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NaaS Technology (NAAS)
NASDAQ:NAAS
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NaaS Technology
(NASDAQ:NAAS)
Rating:47Neutral
Price Target:
$3.00
▼(-1.96% Downside)
NaaS Technology (NAAS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.54M
Dividend YieldN/A
Average Volume (3M)212.24K
Price to Earnings (P/E)―
Beta (1Y)0.26
Revenue Growth-13.78%
EPS Growth38.11%
CountryUS
Employees611
SectorConsumer Cyclical
Sector Strength79
IndustrySpecialty Retail
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,926,928
10 Day Avg. Volume140,273
30 Day Avg. Volume212,239
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap76.53
Enterprise Value/Revenue0.66
Enterprise Value/Gross Profit2.01
Enterprise Value/Ebitda-0.28
Forecast
1Y Price Target
$3.00Price Target Upside-1.96% Downside
Rating ConsensusHold
Number of Analyst Covering1
NaaS Technology Business Overview & Revenue Model
Company DescriptionNaaS Technology Inc. provides electric vehicle (EV) charging services in China. It serves charging station operators, charger manufacturers, EV OEMs, and other end-users. The company was founded in 2019 and is based in Beijing, China.
How the Company Makes MoneyNaaS Technology generates revenue primarily through subscription-based pricing models for its Network as a Service offerings. This includes monthly or annual fees charged to clients for access to its virtual networking solutions and bandwidth services. Key revenue streams also include one-time fees for setup and configuration services, as well as tiered pricing based on usage levels, which allows clients to scale their services according to their needs. Additionally, NAAS collaborates with major telecom providers and cloud service platforms, forming strategic partnerships that enhance its service offerings and expand its market reach, thus contributing to its overall earnings.
NaaS Technology Earnings Call Summary
Earnings Call Date:Jun 13, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 25, 2025
Earnings Call Sentiment Positive
The earnings call highlighted NaaS's successful strategic shift towards high-margin core charging services, achieving its first positive non-IFRS net profit. Operational efficiency improved significantly with reduced costs and increased user activity. However, the shift away from energy solutions resulted in a decline in that segment's revenue.Q3-2024 Updates
Positive Updates
First Positive Non-IFRS Net Profit
NaaS achieved a positive non-IFRS net profit of RMB 20.6 million for the first time in a single quarter through strategic iteration, cost reduction, and efficiency gains.
Core Charging Services Revenue Growth
Revenues from core charging services increased by 36% year-over-year to RMB 42.37 million, with an all-time high gross margin of 57%.
Reduction in Operating Costs
Selling and marketing expenses as a percentage of revenue decreased from 160% in Q3 2023 to 67% in Q3 2024, significantly improving operational efficiency.
Increase in Platform User Activity
The number of users transacting through the NaaS platform grew by 30% year-over-year, with user activity hitting a record high.
Expansion of Charging Network
Notable expansion in the charging network with a partnership in Fujian, adding 100 stations and 1,600 chargers.
Negative Updates
Energy Solutions Revenue Decline
Revenue from Energy Solutions was only RMB 0.56 million due to a strategic shift away from low-margin, capital-intensive energy solutions.
Company Guidance
In the NaaS Third Quarter 2024 Earnings Call, the company announced achieving a positive non-IFRS net profit for the first time, marking a significant milestone. The non-IFRS net profit reached RMB 20.6 million, driven by strategic shifts, cost reductions, and efficiency gains. The core charging services business reported revenues of RMB 42.37 million, with a 36% year-over-year increase. The gross margin improved for the fourth consecutive quarter, reaching a record high of 57%. Operating costs were significantly reduced, with selling and marketing expenses decreasing to 67% of revenue, down from 160% the previous year. The number of users transacting through the NaaS platform increased by 30% year-over-year, contributing to enhanced profitability. Looking ahead, NaaS plans to focus on profitability, scale, and technology, leveraging AI and digitalized charging solutions to strengthen its market position.NaaS Technology Financial Statement Overview
Summary
NaaS Technology is facing significant financial challenges, characterized by declining revenues, persistent losses, high leverage, and negative cash flows. The financial statements suggest an urgent need for strategic restructuring and improvement in operational efficiency to stabilize the company's financial health.Income Statement
NaaS Technology has experienced a consistent decline in revenue over the years, with a significant drop from $1.5 billion in 2019 to approximately $200 million in 2024. The company has not been able to achieve profitability, as evidenced by the negative net income and EBIT margins across the years. The gross profit margin remains volatile, showing some improvement in the latest year but still insufficient to offset the high operating costs.28
Negative
Balance Sheet
The balance sheet is concerning with a negative stockholders' equity, indicating potential financial distress. The company has a high debt-to-equity ratio due to substantial liabilities, far exceeding its equity base. The equity ratio is negative, reflecting an imbalance in the capital structure and a reliance on debt financing.20
Very Negative
Cash Flow
NaaS Technology's cash flow statements indicate negative operating and free cash flows, pointing to challenges in generating cash from operations. The company has relied heavily on financing activities to fund its operations, which may not be sustainable in the long term. The operating cash flow to net income ratio is negative, further highlighting inefficiencies in cash management.25
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 296.74M | 200.98M | 320.08M | 92.81M | 33.45M | 6.16M |
| Gross Profit | 96.66M | 88.54M | 88.76M | 6.17M | 3.87M | -384.00K |
| EBITDA | -701.16M | -873.31M | -1.06B | -547.41M | -247.47M | -72.59M |
| Net Income | -866.28M | -913.48M | -1.31B | -5.64B | -260.46M | -77.90M |
Balance Sheet | ||||||
| Total Assets | 1.29B | 650.64M | 1.47B | 1.11B | 178.09M | 67.60M |
| Cash, Cash Equivalents and Short-Term Investments | 374.75M | 135.79M | 534.30M | 513.35M | 8.49M | 3.67M |
| Total Debt | 1.12B | 1.07B | 1.04B | 519.34M | 19.63M | 436.75M |
| Total Liabilities | 1.51B | 1.40B | 1.51B | 667.06M | 148.65M | 1.92B |
| Stockholders Equity | -219.97M | -754.46M | -47.04M | 438.87M | 29.44M | 495.11M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -179.14M | -571.57M | -597.83M | -250.64M | -86.89M |
| Operating Cash Flow | 0.00 | -179.14M | -565.24M | -580.70M | -250.03M | -63.01M |
| Investing Cash Flow | 0.00 | -201.67M | -339.61M | -161.34M | -5.61M | 5.44M |
| Financing Cash Flow | 0.00 | 71.27M | 827.74M | 1.25B | 229.54M | 64.56M |
NaaS Technology Technical Analysis
Neutral
3.06
Price Trends
2.92
Positive
4.34
Negative
16.16
Negative
Market Momentum
0.06
Negative
52.33
Neutral
44.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NAAS, the sentiment is Neutral. The current price of 3.06 is above the 20-day moving average (MA) of 2.83, above the 50-day MA of 2.92, and below the 200-day MA of 16.16, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 44.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NAAS.
NaaS Technology Risk Analysis
NaaS Technology disclosed 67 risk factors in its most recent earnings report. NaaS Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NaaS Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $17.78B | 13.97 | -5.40% | 3.03% | 1.50% | -15.71% | |
51 Neutral | $1.22B | ― | 19.14% | ― | 49.06% | 1.30% | |
48 Neutral | $270.46M | ― | -135.29% | ― | -15.71% | 47.94% | |
47 Neutral | $2.54M | ― | ― | -13.78% | 38.11% | ||
39 Underperform | $8.83M | ― | -1026.66% | ― | -15.24% | 92.60% |
* Consumer Cyclical Sector Average
Performance Comparison
NAAS
NaaS Technology
3.06
-62.70
-95.35%
CHPT
ChargePoint Holdings
11.61
-25.59
-68.79%
NVVE
Nuvve Holding
0.43
-4.55
-91.37%
EVGO
EVgo
4.11
-0.38
-8.46%
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.