Huitongda Network Co., Ltd. Class H (HK:9878)
:9878
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Huitongda Network Co., Ltd. Class H
(9878)
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Rating:51Neutral
Price Target:
HK$7.00
▼(-55.27% Downside)
Action:Reiterated
Date:05/03/26
The score is primarily held back by weakening fundamentals (declining revenue, thin margins) and sharply higher leverage despite strong free-cash-flow generation. Technicals add downside pressure due to a persistent downtrend and negative momentum. Valuation is a partial offset given the low P/E, but it is not enough to overcome the financial and trend risks.
Positive Factors
Strong cash generation
Large and improving operating and free cash flow with near‑one-to-one cash conversion indicates high cash quality. Durable cash generation supports working capital, reinvestment, and debt servicing capacity, helping the business withstand revenue cyclicality and fund platform initiatives.
Negative Factors
Sharp revenue decline
Severe and persistent top-line contraction undermines the platform’s scale economics and reduces transaction volumes that drive margins and service revenue. Continued revenue erosion threatens supplier/merchant engagement, curbs bargaining power, and limits long‑term growth potential without clear demand recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Large and improving operating and free cash flow with near‑one-to-one cash conversion indicates high cash quality. Durable cash generation supports working capital, reinvestment, and debt servicing capacity, helping the business withstand revenue cyclicality and fund platform initiatives.
Read all positive factors
Huitongda Network Co., Ltd. Class H (9878) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.81B
Dividend YieldN/A
Average Volume (3M)318.48K
Price to Earnings (P/E)16.4
Beta (1Y)0.72
Revenue Growth-12.84%
EPS Growth11.49%
CountryHK
Employees3,845
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.55
Shares Outstanding530,016,200
10 Day Avg. Volume151,750
30 Day Avg. Volume318,483
Financial Highlights & Ratios
PEG Ratio1.61
Price to Book (P/B)0.61
Price to Sales (P/S)0.09
P/FCF Ratio2.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$12.36Price Target Upside-21.02% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.6
Revenue Forecast (FY)HK$54.33B
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...
How the Company Makes Money
Huitongda primarily makes money by facilitating commerce between upstream brands/suppliers and downstream retail stores in China’s lower-tier markets. Its key revenue stream is transaction-related revenue generated from selling and distributing pr...
Huitongda Network Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
38
Negative
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 52.30B | 60.06B | 82.43B | 82.11B | 65.76B |
| Gross Profit | 2.33B | 2.31B | 2.74B | 2.59B | 1.87B |
| EBITDA | 677.73M | 578.47M | 1.13B | 536.79M | 524.36M |
| Net Income | 300.29M | 269.74M | 448.27M | 316.38M | -349.88M |
Balance Sheet | |||||
| Total Assets | 30.52B | 28.49B | 29.11B | 29.39B | 25.60B |
| Cash, Cash Equivalents and Short-Term Investments | 12.32B | 7.07B | 7.03B | 8.26B | 5.67B |
| Total Debt | 16.07B | 1.40B | 701.80M | 816.64M | 254.31M |
| Total Liabilities | 20.49B | 18.88B | 19.62B | 19.78B | 27.32B |
| Stockholders Equity | 8.03B | 7.79B | 7.77B | 8.10B | -3.08B |
Cash Flow | |||||
| Free Cash Flow | 1.76B | 247.40M | 437.85M | 218.42M | 1.34B |
| Operating Cash Flow | 1.78B | 275.28M | 470.81M | 273.36M | 1.37B |
| Investing Cash Flow | 365.85M | -880.08M | 942.85M | -1.04B | -2.29B |
| Financing Cash Flow | -920.60M | -363.00M | -1.75B | 1.82B | -686.14M |
Huitongda Network Co., Ltd. Class H Technical Analysis
Negative
15.65
Price Trends
7.21
Negative
8.53
Negative
11.18
Negative
Market Momentum
-0.09
Positive
41.47
Neutral
9.60
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 7.09, above the 50-day MA of 7.21, and above the 200-day MA of 11.18, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 41.47 is Neutral, neither overbought nor oversold. The STOCH value of 9.60 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | HK$947.31M | 4.89 | 23.35% | 9.81% | 2.06% | 2.52% | |
71 Outperform | HK$12.21B | 27.92 | 41.82% | ― | 35.42% | 87.47% | |
64 Neutral | HK$3.64B | 24.36 | -8.12% | ― | 3.16% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | HK$5.96B | 45.10 | -159.21% | ― | 19.85% | ― | |
51 Neutral | HK$3.81B | 16.38 | 3.73% | ― | -12.84% | 11.49% | |
42 Neutral | HK$5.70B | -27.23 | -66.11% | ― | 18.94% | 89.36% |
* Technology Sector Average
HK:9878
Huitongda Network Co., Ltd. Class H
6.79
-12.51
-64.82%
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Huitongda Network Co., Ltd. Class H Corporate Events
Huitongda Sets 2025 AGM to Approve Budget, Profit Plan and Share Mandates
Apr 28, 2026
Huitongda Network Co., Ltd. has convened its 2025 annual general meeting for May 22, 2026, in Nanjing, where shareholders will review the board’s and independent directors’ 2025 work reports, the final accounts, and the proposed 2026 f...
Huitongda Completes Full Circulation of H Shares, Boosting Hong Kong Free Float
Apr 20, 2026
Huitongda Network Co., Ltd. has completed the conversion of 349,749,813 domestic shares into H shares, finalizing its H share full circulation plan.Following the conversion, the company’s H shares will start trading on the Hong Kong Stock Ex...
Huitongda Enters ‘New Phase’ as Profit Margins Hit Record Highs in 2025
Mar 30, 2026
Huitongda Network Co., Ltd., a Hong Kong-listed Chinese network commerce and services group, reported solid 2025 performance with a strategic focus on profitability and cash flow. The company operates in retail and distribution-related activities,...
Huitongda Proposes Appointment of Chairman’s Son as Non-Executive Director
Mar 30, 2026
Huitongda Network Co., Ltd. has proposed the election of Wang Hao as a non-executive director for its fourth board session, with his term to run from shareholder approval until the end of the current board’s tenure. Wang, aged 36, brings exp...
Huitongda Sets March 2026 Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 17, 2026
Huitongda Network Co., Ltd. has scheduled a board meeting for 30 March 2026 to review and approve the annual results of the company and its subsidiaries for the financial year ended 31 December 2025, along with the release of those results to the ...
Huitongda Finalizes 25% Stake in Fluid Machinery Maker to Bolster Rural Supply Chain Strategy
Feb 13, 2026
Huitongda Network Co., Ltd. announced that the court has formally terminated the restructuring procedure of its target manufacturing service company, clearing the way for Huitongda to complete the acquisition of a 25% equity stake, which has now b...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.