China Netcom Technology Holdings Limited (8071) AI Stock Analysis

• Market Cap: HK$121.84M
• Dividend Yield: N/A
• Average Volume (3M): 5.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -49.86%
• EPS Growth: 15.00%
• Country: HK
• Employees: 12
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 4,686,048,300
• 10 Day Avg. Volume: 6,201,100
• 30 Day Avg. Volume: 5,960,266
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by significant financial challenges, including declining revenues, persistent losses, and negative cash flows. Technical analysis indicates a bearish trend, with the stock trading below key moving averages and showing overbought conditions. Valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest a cautious outlook for the stock.

China Netcom Technology Holdings Limited Business Overview & Revenue Model

Company Description

China 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 Money

China Netcom Technology Holdings Limited generates revenue through several key streams. The primary source of income is from the sale and distribution of lottery systems and equipment to lottery operators. Additionally, the company earns revenue from the development and licensing of gaming software, particularly focusing on mobile and online games. The company may also engage in strategic partnerships with other technology and gaming firms to expand its offerings and market reach, although specific partnership details are not provided. Revenue is further supported by ongoing maintenance and service agreements associated with its installed lottery systems.

China Netcom Technology Holdings Limited Financial Statement Overview

Summary

China Netcom Technology Holdings Limited faces significant financial challenges, including 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's financial performance is notably weak, requiring improvements in operational efficiency and cash generation.

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	34.70M	26.92M	22.01M	27.28M	36.33M	34.63M
Gross Profit	10.42M	310.00K	6.10M	5.86M	4.02M	11.75M
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 Assets	25.28M	15.68M	32.78M	41.36M	90.94M	66.39M
Cash, Cash Equivalents and Short-Term Investments	20.38M	13.28M	20.26M	28.61M	48.80M	54.65M
Total Debt	438.00K	226.00K	1.06M	288.00K	6.69M	2.49M
Total Liabilities	12.26M	5.46M	15.66M	13.64M	50.58M	11.58M
Stockholders Equity	14.98M	10.78M	18.38M	27.40M	38.68M	56.55M
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	-896.00K	4.93M	380.00K	335.00K	635.00K	1.52M
Financing Cash Flow	-672.00K	-439.00K	-938.00K	-6.19M	2.60M	-1.99M

China Netcom Technology Holdings Limited Technical Analysis

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

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 above the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 126.67 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8100	60 Neutral	HK$137.78M	-29.52	1.17%	0.65%	-13.40%	76.97%
8635	55 Neutral	HK$571.20M	-24.44	―	5.42%	-21.29%	15.16%
8131	53 Neutral	HK$92.30M	-16.74	-1165.48%	―	78.40%	72.37%
1933	49 Neutral	HK$82.73M	-2.04	-15.67%	―	-23.84%	-544.02%
8071	40 Underperform	HK$121.84M	―	-97.49%	―	-49.86%	15.00%
8156	25 Underperform	HK$138.15M	-1.89	―	―	-11.42%	26.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%