Transtech Optelecom Science Holdings Limited (9963) AI Stock Analysis

• Market Cap: HK$74.10M
• Dividend Yield: N/A
• Average Volume (3M): 32.20K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: -15.03%
• EPS Growth: -47.69%
• Country: HK
• Employees: 157
• Sector: Technology
• Sector Strength: 79
• Industry: Communication Equipment
• EPS (TTM): -0.31
• Shares Outstanding: 260,000,000
• 10 Day Avg. Volume: 73,200
• 30 Day Avg. Volume: 32,200
• PEG Ratio: 0.10
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.69
• 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

• Rating: 38 Underperform
• Price Target: ―

Transtech Optelecom Science Holdings Limited's overall stock score is low due to significant financial difficulties, evidenced by declining revenues and persistent losses. While the technical analysis shows a neutral to slightly negative trend, the valuation remains unattractive with a negative P/E ratio and no dividend yield. Without any recent earnings call information or notable corporate events, the company's current challenges overshadow any potential for near-term recovery.

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 through the sale of its optical fiber cables and optical fibers. The company's primary revenue stream comes from contracts with telecommunications companies and network operators who require high-quality, reliable components for building and maintaining their data transmission infrastructure. Additionally, Transtech may engage in partnerships or collaborations with industry players to expand its market reach. The company's earnings are influenced by the demand for telecommunications infrastructure, which is driven by the increasing need for high-speed internet and data services globally.

Transtech Optelecom Science Holdings Limited Financial Statement Overview

Summary

Transtech Optelecom Science Holdings Limited is facing critical financial challenges as indicated by their financial statements. The income statement reflects persistent losses and declining revenues, while the balance sheet shows a relatively healthy equity position but with concerning asset management issues. Cash flow analysis highlights unsustainable negative cash flows requiring strategic financial restructuring.

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
	EBIT
-89.74M	-22.38M	-65.78M	-108.21M	34.18M
	EBITDA
-6.42M	-54.24M	-48.98M	-81.47M	57.25M
	Net Income Common Stockholders
-94.85M	-64.22M	-70.82M	-87.32M	28.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.76M	14.49M	58.16M	14.00M	28.62M
	Total Assets
395.03M	517.11M	610.24M	719.19M	769.54M
	Total Debt
25.30M	37.56M	55.80M	68.42M	27.02M
	Net Debt
7.54M	23.07M	-2.36M	54.42M	-1.59M
	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
0.00	-23.29M	54.20M	-48.56M	-88.28M
	Operating Cash Flow
0.00	-5.41M	55.23M	-46.46M	-50.77M
	Investing Cash Flow
0.00	-17.81M	-494.00K	-2.09M	-37.36M
	Financing Cash Flow
0.00	-20.34M	-12.85M	34.63M	-16.59M

Transtech Optelecom Science Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.31, and below the 200-day MA of 0.28, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 30.56 is Neutral, 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
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
9963	38 Underperform	HK$74.10M	―	-23.56%	―	-15.03%	-47.69%
PIAIF		$127.66B	6.18		7.26%	―	―
SBMFF		$10.87B	46.32	6.14%	1.06%	―	―
SNPTF		$9.10B	24.04	11.45%	0.80%	―	―
YZOFF		$2.63B	11.70	6.68%	4.72%	―	―
0775	65 Neutral	HK$8.84B	―	-3.29%	―	3.76%	-833.33%

Transtech Optelecom Science Holdings Limited Corporate Events

Transtech Optelecom Announces AGM and Key Resolutions

Transtech Optelecom Science Holdings Limited has announced the details of its upcoming annual general meeting, scheduled for June 3, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of financial statements, re-election of directors, re-appointment of auditors, and authorization for the board to manage share allotments. These resolutions are crucial for the company’s governance and operational continuity, potentially impacting its strategic direction and shareholder relations.

Transtech Optelecom Reports Significant Financial Loss for 2024

Transtech Optelecom Science Holdings Limited reported a significant financial downturn for the year ended December 31, 2024, with revenue decreasing from HK$174,208,000 in 2023 to HK$148,017,000 in 2024. The company experienced a gross loss of HK$275,000 compared to a profit in the previous year, and a substantial increase in the loss attributable to owners, reaching HK$94,846,000. The Board decided not to pay a final dividend for the year. These results indicate a challenging financial period for the company, impacting its market positioning and shareholder returns.

Transtech Optelecom Schedules Board Meeting for Annual Results Approval

Transtech Optelecom Science Holdings Limited has announced a board meeting scheduled for March 31, 2025, to discuss and approve the audited annual results for the year ending December 31, 2024. The meeting will also cover the announcement and publication of these results, consideration of a final dividend, and planning for the annual general meeting, indicating a focus on financial transparency and shareholder engagement.