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Freetech Road Recycling Technology (Holdings) Ltd. (HK:6888)
:6888
Hong Kong Market
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Freetech Road Recycling Technology (Holdings) Ltd. (6888) AI Stock Analysis

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HK:6888

Freetech Road Recycling Technology (Holdings) Ltd.

(6888)

Rating:56Neutral
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. (6888) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionFreetech 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 MoneyThe 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
58
Neutral
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
65
Positive
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue187.96M543.10M478.26M511.62M541.91M
Gross Profit89.97M116.85M97.92M127.50M118.14M
EBITDA21.93M57.25M-329.00K89.77M71.96M
Net Income12.56M11.68M-32.48M31.95M31.64M
Balance Sheet
Total Assets983.29M1.24B1.27B1.34B1.33B
Cash, Cash Equivalents and Short-Term Investments279.26M246.69M286.34M310.29M293.10M
Total Debt118.49M101.72M102.75M110.66M135.96M
Total Liabilities274.53M472.93M519.34M476.46M527.14M
Stockholders Equity699.17M715.36M722.29M818.99M775.60M
Cash Flow
Free Cash Flow-15.52M-34.97M-1.96M38.98M42.46M
Operating Cash Flow6.35M-21.68M2.44M61.12M58.12M
Investing Cash Flow21.33M20.89M-17.70M-19.06M20.90M
Financing Cash Flow13.62M1.17M778.00K-17.24M-20.11M

Freetech Road Recycling Technology (Holdings) Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.16
Price Trends
50DMA
0.17
Negative
100DMA
0.17
Negative
200DMA
0.18
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
57.00
Neutral
STOCH
40.00
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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$3.61B6.2811.55%2.39%-2.20%-12.73%
67
Neutral
HK$4.04B7.6912.09%2.64%23.94%-9.82%
58
Neutral
HK$14.89B4.77-2.78%5.38%3.80%-54.55%
56
Neutral
HK$174.58M31.270.75%-65.39%-52.59%
46
Neutral
HK$147.42M-9.55%5.67%-29.77%-321.55%
44
Neutral
HK$404.36M128.95-1.10%-52.67%-102.48%
29
Underperform
HK$117.09M0.15
-16.85%1198.28%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6888
Freetech Road Recycling Technology (Holdings) Ltd.
0.17
0.01
6.25%
HK:0269
China Resources & Transportation Group Ltd.
0.01
0.00
0.00%
HK:2258
Watts International Maritime Engineering Ltd.
0.18
-0.01
-5.26%
HK:1823
Huayu Expressway Group Limited
0.98
0.42
75.00%
HK:1785
Chengdu Expressway Co., Ltd. Class H
2.18
0.20
10.10%
HK:1576
Qilu Expressway Co., Ltd. Class H
2.02
0.05
2.54%

Freetech Road Recycling Technology (Holdings) Ltd. Corporate Events

Freetech Road Recycling Issues Profit Warning Amid Revenue Growth
Jul 18, 2025

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
Jun 6, 2025

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
May 30, 2025

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
May 23, 2025

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
May 16, 2025

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
Apr 30, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2025