Huitongda Network Co., Ltd. Class H (9878) AI Stock Analysis

• Market Cap: HK$8.21B
• Dividend Yield: N/A
• Average Volume (3M): 3.82M
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.61
• Revenue Growth: -28.64%
• EPS Growth: -40.36%
• Country: HK
• Employees: 3,845
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 0.53
• Shares Outstanding: 180,266,340
• 10 Day Avg. Volume: 3,682,330
• 30 Day Avg. Volume: 3,821,493
• PEG Ratio: -2.99
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.79
• 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$17.00
• Price Target Upside: 13.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: HK$15.00 ▲(0.13%Upside)

Huitongda Network Co., Ltd. scores moderately due to its financial performance, marked by challenges in revenue growth and profitability, and weak technical indicators. The valuation score is moderate, but the absence of a dividend yield reduces its appeal. Improvement in operational efficiency and market momentum is necessary to enhance its score.

Huitongda Network Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Huitongda Network Co., Ltd. provides commerce and service platform that serves business customers in retail market. The company's commerce business segment procures products, including household appliances, consumer electronics, agricultural means of production, vehicles and auto parts products, homebuilding and renovation materials, and liquor and beverages from its suppliers and distributes to wholesaler customers and member stores through its self-operated HTD Mall webpage. Its Service Business segment offers intelligent business and marketing software-as-a-service plus subscription service through its Super Boss webpage and mobile app to the merchants and offers merchant solutions and other various related services to retail stores and wholesalers. Huitongda Network Co., Ltd. was founded in 2010 and is headquartered in Nanjing, China.

How the Company Makes Money

Huitongda Network Co., Ltd. generates revenue primarily through the sale of products on its e-commerce platform. The company earns money by purchasing goods from manufacturers and selling them to local retailers at a markup. Additionally, the company may receive commissions or service fees for facilitating transactions between suppliers and retailers. Huitongda's extensive logistics and distribution network also contributes to its revenue by providing value-added services such as warehousing and delivery, which help enhance the efficiency of its supply chain. Strategic partnerships with local businesses and manufacturers further bolster Huitongda's earnings by expanding its product offerings and customer base.

Huitongda Network Co., Ltd. Class H Financial Statement Overview

Summary

Huitongda Network Co., Ltd. faces challenges in revenue growth and profitability, with declining revenues and narrow margins. The balance sheet is stable with conservative leverage, but cash flow generation is under pressure, impacting liquidity. Improvement in operational efficiency and cash flow management is needed.

Income Statement

The company has shown a declining trend in revenue, with a decrease from 82.43 billion to 60.06 billion in the last year. The gross profit margin stands at 3.84%, and the net profit margin is 0.45%, indicating narrow profitability. The EBIT and EBITDA margins are also relatively low at 0.99% and 0.96%, respectively, suggesting limited operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.18, indicating a conservative leverage position. The return on equity (ROE) is a moderate 3.46%, reflecting modest returns to shareholders. The equity ratio is 27.33%, showing a stable capital structure with a reasonable level of shareholder equity.

Cash Flow

The free cash flow has decreased from the previous year, reflecting a decline in cash generation. The operating cash flow to net income ratio is 1.02, suggesting that the company is effectively converting income into cash. However, the free cash flow to net income ratio of 1.02 highlights a need for improvement in cash flow management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.06B	82.43B	80.35B	65.76B	49.63B
Gross Profit	2.31B	2.74B	2.50B	1.87B	1.34B
EBITDA	578.47M	1.13B	1.01B	745.85M	586.31M
Net Income	269.74M	448.27M	316.38M	-177.05M	-279.99M
Balance Sheet
Total Assets	28.49B	29.11B	29.39B	25.60B	21.70B
Cash, Cash Equivalents and Short-Term Investments	7.07B	7.03B	8.26B	5.67B	5.55B
Total Debt	1.40B	701.80M	816.64M	254.31M	389.42M
Total Liabilities	18.88B	19.62B	19.78B	27.32B	23.74B
Stockholders Equity	7.79B	7.77B	8.10B	-3.08B	-3.30B
Cash Flow
Free Cash Flow	247.40M	437.85M	218.42M	792.52M	444.69M
Operating Cash Flow	275.28M	470.81M	273.36M	815.01M	472.26M
Investing Cash Flow	-880.08M	942.85M	-1.04B	-1.54B	2.14B
Financing Cash Flow	-363.00M	-1.75B	1.82B	-628.56M	537.62M

Huitongda Network Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.98
• 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:9878, the sentiment is Neutral. The current price of 14.98 is above the 20-day moving average (MA) of 14.44, below the 50-day MA of 15.82, and below the 200-day MA of 16.49, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 50.63 is Neutral, neither overbought nor oversold. The STOCH value of 80.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:9878.

Huitongda Network Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$33.80B	5.84	-11.67%	1.84%	5.28%	-18.34%
9878	55 Neutral	HK$8.21B	28.40	3.47%	―	-28.64%	-40.36%
VOBIF	―	$1.14B	61.11	7.04%	―	―	―
51N	―	€973.83M	13.04	8.12%	2.99%	―	―
0863	61 Neutral	HK$11.40B	245.15	6.56%	―	78.59%	―
6610	52 Neutral	HK$573.59M	2.14	-3.10%	―	-21.51%	-116.36%
0909	49 Neutral	HK$5.78B	―	-3.94%	3.24%	-14.05%	68.56%

Huitongda Network Co., Ltd. Class H Corporate Events

Huitongda Network Applies for Full Circulation of H Shares

Huitongda Network Co., Ltd. has announced its application to the China Securities Regulatory Commission for the conversion of 349,749,813 domestic shares into H shares, as part of its plan for full circulation of H shares. This move, pending regulatory approval, will significantly increase the proportion of H shares in the company’s total share capital, enhancing their liquidity and market presence on the Hong Kong Stock Exchange.

Huitongda Network Announces H Share Repurchase Plan

Huitongda Network Co., Ltd. has announced a plan to repurchase up to 10% of its H shares, with a maximum aggregate repurchase amount of RMB500,000,000. This move, reflecting the company’s confidence in its future development and long-term value, aims to enhance shareholder value and is aligned with its strategic focus on digital transformation and supply chain innovation.

Huitongda Network Announces New Board Leadership

Huitongda Network Co., Ltd., a joint stock company incorporated in the People’s Republic of China, announced the roles of its members for the fourth session of its board. The company has appointed Mr. Wang Jianguo as the chairman of the board and Mr. Wang Xinghua as the chairman of the board of supervisors, with their terms commencing on May 21, 2025. These appointments are expected to strengthen the company’s governance structure and strategic direction.

Huitongda Network Co., Ltd. Announces Board Composition and Roles

Huitongda Network Co., Ltd. announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement outlines the leadership structure and specialized committees, which are crucial for the company’s governance and strategic decision-making processes.

Huitongda Network Announces Grant of Options Under 2024 H Share Scheme

Huitongda Network Co., Ltd. has announced the grant of 18,000,000 options under its 2024 H Share Option Scheme to 39 selected grantees, including employee participants and service providers. The options, which have an exercise price of HK$19.300 per H Share, are subject to performance targets and a clawback mechanism, and are set to vest in stages from 2026 to 2028. This initiative aims to incentivize performance and align the interests of employees and service providers with the company’s growth objectives.

Huitongda Network Co., Ltd. Approves Key Resolutions at 2024 AGM

Huitongda Network Co., Ltd. held its 2024 Annual General Meeting (AGM) where shareholders approved all proposed resolutions, including work reports and financial budgets for 2024 and 2025. The meeting saw significant shareholder participation, with 81.47% of total issued shares represented. The approval of these resolutions is expected to positively impact the company’s strategic direction and operational efficiency, reinforcing its position in the industry.

Huitongda Network Co., Ltd. Forms Nomination Committee to Enhance Governance

Huitongda Network Co., Ltd. has established a Nomination Committee to oversee the selection and appointment of directors and senior management, aiming to improve corporate governance. The committee will focus on criteria such as culture, education, and experience, and will also review board composition and independence of directors, ensuring alignment with the company’s strategic goals.

Huitongda Network Sells Partial Stake in Huitone Datatech

Huitongda Network Co., Ltd. announced the disposal of a 26.7143% equity interest in its subsidiary, Huitone Datatech, to Nanjing Huidefu for RMB25,378,585. Despite this transaction, Huitongda will retain a 51% stake in Huitone Datatech, ensuring it remains a subsidiary and its financial results continue to be consolidated into Huitongda’s financial statements. This transaction is classified as a connected transaction under Hong Kong’s Listing Rules due to the involvement of Mr. Sun Chao, an executive Director of Huitongda, who holds a significant interest in Nanjing Huidefu.

Huitongda Network Co., Ltd. Announces 2024 AGM with Key Resolutions

Huitongda Network Co., Ltd. has announced its 2024 Annual General Meeting (AGM) to be held on May 21, 2025, in Nanjing, China. The AGM will address several key resolutions, including the approval of various 2024 reports, the 2025 financial budget, and the 2024 profit distribution plan. Additionally, the meeting will involve the election of directors and supervisors for the company’s board, decisions on bank credit, financing guarantees for subsidiaries, and the acquisition of wealth management products. These resolutions are expected to shape the company’s strategic direction and financial management for the upcoming year.