Newlink Technology Inc. (9600) AI Stock Analysis

• Market Cap: HK$316.18M
• Dividend Yield: N/A
• Average Volume (3M): 2.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 11.48%
• EPS Growth: -19.34%
• Country: HK
• Employees: 622
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): -0.04
• Shares Outstanding: 943,817,260
• 10 Day Avg. Volume: 6,851,520
• 30 Day Avg. Volume: 2,893,200
• PEG Ratio: N/A
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.50
• 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

• Rating: 55 Neutral
• Price Target: HK$0.50 ▲(47.06%Upside)

Newlink Technology Inc. shows signs of financial distress with negative profitability and cash flow issues, impacting its financial performance score significantly. While technical indicators are currently positive, suggesting short-term bullish momentum, the overall valuation remains weak due to the negative P/E ratio. The absence of a dividend yield and lack of earnings call data further contribute to a cautious outlook.

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 primarily through its IT services and solutions, which are tailored to meet the specific needs of different industries. The company's revenue model involves charging clients for software development projects, IT consulting services, and system integration efforts. Additionally, Newlink Technology may earn income from long-term service contracts and maintenance agreements with its clients. Key revenue streams include fees from custom software development, consultancy charges, and subscription-based services. The company may also engage in strategic partnerships and collaborations with other technology firms to enhance its service offerings and expand its market reach, thereby contributing to its earnings.

Newlink Technology Inc. Financial Statement Overview

Summary

Newlink Technology Inc. is facing financial challenges with negative profitability and cash flow issues, despite a strong equity position. The fluctuating revenue growth and increasing expenses have led to negative net profit margins and operating cash flow, impacting overall financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	278.82M	245.50M	260.55M	205.75M	176.15M
Gross Profit	38.87M	37.09M	70.46M	74.60M	92.40M
EBITDA	-93.80M	-15.96M	34.43M	30.88M	49.39M
Net Income	-92.46M	-69.16M	17.49M	13.05M	32.03M
Balance Sheet
Total Assets	882.82M	947.68M	991.20M	873.34M	258.48M
Cash, Cash Equivalents and Short-Term Investments	376.40M	330.46M	414.25M	524.26M	69.13M
Total Debt	32.54M	37.38M	35.01M	10.55M	23.68M
Total Liabilities	143.38M	158.78M	108.59M	34.07M	59.11M
Stockholders Equity	739.27M	786.97M	880.15M	837.76M	197.87M
Cash Flow
Free Cash Flow	-6.28M	-41.82M	-75.35M	-147.35M	791.00K
Operating Cash Flow	24.01M	18.69M	14.00M	-104.22M	11.26M
Investing Cash Flow	-52.89M	-60.51M	-158.16M	-49.41M	-10.34M
Financing Cash Flow	39.52M	-46.49M	6.23M	619.90M	11.47M

Newlink Technology Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9600, the sentiment is Positive. The current price of 0.34 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.28, and below the 200-day MA of 0.34, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 66.22 is Neutral, neither overbought nor oversold. The STOCH value of 77.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9600.

Newlink Technology Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	£565.99M	24.41	-6.00%	2.50%	3.52%	-29.29%
9600	55 Neutral	HK$316.18M	―	-12.13%	―	11.48%	-19.34%
8635	55 Neutral	HK$252.00M	―	-23.23%	19.84%	-54.03%	-22.81%
8100	54 Neutral	HK$61.78M	28.96	1.61%	1.44%	29.97%	―
1933	51 Neutral	HK$69.36M	―	-14.50%	―	-21.47%	-131.90%
8071	43 Neutral	HK$145.27M	―	-69.43%	―	22.29%	27.27%
8156	25 Underperform	HK$139.41M	―		―	-11.42%	26.75%

Newlink Technology Inc. Corporate Events

Newlink Technology Updates Performance Guarantee for Neusoft Yuetong Acquisition

Newlink Technology Inc., through its subsidiary Newlink Technology Beijing, has updated its performance guarantee related to the acquisition of Neusoft Yuetong. The acquisition involves a capital increase and equity transfer valued at RMB80 million, with performance targets set for the years 2022 to 2024. The sellers have committed to achieving specific revenue and net profit targets during this period, with a performance compensation mechanism in place should these targets not be met. This arrangement underscores Newlink’s strategic focus on enhancing its market position and operational efficiency.

Newlink Technology Inc. Secures Unanimous Approval at AGM

Newlink Technology Inc., a company listed on the Hong Kong Stock Exchange, successfully passed all proposed resolutions at its Annual General Meeting held on June 9, 2025. The resolutions included approving the audited financial statements, re-electing directors, authorizing the board to set directors’ remuneration, re-appointing auditors, and granting mandates for share allotment and repurchase. The unanimous approval of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility in its market activities.

Newlink Technology Inc. Announces 2025 AGM and Key Resolutions

Newlink Technology Inc. has announced its annual general meeting (AGM) scheduled for June 9, 2025, in Beijing, where it will address key corporate governance matters. The meeting will cover the approval of the 2024 financial statements, re-election of directors, and re-appointment of auditors, alongside a resolution to renew the directors’ mandate to issue additional shares, which could impact the company’s capital structure and shareholder value.