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

• Market Cap: HK$5.60B
• Dividend Yield: N/A
• Average Volume (3M): 498.27K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.75
• 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: 350,970
• 30 Day Avg. Volume: 498,270
• 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$20.37
• Price Target Upside: 30.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.72
• Revenue Forecast (FY): HK$62.99B

• Rating: 60 Neutral
• Price Target: HK$11.50 ▼(-26.52% Downside)

Huitongda Network Co., Ltd. Class H's overall stock score is driven by a stable financial position and strong cash flow generation. However, bearish technical indicators and moderate valuation limit the score. The absence of a dividend yield and challenges in revenue growth further impact the overall assessment.

Positive Factors

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and supports long-term sustainability, providing a solid foundation for future growth.

Operational Efficiency

Stable operational margins suggest effective cost management, which can enhance profitability and competitive positioning over time.

Negative Factors

Revenue Decline

Declining revenue can hinder growth prospects and affect market confidence, necessitating strategic initiatives to reverse the trend.

Low Profit Margins

Low profit margins indicate challenges in converting sales into profit, which could impact long-term financial health and investment capacity.

Revenue Growth Challenges

Ongoing challenges in revenue growth may limit the company's ability to scale operations and compete effectively in the market.

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

Company Description

Huitongda Network Co., Ltd. (Class H, 9878) is a leading e-commerce platform in China that specializes in providing comprehensive supply chain solutions for small and medium-sized enterprises (SMEs). The company operates primarily in the wholesale and retail sectors, offering a wide range of products including electronics, apparel, and household goods. Huitongda's platform connects manufacturers, distributors, and retailers, facilitating efficient transactions and logistics management.

How the Company Makes Money

Huitongda generates revenue through multiple streams, primarily by charging transaction fees on sales made through its platform. The company also earns money from subscription fees paid by businesses that utilize its advanced services, such as inventory management and data analytics. Additionally, Huitongda partners with various logistics providers to offer shipping solutions, receiving a portion of the shipping fees. Significant partnerships with manufacturers and wholesalers further enhance its product offerings and drive sales, contributing to its overall revenue growth.

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

Summary

Huitongda Network Co., Ltd. Class H demonstrates a stable financial position with strengths in cash flow generation and low leverage. However, the company faces challenges in revenue growth and profitability, as indicated by 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	51.55B	60.06B	82.43B	82.11B	65.76B	49.63B
Gross Profit	2.30B	2.31B	2.74B	2.59B	1.87B	1.34B
EBITDA	622.77M	578.47M	1.13B	536.79M	524.36M	586.31M
Net Income	283.26M	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	438.85M	247.40M	437.85M	218.42M	1.34B	444.69M
Operating Cash Flow	438.85M	275.28M	470.81M	273.36M	1.37B	472.26M
Investing Cash Flow	858.62M	-880.08M	942.85M	-1.04B	-2.29B	2.14B
Financing Cash Flow	-809.77M	-363.00M	-1.75B	1.82B	-686.14M	537.62M

Huitongda Network Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9878, the sentiment is Negative. The current price of 15.65 is above the 20-day moving average (MA) of 11.27, above the 50-day MA of 13.79, and above the 200-day MA of 14.75, indicating a bearish trend. The MACD of -1.13 indicates Positive momentum. The RSI at 27.17 is Positive, neither overbought nor oversold. The STOCH value of 8.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1675	61 Neutral	€8.36B	19.19	6.90%	3.13%	-17.90%	56.67%
9878	60 Neutral	HK$5.60B	18.14	3.62%	―	-28.46%	-13.25%
0863	59 Neutral	HK$13.26B	421.46	4.01%	―	115.40%	―
3738	56 Neutral	$11.32B	50.73	8.42%	―	22.86%	5105.88%
0909	43 Neutral	HK$6.17B	-92.46	-1.31%	3.17%	-17.48%	83.80%
6610	38 Underperform	HK$348.12M	-1.00	-16.28%	―	-15.20%	-206.58%

Huitongda Network Co., Ltd. Class H Corporate Events

Huitongda Network Co., Ltd. Announces Strategic Acquisition in Restructuring Deal

Huitongda Network Co., Ltd. has announced its intention to acquire a 25% equity interest in a target company for approximately RMB994 million, as part of a restructuring investment agreement. This acquisition, classified as a discloseable transaction, is contingent upon court approval of the target company’s restructuring plan, introducing uncertainties about its successful implementation. Stakeholders are advised to exercise caution due to these uncertainties.

The most recent analyst rating on (HK:9878) stock is a Hold with a HK$16.50 price target. To see the full list of analyst forecasts on Huitongda Network Co., Ltd. Class H stock, see the HK:9878 Stock Forecast page.

Huitongda Network Reports Strong Interim Results Amid Strategic Shift

Huitongda Network Co., Ltd. announced its unaudited consolidated interim results for the first half of 2025, showing a significant increase in key financial metrics despite external challenges. The company reported a 15.9% increase in profit from operations and a 10.8% rise in profit attributable to equity shareholders, with a notable improvement in gross profit margin. The results reflect the effectiveness of the company’s strategic adjustments towards sustainable development and quality improvement.

The most recent analyst rating on (HK:9878) stock is a Hold with a HK$16.50 price target. To see the full list of analyst forecasts on Huitongda Network Co., Ltd. Class H stock, see the HK:9878 Stock Forecast page.

Huitongda Network Co., Ltd. Schedules Board Meeting to Review Interim Results

Huitongda Network Co., Ltd. has announced a board meeting scheduled for August 28, 2025, to review and approve the interim results for the first half of 2025 and discuss the potential payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and future dividend plans, impacting investor confidence and market positioning.

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.