Transtech Optelecom Science Holdings Limited (9963) AI Stock Analysis

• Market Cap: HK$115.70M
• Dividend Yield: N/A
• Average Volume (3M): 59.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• 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: 48,800
• 30 Day Avg. Volume: 59,764
• PEG Ratio: -0.02
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 4.77
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$0.50 ▲(13.64% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by persistent losses and negative cash flow trends. While technical analysis shows some positive momentum, the negative P/E ratio and lack of dividend yield weigh down the valuation score. The absence of earnings call and corporate events data limits additional insights.

Transtech Optelecom Science Holdings Limited Business Overview & Revenue Model

Company Description

Transtech Optelecom Science Holdings Limited (9963) is a Hong Kong-based company that operates primarily in the telecommunications and technology sectors. The company focuses on providing advanced optical and communication solutions, specializing in the research, development, and manufacturing of optical fibers and related telecommunications equipment. Transtech's core products include high-quality fiber optic cables and components, which cater to various industries, including telecommunications, data centers, and broadcasting.

How the Company Makes Money

Transtech generates revenue through the sales of its optical communication products and solutions, catering to both domestic and international markets. The company has established key partnerships with telecommunications service providers and infrastructure companies, enabling it to secure contracts for large-scale projects that require extensive fiber optic networks. Additionally, Transtech capitalizes on ongoing technological advancements by offering innovative solutions that meet the growing demand for high-speed data transmission and connectivity. The recurring revenue from long-term service agreements and maintenance contracts also contributes significantly to its financial performance.

Transtech Optelecom Science Holdings Limited Financial Statement Overview

Summary

Transtech Optelecom Science Holdings Limited is facing critical financial challenges. Persistent losses and declining revenues dominate the income statement, while the balance sheet, albeit stable in equity, cannot offset the negative cash flow trends. The company needs strategic changes to reverse these trends and 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	113.91M	148.02M	174.21M	232.75M	155.94M	262.62M
Gross Profit	-3.25M	-275.00K	17.46M	29.86M	19.49M	42.61M
EBITDA	-15.79M	-6.42M	-54.24M	-48.98M	-81.47M	57.25M
Net Income	-93.81M	-94.85M	-64.22M	-70.82M	-87.32M	28.23M
Balance Sheet
Total Assets	401.65M	395.03M	517.11M	610.24M	719.19M	769.54M
Cash, Cash Equivalents and Short-Term Investments	11.56M	17.76M	14.49M	58.16M	14.00M	28.62M
Total Debt	30.88M	25.30M	37.56M	55.80M	68.42M	27.02M
Total Liabilities	46.25M	40.27M	66.74M	97.32M	123.83M	52.60M
Stockholders Equity	355.40M	354.76M	450.36M	512.92M	595.37M	716.95M
Cash Flow
Free Cash Flow	10.30M	19.64M	-23.29M	54.20M	-48.56M	-88.28M
Operating Cash Flow	10.70M	19.79M	-5.41M	55.23M	-46.46M	-50.77M
Investing Cash Flow	-573.00K	-125.00K	-17.81M	-494.00K	-2.09M	-37.36M
Financing Cash Flow	32.00K	-13.61M	-20.34M	-12.85M	34.63M	-16.59M

Transtech Optelecom Science Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.44
• 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 0.44 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.40, and above the 200-day MA of 0.35, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.91 is Neutral, neither overbought nor oversold. The STOCH value of 37.46 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	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1617	61 Neutral	HK$174.01M	2.66	7.40%	―	-9.34%	605.26%
1085	60 Neutral	HK$772.90M	-13.08	-3.08%	―	5.24%	-201.60%
6869	55 Neutral	$48.82B	41.14	4.79%	0.87%	14.38%	-41.96%
1202	52 Neutral	HK$352.00M	―	-0.09%	―	-23.93%	-109.41%
9963	49 Neutral	HK$115.70M	-1.23	-24.22%	―	-20.95%	-13.14%
1300	45 Neutral	HK$539.85M	―	-0.68%	―	6.88%	-49.48%

Transtech Optelecom Science Holdings Limited Corporate Events

Transtech Optelecom Announces Changes in Remuneration Committee

Transtech Optelecom Science Holdings Limited announced a change in its Remuneration Committee, with the resignation of Ms. Sheng Lingfei due to other business commitments. She will be replaced by Mr. Xu Jinjie, an executive director, effective November 3, 2025. The company expressed gratitude for Ms. Sheng’s contributions and confirmed there are no disagreements or issues related to her departure.

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 Announces Changes in Nomination Committee

Transtech Optelecom Science Holdings Limited announced a change in the composition of its Nomination Committee, effective November 3, 2025. Mr. Xu Jinjie has resigned from his position on the committee due to other business commitments, and Ms. Sheng Lingfei has been appointed as his replacement. The company expressed gratitude for Mr. Xu’s contributions and confirmed that there are no disagreements or issues to report regarding his resignation.

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 Announces Board Composition and Roles

Transtech Optelecom Science Holdings Limited has announced the composition of its board of directors and their roles within the company. This announcement, detailing the executive and independent non-executive directors, as well as their committee memberships, highlights the company’s governance structure, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes within the organization.

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 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.