Linklogis Inc. Class B (9959) AI Stock Analysis

• Market Cap: HK$4.76B
• Dividend Yield: N/A
• Average Volume (3M): 5.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.00
• Revenue Growth: 11.43%
• EPS Growth: -94.89%
• Country: HK
• Employees: 726
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.21
• Shares Outstanding: 1,886,295,200
• 10 Day Avg. Volume: 2,976,202
• 30 Day Avg. Volume: 5,498,882
• PEG Ratio: -0.04
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 3.18
• P/FCF Ratio: 5.55
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$2.00 ▼(-30.80% Downside)

Linklogis Inc. is facing significant financial and technical challenges. The most impactful factor is the company's poor financial performance, characterized by declining revenues and substantial operational losses. Technical analysis further indicates bearish momentum, with the stock trading below key moving averages and technical indicators suggesting oversold conditions. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield. Overall, the stock requires strategic improvements to enhance its financial health and market appeal.

Positive Factors

Platform-based business model

Linklogis operates a platform that links banks, core enterprises and SMEs, creating durable network effects. Core-enterprise ecosystems can drive repeat transaction volume, cross-selling of tech and operations services, and higher customer stickiness that supports sustainable fee revenue.

Low leverage / strong balance sheet liquidity

Extremely low debt levels reduce refinancing risk and give management flexibility to invest in product development, partnerships, or absorb shocks in credit markets. This capital structure supports multi-month resilience in a finance-tech business sensitive to funding costs.

Improving free cash flow trend

A positive FCF growth trend indicates improving cash generation despite reported losses, enabling reinvestment into the platform and operations. Sustained FCF improvement would reduce external financing needs and support long-term product and client development.

Negative Factors

Severe negative profitability

Very wide negative margins show core operations are loss-making, threatening equity erosion and the viability of the current business model. Without structural margin recovery, continual losses will require ongoing capital or drastic cost or revenue changes to be sustainable.

Declining revenue momentum

Falling top-line undermines the platform's ability to scale fixed costs and monetise network effects. Persistent revenue decline over months reduces operating leverage and investor confidence in the firm's ability to convert its ecosystem into durable, growing fee streams.

Negative return on equity

A persistently negative ROE indicates the company is destroying shareholder capital rather than creating it, signaling inefficient use of equity. This hampers attractiveness to new investors and constrains access to long-term funding unless profitability is materially improved.

Linklogis Inc. Class B Business Overview & Revenue Model

Company Description

Linklogis Inc. Class B (9959) is a technology-driven supply chain finance company based in China, specializing in providing financial services and solutions that enhance supply chain efficiency. The company operates primarily in the fintech sector, offering a range of products including supply chain finance, receivables management, and data-driven financial solutions. Linklogis leverages advanced technologies such as big data and artificial intelligence to facilitate seamless transactions and improve the financial health of businesses within the supply chain ecosystem.

How the Company Makes Money

Linklogis generates revenue through several key streams, primarily focusing on supply chain finance services, where it earns fees for facilitating transactions between suppliers and buyers. The company charges interest on the financing it provides, which is a significant portion of its income. Additionally, Linklogis monetizes its data analytics capabilities by offering insights and tailored financial solutions to its clients, enabling them to optimize their cash flow and operations. Strategic partnerships with major banks and financial institutions further bolster its revenue, as these collaborations often result in joint financing solutions and increased transaction volumes. The company's ability to provide value-added services through technology integration also contributes to its earnings, as clients are willing to pay for enhanced financial efficiency and risk management.

Linklogis Inc. Class B Financial Statement Overview

Summary

Linklogis Inc. faces significant financial challenges, with declining revenues and substantial operational losses impacting profitability. The balance sheet remains strong with low leverage, but negative returns on equity highlight profitability issues. Cash flow shows some positive trends, yet overall financial health requires strategic focus on improving revenue growth and operational efficiency to enhance shareholder value.

Income Statement

Linklogis Inc. has experienced declining revenue with a negative growth rate of -1.91% TTM, indicating challenges in maintaining sales momentum. The company also shows negative profitability metrics, with a net profit margin of -81.01% and EBIT margin of -46.74% TTM, reflecting significant operational losses. Despite a historically high gross profit margin, the overall income statement suggests financial instability and a need for strategic improvements.

Balance Sheet

The balance sheet of Linklogis Inc. shows a strong equity position with a low debt-to-equity ratio of 0.0148 TTM, indicating minimal leverage and financial risk. However, the return on equity is negative at -12.79% TTM, highlighting inefficiencies in generating returns for shareholders. The equity ratio is healthy, suggesting a stable asset base, but the negative ROE points to challenges in profitability.

Cash Flow

Linklogis Inc. has shown positive free cash flow growth of 7.04% TTM, indicating some improvement in cash generation. However, the operating cash flow to net income ratio of 0.22 TTM suggests limited cash flow relative to net losses. The free cash flow to net income ratio of 0.60 TTM reflects some ability to generate cash despite negative earnings, but overall cash flow performance remains mixed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	992.57M	1.03B	867.76M	924.20M	1.20B	1.03B
Gross Profit	634.25M	717.27M	526.51M	774.53M	927.25M	630.38M
EBITDA	-627.35M	-468.21M	-281.10M	153.29M	-12.70B	349.47M
Net Income	-974.31M	-835.38M	-441.24M	-13.46M	-12.99B	-717.06M
Balance Sheet
Total Assets	8.43B	8.59B	9.73B	11.92B	11.81B	6.14B
Cash, Cash Equivalents and Short-Term Investments	5.41B	5.55B	6.14B	8.87B	9.53B	2.39B
Total Debt	76.60M	115.86M	124.42M	59.45M	1.26B	2.76B
Total Liabilities	1.03B	760.31M	617.73M	1.97B	2.09B	9.46B
Stockholders Equity	7.40B	7.83B	9.12B	9.96B	9.71B	-3.33B
Cash Flow
Free Cash Flow	680.07M	590.63M	-458.52M	1.69B	-888.43M	-2.18B
Operating Cash Flow	773.29M	711.32M	-324.18M	1.86B	-731.24M	-2.10B
Investing Cash Flow	-40.92M	-12.36M	-155.18M	-274.58M	-312.66M	-111.29M
Financing Cash Flow	-484.24M	-486.20M	-535.87M	-774.28M	5.34B	2.40B

Linklogis Inc. Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9959, the sentiment is Negative. The current price of 2.89 is above the 20-day moving average (MA) of 2.40, above the 50-day MA of 2.37, and above the 200-day MA of 2.30, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 30.05 is Neutral, neither overbought nor oversold. The STOCH value of 14.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9959.

Linklogis Inc. Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6608	73 Outperform	HK$8.47B	15.12	7.02%	―	16.43%	17.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9923	58 Neutral	HK$3.69B	31.91	3.35%	―	-9.32%	477.27%
2598	58 Neutral	HK$7.61B	3.87	94.40%	―	―	―
0818	54 Neutral	HK$1.39B	9.73	1.98%	―	-17.23%	-6.20%
2121	49 Neutral	HK$3.25B	-6.07	-27.20%	―	-3.78%	20.83%
9959	41 Neutral	HK$4.76B	-4.09	-12.22%	―	11.43%	-94.89%