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Lianlian DigiTech Co., Ltd. Class H (2598) AI Stock Analysis
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Lianlian DigiTech Co., Ltd. Class H
(HKEX:2598)
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).
Lianlian DigiTech Co., Ltd. Class H (2598) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 4.85B
- Dividend Yield
- ―
- Average Volume (3M)
- 728.01K
- Price to Earnings (P/E)
- 18.1
- Beta (1Y)
- 0.87
- Revenue Growth
- 117.57%
- EPS Growth
- -90.13%
- Country
- Hong Kong
- Employees
- 998
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Infrastructure
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 property...
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 volume...
Lianlian DigiTech Co., Ltd. Class H Financial Statement Overview
Summary
Turnaround characteristics: very strong TTM revenue growth (~261%), healthy gross margin (~50%), and TTM net margin back to ~9% with positive net income. Balance sheet is a key strength with very low leverage (debt-to-equity ~0.05) and positive ROE in TTM. Main constraints are negative TTM operating and EBITDA margins and historically uneven free cash flow (including negative periods), which lowers confidence in durability.
Income Statement
66PositiveBalance Sheet
78PositiveCash Flow
71Positive| 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
Price Trends
Market Momentum
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 3.13 is below the 20-day moving average (MA) of 3.22, below the 50-day MA of 3.45, and below the 200-day MA of 5.04, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 41.87 is Neutral, neither overbought nor oversold. The STOCH value of 45.37 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
Overall Rating
HK:801763Neutral- HK:259862Neutral
HK:660850Neutral
HK:992348Neutral
HK:995948Neutral
HK:861337Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:8017 | 63Neutral | HKD 633.75M | 9.55 | 16.17% | ― | 43.85% | -15.29% |
| HK:2598 | 62Neutral | HKD 3.54B | 18.07 | 5.40% | ― | 117.57% | -90.13% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| HK:6608 | 50Neutral | HKD 2.77B | -5.05 | -10.08% | ― | -28.80% | -252.24% |
| HK:9923 | 48Neutral | HKD 1.62B | 12.91 | 3.09% | 0.86% | -4.38% | -0.12% |
| HK:9959 | 48Neutral | HKD 4.97B | -92.19 | -0.61% | ― | 23.61% | 96.36% |
| HK:8613 | 37Underperform | HKD 55.90M | -1.44 | 128.04% | ― | -56.52% | 6.67% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:2598 | Lianlian DigiTech Co., Ltd. Class H | 3.13 | -5.02 | -61.60% | |
| HK:6608 | Bairong, Inc. Class B | 5.95 | -4.05 | -40.50% | |
| HK:9923 | Yeahka Limited | 3.50 | -5.16 | -59.57% | |
| HK:9959 | Linklogis Inc. Class B | 2.33 | -0.79 | -25.27% | |
| HK:8017 | TradeGo FinTech Ltd. | 0.84 | -0.82 | -49.40% | |
| HK:8613 | Oriental Payment Group Holdings Limited | 0.03 | -0.03 | -50.00% |
Lianlian DigiTech Co., Ltd. Class H Corporate Events
Lianlian DigiTech Commits RMB200 Million as Lead Investor in New Venture Capital Fund
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 commitment r...
Lianlian DigiTech Subsidiary Faces Temporary Suspension in Payment License Renewal Review
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, c...
Lianlian DigiTech Unit Seeks Temporary Halt to Payment License Renewal Review
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 tha...
Lianlian DigiTech Revenue Rises but Interim Profit Slumps on Non‑Operating Losses
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-lin...
Lianlian DigiTech Sets August Board Meeting to Approve 2026 Interim Results
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 rec...
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: Sep 06, 2026