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Lianlian DigiTech Co., Ltd. Class H
(2598)
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Rating:62Neutral
Price Target:
HK$3.50
▼(-56.20% Downside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by improving fundamentals (sharp TTM revenue growth, return to positive net profitability, low leverage, and positive free cash flow), but is held back by weak technicals (below key moving averages and negative MACD) and mixed earnings quality signals (negative TTM operating/EBITDA margins and historically uneven cash flow).
Positive Factors
Revenue Growth
Revenue growth of approximately 261% shows that the company is expanding its transaction and payment-services base rapidly. If this scale can be maintained, it should improve operating leverage, strengthen market reach, and provide a larger foundation for recurring payment-related revenue over the next several quarters.
Negative Factors
Operating Profitability
Negative operating and EBITDA margins indicate that the underlying cost structure has not yet consistently converted strong revenue into operating earnings. This weakens confidence in the durability of the recent net-profit turnaround and leaves results sensitive to execution, expense control, and revenue mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Revenue growth of approximately 261% shows that the company is expanding its transaction and payment-services base rapidly. If this scale can be maintained, it should improve operating leverage, strengthen market reach, and provide a larger foundation for recurring payment-related revenue over the next several quarters.
Read all positive factors
Lianlian DigiTech Co., Ltd. Class H (2598) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.54B
Dividend Yield0.19%
Average Volume (3M)495.06K
Price to Earnings (P/E)18.1
Beta (1Y)0.87
Revenue Growth117.57%
EPS Growth-90.13%
CountryHK
Employees998
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.15
Shares Outstanding471,762,270
10 Day Avg. Volume577,440
30 Day Avg. Volume495,063
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)2.06
Price to Sales (P/S)3.29
P/FCF Ratio74.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$6.04Price Target Upside-24.36% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.03
Revenue Forecast (FY)HK$2.02B
Lianlian DigiTech Co., Ltd. Class H Business Overview & Revenue Model
Company Description
Lianlian DigiTech Co., Ltd., along with its affiliated entities, delivers a comprehensive suite of digital payment and value-added services to businesses and commercial clients throughout China. The company's diverse offerings also extend to prope...
How the Company Makes Money
The company primarily makes money by charging fees for processing and facilitating payment transactions for merchants and other business customers. Key revenue streams typically include: (1) payment processing/service fees tied to transaction volu...
Lianlian DigiTech Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.83B | 1.93B | 1.31B | 1.03B | 742.75M | 643.64M |
| Gross Profit | 921.64M | 1.02B | 682.52M | 577.35M | 465.97M | 444.23M |
| EBITDA | -627.72M | 2.08B | -420.05M | -607.38M | -106.55M | -53.46M |
| Net Income | 164.67M | 1.62B | -168.22M | -656.06M | -916.54M | -746.59M |
Balance Sheet | ||||||
| Total Assets | 22.15B | 22.95B | 14.54B | 10.47B | 10.15B | 8.48B |
| Cash, Cash Equivalents and Short-Term Investments | 1.91B | 21.45B | 13.41B | 10.53B | 334.07M | 1.06B |
| Total Debt | 165.52M | 172.83M | 506.77M | 455.02M | 278.20M | 21.94M |
| Total Liabilities | 19.12B | 19.88B | 13.30B | 9.87B | 9.09B | 6.56B |
| Stockholders Equity | 3.03B | 3.08B | 1.23B | 589.30M | 1.06B | 1.92B |
Cash Flow | ||||||
| Free Cash Flow | 220.21M | 84.65M | -125.30M | 89.84M | 2.59B | -120.00M |
| Operating Cash Flow | 230.88M | 97.79M | -111.06M | 94.65M | -33.34M | 105.79M |
| Investing Cash Flow | -319.32M | 1.34B | -131.03M | -201.80M | -941.07M | -528.25M |
| Financing Cash Flow | -35.13M | -351.79M | 569.13M | 149.18M | 242.59M | -6.26M |
Lianlian DigiTech Co., Ltd. Class H Technical Analysis
Negative
7.99
Price Trends
3.46
Negative
3.82
Negative
5.06
Negative
Market Momentum
-0.08
Negative
43.22
Neutral
54.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2598, the sentiment is Negative. The current price of 7.99 is above the 20-day moving average (MA) of 3.24, above the 50-day MA of 3.46, and above the 200-day MA of 5.06, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 54.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2598.
Lianlian DigiTech Co., Ltd. Class H Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | HK$633.75M | 9.55 | 16.17% | 8.11% | 43.85% | -15.29% | |
62 Neutral | HK$3.54B | 18.07 | 5.40% | 0.19% | 117.57% | -90.13% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | HK$1.62B | 12.91 | 3.09% | 0.86% | -4.38% | -0.12% | |
55 Neutral | HK$2.77B | -5.05 | -10.08% | ― | -28.80% | -252.24% | |
54 Neutral | HK$4.97B | -92.19 | -0.61% | 3.49% | 23.61% | 96.36% | |
41 Neutral | HK$55.90M | -1.44 | 128.04% | ― | -56.52% | 6.67% |
* Technology Sector Average
HK:2598
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Lianlian DigiTech Co., Ltd. Class H Corporate Events
Lianlian DigiTech Commits RMB200 Million as Lead Investor in New Venture Capital Fund
Oct 23, 2026
Lianlian Hangzhou, a wholly owned subsidiary of Lianlian DigiTech, has agreed to subscribe for a limited partnership interest in Gongqingcheng Lianqing Tanyuan Venture Capital Partnership with a capital commitment of RMB200 million. This commitmen...
Lianlian DigiTech Subsidiary Faces Temporary Suspension in Payment License Renewal Review
Oct 13, 2026
Lianlian DigiTech has disclosed that its subsidiary Lianlian Yintong’s review process for converting its expiring payment license into an indefinite-term license has been temporarily suspended by the People’s Bank of China. The license...
Lianlian DigiTech Unit Seeks Temporary Halt to Payment License Renewal Review
Aug 28, 2026
Lianlian DigiTech said its wholly owned unit Lianlian Yintong Electronic Payment has applied to the Zhejiang branch of the People’s Bank of China to temporarily suspend the review of its long-term valid payment license. The company stressed ...
Lianlian DigiTech Revenue Rises but Interim Profit Slumps on Non‑Operating Losses
Aug 20, 2026
Lianlian DigiTech Co., Ltd. reported unaudited interim results for the six months ended June 30, 2026, showing revenue growth of 11.9% year-on-year to RMB875.6 million and gross profit rising at the same pace to RMB454.4 million. Despite this top-...
Lianlian DigiTech Sets August Board Meeting to Approve 2026 Interim Results
Aug 10, 2026
Lianlian DigiTech Co., Ltd. has scheduled a board meeting for August 20, 2026, to review and approve its interim financial results for the six months ended June 30, 2026, and to authorize their publication. The board will also consider whether to ...
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.