TradeGo FinTech Ltd. (8017) AI Stock Analysis

• Market Cap: HK$1.06B
• Dividend Yield: N/A
• Average Volume (3M): 7.10M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 1.24
• Revenue Growth: 146.18%
• EPS Growth: 1617.05%
• Country: HK
• Employees: 147
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.05
• Shares Outstanding: 750,000,000
• 10 Day Avg. Volume: 4,588,400
• 30 Day Avg. Volume: 7,104,810
• PEG Ratio: <0.01
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 3.29
• 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: HK$2.30
• Price Target Upside: 63.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: HK$1.50 ▲(6.38% Upside)

TradeGo FinTech Ltd. scores well due to its strong financial performance, characterized by robust revenue growth and profitability. However, bearish technical indicators and the lack of a dividend yield slightly offset these strengths. The stock's valuation suggests it may be undervalued, providing potential upside if technical conditions improve.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and successful expansion strategies, enhancing the company's market position and competitive edge.

Profitability Margins

High profitability margins reflect efficient cost management and strong pricing power, ensuring sustainable earnings and competitive advantage.

Cash Generation

Strong cash generation enhances financial flexibility, supports growth investments, and provides a buffer against economic downturns.

Negative Factors

Lack of Dividend Yield

Without a dividend yield, the company may be less appealing to investors seeking regular income, potentially limiting its investor base.

Bearish Technical Indicators

Bearish technical indicators suggest negative market sentiment, which could impact investor confidence and stock performance in the near term.

High Beta

A high beta indicates higher volatility compared to the market, which can lead to greater risk for investors during market fluctuations.

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 generates revenue through several key streams, including transaction fees charged for trades executed on its platforms, subscription fees for access to premium trading tools and analytics, and licensing its technology to other financial institutions. The company may also earn income from partnerships with brokers and financial service providers, enabling them to integrate TradeGo's technology into their offerings. Additionally, TradeGo could benefit from performance-based fees tied to the success of its trading solutions for clients, as well as potential revenue from data services and insights provided to institutional clients.

TradeGo FinTech Ltd. Financial Statement Overview

Summary

TradeGo FinTech Ltd. exhibits strong financial health with impressive revenue growth, high profitability margins, a solid balance sheet with minimal leverage, and excellent cash generation capabilities.

Income Statement

TradeGo FinTech Ltd. has demonstrated impressive revenue growth with an 85.39% increase in the latest year, indicating strong market demand and expansion. The company maintains high profitability with a gross profit margin of 87.91% and a net profit margin of 49.30%, showcasing efficient cost management. EBIT and EBITDA margins are also robust at 52.96% and 62.85%, respectively, reflecting strong operational performance.

Balance Sheet

The company's balance sheet is solid, with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. Return on equity is high at 34.88%, reflecting effective use of shareholder funds to generate profits. The equity ratio stands at 82.23%, suggesting a strong capital structure with significant equity financing.

Cash Flow

TradeGo FinTech Ltd. has achieved substantial free cash flow growth of 208.04%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 1.78, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.86 further supports the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	172.22M	129.70M	65.71M	97.98M	82.28M	64.95M
Gross Profit	102.32M	114.02M	54.31M	47.45M	40.99M	30.15M
EBITDA	115.73M	81.52M	20.63M	43.09M	39.84M	30.09M
Net Income	91.95M	63.95M	8.48M	26.32M	25.26M	20.58M
Balance Sheet
Total Assets	388.51M	222.94M	158.66M	170.82M	214.73M	107.62M
Cash, Cash Equivalents and Short-Term Investments	298.08M	176.96M	123.97M	134.67M	160.94M	80.32M
Total Debt	3.01M	2.51M	8.40M	12.52M	13.90M	1.86M
Total Liabilities	46.76M	37.46M	25.39M	45.94M	71.04M	24.77M
Stockholders Equity	335.85M	183.32M	129.50M	121.96M	140.12M	82.85M
Cash Flow
Free Cash Flow	66.20M	57.31M	-2.51M	23.43M	49.18M	22.76M
Operating Cash Flow	66.22M	66.42M	6.30M	32.80M	62.33M	29.57M
Investing Cash Flow	-60.82M	2.92M	-11.10M	-8.48M	-14.14M	-2.20M
Financing Cash Flow	109.22M	-18.20M	-6.57M	-45.69M	30.65M	-1.67M

TradeGo FinTech Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.41
• 50DMA: Negative
• 100DMA: Negative
• 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 1.41 is above the 20-day moving average (MA) of 1.26, below the 50-day MA of 1.46, and above the 200-day MA of 1.18, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 75.06 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
8062	74 Outperform	HK$114.24M	-91.54	-0.93%	8.40%	-29.38%	-104.21%
3773	70 Outperform	HK$651.55M	26.33	7.35%	―	12.63%	-37.50%
8017	69 Neutral	HK$1.06B	8.87	39.26%	―	146.18%	1617.05%
1410	65 Neutral	HK$542.28M	10.87	27.72%	―	9.58%	48.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8613	41 Neutral	HK$100.24M	-2.67	―	―	-43.10%	-5.98%
8420	40 Underperform	HK$33.73M	-2.00	-56.58%	―	52.39%	-14.75%