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Transtech Optelecom Science Holdings Limited (HK:9963)
:9963
Hong Kong Market

Transtech Optelecom Science Holdings Limited (9963) AI Stock Analysis

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Transtech Optelecom Science Holdings Limited

(9963)

Rating:42Neutral
Price Target:
HK$0.50
▲(66.67%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 neutral signals, but valuation remains weak due to negative earnings and lack of dividends. The absence of earnings call data and corporate events means these factors did not influence the score.

Transtech Optelecom Science Holdings Limited (9963) vs. iShares MSCI Hong Kong ETF (EWH)

Transtech Optelecom Science Holdings Limited Business Overview & Revenue Model

Company DescriptionTranstech 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 MoneyTranstech 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's financial performance is weak, with significant challenges in the income statement, balance sheet, and cash flow. Persistent losses, declining revenues, and negative cash flows indicate severe financial distress, requiring strategic restructuring.
Income Statement
20
Very Negative
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
45
Neutral
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue148.02M174.21M232.75M155.94M262.62M
Gross Profit-275.00K17.46M29.86M19.49M42.61M
EBITDA-6.42M-54.24M-48.98M-81.47M57.25M
Net Income-94.85M-64.22M-70.82M-87.32M28.23M
Balance Sheet
Total Assets395.03M517.11M610.24M719.19M769.54M
Cash, Cash Equivalents and Short-Term Investments17.76M14.49M58.16M14.00M28.62M
Total Debt25.30M37.56M55.80M68.42M27.02M
Total Liabilities40.27M66.74M97.32M123.83M52.60M
Stockholders Equity354.76M450.36M512.92M595.37M716.95M
Cash Flow
Free Cash Flow19.64M-23.29M54.20M-48.56M-88.28M
Operating Cash Flow19.79M-5.41M55.23M-46.46M-50.77M
Investing Cash Flow-125.00K-17.81M-494.00K-2.09M-37.36M
Financing Cash Flow-13.61M-20.34M-12.85M34.63M-16.59M

Transtech Optelecom Science Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.30
Price Trends
50DMA
0.30
Negative
100DMA
0.31
Negative
200DMA
0.29
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
46.80
Neutral
STOCH
76.28
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 0.3 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.30, and above the 200-day MA of 0.29, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.80 is Neutral, neither overbought nor oversold. The STOCH value of 76.28 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$24.46B18.426.68%1.47%0.24%-31.74%
66
Neutral
HK$568.03M10.862.42%9.68%-46.76%
59
Neutral
HK$183.77M4.445.02%1.01%660.00%
56
Neutral
$7.08B5.28-5.20%5.56%8.18%-38.45%
55
Neutral
HK$312.00M251.610.15%-26.82%-56.94%
46
Neutral
HK$591.20M-0.23%-1.80%61.90%
42
Neutral
HK$79.30M-23.56%-15.03%-47.69%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9963
Transtech Optelecom Science Holdings Limited
0.30
0.05
20.00%
HK:1617
Nanfang Communication Holdings Ltd.
0.12
0.02
20.00%
HK:1300
Trigiant Group Ltd.
0.32
-0.02
-5.88%
HK:1085
Hengxin Technology Ltd.
1.24
0.24
24.00%
HK:1202
Chengdu Putian Telecommunications Cable Co., Ltd. Class H
0.78
0.10
14.71%
HK:6869
Yangtze Optical Fibre and Cable Joint Stock Co
19.98
12.24
157.97%

Transtech Optelecom Science Holdings Limited Corporate Events

Transtech Renews Premises Licence Agreement with Futong Group
Jul 4, 2025

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
Jun 3, 2025

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
Apr 30, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025