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Nanfang Communication Holdings Ltd.
(1617)
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Rating:53Neutral
Price Target:
HK$0.19
▲(92.00% Upside)
Action:Reiterated
Date:10/31/26
The score is primarily supported by improving profitability and a manageable balance sheet, but it is held back by highly variable cash flow and clearly bearish technicals (price below all major DMAs with weak momentum). A low P/E provides some valuation support but does not offset the weak trend and cash-flow inconsistency.
Positive Factors
Improved Profitability
The return to positive earnings across 2023–2025 indicates a meaningful improvement from the prior loss-making period. Maintaining mid-single-digit net margins gives the company an established earnings base, although profitability remains moderate rather than high.
Negative Factors
Volatile Cash Generation
Repeated swings between positive and negative cash generation reduce confidence that accounting earnings consistently convert into usable funds. This volatility can complicate reinvestment, working-capital management, and capital allocation even though cash flow rebounded strongly in 2025.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
The return to positive earnings across 2023–2025 indicates a meaningful improvement from the prior loss-making period. Maintaining mid-single-digit net margins gives the company an established earnings base, although profitability remains moderate rather than high.
Read all positive factors
Nanfang Communication Holdings Ltd. (1617) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$307.36M
Dividend Yield1.72%
Average Volume (3M)3.15M
Price to Earnings (P/E)6.2
Beta (1Y)0.34
Revenue Growth11.57%
EPS Growth-26.37%
CountryHK
Employees320
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.03
Shares Outstanding1,626,240,000
10 Day Avg. Volume1,641,200
30 Day Avg. Volume3,153,466
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)0.17
Price to Sales (P/S)0.31
P/FCF Ratio1.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.4
Revenue Forecast (FY)HK$2.06B
Nanfang Communication Holdings Ltd. Business Overview & Revenue Model
Company Description
Nanfang Communication Holdings Limited operates as an investment holding company, primarily involved in the production and supply of optical fiber cables and optical distribution network equipment within the People's Republic of China. The firm al...
How the Company Makes Money
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Nanfang Communication Holdings Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
68
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 504.77M | 464.17M | 538.10M | 522.26M | 633.71M | 438.32M |
| Gross Profit | 123.86M | 103.83M | 98.47M | 70.67M | 57.36M | 12.95M |
| EBITDA | 39.58M | 24.06M | 18.70M | 12.12M | -35.76M | -85.50M |
| Net Income | 42.32M | 30.39M | 39.94M | 5.20M | -8.10M | -59.89M |
Balance Sheet | ||||||
| Total Assets | 1.53B | 1.33B | 1.51B | 1.42B | 1.48B | 1.36B |
| Cash, Cash Equivalents and Short-Term Investments | 540.21M | 461.56M | 211.58M | 247.77M | 254.22M | 372.11M |
| Total Debt | 466.91M | 285.65M | 482.23M | 310.21M | 297.36M | 280.43M |
| Total Liabilities | 640.53M | 466.52M | 691.36M | 641.85M | 711.42M | 592.49M |
| Stockholders Equity | 886.44M | 848.74M | 817.98M | 778.05M | 772.85M | 767.11M |
Cash Flow | ||||||
| Free Cash Flow | 72.32M | 78.46M | -70.75M | -68.11M | -15.21M | -86.85M |
| Operating Cash Flow | 80.46M | 90.11M | -8.19M | 9.82M | 12.89M | -84.79M |
| Investing Cash Flow | -101.73M | 22.98M | -77.95M | 6.78M | -136.72M | 109.68M |
| Financing Cash Flow | 62.63M | -175.73M | 39.46M | 414.00K | 3.40M | 140.69M |
Nanfang Communication Holdings Ltd. Technical Analysis
Negative
0.10
Price Trends
0.26
Negative
0.33
Negative
0.40
Negative
Market Momentum
-0.02
Positive
33.19
Neutral
21.60
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 0.1 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.26, and below the 200-day MA of 0.40, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 33.19 is Neutral, neither overbought nor oversold. The STOCH value of 21.60 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | HK$2.85B | 101.67 | 0.86% | 0.28% | 4.27% | ― | |
55 Neutral | HK$1.42B | 32.09 | 14.03% | 1.25% | 4.77% | 19.94% | |
53 Neutral | HK$307.36M | 6.17 | 4.88% | 1.72% | 11.57% | -26.37% | |
52 Neutral | HK$508.00M | 10.13 | 5.43% | 0.91% | 87.07% | ― | |
49 Neutral | HK$250.80M | 3.50 | 9.43% | ― | 42.78% | 197.12% | |
46 Neutral | HK$3.66B | -49.74 | -14.47% | ― | 76.36% | 48.06% |
* Technology Sector Average
HK:1617
Nanfang Communication Holdings Ltd.
0.19
0.08
75.00%
HK:2342
Comba Telecom Systems Holdings
0.92
-2.01
-68.76%
HK:1202
Chengdu Putian Telecommunications Cable Co., Ltd. Class H
1.27
0.38
42.22%
HK:1720
Putian Communication Group Limited
0.23
0.10
83.87%
HK:9963
Transtech Optelecom Science Holdings Limited
9.45
9.03
2150.00%
HK:1473
Pangaea Connectivity Technology Limited
1.20
0.78
183.02%
Nanfang Communication Holdings Ltd. Corporate Events
Nanfang Communication Posts Strong Interim Profit Growth but Withholds Dividend
Aug 27, 2026
Nanfang Communication Holdings reported a strong interim performance for the six months ended 30 June 2026, with total revenue rising 21.9% year-on-year to RMB226.1 million and gross profit jumping 58.4% to RMB54.3 million. Gross margin improved f...
Nanfang Communication Signals Strong Interim Profit on Fibre Cable Demand
Aug 19, 2026
Nanfang Communication Holdings Ltd. has issued a positive profit alert, forecasting unaudited profit and total comprehensive income of roughly RMB36 million to RMB39 million for the six months ended 30 June 2026, up sharply from RMB26.1 million a ...
Nanfang Communication Sets Board Meeting to Approve Interim Results and Consider Dividend
Aug 12, 2026
Nanfang Communication Holdings Limited has scheduled a board meeting for 27 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider whether to recommend the payment of an interim di...
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.