Lianlian DigiTech Co., Ltd. Class H (2598) AI Stock Analysis

• Market Cap: HK$9.12B
• Dividend Yield: N/A
• Average Volume (3M): 3.01M
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.20
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 1,103
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.52
• Shares Outstanding: 459,042,270
• 10 Day Avg. Volume: 2,195,619
• 30 Day Avg. Volume: 3,008,996
• PEG Ratio: 0.74
• Price to Book (P/B): 7.63
• Price to Sales (P/S): 7.13
• P/FCF Ratio: -74.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$17.72
• Price Target Upside: 121.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: HK$8.00 ▲(0.13% Upside)

Lianlian DigiTech Co., Ltd. receives a moderate score due to mixed financial performance and bearish technical indicators. While the company is undervalued based on its P/E ratio, liquidity challenges and negative market momentum weigh heavily on the overall assessment. The absence of earnings call insights and corporate events further limits the evaluation.

Lianlian DigiTech Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Lianlian DigiTech Co., Ltd. (Class H: 2598) is a leading technology company specializing in digital payment solutions, fintech services, and electronic commerce. Operating primarily in the Asian market, Lianlian provides a range of innovative products including mobile payment platforms, digital wallets, and cross-border payment services that cater to both individual consumers and businesses. The company aims to enhance financial inclusivity and streamline transactions through its cutting-edge technology and user-friendly interfaces.

How the Company Makes Money

Lianlian DigiTech generates revenue primarily through transaction fees charged on its digital payment services and mobile wallet transactions. Additionally, the company earns income from subscription fees for premium services offered to businesses, which include advanced analytics and integration solutions. Partnerships with financial institutions and e-commerce platforms further bolster revenue streams, as Lianlian facilitates seamless payment processing for these partners. The company may also explore additional revenue opportunities through value-added services such as marketing tools and financial advisory services.

Lianlian DigiTech Co., Ltd. Class H Financial Statement Overview

Summary

Lianlian DigiTech Co., Ltd. shows a mixed financial performance. The income statement reflects strong revenue growth but raises concerns with unusually high net profit margins. The balance sheet is solid with low leverage and high return on equity, suggesting financial stability. However, the cash flow statement indicates potential liquidity challenges, with negative cash flows and declining free cash flow growth. Overall, while the company demonstrates growth and stability in some areas, cash flow management remains a critical area for improvement.

Income Statement

The company shows a positive revenue growth rate of 5.92% in the TTM period, indicating a healthy upward trend. However, the net profit margin is exceptionally high at 114.43%, which may suggest potential accounting anomalies or one-time gains. The gross profit margin remains stable at around 51.6%, but the EBIT and EBITDA margins are relatively low, indicating potential inefficiencies in operations.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.13 in the TTM period, indicating low financial leverage. The return on equity is notably high at 88.23%, suggesting effective use of equity to generate profits. However, the equity ratio is not explicitly calculated, but the overall asset base appears robust.

Cash Flow

The cash flow statement reveals challenges, with negative operating and free cash flows in the TTM period, indicating potential liquidity issues. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is also negative, suggesting difficulties in converting income into cash. Despite these issues, the free cash flow to net income ratio is positive, indicating some level of cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.48B	1.31B	1.03B	742.75M	643.64M	588.50M
Gross Profit	763.82M	682.52M	577.35M	465.97M	444.23M	381.88M
EBITDA	44.32M	-433.03M	-607.38M	-118.74M	-63.53M	-58.64M
Net Income	1.69B	-168.22M	-656.06M	-916.54M	-746.59M	-368.16M
Balance Sheet
Total Assets	19.15B	14.54B	10.47B	10.15B	8.48B	9.22B
Cash, Cash Equivalents and Short-Term Investments	1.84B	13.41B	10.53B	9.09B	1.06B	1.65B
Total Debt	348.13M	506.77M	455.02M	278.20M	21.94M	15.58M
Total Liabilities	16.53B	13.30B	9.87B	9.09B	6.56B	6.64B
Stockholders Equity	2.61B	1.23B	589.30M	1.06B	1.92B	2.58B
Cash Flow
Free Cash Flow	-39.55M	-125.30M	89.84M	2.59B	-120.00M	3.42B
Operating Cash Flow	-29.31M	-111.06M	94.65M	2.61B	-93.25M	3.43B
Investing Cash Flow	1.48B	-131.03M	-201.80M	-941.07M	-528.25M	-367.91M
Financing Cash Flow	-467.77M	569.13M	149.18M	242.59M	-6.26M	1.30B

Lianlian DigiTech Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 below the 20-day moving average (MA) of 8.31, below the 50-day MA of 9.43, and below the 200-day MA of 9.29, indicating a bearish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of 68.58 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6608	67 Neutral	HK$7.50B	13.31	7.02%	―	16.43%	17.05%
0818	65 Neutral	HK$1.61B	11.28	1.98%	―	-17.23%	-6.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2598	59 Neutral	HK$9.12B	4.79	94.40%	―	―	―
9923	54 Neutral	HK$4.26B	38.17	3.35%	―	-9.32%	477.27%
9959	49 Neutral	HK$6.86B	―	-12.22%	―	11.43%	-94.89%
6682	48 Neutral	HK$29.90B	―	-3.20%	―	―	―

Lianlian DigiTech Co., Ltd. Class H Corporate Events

Lianlian DigiTech Announces H Share Repurchase Plan

Lianlian DigiTech Co., Ltd. has announced its intention to repurchase its H Shares on the open market under a general mandate granted by its shareholders. The board believes that the current share price does not reflect the company’s intrinsic value and sees the repurchase as beneficial for shareholders, indicating confidence in the company’s long-term growth prospects. The repurchase plan will be funded by internal resources and is subject to market conditions and regulatory compliance.

The most recent analyst rating on (HK:2598) stock is a Hold with a HK$10.50 price target. To see the full list of analyst forecasts on Lianlian DigiTech Co., Ltd. Class H stock, see the HK:2598 Stock Forecast page.

Lianlian DigiTech Reports Strong Financial Turnaround in H1 2025

Lianlian DigiTech Co., Ltd. reported a significant financial turnaround for the first half of 2025, with a 26.8% increase in revenue and a remarkable shift from a loss to a profit of RMB 1,511,315 thousand compared to the same period in 2024. This substantial improvement in financial performance highlights the company’s strengthened market position and operational efficiency, which could positively impact stakeholders and the company’s future growth trajectory.

The most recent analyst rating on (HK:2598) stock is a Hold with a HK$10.50 price target. To see the full list of analyst forecasts on Lianlian DigiTech Co., Ltd. Class H stock, see the HK:2598 Stock Forecast page.

Lianlian DigiTech Expands into Leveraged Forex Trading with New License

Lianlian DigiTech Co., Ltd. announced that its wholly-owned subsidiary, Lianlian StarFX Company Limited, has obtained a Type 3 licence from the Securities and Futures Commission of Hong Kong. This licence allows StarFX to conduct leveraged foreign exchange trading in Hong Kong, potentially enhancing the company’s market position and expanding its service offerings in the financial sector.

The most recent analyst rating on (HK:2598) stock is a Hold with a HK$10.50 price target. To see the full list of analyst forecasts on Lianlian DigiTech Co., Ltd. Class H stock, see the HK:2598 Stock Forecast page.

Lianlian DigiTech Schedules Board Meeting to Review Interim Results

Lianlian DigiTech Co., Ltd. has announced a board meeting scheduled for August 26, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation for an interim dividend, highlighting the company’s ongoing financial performance and potential returns for stakeholders.

Lianlian DigiTech Announces Executive Resignation

Lianlian DigiTech Co., Ltd. announced the resignation of Mr. Wang Yu from his roles as an executive director, deputy general manager, and chief technology officer, effective July 28, 2025, due to personal work arrangements. The company expressed gratitude for Mr. Wang’s contributions, and his departure is not expected to cause any disruptions, as there are no disagreements or unresolved matters with the board.

Lianlian DigiTech Announces Board Composition and Committee Roles

Lianlian DigiTech Co., Ltd. has announced the composition of its board of directors and their respective roles within the company. The board comprises both executive and independent non-executive directors, with specific members assigned to various committees such as Audit, Remuneration and Assessment, Nomination, Compliance and Risk Management, and Strategy. This announcement is crucial for stakeholders as it outlines the governance structure and leadership roles that will guide the company’s strategic direction and operational oversight.

Lianlian DigiTech Announces Key Company Secretarial Changes

Lianlian DigiTech Co., Ltd. has announced changes in its key company secretarial positions. Ms. Chan Yuen Mui and Mr. Yan Hao have resigned from their roles as joint company secretaries and other related positions, effective July 28, 2025. Ms. Leung Hoi Yan and Ms. Xu Yedan have been appointed as their replacements. Ms. Leung brings over 14 years of experience in company secretarial services, and Ms. Xu, who has been with the company since 2015, will focus on corporate governance and strategic investments. The company has received a waiver from strict compliance with certain listing rules, allowing Ms. Xu to serve despite not meeting specific qualification requirements, due to her extensive experience and familiarity with the company’s operations.