Transtech Optelecom Science Holdings Limited (9963) AI Stock Analysis

• Market Cap: HK$94.90M
• Dividend Yield: N/A
• Average Volume (3M): 226.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: -20.95%
• EPS Growth: -13.14%
• Country: HK
• Employees: 157
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.05
• Shares Outstanding: 260,000,000
• 10 Day Avg. Volume: 51,200
• 30 Day Avg. Volume: 226,964
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$0.50
• Price Target Upside: 38.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: HK$0.50 ▲(38.89% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by persistent losses and declining revenues. Technical analysis provides some support with mixed signals, but the valuation remains unattractive due to negative earnings. The absence of earnings call data and corporate events leaves these areas unaddressed.

Transtech Optelecom Science Holdings Limited Business Overview & Revenue Model

Company Description

Transtech Optelecom Science Holdings Limited, an investment holding company, manufactures and sells optical fiber, optical fiber cables, optical cable cores, and other related products. The company offers optical fiber for use in telecommunication, medical, military, aerospace and various other applications; and optical fiber core and other related products, such as optical fiber coloring, secondary coating, and stranded cabling, as well as the tests. It has operations in the People's Republic of China, Thailand, Singapore, Indonesia, Malaysia, Myanmar, India, Italy, Laos, the Philippines, and internationally. The company was founded in 2003 and is headquartered in Tai Po, Hong Kong. Transtech Optelecom Science Holdings Limited is a subsidiary of Hong Kong Futong Optical Fiber Company Limited.

How the Company Makes Money

Transtech Optelecom Science Holdings Limited generates revenue primarily through the sale of optical fiber cables and related telecommunications products. The company supplies these products to telecom operators and network providers who require high-quality infrastructure components for their communication networks. Revenue streams are largely dependent on the demand for telecom network expansion and upgrades, often influenced by technological advancements and increasing data traffic. Additionally, partnerships with telecom companies and infrastructure developers can significantly contribute to the company's earnings by securing large-scale contracts and long-term supply agreements.

Transtech Optelecom Science Holdings Limited Financial Statement Overview

Summary

The company faces critical financial challenges with persistent losses and declining revenues. The income statement shows negative gross and net profit margins, and the balance sheet, while stable in equity, cannot offset negative cash flow trends. Strategic changes are needed to improve financial health.

Income Statement

The income statement reflects a challenging financial situation. The gross profit margin has decreased significantly, turning negative in the recent period, indicating cost management issues. The net profit margin is also negative, showing persistent net losses. Revenue has been declining over the years, with a notable drop from 2020 to 2024, which further weakens the financial standing. An EBIT margin consistently in the negative highlights operational inefficiencies.

Balance Sheet

The balance sheet shows a relatively healthy equity position with a high equity ratio, indicating financial stability. However, the debt-to-equity ratio has been manageable but remains an area to monitor. Return on equity is negative, reflecting the company's ongoing losses, which is concerning. The reduction in total assets from previous years signals potential asset management or investment issues.

Cash Flow

Cash flow analysis reveals significant challenges. Free cash flow has been negative in recent years, indicating cash outflows exceeding inflows from operations, which is unsustainable long-term. The operating cash flow to net income ratio is not favorable, showing cash flow issues even when compared to the net losses. The absence of positive cash flow trends further underscores the need for financial restructuring.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	148.02M	174.21M	232.75M	155.94M	262.62M
Gross Profit	-275.00K	17.46M	29.86M	19.49M	42.61M
EBITDA	-6.42M	-54.24M	-48.98M	-81.47M	57.25M
Net Income	-94.85M	-64.22M	-70.82M	-87.32M	28.23M
Balance Sheet
Total Assets	395.03M	517.11M	610.24M	719.19M	769.54M
Cash, Cash Equivalents and Short-Term Investments	17.76M	14.49M	58.16M	14.00M	28.62M
Total Debt	25.30M	37.56M	55.80M	68.42M	27.02M
Total Liabilities	40.27M	66.74M	97.32M	123.83M	52.60M
Stockholders Equity	354.76M	450.36M	512.92M	595.37M	716.95M
Cash Flow
Free Cash Flow	19.64M	-23.29M	54.20M	-48.56M	-88.28M
Operating Cash Flow	19.79M	-5.41M	55.23M	-46.46M	-50.77M
Investing Cash Flow	-125.00K	-17.81M	-494.00K	-2.09M	-37.36M
Financing Cash Flow	-13.61M	-20.34M	-12.85M	34.63M	-16.59M

Transtech Optelecom Science Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9963, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.40, and above the 200-day MA of 0.35, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.72 is Neutral, neither overbought nor oversold. The STOCH value of 9.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9963.

Transtech Optelecom Science Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1085	74 Outperform	758.93M	-12.84	2.70%	―	5.24%	-201.60%
6869	70 Outperform	63.24B	64.99	5.81%	0.58%	12.11%	-44.33%
1202	61 Neutral	364.00M	-478.95	0.15%	―	-23.93%	-109.41%
1617	59 Neutral	204.91M	3.13	―	―	-9.34%	605.26%
1300	46 Neutral	564.32M	-21.72	―	―	6.88%	-49.48%
9963	44 Neutral	HK$94.90M	―	-24.22%	―	-20.95%	-13.14%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Transtech Optelecom Science Holdings Limited Corporate Events

Transtech Optelecom Reports Interim Results for First Half of 2025

Transtech Optelecom Science Holdings Limited announced its unaudited consolidated results for the six months ended June 30, 2025, showing a comparison with the same period in 2024. The announcement provides insights into the company’s financial performance and operational strategies, which could influence its market positioning and stakeholder interests.

The most recent analyst rating on (HK:9963) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Transtech Optelecom Science Holdings Limited stock, see the HK:9963 Stock Forecast page.

Transtech Optelecom Issues Profit Warning for First Half of 2025

Transtech Optelecom Science Holdings Limited has issued a profit warning, indicating an expected consolidated net loss between HK$12.0 million and HK$13.0 million for the first half of 2025, slightly improved from the HK$13.7 million loss in the same period of 2024. The anticipated loss is attributed to decreased sales revenue and increased foreign exchange gains due to currency fluctuations. The company is finalizing its unaudited financial results, with the full announcement expected by August 27, 2025.

The most recent analyst rating on (HK:9963) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Transtech Optelecom Science Holdings Limited stock, see the HK:9963 Stock Forecast page.

Transtech Optelecom Schedules Board Meeting to Review Interim Results

Transtech Optelecom Science Holdings Limited announced a forthcoming board meeting scheduled for August 27, 2025, to discuss and approve the company’s unaudited interim results for the first half of the year. The meeting will also address the potential declaration of a dividend, the closure of the register of members, and other business matters, which could impact the company’s financial positioning and shareholder interests.

Transtech Renews Premises Licence Agreement with Futong Group

Transtech Optelecom Science Holdings Limited has renewed its Premises Licence Agreement with Futong Group International Limited for a one-year term, starting from July 1, 2025, to June 30, 2026. This renewal allows Transtech to continue occupying the premises at Tai Po Industrial Estate in Hong Kong, which is crucial for its operations. The transaction is classified as a continuing connected transaction under Hong Kong’s Listing Rules, requiring announcement and reporting but exempt from independent shareholders’ approval. This renewal ensures the continuity of Transtech’s operations in its strategic location, maintaining its industry positioning and operational stability.