China Netcom Technology Holdings Limited (8071) AI Stock Analysis

• Market Cap: HK$131.21M
• Dividend Yield: N/A
• Average Volume (3M): 5.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -49.86%
• EPS Growth: 15.00%
• Country: HK
• Employees: 12
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 4,686,048,300
• 10 Day Avg. Volume: 8,622,250
• 30 Day Avg. Volume: 5,384,166
• PEG Ratio: 1.00
• Price to Book (P/B): 7.83
• Price to Sales (P/S): 3.13
• P/FCF Ratio: -9.32
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$0.03 ▼(-13.33% Downside)

The overall stock score reflects significant financial challenges, including declining revenues and persistent losses, which are the most impactful factors. Technical analysis shows some short-term positive momentum, but the overbought RSI suggests caution. Valuation remains unattractive due to a negative P/E ratio and lack of dividend yield.

Positive Factors

Low Debt Levels

Low debt levels provide financial flexibility and reduce the risk of financial distress, allowing the company to focus on operational improvements.

Gaming Software Development

Focus on gaming software development positions the company to capitalize on growing digital entertainment trends, potentially driving future revenue growth.

Strategic Partnerships

Strategic partnerships can enhance market reach and product offerings, fostering long-term growth and competitive advantage in the gaming industry.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and demand, impacting long-term profitability and business sustainability.

Negative Cash Flow

Negative cash flow from operations suggests difficulties in generating sufficient cash, potentially limiting investment in growth initiatives and affecting liquidity.

Operational Inefficiencies

Operational inefficiencies, as indicated by negative margins, hinder profitability and competitiveness, necessitating strategic improvements for long-term viability.

China Netcom Technology Holdings Limited Business Overview & Revenue Model

Company Description

China Netcom Technology Holdings Limited (8071) is a technology company based in Hong Kong that focuses on providing a range of telecommunications and information technology services. The company primarily operates in the sectors of network infrastructure, system integration, and software development. Its core products and services include telecommunications equipment, cloud computing solutions, and data center services, aimed at enhancing connectivity and operational efficiency for businesses and institutions.

How the Company Makes Money

China Netcom Technology Holdings Limited generates revenue through multiple streams, primarily from the sale of telecommunications equipment and services, including installation and maintenance. The company also earns income from software licensing and cloud solutions, catering to the growing demand for digital transformation among enterprises. Key revenue streams include long-term contracts with corporate clients, government projects, and partnerships with major technology providers, which contribute to consistent cash flow. Additionally, strategic collaborations with other tech firms enhance its market presence and expand its service offerings, further bolstering its financial performance.

China Netcom Technology Holdings Limited Financial Statement Overview

Summary

China Netcom Technology Holdings Limited faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. While debt levels are low, diminishing assets and equity raise concerns about long-term sustainability. The company needs to address operational inefficiencies and improve cash generation to stabilize its financial position.

Income Statement

The company's revenue has fluctuated significantly, with a notable decline from 2019 to 2023. The gross profit margin has diminished over the years, and net losses have persisted, indicating profitability challenges. The negative EBIT and EBITDA margins underscore operational inefficiencies.

Balance Sheet

While the company has maintained a positive equity position, the equity ratio has been decreasing, indicating increased leverage. The debt-to-equity ratio remains low, suggesting manageable debt levels. However, declining total assets and equity levels raise concerns about the company's financial stability.

Cash Flow

The company has consistently experienced negative operating cash flows, indicating challenges in generating cash from operations. Although free cash flow has improved slightly, it remains negative, pointing to potential liquidity issues. The cash position has been declining, which could impact future operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.02M	26.92M	22.01M	27.07M	34.39M	34.63M
Gross Profit	1.36M	310.00K	6.10M	5.65M	3.53M	11.75M
EBITDA	-3.10M	-11.37M	-10.39M	-9.17M	-15.24M	-5.85M
Net Income	-3.87M	-7.60M	-10.11M	-9.75M	-19.20M	-17.32M
Balance Sheet
Total Assets	16.82M	15.68M	32.78M	41.36M	90.94M	66.39M
Cash, Cash Equivalents and Short-Term Investments	11.12M	13.28M	20.26M	28.61M	48.80M	57.47M
Total Debt	0.00	226.00K	1.06M	288.00K	6.69M	2.49M
Total Liabilities	10.58M	5.46M	15.66M	13.64M	50.58M	11.58M
Stockholders Equity	6.89M	10.78M	18.38M	27.40M	38.68M	56.55M
Cash Flow
Free Cash Flow	-6.76M	-9.05M	-9.62M	-13.92M	-9.79M	-24.03M
Operating Cash Flow	-6.76M	-9.05M	-9.62M	-13.90M	-9.76M	-24.00M
Investing Cash Flow	-8.00K	4.93M	380.00K	335.00K	635.00K	1.52M
Financing Cash Flow	0.00	-439.00K	-938.00K	-6.19M	2.60M	-1.99M

China Netcom Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8071, the sentiment is Positive. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 86.54 is Negative, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8071.

China Netcom Technology Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8100	58 Neutral	HK$97.78M	-20.95	-2.72%	0.61%	-13.40%	76.97%
8635	55 Neutral	HK$724.80M	-31.01	-19.25%	4.74%	129.07%	-5.71%
8156	48 Neutral	HK$205.95M	―	―	―	48.39%	88.30%
8071	47 Neutral	HK$131.21M	―	-97.49%	―	-49.86%	15.00%
8131	44 Neutral	HK$79.71M	―	-523.99%	―	78.40%	72.37%
1933	41 Neutral	HK$70.84M	―	-43.25%	―	-23.88%	-1021.62%