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Nanfang Communication Holdings Ltd. (HK:1617)
:1617
Hong Kong Market
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Nanfang Communication Holdings Ltd. (1617) AI Stock Analysis

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HK:1617

Nanfang Communication Holdings Ltd.

(1617)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
HK$0.00
▼(-100.00% Downside)
The stock's overall score is driven by its solid valuation, indicating potential undervaluation. However, financial performance concerns, particularly negative cash flows, and bearish technical indicators weigh on the score.

Nanfang Communication Holdings Ltd. (1617) vs. iShares MSCI Hong Kong ETF (EWH)

Nanfang Communication Holdings Ltd. Business Overview & Revenue Model

Company DescriptionNanfang Communication Holdings Limited, an investment holding company, manufactures and sells optical fiber cables and optical distribution network devices in the People's Republic of China. The company offers communication cable, as well as processes and sells pre-painted steel sheets. Its customers primarily include national and regional telecommunications network operators and telecommunications supporting services providers. The company was founded in 1992 and is headquartered in Changzhou, the People's Republic of China. Nanfang Communication Holdings Limited is a subsidiary of Pacific Mind Development Limited.
How the Company Makes MoneyNanfang Communication Holdings Ltd. generates revenue through multiple streams, primarily from the sale of its communication equipment and solutions. This includes a wide range of products such as optical fibers, cables, and wireless communication devices. The company also earns income through service contracts, providing maintenance and technical support for its products. Significant partnerships with telecommunications providers and technology firms enhance its market reach and drive revenue growth. Additionally, government contracts and participation in large-scale infrastructure projects contribute substantially to its earnings, allowing Nanfang to capitalize on the expanding demand for advanced communication technologies.

Nanfang Communication Holdings Ltd. Financial Statement Overview

Summary
Nanfang Communication Holdings Ltd. exhibits improvements in revenue and gross profit margins, showing potential for growth. The balance sheet remains solid with a healthy equity base. However, the volatility in net income and negative cash flows raise concerns about operational efficiency and cash management, indicating areas needing improvement.
Income Statement
The company shows a positive trend in revenue growth, with a notable increase from the previous year. The gross profit margin has improved, indicating better cost management. However, net profit margins remain a concern, with significant fluctuations over the years, suggesting volatility in bottom-line profitability.
Balance Sheet
The company's balance sheet indicates a strong equity position with a reasonable debt-to-equity ratio, suggesting financial stability. The return on equity has improved substantially, reflecting better utilization of shareholders' equity. Nonetheless, the high level of total liabilities may pose potential risks.
Cash Flow
The cash flow situation is mixed, with recent periods of negative free cash flow, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is not available due to zero operating cash flow in the latest period, highlighting operational cash generation issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue466.87M538.10M522.26M633.71M438.32M379.52M
Gross Profit98.18M98.47M70.67M57.36M12.95M38.73M
EBITDA28.60M21.68M12.12M-36.74M-86.72M-40.21M
Net Income60.55M39.94M5.20M-8.10M-59.89M-19.18M
Balance Sheet
Total Assets1.40B1.51B1.42B1.48B1.36B1.27B
Cash, Cash Equivalents and Short-Term Investments271.07M211.58M247.77M254.22M372.11M207.25M
Total Debt259.00M482.23M310.21M297.36M280.43M201.27M
Total Liabilities552.02M691.36M641.85M711.42M592.49M516.34M
Stockholders Equity844.12M817.98M778.05M772.85M767.11M755.85M
Cash Flow
Free Cash Flow-66.96M-70.75M-68.11M-15.21M-86.85M-96.43M
Operating Cash Flow-27.98M-8.19M9.82M12.89M-84.79M-82.62M
Investing Cash Flow-56.20M-77.95M6.78M-136.72M109.68M-73.66M
Financing Cash Flow73.35M39.46M414.00K3.40M140.69M44.80M

Nanfang Communication Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.12
Price Trends
50DMA
0.13
Negative
100DMA
0.13
Negative
200DMA
0.11
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
37.10
Neutral
STOCH
52.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1617, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.13, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.10 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1617.

Nanfang Communication Holdings Ltd. 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
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
HK$187.02M2.867.40%-9.34%605.26%
61
Neutral
HK$134.20M5.873.56%8.78%160.00%
49
Neutral
HK$376.00M-0.09%-23.93%-109.41%
47
Neutral
HK$92.30M-24.22%-20.95%-13.14%
45
Neutral
HK$564.32M-0.68%6.88%-49.48%
41
Neutral
HK$97.38M-29.38%86.85%-36.65%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1617
Nanfang Communication Holdings Ltd.
0.12
0.03
33.33%
HK:1202
Chengdu Putian Telecommunications Cable Co., Ltd. Class H
0.89
0.08
9.88%
HK:1720
Putian Communication Group Limited
0.13
0.08
160.00%
HK:9963
Transtech Optelecom Science Holdings Limited
0.40
0.21
110.53%
HK:1300
Trigiant Group Ltd.
0.31
0.01
3.33%
HK:1613
Synertone Communication Corporation
0.22
-0.16
-42.11%

Nanfang Communication Holdings Ltd. Corporate Events

Nanfang Communication Announces Further Variation to Disposal Terms
Oct 23, 2025

Nanfang Communication Holdings Limited announced a further variation to the terms of a very substantial disposal involving Pacific Smart and Dongshan Precision. The fourth supplemental agreement outlines the arrangements for withholding tax payments related to the sale and purchase agreement, including estimated and actual tax amounts, payment processes, and the return of a tax payment deposit.

Nanfang Communication Holdings Announces Further Variation to Disposal Terms
Oct 15, 2025

Nanfang Communication Holdings Ltd. has announced a further variation to the terms of a very substantial disposal, involving a third supplemental agreement with Pacific Smart and Dongshan Precision. The agreement confirms that the completion date for the disposal will be on or before October 31, 2025. This development is significant for the company’s operations as it marks a key step in the disposal process, potentially impacting its financial structure and strategic direction. Shareholders and potential investors will be informed upon completion of the disposal.

Nanfang Communication to Develop New Industrial Park in China
Oct 15, 2025

Nanfang Communication Holdings Ltd. announced plans to develop a Science and Technology Ecological Industrial Park by redeveloping its former factory sites in Changzhou City, Jiangsu Province, China. The project, with an investment of approximately RMB50 million, aims to consolidate production capacity, reduce costs, and create new revenue streams by leasing or selling parts of the park. This initiative aligns with the company’s long-term strategies and is expected to enhance its operational efficiency, attract talent, and improve its market image.

Nanfang Communication Holdings Announces Further Variation in Disposal Terms
Sep 30, 2025

Nanfang Communication Holdings Ltd. has announced a further variation to the terms of a very substantial disposal. The company has entered into a second supplemental agreement to amend the Sale and Purchase Agreement, confirming that the completion date will be on or before October 15, 2025. This move is expected to impact the company’s operations and could have implications for its shareholders and potential investors.

Nanfang Communication Implements Enhanced Internal Controls
Sep 30, 2025

Nanfang Communication Holdings Limited has announced the full implementation of enhanced internal control measures related to notifiable transactions. This move reaffirms the company’s commitment to maintaining strong corporate governance and compliance with the Listing Rules, which is expected to bolster its operational integrity and stakeholder confidence.

Nanfang Communication Announces Key Disposal Agreement Update
Sep 29, 2025

Nanfang Communication Holdings Limited has announced a variation to the terms of a very substantial disposal involving Pacific Smart, the Purchaser, and Dongshan Precision. The supplemental agreement confirms the completion date as 30 September 2025, with all conditions to be fulfilled or waived by then. The Purchaser Group will handle reorganization matters and indemnify Pacific Smart for related costs. This move is expected to streamline operations and potentially impact stakeholders by ensuring a smooth transition in the company’s strategic disposal.

Nanfang Communication Addresses Non-Compliance in Strategic Expansion
Sep 15, 2025

Nanfang Communication Holdings Ltd. announced a supplemental statement regarding its acquisition of lands and construction contracts, which are part of its strategy to expand production capacity in anticipation of a joint venture with Source Photonics. The company acknowledged non-compliance with certain listing rules due to a misjudgment of the transactions’ nature, but emphasized that this was unintentional and has taken remedial actions to address the issue.

Nanfang Communication Secures Shareholder Approval for Strategic Sale Agreement
Sep 15, 2025

Nanfang Communication Holdings Limited announced that during its extraordinary general meeting held on September 15, 2025, shareholders approved the Sale and Purchase Agreement involving the disposal of sale shares to Multek Group (Hong Kong) Limited and Suzhou Dongshan Precision Manufacturing Co., Ltd. The resolution was passed unanimously with 100% of the votes in favor, indicating strong shareholder support for the transaction, which is expected to impact the company’s strategic direction and operational focus.

Nanfang Communication Reports Revenue Decline but Profit Increase in H1 2025
Aug 28, 2025

Nanfang Communication Holdings Ltd. reported a significant decrease in total revenue by 27.7% for the first half of 2025, amounting to approximately RMB185.5 million. Despite the revenue drop, the company saw an increase in gross profit margin from 13.5% to 18.5%, and a substantial rise in profit and total comprehensive income to approximately RMB26.1 million, compared to RMB5.5 million in the same period of 2024. The company did not declare an interim dividend, and the results, although unaudited, were reviewed by the audit committee.

Nanfang Communication to Discuss Key Sale Agreement at Upcoming Meeting
Aug 25, 2025

Nanfang Communication Holdings Limited has announced an extraordinary general meeting scheduled for September 15, 2025, to discuss and potentially approve a Sale and Purchase Agreement. This agreement involves the sale of shares by Pacific Smart, a subsidiary of Nanfang, to Multek Group (Hong Kong) Limited and Suzhou Dongshan Precision Manufacturing Co., Ltd. The meeting will also address the authorization of a company director to execute necessary documents related to the agreement.

Nanfang Communication Holdings Ltd. Announces Significant Profit Increase for H1 2025
Aug 21, 2025

Nanfang Communication Holdings Ltd. has issued a positive profit alert, indicating an expected unaudited profit and total comprehensive income of approximately RMB25.0 million to RMB30.0 million for the first half of 2025, a significant increase from RMB5.5 million in the same period of 2024. This improvement is attributed to a decrease in raw material costs, boosting gross profit margins, and an increase in the fair value gain on financial assets denominated in foreign currency. The final results are yet to be audited and may differ from the preliminary figures.

Nanfang Communication Holdings Ltd. Schedules Board Meeting to Review Interim Results
Aug 18, 2025

Nanfang Communication Holdings Ltd. has announced that its board of directors will meet on August 28, 2025, to consider and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also discuss the potential recommendation of an interim dividend, which could impact the company’s financial positioning and shareholder returns.

Nanfang Communication Holdings Delays Circular Dispatch for Major Disposal
Aug 5, 2025

Nanfang Communication Holdings Ltd. announced a delay in the dispatch of a circular related to a very substantial disposal. Originally scheduled for release by August 5, 2025, the company now expects to dispatch the circular by August 26, 2025, due to the need for additional time to finalize certain information. This postponement may affect shareholder expectations and timelines for decision-making regarding the disposal.

Nanfang Communication Appoints New Independent Director
Jul 31, 2025

Nanfang Communication Holdings Ltd. has appointed Ms. Ju Hefeng as an independent non-executive director and a member of the Audit Committee, following the passing of Mr. Wu Wing Kuen. Ms. Ju brings over 45 years of experience in auditing, accounting, and financial advisory, and her appointment is expected to strengthen the company’s governance and oversight capabilities.

Nanfang Communication Holdings Ltd. Announces Board Composition
Jul 31, 2025

Nanfang Communication Holdings Ltd. has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement may impact the company’s governance and strategic direction, potentially influencing its market positioning and stakeholder relationships.

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: Oct 23, 2025