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

• Market Cap: HK$9.70B
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.64
• Revenue Growth: -28.46%
• EPS Growth: -13.25%
• Country: HK
• Employees: 3,845
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.26
• Shares Outstanding: 180,266,340
• 10 Day Avg. Volume: 1,242,479
• 30 Day Avg. Volume: 2,113,918
• PEG Ratio: -0.95
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 39.99
• 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$18.50
• Price Target Upside: 9.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: HK$18.50 ▲(9.14% Upside)

Huitongda Network Co., Ltd. Class H demonstrates a stable financial position and positive technical momentum, which are the primary strengths. However, the high P/E ratio and challenges in revenue growth and profitability weigh on the overall score. The absence of earnings call data and corporate events limits additional insights.

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

Company Description

Huitongda Network Co., Ltd. Class H (9878) is a prominent Chinese company that operates a business-to-business (B2B) e-commerce platform. The company primarily serves the needs of rural and less-developed regions in China by supplying a wide range of products, including home appliances, agricultural machinery, consumer electronics, and building materials. Huitongda leverages its extensive logistics network and technological expertise to connect manufacturers and suppliers with local retailers, facilitating efficient and effective trade across its platform.

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. Class H shows a stable financial position with strong cash flow generation and low leverage. However, challenges in revenue growth and profitability are evident, with declining revenues and low net profit margins. The balance sheet remains strong, providing a solid foundation for future growth.

Income Statement

The income statement shows a mixed performance. The company has maintained positive gross profit margins, with a slight improvement in TTM (Trailing-Twelve-Months) at 4.46% compared to previous periods. However, revenue has declined by 7.63% in the TTM, indicating a potential challenge in maintaining growth. Net profit margins remain low at 0.55%, suggesting limited profitability. Despite these challenges, the company has managed to keep EBIT and EBITDA margins stable, indicating operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.20 in the TTM, indicating low leverage. The return on equity is modest at 3.60%, showing some profitability but room for improvement. The equity ratio stands at 25.56%, suggesting a solid equity base relative to total assets. Overall, the balance sheet indicates financial stability with low risk from debt.

Cash Flow

The cash flow statement is strong, with a significant free cash flow growth rate of 22.91% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is low at 0.02, suggesting that cash flow from operations is not yet robust relative to net income. However, the free cash flow to net income ratio is 1.0, showing that the company is generating sufficient free cash flow to cover its net income, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.34B	60.06B	82.43B	82.11B	65.76B	49.63B
Gross Profit	1.13B	2.31B	2.74B	2.59B	1.87B	1.34B
EBITDA	324.57M	578.47M	1.13B	1.01B	524.36M	586.31M
Net Income	138.61M	269.74M	448.27M	316.38M	-349.88M	-405.29M
Balance Sheet
Total Assets	31.05B	28.49B	29.11B	29.39B	25.60B	21.70B
Cash, Cash Equivalents and Short-Term Investments	7.94B	7.07B	7.03B	8.26B	5.67B	5.55B
Total Debt	1.57B	1.40B	701.80M	816.64M	254.31M	389.42M
Total Liabilities	21.21B	18.88B	19.62B	19.78B	27.32B	23.74B
Stockholders Equity	7.94B	7.79B	7.77B	8.10B	-3.08B	-3.30B
Cash Flow
Free Cash Flow	412.55M	247.40M	437.85M	218.42M	1.34B	444.69M
Operating Cash Flow	412.55M	275.28M	470.81M	273.36M	1.37B	472.26M
Investing Cash Flow	731.79M	-880.08M	942.85M	-1.04B	-2.29B	2.14B
Financing Cash Flow	35.87M	-363.00M	-1.75B	1.82B	-686.14M	537.62M

Huitongda Network Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 16.95 is above the 20-day moving average (MA) of 14.99, above the 50-day MA of 15.31, and above the 200-day MA of 15.23, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 62.96 is Neutral, neither overbought nor oversold. The STOCH value of 87.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
9878	68 Neutral	HK$9.70B	31.05	3.62%	―	-28.46%	-13.25%
3738	65 Neutral	$16.05B	74.58	8.42%	―	22.86%	5105.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1675	60 Neutral	HK$9.40B	21.56	6.90%	2.46%	-17.90%	56.67%
0863	53 Neutral	HK$13.74B	428.28	4.01%	―	115.40%	―
6610	46 Neutral	HK$600.12M	2.14	-16.28%	―	-15.20%	-206.58%
0909	45 Neutral	HK$6.82B	―	-1.31%	2.87%	-17.48%	83.80%

Huitongda Network Co., Ltd. Class H Corporate Events

Huitongda Partners with Alibaba Cloud to Boost AI Solutions in Retail

Huitongda Network Co., Ltd. has entered into a comprehensive cooperation agreement with Alibaba Cloud to explore AI and digital solutions in lower-tier markets. This partnership aims to enhance operational efficiency and precision in product recommendations through AI, creating a new ‘AI + industry’ ecosystem. The collaboration is expected to expand the customer base and service revenue for both companies, solidifying their market-leading positions.

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.