TradeGo FinTech Ltd. (8017) AI Stock Analysis

• Market Cap: HK$793.01M
• Dividend Yield: N/A
• Average Volume (3M): 8.05M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.99
• Revenue Growth: -14.39%
• EPS Growth: -69.66%
• Country: HK
• Employees: 147
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 0.10
• Shares Outstanding: 680,000,000
• 10 Day Avg. Volume: 13,612,000
• 30 Day Avg. Volume: 8,048,533
• PEG Ratio: 0.71
• Price to Book (P/B): 4.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.42
• 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: 61 Neutral
• Price Target: ―

TradeGo FinTech Ltd.'s overall stock score reflects strong balance sheet stability but is tempered by recent operational challenges, including decreasing revenue and cash flow inefficiencies. While technical indicators show strong momentum, overbought signals warrant caution. The high P/E ratio suggests overvaluation, which may limit further upside.

TradeGo FinTech Ltd. Business Overview & Revenue Model

Company Description

TradeGo FinTech Limited, an investment holding company, provides integrated securities trading platform services to brokerage firms and their clients in Hong Kong and the People's Republic of China. The company engages in the development of TradeGo Pro, an open securities trading platform software. Its platform offers various services, such as front office trading system services to support trading of a range of financial instruments, including equities, ETFs, futures, options, warrants, and derivatives; market data services; hosting and cloud infrastructure services; software as a service services; and other value added services. The company also holds market data vendor licenses from five stock and future exchanges, as well as provides a range of real-time market data feeds from these exchanges. In addition, it develops computer hardware and software technology. The company was founded in 2010 and is headquartered in Central, Hong Kong.

How the Company Makes Money

TradeGo FinTech Ltd. generates revenue through a combination of subscription fees, transaction-based fees, and value-added services. The company charges users subscription fees for access to its advanced trading platforms and data analytics tools. Additionally, TradeGo earns transaction-based fees from clients using its platforms for executing trades. The company may also partner with financial institutions to offer customized solutions, earning revenue through licensing or collaboration agreements. These diverse revenue streams, along with strategic partnerships, contribute significantly to the company's earnings.

TradeGo FinTech Ltd. Financial Statement Overview

Summary

TradeGo FinTech Ltd. demonstrates strong balance sheet stability with high equity ratios and low leverage. However, there are significant weaknesses in revenue growth and cash flow efficiency, which reflect potential operational challenges. The company needs to improve profitability and cash generation to bolster financial health.

Income Statement

The company experienced a significant decline in revenue from the previous year, with a revenue decrease of 32.94%. The gross profit margin stands at 37.49%, which, while decent, is overshadowed by the net profit margin decline to 12.91%. Historically, the company has demonstrated growth, but the recent downturn suggests volatility.

Balance Sheet

The company maintains a strong equity position, with an equity ratio of 81.63% indicating high financial stability. The debt-to-equity ratio is low at 0.06, showcasing prudent leverage. However, the return on equity has decreased to 6.55%, suggesting reduced profitability on shareholder investments.

Cash Flow

Cash flow from operations has significantly decreased, affecting the free cash flow, which has turned negative. The operating cash flow to net income ratio is 0.74, indicating less efficient cash generation compared to prior periods. The free cash flow to net income ratio is negative due to significant capital expenditures.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	65.71M	97.98M	82.28M	64.95M	51.75M
Gross Profit	54.31M	47.45M	40.99M	30.15M	20.17M
EBITDA	20.63M	43.09M	39.84M	30.09M	19.03M
Net Income	8.48M	26.32M	25.26M	20.58M	13.03M
Balance Sheet
Total Assets	158.66M	170.82M	214.73M	107.62M	80.29M
Cash, Cash Equivalents and Short-Term Investments	123.97M	134.67M	160.94M	80.32M	55.80M
Total Debt	8.40M	12.52M	13.90M	1.86M	3.84M
Total Liabilities	25.39M	45.94M	71.04M	24.77M	22.30M
Stockholders Equity	129.50M	121.96M	140.12M	82.85M	57.99M
Cash Flow
Free Cash Flow	-2.51M	23.43M	49.18M	22.76M	9.17M
Operating Cash Flow	6.30M	32.80M	62.33M	29.57M	18.17M
Investing Cash Flow	-11.10M	-8.48M	-14.14M	-2.20M	-19.28M
Financing Cash Flow	-6.57M	-45.69M	30.65M	-1.67M	-1.26M

TradeGo FinTech Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8017, the sentiment is Positive. The current price of 1.29 is above the 20-day moving average (MA) of 1.04, above the 50-day MA of 0.84, and above the 200-day MA of 0.42, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 66.29 is Neutral, neither overbought nor oversold. The STOCH value of 66.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8017.

TradeGo FinTech Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8299	66 Neutral	HK$2.12B	30.98	12.45%	―	957.74%	194.12%
Sector *	63 Neutral	S$645.08M	16.18	0.69%	4.13%	0.35%	-29.83%
8017	61 Neutral	HK$793.01M	11.21	40.88%	―	-14.39%	-69.66%
8356	45 Neutral	HK$30.33M	―		―	-16.98%	62.42%
8018	45 Neutral	HK$18.15M	―	-27.10%	―	-6.25%	84.71%