Transtech Optelecom Science Holdings Limited (9963) AI Stock Analysis

• Market Cap: HK$104.00M
• Dividend Yield: N/A
• Average Volume (3M): 38.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: -15.03%
• EPS Growth: -47.69%
• Country: HK
• Employees: 157
• Sector: Technology
• Sector Strength: 91
• Industry: Communication Equipment
• EPS (TTM): -0.31
• Shares Outstanding: 260,000,000
• 10 Day Avg. Volume: 27,600
• 30 Day Avg. Volume: 38,600
• PEG Ratio: -0.05
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -49.29
• 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: 46 Neutral
• Price Target: HK$0.50 ▲(25.00%Upside)

The overall score is heavily influenced by the company's poor financial performance, characterized by persistent losses and negative cash flows. Technical analysis provides some short-term momentum but is undermined by overbought conditions. Valuation is weak due to a negative P/E ratio and lack of dividend yield.

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 selling of optical fiber cables and optical fibers. The company operates in the telecommunications sector, providing essential components for data transmission networks. Its core products include a variety of optical fibers and cables, catering primarily to network operators, telecommunications companies, and internet service providers.

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

The company faces critical financial challenges with persistent losses and declining revenues. The balance sheet is relatively stable in terms of equity, but negative cash flow trends and operational inefficiencies as highlighted by negative EBIT margin are concerning.

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: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.4 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.33, and above the 200-day MA of 0.29, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 74.55 is Negative, neither overbought nor oversold. The STOCH value of 85.00 is Negative, 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
6869	67 Neutral	$25.84B	19.38	6.68%	0.07%	0.24%	-31.74%
1085	65 Neutral	HK$558.72M	11.24	2.42%	―	9.68%	-46.76%
1617	59 Neutral	HK$206.53M	4.77	5.02%	―	1.01%	660.00%
Sector *	57 Neutral	HK$14.37B	5.81	-5.77%	4.75%	9.65%	-43.80%
1202	55 Neutral	HK$384.00M	309.68	0.15%	―	-26.82%	-56.94%
9963	46 Neutral	HK$104.00M	―	-23.56%	―	-15.03%	-47.69%
1300	46 Neutral	HK$582.24M	―	-0.23%	―	-1.80%	61.90%

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.

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.