Newlink Technology Inc. (9600) AI Stock Analysis

• Market Cap: HK$268.99M
• Dividend Yield: N/A
• Average Volume (3M): 613.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 11.48%
• EPS Growth: -17.06%
• Country: HK
• Employees: 622
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): -0.04
• Shares Outstanding: 943,817,260
• 10 Day Avg. Volume: 1,562,080
• 30 Day Avg. Volume: 613,360
• PEG Ratio: 13.77
• Price to Book (P/B): 15.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -234.76
• 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: 46 Neutral
• Price Target: ―

Newlink Technology Inc. is currently under financial pressure with negative profitability and inconsistent revenue growth. Technical analysis supports a bearish sentiment, and the valuation metrics reflect current challenges. The company needs to improve its financial performance and market sentiment to enhance its stock attractiveness.

Newlink Technology Inc. Business Overview & Revenue Model

Company Description

Newlink Technology Inc. (9600) is a technology company based in China, specializing in providing comprehensive IT services and solutions. The company operates in various sectors including healthcare, finance, and public services, offering a wide range of products and services such as software development, IT consulting, and system integration. Newlink Technology is committed to driving digital transformation for its clients by leveraging cutting-edge technologies and innovative solutions.

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. faces financial strain with declining profitability and cash flow challenges. Despite a strong equity position, the company's revenue growth is inconsistent, and there are concerns with negative cash flow and profitability.

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
	EBIT
-94.65M	-81.85M	8.04M	18.16M	41.07M
	EBITDA
-93.80M	-15.96M	34.43M	30.88M	49.39M
	Net Income Common Stockholders
-92.46M	-69.16M	17.49M	13.05M	32.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
376.40M	330.46M	414.25M	524.26M	69.13M
	Total Assets
882.82M	947.68M	991.20M	873.34M	258.48M
	Total Debt
32.54M	37.38M	35.01M	10.55M	23.68M
	Net Debt
-315.70M	-293.08M	-379.24M	-513.71M	-45.45M
	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
0.00	-41.82M	-75.35M	-147.35M	791.00K
	Operating Cash Flow
0.00	18.69M	14.00M	-104.22M	11.26M
	Investing Cash Flow
0.00	-60.51M	-158.16M	-49.41M	-10.34M
	Financing Cash Flow
0.00	-46.49M	6.23M	619.90M	11.47M

Newlink Technology Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Negative
• 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 Negative. The current price of 0.28 is above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.27, and below the 200-day MA of 0.39, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, 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
1686	80 Outperform	€17.97B	18.65	19.23%	1.51%	12.91%	5.31%
STAN	77 Outperform	$27.41B	9.96	8.79%	2.79%	2.10%	30.22%
2386	71 Outperform	€26.72B	10.00	7.81%	7.12%	12.37%	―
Sector *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%
1181	53 Neutral	HK$190.46M	53.14	-8.51%	8.47%	-10.93%	-143.61%
0017	52 Neutral	HK$13.39B	―	-10.34%	9.40%	-56.64%	-3398.20%
9600	46 Neutral	HK$268.99M	―	-12.13%	―	11.48%	-17.06%

Newlink Technology Inc. Corporate Events

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.

Newlink Technology Inc. Reports Increased Revenue but Larger Loss for 2024

Newlink Technology Inc. has reported its annual financial results for the year ending December 31, 2024. The company experienced an increase in revenue from RMB 245,495,000 in 2023 to RMB 278,822,000 in 2024. Despite this growth in revenue, the company reported a larger loss before tax of RMB 96,068,000 compared to RMB 70,971,000 in the previous year. Total assets decreased from RMB 947,685,000 in 2023 to RMB 882,822,000 in 2024, while total liabilities also saw a reduction. The announcement highlights the financial challenges faced by the company, which may impact its operations and market positioning.

Newlink Technology Inc. Updates Nomination Committee Terms

Newlink Technology Inc. has revised the terms of reference for its Nomination Committee, initially adopted in December 2020, with changes effective from March 31, 2025. This committee, crucial for board member appointments, will now require a majority of independent non-executive directors and at least one director of a different gender, reflecting a commitment to diversity and independent oversight.

Newlink Technology Inc. Announces Relocation of Hong Kong Office

Newlink Technology Inc., a company incorporated in the Cayman Islands, has announced a change in its principal place of business in Hong Kong. Effective March 31, 2025, the new location will be Unit 06 on the 20th Floor of Harbour Centre, No.25 Harbour Road, Wan Chai, Hong Kong. This relocation may signal strategic operational adjustments or expansion plans within the region, potentially impacting stakeholders and the company’s market presence.

Newlink Technology Inc. Schedules Board Meeting for Annual Results

Newlink Technology Inc. has announced that its board of directors will hold a meeting on March 31, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider recommending a final dividend payment, highlighting the company’s financial performance and potential returns to shareholders.