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Lianlian DigiTech Co., Ltd. Class H (HK:2598)
:2598
Hong Kong Market
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Lianlian DigiTech Co., Ltd. Class H (2598) AI Stock Analysis

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HK:2598

Lianlian DigiTech Co., Ltd. Class H

(2598)

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Neutral 62 (OpenAI - Gpt-5.6Sol)
Rating:62Neutral
Price Target:
HK$4.00
▼(-49.94% 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
Sustained Revenue Growth
Strong multi-year revenue growth indicates continued expansion of the payments and fintech platform. Sustained double-digit growth can improve operating scale and strengthen the company’s position in domestic and cross-border transaction services.
Negative Factors
Questionable Earnings Quality
A very high net margin alongside negative EBIT indicates that reported profit may rely heavily on non-operating items rather than recurring payment operations. This reduces confidence that the 2025 earnings level is sustainable.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Strong multi-year revenue growth indicates continued expansion of the payments and fintech platform. Sustained double-digit growth can improve operating scale and strengthen the company’s position in domestic and cross-border transaction services.
Read all positive factors

Lianlian DigiTech Co., Ltd. Class H (2598) vs. iShares MSCI Hong Kong ETF (EWH)

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
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
66
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.83B1.93B1.31B1.03B742.75M643.64M
Gross Profit921.64M1.02B682.52M577.35M465.97M444.23M
EBITDA-644.94M2.08B-433.03M-607.38M-118.74M-63.53M
Net Income164.67M1.62B-168.22M-656.06M-916.54M-746.59M
Balance Sheet
Total Assets22.15B22.95B14.54B10.47B10.15B8.48B
Cash, Cash Equivalents and Short-Term Investments1.91B21.45B13.41B10.53B9.09B1.06B
Total Debt165.52M172.83M506.77M455.02M278.20M21.94M
Total Liabilities19.12B19.88B13.30B9.87B9.09B6.56B
Stockholders Equity3.03B3.08B1.23B589.30M1.06B1.92B
Cash Flow
Free Cash Flow221.03M84.65M-125.30M89.84M2.59B-120.00M
Operating Cash Flow230.88M97.79M-111.06M94.65M2.61B-93.25M
Investing Cash Flow-319.32M1.34B-131.03M-201.80M-941.07M-528.25M
Financing Cash Flow-35.13M-351.79M569.13M149.18M242.59M-6.26M

Lianlian DigiTech Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.99
Price Trends
50DMA
4.01
Negative
100DMA
4.62
Negative
200DMA
5.63
Negative
Market Momentum
MACD
-0.07
Negative
RSI
43.98
Neutral
STOCH
43.27
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 3.80, above the 50-day MA of 4.01, and above the 200-day MA of 5.63, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 43.98 is Neutral, neither overbought nor oversold. The STOCH value of 43.27 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
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
HK$885.00M13.2216.17%8.11%43.85%-15.29%
62
Neutral
HK$4.24B21.565.40%0.19%113.85%-90.13%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
HK$1.98B15.923.07%0.00%-4.38%-0.12%
54
Neutral
HK$4.65B-89.14-0.61%3.49%23.61%96.36%
50
Neutral
HK$2.37B-4.18-10.08%-28.80%-252.24%
46
Neutral
HK$61.69M-1.59151.16%-56.52%6.67%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2598
Lianlian DigiTech Co., Ltd. Class H
3.71
-6.71
-64.41%
HK:6608
Bairong, Inc. Class B
4.89
-6.41
-56.73%
HK:9923
Yeahka Limited
4.28
-6.21
-59.20%
HK:9959
Linklogis Inc. Class B
2.23
-0.87
-28.11%
HK:8017
TradeGo FinTech Ltd.
1.17
-0.97
-45.33%
HK:8613
Oriental Payment Group Holdings Limited
0.03
-0.03
-48.39%

Lianlian DigiTech Co., Ltd. Class H Corporate Events

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 ...
Lianlian DigiTech Promotes Deputy Finance Chief After Director Resigns
Jun 30, 2026
Lianlian DigiTech Co., Ltd. has announced that its financial director, Ms. Wei Ping, has resigned effective June 30, 2026, citing family reasons and confirming there is no disagreement with the board or issues requiring shareholder attention. The ...
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.Date of analysis: Sep 06, 2026