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

• Market Cap: HK$5.95B
• Dividend Yield: N/A
• Average Volume (3M): 318.48K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.71
• 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: 151,750
• 30 Day Avg. Volume: 318,483
• 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$23.38
• Price Target Upside: 49.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.69
• Revenue Forecast (FY): HK$62.96B

• 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: Negative
• RSI: Neutral
• STOCH: Neutral

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 10.32, above the 50-day MA of 11.82, and above the 200-day MA of 14.25, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 43.74 is Neutral, neither overbought nor oversold. The STOCH value of 62.67 is Neutral, 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	HK$6.83B	15.67	6.90%	3.47%	-17.90%	56.67%
0863	61 Neutral	HK$12.95B	414.14	4.01%	―	115.40%	―
9878	60 Neutral	HK$5.95B	18.85	3.62%	―	-28.46%	-13.25%
3738	56 Neutral	HK$10.43B	47.91	8.42%	―	22.86%	5105.88%
0909	43 Neutral	HK$5.89B	-90.22	-1.31%	3.10%	-17.48%	83.80%
6610	40 Underperform	HK$220.43M	-0.62	-16.28%	―	-15.20%	-206.59%

Huitongda Network Co., Ltd. Class H Corporate Events

Huitongda Network Co., Ltd. Announces 2025 Extraordinary General Meeting

Huitongda Network Co., Ltd. has announced the convening of its 2025 second extraordinary general meeting to be held on December 19, 2025. The meeting will address several key resolutions, including the abolishment of the board of supervisors, amendments to the company’s articles of association, and the use of reserves to offset losses. These resolutions, if approved, could significantly impact the company’s governance structure and financial management strategies.

Huitongda Network Dismisses Senior Executive Over Concealed Violations

Huitongda Network Co., Ltd. has announced the dismissal of Ms. Ni Juan, who held the positions of vice president and secretary to the board. The decision was made after it was discovered that Ms. Ni had concealed past regulatory violations and failed to meet performance targets during her tenure. The company has confirmed that Ms. Ni no longer holds any senior management position, and the board has approved her dismissal.

Huitongda Network Announces Director Resignation

Huitongda Network Co., Ltd., a joint stock company incorporated in China, announced the resignation of Ms. Xu Di as a non-executive director due to personal work reasons, effective November 19, 2025. The company confirmed there are no disagreements or additional matters to report regarding her departure, and expressed gratitude for her contributions.

Huitongda Network Announces Board Composition and Committee Roles

Huitongda Network Co., Ltd. has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement includes the establishment of five specialized committees, which are expected to enhance governance and strategic oversight, potentially impacting the company’s operational efficiency and industry positioning.

Huitongda Network to Offset Losses with Capital Reserves

Huitongda Network Co., Ltd. announced a strategic financial decision to use its capital reserves to offset accumulated losses amounting to RMB2,065.456 million, primarily due to interest expenses from financial liabilities before its IPO. This move aims to strengthen the company’s financial foundation, enabling better conditions for future dividend distributions and enhancing shareholder value, pending approval at the upcoming general meeting.

Huitongda Network Co., Ltd. Announces Major Acquisition

Huitongda Network Co., Ltd., a joint stock company incorporated in the People’s Republic of China, has announced a significant acquisition. The company has entered into an Equity Acquisition Agreement to acquire 57% equity interest in a Target Company for RMB456 million, which will make the Target Company a subsidiary and consolidate its financial results into Huitongda’s financial statements. This acquisition is classified as a discloseable transaction under the Listing Rules, subject to certain conditions, and highlights Huitongda’s strategic expansion efforts.

Huitongda Network Co., Ltd. Proposes Governance Restructure

Huitongda Network Co., Ltd., a joint stock company incorporated in the People’s Republic of China, has announced a significant corporate governance change. The company plans to abolish its Board of Supervisors, transferring its statutory powers and functions to the audit committee under the Board of Directors. This move, which requires shareholder approval at the upcoming general meeting, aims to streamline operations in accordance with the latest legal provisions and the company’s current situation. The changes will be effective upon approval, with existing regulations related to the Board of Supervisors being repealed.