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

• Market Cap: HK$9.27B
• Dividend Yield: N/A
• Average Volume (3M): 899.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 1,103
• Sector: General
• Sector Strength: N/A
• Industry: Software - Infrastructure
• EPS (TTM): -0.19
• Shares Outstanding: 418,668,760
• 10 Day Avg. Volume: 228,000
• 30 Day Avg. Volume: 899,251
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Lianlian DigiTech faces significant financial and operational challenges. Despite revenue growth, profitability is lacking, and financial health is undermined by negative cash flows and limited equity. Technical indicators suggest a bearish market sentiment, and valuation is troubled by negative earnings and lack of dividends. Overall, the stock's outlook is concerning, requiring strategic improvements for future growth.

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

Company Description

Lianlian DigiTech Co., Ltd. Class H (2598) is a leading financial technology company based in China, specializing in providing comprehensive payment solutions and financial services. The company operates primarily in the digital payment sector, offering a wide range of services including mobile payments, cross-border payments, and merchant services. Lianlian DigiTech leverages advanced technology to facilitate seamless and secure transactions for both individuals and businesses, enhancing the efficiency of payment processing and financial management.

How the Company Makes Money

Lianlian DigiTech Co., Ltd. generates revenue through a diverse set of financial services tailored to various market needs. Its primary revenue streams include transaction fees charged to merchants and users for processing payments through its platform. The company also earns from providing value-added services such as credit and financing solutions, leveraging data analytics to offer personalized financial products. Additionally, Lianlian DigiTech benefits from strategic partnerships with banks, financial institutions, and global payment networks, which enable the company to expand its service offerings and tap into new markets, contributing significantly to its revenue growth.

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

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.03B	921.21M	786.98M	674.63M
	Gross Profit
577.35M	573.31M	516.53M	408.67M
	EBIT
-353.03M	35.08M	31.83M	38.59M
	EBITDA
-607.38M	9.79M	28.22M	18.02M
	Net Income Common Stockholders
-656.06M	-111.20M	-52.04M	-11.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.57B	10.21B	9.21B	9.83B
	Total Assets
10.47B	128.39M	12.39M	7.38M
	Total Debt
455.02M	14.14M	16.79M	14.14M
	Net Debt
-8.92B	-9.98B	-8.96B	-9.39B
	Total Liabilities
9.87B	1.14B	1.24B	1.20B
	Stockholders Equity
589.30M	11.39B	10.37B	10.94B
Cash Flow		Free Cash Flow
89.84M	2.59B	-120.00M	3.42B
	Operating Cash Flow
94.65M	2.61B	-93.25M	3.43B
	Investing Cash Flow
-201.80M	-1.09B	-614.24M	-555.50M
	Financing Cash Flow
149.18M	282.96M	-7.99M	1.47B

Lianlian DigiTech Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.19
• 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 Neutral. The current price of 6.19 is below the 20-day moving average (MA) of 6.26, below the 50-day MA of 8.06, and below the 200-day MA of 9.13, indicating a neutral trend. The MACD of -0.45 indicates Negative momentum. The RSI at 56.42 is Neutral, neither overbought nor oversold. The STOCH value of 52.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1288	82 Outperform	$1.99T	5.44	10.80%	8.96%	-0.43%	11.31%
1398	78 Outperform	$2.49T	4.85		9.03%	-3.41%	-0.73%
2388	78 Outperform	$345.20B	8.79	11.58%	5.48%	8.61%	16.84%
3988	77 Outperform	$1.61T	5.01	9.57%	5.88%	6.59%	-0.89%
3968	74 Outperform	$1.12T	6.86	14.86%	4.83%	-2.77%	0.10%
Sector *	56 Neutral	$4.40B	10.75	-18.54%	5.11%	19.74%	-53.52%
2598	41 Neutral	HK$9.27B	―		―	―	―

Lianlian DigiTech Co., Ltd. Class H Corporate Events

Lianlian DigiTech Schedules AGM with Key Resolutions on Agenda

Lianlian DigiTech Co., Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for June 6, 2025, where shareholders will consider and approve various resolutions. These include the approval of the 2024 financial reports, an annual loss recovery plan, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, special resolutions will be discussed, granting the Board mandates to issue and repurchase shares, which could impact the company’s financial strategy and shareholder value.

Lianlian DigiTech Faces Judicial Freezing of Shares

Lianlian DigiTech Co., Ltd. announced that 20,200,560 unlisted shares held by Mr. Lu Zhonglin, a controlling shareholder, have been judicially frozen due to civil disputes. This freezing, executed by the Yuhang District People’s Court of Hangzhou City, represents approximately 1.87% of the company’s total shares and will last until March 27, 2028. The company assures that this action will not affect its operations, corporate governance, or management, and there will be no change in the controlling shareholders.

Lianlian DigiTech Announces Share Repurchase Plan

Lianlian DigiTech Co., Ltd. has announced its intention to repurchase up to 10% of its issued H Shares on the Hong Kong Stock Exchange, subject to market conditions, under a general mandate granted by shareholders. The company believes its current share price undervalues its intrinsic worth and growth prospects, and the repurchase plan aims to enhance shareholder value while maintaining financial stability.

Lianlian DigiTech Announces Key Corporate Secretarial Changes

Lianlian DigiTech Co., Ltd. has announced a change in its corporate secretarial team with the resignation of Ms. Cheung Lai Ha and the appointment of Ms. Chan Yuen Mui as the new Joint Company Secretary, Authorised Representative, and Process Agent effective March 18, 2025. The company has secured a new waiver from the Hong Kong Stock Exchange to allow Mr. Yan Hao to continue as a Joint Company Secretary with Ms. Chan’s assistance, ensuring compliance with listing rules and maintaining its operational integrity.

Lianlian DigiTech Reports Improved Financial Performance for 2024

Lianlian DigiTech Co., Ltd. announced its annual results for the year ended December 31, 2024, showing a significant improvement in financial performance compared to the previous year. The company reported a 27.9% increase in revenue and an 18.2% rise in gross profit. Despite a loss before income tax, the loss for the year decreased by 74.5%, indicating a positive trend in financial recovery. The total assets and equity of the company also increased, reflecting a strengthening financial position. These results suggest a potential positive impact on the company’s operations and market positioning, offering a more optimistic outlook for stakeholders.