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China Netcom Technology Holdings Limited (HK:8071)
:8071
Hong Kong Market

China Netcom Technology Holdings Limited (8071) AI Stock Analysis

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HK

China Netcom Technology Holdings Limited

(8071)

Rating:43Neutral
Price Target:
HK$0.00
▼(-100.00%Downside)
The overall stock score is driven by significant financial performance challenges, including declining revenues and persistent losses. Technical indicators suggest bearish momentum, adding further pressure to the stock's outlook. The valuation is weak due to a negative P/E ratio and the absence of a dividend yield, highlighting concerns about the stock's investment potential.

China Netcom Technology Holdings Limited (8071) vs. iShares MSCI Hong Kong ETF (EWH)

China Netcom Technology Holdings Limited Business Overview & Revenue Model

Company DescriptionChina Netcom Technology Holdings Limited, an investment holding company, engages in the financial technology services business in the People's Republic of China. It operates through Financial Technology Services, Smart Retail Business, Sports Training Business, and Lottery Business segments. The Financial Technology Services Business segment offers credit referral and services, such as credit facilitation and post-origination services. The Smart Retail Business segment provides distribution, maintenance, and technical support for omni-channel payment devices and software applications; software development services; and technical consultancy services for cloud server service, internet of things and SMS traffic service. The Lottery Business segment develops computer system, as well as provides technical consultancy services. The Sports Training Business segment offers sports training services. It also provides asset management services; and consultation and result transfer on network technology and computer network engineering services. The company was formerly known as China Metal Resources Holdings Limited and changed its name to China Netcom Technology Holdings Limited in January 2011. China Netcom Technology Holdings Limited was founded in 1997 and is headquartered in Admiralty, Hong Kong.
How the Company Makes MoneyChina Netcom Technology Holdings Limited generates revenue through several key streams. The primary source of income is the development and sale of lottery systems and related products, which includes both hardware and software components. The company also earns money through its information technology services, which involve providing customized solutions to meet the needs of businesses looking to improve their digital infrastructures. Additionally, the company may engage in strategic partnerships or collaborations that enhance its service offerings and expand its market reach, thus contributing to its earnings. However, specific details about significant partnerships or factors contributing to its revenue are not available in the existing data.

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
35
Negative
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
50
Neutral
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue34.70M26.92M22.01M27.28M36.33M34.63M
Gross Profit10.42M310.00K6.10M5.86M4.02M11.75M
EBITDA-4.84M-11.37M-10.39M-9.17M-15.24M-5.85M
Net Income-9.11M-7.60M-10.11M-10.49M-15.51M-13.49M
Balance Sheet
Total Assets25.28M15.68M32.78M41.36M90.94M66.39M
Cash, Cash Equivalents and Short-Term Investments20.38M13.28M20.26M28.61M48.80M54.65M
Total Debt438.00K226.00K1.06M288.00K6.69M2.49M
Total Liabilities12.26M5.46M15.66M13.64M50.58M11.58M
Stockholders Equity14.98M10.78M18.38M27.40M38.68M56.55M
Cash Flow
Free Cash Flow-1.43M-9.05M-9.62M-13.92M-9.79M-24.03M
Operating Cash Flow-1.43M-9.05M-9.62M-13.90M-9.76M-24.00M
Investing Cash Flow-896.00K4.93M380.00K335.00K635.00K1.52M
Financing Cash Flow-672.00K-439.00K-938.00K-6.19M2.60M-1.99M

China Netcom Technology Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.03
Price Trends
50DMA
0.04
Negative
100DMA
0.04
Negative
200DMA
0.03
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
40.65
Neutral
STOCH
>-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8071, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.65 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8071.

China Netcom Technology Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
HK$228.00M-23.23%19.84%-54.03%-22.81%
54
Neutral
HK$61.78M28.961.61%1.44%29.97%
51
Neutral
HK$69.36M-14.50%-21.47%-131.90%
49
Neutral
C$2.96B2.13-80.92%2.67%12.55%-24.47%
43
Neutral
HK$145.27M-69.43%22.29%27.27%
41
Neutral
HK$46.15M-170.71%56.73%41.26%
25
Underperform
HK$139.41M
-11.42%26.75%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8071
China Netcom Technology Holdings Limited
0.03
<0.01
50.00%
HK:1933
OneForce Holdings Limited
0.14
-0.03
-17.65%
HK:8100
GET Holdings Limited
0.14
-0.04
-22.22%
HK:8131
abc Multiactive Limited
0.10
>-0.01
-9.09%
HK:8156
Sinopharm Tech Holdings Limited
0.22
0.10
83.33%
HK:8635
Novacon Technology Group Ltd
0.63
0.57
950.00%
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: Jun 21, 2025