately 0.13% of the company’s issued share capital, with an average consideration of HK$0.176 per share, totaling HK$245,960. This move is part of the company’s ongoing efforts to manage its share award scheme, which may have implications for its market positioning and stakeholder interests.

Freetech Announces Closure of Register for AGM Participation

Freetech Road Recycling Technology (Holdings) Ltd. has announced the closure of its Register of Members from May 27 to May 30, 2025, to determine shareholders eligible to attend and vote at the upcoming annual general meeting on May 30, 2025. This procedural announcement is crucial for shareholders as it outlines the necessary steps to participate in the AGM, potentially impacting shareholder engagement and decision-making processes.

Freetech Expands Share Award Scheme with New Share Acquisition

Freetech Road Recycling Technology (Holdings) Ltd. announced that its Trustee has acquired an additional 1,100,000 shares on the market as part of its Share Award Scheme. This purchase represents approximately 0.102% of the company’s issued share capital, with a total consideration of HK$199,260. The acquisition is part of the company’s ongoing efforts to incentivize and retain talent, potentially strengthening its market position and aligning the interests of its stakeholders.

Freetech Road Recycling Technology Approves Major Contract at EGM

Freetech Road Recycling Technology (Holdings) Ltd. successfully passed an ordinary resolution during its extraordinary general meeting held on April 16, 2025. The resolution involved approving a contract with China Construction No. 6 Engineering Department Co., Limited, with an overwhelming majority of 99.99% votes in favor. This approval is expected to strengthen the company’s operational capabilities and enhance its market position within the construction and infrastructure industry.

Freetech Road Recycling Acquires Shares for Award Scheme

Freetech Road Recycling Technology (Holdings) Ltd. announced the purchase of 3,250,000 shares as part of its Share Award Scheme. This acquisition represents approximately 0.301% of the company’s issued share capital, with a total consideration of HK$541,140. The purchase is intended to support the company’s share award scheme, which aims to incentivize and retain talent within the organization.

Freetech Expands Share Award Scheme with New Share Purchase

Freetech Road Recycling Technology (Holdings) Ltd. has announced the purchase of 210,000 shares as part of its Share Award Scheme, which represents approximately 0.019% of the company’s issued share capital. This move is part of the company’s ongoing efforts to enhance shareholder value and align the interests of its stakeholders with the company’s long-term growth strategy.