Newlink Technology Inc. (9600) AI Stock Analysis

• Market Cap: HK$198.20M
• Dividend Yield: N/A
• Average Volume (3M): 514.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 15.44%
• EPS Growth: 10.57%
• Country: HK
• Employees: 622
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.07
• Shares Outstanding: 943,817,260
• 10 Day Avg. Volume: 563,000
• 30 Day Avg. Volume: 514,866
• PEG Ratio: -0.27
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 1.24
• P/FCF Ratio: -54.95
• 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$0.22 ▲(9.50% Upside)

Newlink Technology Inc. faces significant financial challenges, with declining profitability and cash flow issues being the most critical factors. The technical analysis suggests a bearish trend, and the valuation is unattractive due to negative earnings. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth

The company has demonstrated a solid revenue growth rate, indicating strong demand for its software solutions and services, which can support long-term business expansion and market presence.

Business Model

Diversified revenue streams from licensing, subscriptions, and consulting provide stable income and reduce dependency on any single source, enhancing financial resilience.

Equity Position

A robust equity position provides a buffer against financial volatility and supports future investment and growth opportunities, contributing to long-term stability.

Negative Factors

Profitability Challenges

Decreasing profitability and cash flow issues can hinder reinvestment in the business and affect long-term growth prospects, necessitating strategic adjustments.

Cash Flow Issues

Negative operating cash flow indicates potential liquidity issues, which could constrain operational flexibility and investment capacity over time.

Debt Levels

Rising leverage, though manageable, could increase financial risk and interest obligations, impacting the company's ability to fund growth initiatives.

Newlink Technology Inc. Business Overview & Revenue Model

Company Description

Newlink Technology Inc., an investment holding company, provides big data analysis and artificial intelligence related solutions in the People's Republic of China. The company operates through three segments: Financial Institutions, Medical Institutions, and Other. It offers software development, and technical and maintenance services, as well as sells standard software products. The company also provides robotic process automation (RPA) solutions, RPA integrated machines, and medical and health big data-based intelligent management solutions. In addition, its solutions include medical quality control and safety warning platforms; clinical pathway management system; intelligent healthcare platform; and telemedicine solutions. The company serves banks, trust companies, asset management companies, hospitals, and other customers. Newlink Technology Inc. was founded in 2011 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Newlink Technology Inc. generates revenue through multiple streams, including software licensing, subscription services, and consulting fees. The company offers proprietary software solutions that clients can purchase outright or subscribe to on a recurring basis, providing a steady income flow. Additionally, Newlink Technology Inc. earns revenue through professional services, such as implementation, training, and support, which are billed on a project basis. Strategic partnerships with cloud service providers and technology firms also enhance its offerings, allowing the company to bundle services and expand its market reach, contributing significantly to its overall earnings.

Newlink Technology Inc. Financial Statement Overview

Summary

Newlink Technology Inc. faces financial strain with declining profitability and cash flow challenges, despite a solid equity base. The company needs to address its revenue growth trajectory and manage expenses effectively to improve profitability and cash flow stability.

Income Statement

Newlink Technology Inc. has shown fluctuating revenue growth, with recent declines in profitability. Gross profit margin is moderately stable, but net profit margins have turned negative due to increasing expenses and declining EBIT and EBITDA margins. The revenue growth rate has been inconsistent, with recent periods showing a downturn.

Balance Sheet

The company maintains a strong equity position with a healthy equity ratio, supported by significant cash reserves. However, the debt-to-equity ratio has increased slightly, indicating a rise in leverage, though it remains manageable. Return on equity has been negative recently, reflecting the company's recent losses.

Cash Flow

Cash flow metrics indicate challenges, with operating cash flow turning negative in the most recent period. Free cash flow growth has been inconsistent and negative, reflecting cash management issues. The free cash flow to net income ratio is not favorable due to recent losses and cash flow deficits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	289.66M	278.82M	245.50M	260.55M	205.75M	176.15M
Gross Profit	38.21M	38.87M	37.09M	70.46M	74.60M	92.40M
EBITDA	-96.96M	-91.90M	-15.96M	3.05M	30.88M	49.39M
Net Income	-101.61M	-92.46M	-69.16M	17.49M	13.05M	32.03M
Balance Sheet
Total Assets	815.91M	882.82M	947.68M	991.20M	873.34M	258.48M
Cash, Cash Equivalents and Short-Term Investments	294.88M	376.40M	330.46M	414.25M	524.26M	69.13M
Total Debt	22.62M	32.54M	37.38M	35.01M	10.55M	23.68M
Total Liabilities	145.63M	143.38M	158.78M	108.59M	34.07M	59.11M
Stockholders Equity	670.37M	739.27M	786.97M	880.15M	837.76M	197.87M
Cash Flow
Free Cash Flow	57.48M	-6.28M	-41.82M	10.67M	-147.35M	11.17M
Operating Cash Flow	58.30M	24.01M	18.69M	14.00M	-104.22M	11.26M
Investing Cash Flow	-11.36M	-52.89M	-60.51M	-158.16M	-49.41M	-10.34M
Financing Cash Flow	-8.10M	39.52M	-46.49M	6.23M	619.90M	11.47M

Newlink Technology Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 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:9600, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.21, and below the 200-day MA of 0.26, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of 92.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9600.

Newlink Technology Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8100	72 Outperform	HK$164.45M	-35.24	-2.72%	0.57%	-13.40%	76.97%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8156	48 Neutral	HK$199.61M	-24.61	―	―	48.39%	88.30%
9600	47 Neutral	HK$198.20M	-1.80	-14.03%	―	15.44%	10.57%
8071	47 Neutral	HK$131.21M	-16.47	-97.49%	―	-49.86%	15.00%
8635	46 Neutral	HK$249.60M	-11.71	-19.25%	14.49%	129.07%	-5.71%
1933	41 Neutral	HK$64.40M	-0.63	-43.25%	―	-23.88%	-1021.62%