3 E Network Technology Group Ltd. Class A (MASK) AI Stock Analysis

• Market Cap: $2.79M
• Dividend Yield: N/A
• Average Volume (3M): 3.50M
• Price to Earnings (P/E): 1.6
• Beta (1Y): -0.16
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 22
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.17
• Shares Outstanding: 11,200,000
• 10 Day Avg. Volume: 4,825,119
• 30 Day Avg. Volume: 3,500,306
• PEG Ratio: 0.00
• Price to Book (P/B): 4.82
• Price to Sales (P/S): 5.33
• P/FCF Ratio: 1.86K
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: 1.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $0.25 ▲(1.60% Upside)

The score is held back primarily by deteriorating financial quality—especially the 2025 cash flow collapse and revenue decline—and a bearish technical setup with price below key moving averages. The main offset is very low valuation (P/E ~2), which provides some support despite elevated operating and earnings-quality risk.

Positive Factors

Modular AI data center architecture

A prefabricated, modular 'Plug-and-Play' design materially shortens build and upgrade cycles for high-density AI workloads. That structural advantage can lower time-to-revenue, reduce construction risk and enable scalable, low-disruption capacity expansion versus traditional bespoke builds.

Long-term land lease in Finland

A 30-year lease on a large, dedicated Finnish site provides a durable physical footprint and control over deployment timing. It supports multi-year capacity planning, customer commitments and geographic diversification for cloud/AI customers, strengthening the firm's strategic positioning in Nordics.

Conservative leverage and sizable equity base

Low debt relative to equity gives the company financial flexibility to fund capex and weather cyclical shocks without heavy refinancing. For capital-intensive data center projects, a conservative capital structure reduces default risk and supports strategic investments over multi-year horizons.

Negative Factors

Sharp revenue decline and margin compression

A steep revenue drop and meaningful net margin fall signal weakening demand or adverse mix that erode sustainable cash earnings. Persisting revenue volatility reduces confidence in growth assumptions and constrains the firm's ability to scale AI infrastructure investments profitably over the medium term.

Collapse in cash generation

Near-zero operating and free cash flow undermines the company's capacity to self-fund capital projects and service obligations. Poor cash conversion increases reliance on external financing, raises working-capital risk during expansion, and weakens resilience to execution delays on data center builds.

Senior secured convertible financing risk

While the financing bolsters liquidity, senior secured convertible notes create fixed obligations and potential equity dilution upon conversion. Over the medium term this can constrain strategic flexibility, raise effective financing costs and dilute existing shareholders if conversions occur.

3 E Network Technology Group Ltd. Class A Business Overview & Revenue Model

Company Description

3 E Network Technology Group Ltd. operates as a holding company, which engages in the provision of business-to-business information technology business solutions. It offers business solutions to a variety of industries and sectors, including food establishments, real estate, exhibition and conferencing, and clean energy utilities. The company was founded on October 6, 2021 and is headquartered in Guangzhou, China.

How the Company Makes Money

3 E Network Technology Group Ltd. Class A Financial Statement Overview

Summary

Mixed fundamentals. Reported margins remain solid, but 2025 revenue fell sharply (-31.7% YoY), net margin dropped meaningfully, and cash generation collapsed with operating/free cash flow near breakeven and minimal cash conversion versus net income—raising earnings-quality risk despite a conservatively levered balance sheet.

Income Statement

Profitability remains strong on paper, with 2025 revenue of ~$4.84M and healthy gross and operating margins (about 50% gross margin and ~40% operating margin). However, growth and earnings quality weakened: revenue fell sharply in 2025 (-31.7% year over year) and net margin declined meaningfully (to ~15.8% from ~33.9% in 2024). Earlier years showed unusually high margins (2023 in particular), but the recent step-down and volatility reduce confidence in durability.

Balance Sheet

The balance sheet looks conservatively levered overall, with low debt relative to equity in 2024–2025 (debt-to-equity ~0.15–0.20) and a sizable equity base in 2025. Return on equity is still positive (~14.3% in 2025), but it has dropped sharply versus the extremely high levels reported in 2022–2024, pointing to less efficient capital use recently. Strengths are modest leverage and improving capitalization; the main weakness is the big swing in returns and rapid balance sheet expansion versus prior years.

Cash Flow

Cash generation deteriorated materially in 2025: operating cash flow and free cash flow fell to roughly breakeven (~$0.01M), down ~98.9% from 2024. Cash flow covered net income well in 2023–2024, but in 2025 operating cash flow covered only a tiny fraction of net income (~0.5%), suggesting profits were not converted into cash and raising working-capital or timing risk. The key positive is that prior years demonstrated strong cash production, but the latest year is a major red flag.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.40M	4.84M	4.56M	1.67M	1.30M
Gross Profit	3.21M	2.41M	2.30M	1.27M	872.75K
EBITDA	2.56M	1.93M	1.82M	1.02M	515.96K
Net Income	2.18M	764.92K	1.55M	996.16K	439.40K
Balance Sheet
Total Assets	9.36M	9.36M	3.86M	2.01M	1.79M
Cash, Cash Equivalents and Short-Term Investments	2.70M	2.70M	51.81K	19.40K	46.77K
Total Debt	1.08M	1.08M	402.20K	551.87K	404.98K
Total Liabilities	4.00M	4.00M	1.12M	812.87K	1.50M
Stockholders Equity	5.35M	5.35M	2.74M	1.20M	298.31K
Cash Flow
Free Cash Flow	194.72K	13.83K	929.20K	889.81K	938.18K
Operating Cash Flow	208.56K	13.83K	929.20K	901.29K	973.59K
Investing Cash Flow	-2.95M	-2.95M	0.00	-11.48K	-35.41K
Financing Cash Flow	2.99M	3.17M	-888.93K	-871.49K	-910.92K

3 E Network Technology Group Ltd. Class A 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%
USIO	61 Neutral	$38.23M	-92.67	-2.06%	―	3.24%	-115.15%
CSPI	57 Neutral	$113.11M	-797.26	-0.27%	0.95%	6.36%	73.88%
MASK	54 Neutral	$2.79M	1.61	67.62%	―	―	―
GLE	54 Neutral	$6.12M	-7.41	-15.17%	―	-53.14%	-325.97%
CLPS	51 Neutral	$31.23M	-4.24	-11.94%	―	15.17%	-172.09%
CYCU	44 Neutral	$7.95M	―	-184.82%	―	―	-81.60%

3 E Network Technology Group Ltd. Class A Corporate Events

3 E Network Technology Group Completes Second Tranche of US$2 Million Convertible Note Financing

On January 9, 2026, 3 E Network Technology Group Limited announced that it had completed the subsequent closing of its previously disclosed US$2 million original-issue-discount convertible promissory note offering with an institutional investor. Following an initial closing on December 18, 2025, in which it issued a US$1.5 million convertible note for gross proceeds of US$1.38 million, the company finalized a second tranche—completed on January 9, 2025—by issuing a US$500,000 convertible promissory note, convertible into its Class A ordinary shares, for gross proceeds of US$460,000 after a resale registration statement covering the underlying shares became effective; Boustead Securities, LLC acted as placement agent, and the financing strengthens the company’s capital position as it pursues its AI infrastructure and IT solutions growth strategy.

The most recent analyst rating on (MASK) stock is a Hold with a $0.26 price target. To see the full list of analyst forecasts on 3 E Network Technology Group Ltd. Class A stock, see the MASK Stock Forecast page.

3 E Network Technology Group Sells 40% Stake in Guangzhou Sanyi to HongKong Techfaith

On December 25, 2025, 3 E Network Technology Group Ltd.’s Hong Kong subsidiary, 3e Network Technology Company Limited, entered into an equity transfer agreement to sell its 40% equity stake in Guangzhou 3e Network Technology Company Limited (Guangzhou Sanyi) to HongKong Techfaith Limited for approximately RMB 5.3 million in cash. The deal, disclosed in a Form 6-K filed on December 30, 2025, will result in Techfaith owning 100% of Guangzhou Sanyi, which provides software development and exhibition and conference services, marking a full exit by 3 E Network Technology Group from this particular mainland China unit and potentially narrowing its direct operational exposure to that segment while giving it additional liquidity and allowing Techfaith to fully consolidate the business.

3 E Network Technology Group Raises Up to $2 Million Through Senior Secured Convertible Note Financing

On December 18, 2025, 3 E Network Technology Group Limited entered into a securities purchase agreement with an institutional investor to issue an 8% original issue discount senior secured convertible promissory note with a principal amount of up to $2 million, convertible into the company’s Class A ordinary shares. The initial closing the same day delivered gross proceeds of $1.38 million for a $1.5 million principal amount, with a second closing of $500,000 in principal for $460,000 in proceeds contingent on the effectiveness of a resale registration statement for the underlying shares. The company also signed a registration rights agreement committing to file a resale registration statement with the SEC within 15 business days of the closing and executed a guarantee agreement with its subsidiaries to secure all obligations under the financing, while Boustead Securities, LLC acted as placement agent. The transaction strengthens the company’s liquidity through convertible debt that ranks senior to most other indebtedness, while potentially diluting existing shareholders upon conversion; investors and counterparties gain added protection through the guarantee structure and registration rights aimed at facilitating future resale of the converted shares.

3 E Network Technology Group Announces Board Changes with New Appointment

3 E Network Technology Group Ltd. announced changes in its board of directors, with the resignation of Ms. Na Mi as an independent director and chair of the nominating and corporate governance committee on November 17, 2025. Subsequently, Ms. Fenfen Qi was appointed to fill these roles effective November 19, 2025. Ms. Qi brings extensive experience in art design and management, having served as the chief operating officer of BigBeaver Tech Limited since August 2024. These changes in leadership may influence the company’s strategic direction and governance practices, potentially impacting its market positioning and stakeholder relations.