China Information Technology Development (8178) AI Stock Analysis

• Market Cap: HK$56.41M
• Dividend Yield: N/A
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 70
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.64
• Shares Outstanding: 100,739,700
• 10 Day Avg. Volume: 4,664,396
• 30 Day Avg. Volume: 1,687,847
• PEG Ratio: -0.10
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 5.64
• P/FCF Ratio: 2.57K
• 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$0.50
• Price Target Upside: -10.71% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 37 Underperform
• Price Target: HK$0.50 ▼(-10.71% Downside)

The overall stock score is heavily influenced by significant financial challenges, including declining revenues and persistent losses. Technical analysis further supports a bearish outlook with negative momentum indicators. Valuation metrics are unfavorable due to a negative P/E ratio and lack of dividend yield, making the stock unattractive at this time.

China Information Technology Development Business Overview & Revenue Model

Company Description

China Information Technology Development (8178) is a company based in Hong Kong, primarily engaged in the provision of IT solutions and services. The company operates in sectors including cloud computing, big data, and artificial intelligence, offering a range of products and services designed to enhance business operations for its clients. Its core offerings include software development, IT consulting, and system integration services, serving a diverse clientele across various industries.

How the Company Makes Money

China Information Technology Development (8178) generates revenue through a combination of service-based and product-based income streams. The company earns money by providing IT consulting services, custom software development, and system integration solutions to businesses. Additionally, it offers cloud-based solutions and big data analytics services, which are sold as subscription-based products with recurring revenue models. Strategic partnerships with technology providers and enterprise clients also contribute to its earnings, allowing for expanded service offerings and market reach.

China Information Technology Development Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues and persistent losses. Despite slight improvements in gross profit margin and debt management, profitability and cash flow issues persist, with deeply negative net profit margins and volatile free cash flow.

Income Statement

The company shows a declining revenue trend with a significant negative revenue growth rate of -15.7% from 2023 to 2024. Gross profit margin improved slightly to 54%, but the net profit margin remains deeply negative at -90.7% in 2024. EBIT and EBITDA margins are also negative, indicating continued operational challenges and a lack of profitability.

Balance Sheet

The debt-to-equity ratio has improved slightly, indicating reduced leverage, but remains a concern. The equity ratio is stable at around 78%, suggesting a strong equity base relative to total assets. However, the return on equity is negative due to continued net losses, reflecting inefficient use of shareholder funds.

Cash Flow

The company has shown improvement in operating cash flow, but free cash flow remains volatile. The operating cash flow to net income ratio is positive, indicating some improvement in cash generation, but free cash flow to net income remains negative, pointing to cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.26M	41.48M	49.23M	59.32M	66.09M	45.69M
Gross Profit	23.52M	22.40M	21.64M	17.40M	23.71M	16.42M
EBITDA	-11.51M	-32.10M	-13.32M	-70.97M	-73.83M	6.05M
Net Income	-85.57M	-37.63M	-22.75M	-82.30M	-90.42M	-9.76M
Balance Sheet
Total Assets	278.86M	327.90M	349.88M	468.78M	487.86M	560.07M
Cash, Cash Equivalents and Short-Term Investments	1.77M	5.69M	12.15M	15.27M	24.39M	35.02M
Total Debt	68.30M	62.29M	68.06M	141.88M	88.90M	107.99M
Total Liabilities	88.77M	82.90M	88.94M	192.59M	133.60M	144.48M
Stockholders Equity	200.98M	255.53M	270.76M	284.02M	358.86M	419.81M
Cash Flow
Free Cash Flow	-3.91M	91.00K	-20.04M	-6.95M	8.75M	1.70M
Operating Cash Flow	-3.85M	130.00K	-17.16M	-6.90M	8.85M	2.06M
Investing Cash Flow	107.00K	129.00K	6.03M	-51.69M	4.06M	20.00M
Financing Cash Flow	-12.14M	-8.21M	9.21M	65.60M	-14.29M	-18.29M

China Information Technology Development Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8178, the sentiment is Negative. The current price of 0.56 is below the 20-day moving average (MA) of 1.53, below the 50-day MA of 2.14, and below the 200-day MA of 2.51, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 25.39 is Positive, neither overbought nor oversold. The STOCH value of 3.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8178.

China Information Technology Development Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1460	70 Outperform	HK$272.05M	10.58	4.67%	3.39%	5.87%	54.21%
8319	68 Neutral	HK$89.16M	6.38	8.06%	6.76%	-9.11%	-8.90%
8033	68 Neutral	HK$81.94M	5.64	6.73%	7.52%	-1.57%	-18.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1147	53 Neutral	HK$271.98M	22.54	5.44%	1.35%	28.18%	47.50%
8611	47 Neutral	HK$299.52M	―	-57.46%	―	29.99%	-113.64%
8178	37 Underperform	HK$56.41M	―	-37.29%	―	―	―