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

• Market Cap: HK$174.58M
• Dividend Yield: N/A
• Average Volume (3M): 73.97K
• Price to Earnings (P/E): 31.3
• Beta (1Y): 0.31
• Revenue Growth: -65.39%
• EPS Growth: -52.59%
• Country: HK
• Employees: 295
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.01
• Shares Outstanding: 1,079,000,100
• 10 Day Avg. Volume: 72,100
• 30 Day Avg. Volume: 73,966
• PEG Ratio: 0.09
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.00
• 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: 56 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score reflects mixed financial performance with significant liquidity concerns, neutral technical indicators, and a high valuation. The company's strong balance sheet provides some stability, but the lack of cash flow and high P/E ratio are key risks.

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

Company Description

Freetech Road Recycling Technology (Holdings) Ltd. (6888) is a company engaged in the provision of eco-friendly road maintenance solutions primarily in China. It specializes in the recycling and regeneration of asphalt pavements using its proprietary technologies. The company focuses on delivering sustainable and cost-effective road maintenance services, leveraging advanced equipment and innovative methods to enhance the longevity and quality of road surfaces.

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's financial performance shows a mixed picture. While there is a notable improvement in net profit margins due to reduced expenses, the significant decline in revenue and zero operating and free cash flow present major concerns. The strong balance sheet with a low debt-to-equity ratio is a positive, but the lack of cash flow generation poses potential liquidity risks.

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: Positive
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 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 0.16 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.17, and below the 200-day MA of 0.18, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.00 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 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	75 Outperform	HK$3.61B	6.28	11.55%	2.39%	-2.20%	-12.73%
1576	67 Neutral	HK$4.04B	7.69	12.09%	2.64%	23.94%	-9.82%
Sector *	58 Neutral	HK$14.89B	4.77	-2.78%	5.38%	3.80%	-54.55%
6888	56 Neutral	HK$174.58M	31.27	0.75%	―	-65.39%	-52.59%
2258	46 Neutral	HK$147.42M	―	-9.55%	5.67%	-29.77%	-321.55%
1823	44 Neutral	HK$404.36M	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 Road Recycling Issues Profit Warning Amid Revenue Growth

Freetech Road Recycling Technology (Holdings) Ltd. has issued a profit warning, anticipating a net loss of approximately HK$8.0 million for the first half of 2025, slightly improved from the HK$8.5 million loss in the same period of 2024. Despite an expected increase in revenue from its asphalt pavement maintenance segment, the overall loss is attributed to a decrease in the reversal of impairment of trade receivables and contract assets. The company remains cautiously optimistic about its future operations, expecting higher revenue in the second half of the year due to industry norms and China’s economic strategies.

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.