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China Information Technology Development (HK:8178)
:8178
Hong Kong Market

China Information Technology Development (8178) AI Stock Analysis

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HK

China Information Technology Development

(8178)

Rating:43Neutral
Price Target:
HK$3.00
▼(-6.25%Downside)
The company's financial challenges are the most significant factor, with declining revenues and persistent losses impacting its score. Technical analysis presents mixed signals, while the valuation is negatively affected by ongoing losses. The absence of positive earnings call insights or notable corporate events leaves these areas unaddressed.

China Information Technology Development (8178) vs. iShares MSCI Hong Kong ETF (EWH)

China Information Technology Development Business Overview & Revenue Model

Company DescriptionChina Information Technology Development Limited, an investment holding company, provides software development, system integration, and technical support and maintenance services in the People's Republic of China. The company develops and sells computer software and hardware; and provides IT infrastructure solutions and maintenance, money lending, and securities trading services. It also offers office management services; big data application services; and asset acquisition, management, and consultancy services. The company was formerly known as Xteam Software International Limited. China Information Technology Development Limited was founded in 2001 and is headquartered in Kwun Tong, Hong Kong.
How the Company Makes MoneyChina Information Technology Development Limited generates revenue through its diverse range of IT services and solutions. The company earns money by providing customized software development and system integration services, which involve designing, implementing, and maintaining IT systems for clients. Additionally, it offers cloud computing and big data analytics solutions, which are sold as subscription-based services, allowing for recurring revenue streams. The company also engages in smart city projects, collaborating with government entities and private companies to develop technology-driven urban solutions. Strategic partnerships with technology firms and government contracts are significant factors that contribute to its earnings.

China Information Technology Development Financial Statement Overview

Summary
The company faces significant financial challenges with declining revenues and persistent losses. Despite improvements in gross profit margin and debt management, profitability and cash flow issues remain substantial, requiring focus on stabilizing revenues and operational efficiency.
Income Statement
25
Negative
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
40
Negative
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
30
Negative
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
28.93M41.48M49.23M62.96M66.09M45.69M
Gross Profit
20.57M22.40M21.64M21.03M23.71M16.42M
EBIT
-21.69M-15.02M-26.33M-70.40M-71.35M-9.62M
EBITDA
-25.68M-32.10M-13.43M-70.97M-73.83M6.05M
Net Income Common Stockholders
-26.66M-37.63M-22.75M-85.61M-90.42M-10.95M
Balance SheetCash, Cash Equivalents and Short-Term Investments
44.06M5.69M12.15M15.27M24.39M35.02M
Total Assets
0.00327.90M349.88M468.78M487.86M560.07M
Total Debt
0.0062.29M68.06M141.88M88.90M107.99M
Net Debt
44.06M56.92M56.47M128.01M82.18M100.08M
Total Liabilities
0.0082.90M88.94M192.59M133.60M144.48M
Stockholders Equity
446.57M255.53M270.76M284.02M358.86M419.81M
Cash FlowFree Cash Flow
553.00K91.00K-20.04M-6.95M8.75M1.70M
Operating Cash Flow
553.00K130.00K-19.40M-6.90M8.85M2.06M
Investing Cash Flow
9.00K129.00K6.03M-51.69M4.06M20.00M
Financing Cash Flow
-1.04M-8.21M11.45M65.60M-14.29M-18.29M

China Information Technology Development Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.20
Price Trends
50DMA
3.07
Positive
100DMA
3.11
Positive
200DMA
3.15
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
64.08
Neutral
STOCH
73.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8178, the sentiment is Positive. The current price of 3.2 is above the 20-day moving average (MA) of 3.00, above the 50-day MA of 3.07, and above the 200-day MA of 3.15, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 64.08 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8178.

China Information Technology Development Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
HK$202.72M8.284.42%4.33%7.39%142.61%
69
Neutral
HK$87.56M6.238.45%7.52%-8.25%-14.22%
66
Neutral
HK$212.67M24.194.09%1.73%35.72%23.53%
65
Neutral
HK$70.85M6.894.70%8.70%14.53%57.55%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
47
Neutral
HK$159.12M-37.23%14.28%78.69%
43
Neutral
HK$234.45M
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8178
China Information Technology Development
3.20
2.08
185.71%
HK:1147
Edensoft Holdings Limited
0.11
0.04
57.14%
HK:1460
ICO Group Limited
0.22
0.07
46.67%
HK:8033
Vodatel Networks Holdings Limited
0.11
-0.03
-21.43%
HK:8319
Expert Systems Holdings Ltd.
0.11
<0.01
10.00%
HK:8611
Mindtell Technology Limited
0.42
0.35
500.00%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.