Transtech Optelecom Science Holdings Limited (9963) AI Stock Analysis

• Market Cap: HK$122.20M
• Dividend Yield: N/A
• Average Volume (3M): 187.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: -20.95%
• EPS Growth: -13.14%
• Country: HK
• Employees: 157
• Sector: Technology
• Sector Strength: 82
• Industry: Communication Equipment
• EPS (TTM): -0.05
• Shares Outstanding: 260,000,000
• 10 Day Avg. Volume: 529,600
• 30 Day Avg. Volume: 187,800
• 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: 6.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: HK$0.50 ▲(6.38% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by persistent losses and negative cash flow. While technical analysis shows some bullish momentum, the overbought RSI suggests caution. Valuation metrics are unattractive due to negative earnings and lack of dividends.

Transtech Optelecom Science Holdings Limited Business Overview & Revenue Model

Company Description

Transtech Optelecom Science Holdings Limited (9963) is a company engaged in the manufacturing and sale of optical fiber cables and related products. The company operates within the telecommunications sector, providing essential materials for network infrastructure. Their core products include optical fibers, fiber optic cables, and related telecommunications equipment, which are critical components in the construction and maintenance of telecom networks.

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: Positive
• Last Price: 0.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9963, the sentiment is Positive. The current price of 0.47 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.38, and above the 200-day MA of 0.33, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 69.41 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	61 Neutral	$35.55B	8.88	-11.02%	1.87%	8.55%	-8.14%
9963	49 Neutral	HK$122.20M	―	-24.22%	―	-20.95%	-13.14%
YZOFF	―	$7.27B	15.12	5.20%	3.66%	―	―
CUEH	―	€46.83M	272.50	-0.09%	―	―	―
1085	74 Outperform	HK$782.21M	15.64	-3.08%	―	5.24%	-201.60%
1617	59 Neutral	HK$214.66M	3.28	7.41%	―	-9.34%	605.26%
1300	46 Neutral	HK$564.32M	―	-0.68%	―	6.88%	-49.48%

Transtech Optelecom Science Holdings Limited Corporate Events

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.

Transtech Optelecom Announces Unanimous AGM Resolution Approval

Transtech Optelecom Science Holdings Limited announced the results of its Annual General Meeting held on June 3, 2025, where all proposed resolutions were unanimously passed. The resolutions included the adoption of financial statements, re-election of directors, and granting of mandates to the board for share issuance and repurchase, reflecting strong shareholder support and potentially enhancing the company’s operational flexibility.