China Netcom Technology Holdings Limited (8071) AI Stock Analysis

• Market Cap: HK$168.70M
• Dividend Yield: N/A
• Average Volume (3M): 4.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 22.29%
• EPS Growth: 27.27%
• Country: HK
• Employees: 12
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 4,686,048,300
• 10 Day Avg. Volume: 6,992,300
• 30 Day Avg. Volume: 4,851,918
• PEG Ratio: 3.52
• Price to Book (P/B): 16.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -121.59
• 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

China Netcom Technology Holdings Limited is facing severe financial challenges with negative earnings, declining revenues, and cash flow issues, resulting in a low financial performance score. Technical analysis indicates potential short-term weakness, although longer-term trends show some resilience. The valuation is particularly concerning, with a negative P/E ratio and no dividend yield, limiting the appeal to investors. Overall, the stock is high-risk with significant financial and operational hurdles to overcome.

China Netcom Technology Holdings Limited Business Overview & Revenue Model

Company Description

China Netcom Technology Holdings Limited (8071) is a company listed on the Hong Kong Stock Exchange, primarily involved in the technology sector. The company focuses on offering a range of technological solutions and services, including lottery systems and related hardware, software development, and information technology services. It operates within the broader technology and telecommunications sectors, providing innovative solutions to enhance digital interactions and streamline technology infrastructure.

How the Company Makes Money

China Netcom Technology Holdings Limited generates revenue through several key streams. The primary source of income is the development and sale of lottery systems and related products, which includes both hardware and software components. The company also earns money through its information technology services, which involve providing customized solutions to meet the needs of businesses looking to improve their digital infrastructures. Additionally, the company may engage in strategic partnerships or collaborations that enhance its service offerings and expand its market reach, thus contributing to its earnings. However, specific details about significant partnerships or factors contributing to its revenue are not available in the existing data.

China Netcom Technology Holdings Limited Financial Statement Overview

Summary

China Netcom Technology Holdings Limited faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. While debt levels are low, diminishing assets and equity raise concerns about long-term sustainability. The company needs to address operational inefficiencies and improve cash generation to stabilize its financial position.

Income Statement

The company's revenue has fluctuated significantly, with a notable decline from 2019 to 2023. The gross profit margin has diminished over the years, and net losses have persisted, indicating profitability challenges. The negative EBIT and EBITDA margins underscore operational inefficiencies.

Balance Sheet

While the company has maintained a positive equity position, the equity ratio has been decreasing, indicating increased leverage. The debt-to-equity ratio remains low, suggesting manageable debt levels. However, declining total assets and equity levels raise concerns about the company's financial stability.

Cash Flow

The company has consistently experienced negative operating cash flows, indicating challenges in generating cash from operations. Although free cash flow has improved slightly, it remains negative, pointing to potential liquidity issues. The cash position has been declining, which could impact future operational flexibility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
34.70M	26.92M	22.01M	27.28M	36.33M	34.63M
	Gross Profit
10.42M	310.00K	6.10M	5.86M	4.02M	11.75M
	EBIT
-4.85M	-12.03M	-10.41M	-9.79M	-15.18M	482.00K
	EBITDA
-4.84M	-11.37M	-10.39M	-9.17M	-15.24M	-5.85M
	Net Income Common Stockholders
-9.11M	-7.60M	-10.11M	-10.49M	-15.51M	-13.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
86.45M	13.28M	20.26M	28.61M	48.80M	54.65M
	Total Assets
0.00	15.68M	32.78M	41.36M	90.94M	66.39M
	Total Debt
0.00	226.00K	1.06M	288.00K	6.69M	2.49M
	Net Debt
86.45M	-13.05M	-16.93M	-27.76M	-42.11M	-52.16M
	Total Liabilities
0.00	5.46M	15.66M	13.64M	50.58M	11.58M
	Stockholders Equity
77.56M	10.78M	18.38M	27.40M	38.68M	56.55M
Cash Flow		Free Cash Flow
-1.43M	-9.05M	-9.62M	-13.92M	-9.79M	-24.03M
	Operating Cash Flow
-1.43M	-9.05M	-9.62M	-13.90M	-9.76M	-24.00M
	Investing Cash Flow
-896.00K	4.93M	380.00K	335.00K	635.00K	1.52M
	Financing Cash Flow
-672.00K	-439.00K	-938.00K	-6.19M	2.60M	-1.99M

China Netcom Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8071, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and above the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8071.

China Netcom Technology Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3888	75 Outperform	HK$53.47B	30.34	7.09%	0.37%	18.66%	219.56%
3828	74 Outperform	HK$641.38M	4.45	11.13%	9.09%	11.80%	37.53%
Sector *	60 Neutral	$11.59B	10.34	-7.15%	2.94%	7.49%	-10.88%
8083	47 Neutral	HK$3.02B	―	-16.87%	―	-2.35%	-837.50%
8071	41 Neutral	HK$168.70M	―	-69.43%	―	22.29%	27.27%
3800	32 Underperform	HK$23.07B	―	-11.91%	―	-56.32%	-272.70%