China Information Technology Development (8178) AI Stock Analysis

• Market Cap: HK$38.28M
• Dividend Yield: N/A
• Average Volume (3M): 2.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 70
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.64
• Shares Outstanding: 100,739,700
• 10 Day Avg. Volume: 1,721,647
• 30 Day Avg. Volume: 2,593,206
• PEG Ratio: -0.10
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 5.64
• P/FCF Ratio: 2.57K
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 37 Underperform
• Price Target: HK$0.50 ▼(-10.71% Downside)

The overall stock score is heavily impacted by significant financial challenges, including declining revenues and persistent losses. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low stock score.

China Information Technology Development Business Overview & Revenue Model

Company Description

China Information Technology Development (8178) is a technology company specializing in the development and implementation of information technology solutions and services. The company operates primarily in the information technology sector, focusing on software development, system integration, and IT consulting services. Through a range of innovative products and services, it aims to enhance the operational efficiency and competitiveness of its clients across various industries.

How the Company Makes Money

The company generates revenue primarily through service contracts for IT consulting, software development, and system integration projects. Key revenue streams include project-based fees, recurring maintenance and support services, and licensing of proprietary software solutions. Additionally, China Information Technology Development may engage in partnerships with other technology firms and government entities, allowing it to access larger contracts and projects, thereby contributing significantly to its earnings. The company also explores opportunities in emerging technologies such as cloud computing and big data analytics, which may provide additional revenue sources.

China Information Technology Development Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues and persistent losses. Despite slight improvements in gross profit margin and debt management, profitability and cash flow issues persist, with a deeply negative net profit margin and volatile free cash flow.

Income Statement

The company shows a declining revenue trend with a significant negative revenue growth rate of -15.7% from 2023 to 2024. Gross profit margin improved slightly to 54%, but the net profit margin remains deeply negative at -90.7% in 2024. EBIT and EBITDA margins are also negative, indicating continued operational challenges and a lack of profitability.

Balance Sheet

The debt-to-equity ratio has improved slightly, indicating reduced leverage, but remains a concern. The equity ratio is stable at around 78%, suggesting a strong equity base relative to total assets. However, the return on equity is negative due to continued net losses, reflecting inefficient use of shareholder funds.

Cash Flow

The company has shown improvement in operating cash flow, but free cash flow remains volatile. The operating cash flow to net income ratio is positive, indicating some improvement in cash generation, but free cash flow to net income remains negative, pointing to cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.26M	41.48M	49.23M	59.32M	66.09M	45.69M
Gross Profit	23.52M	22.40M	21.64M	17.40M	23.71M	16.42M
EBITDA	-11.51M	-32.10M	-13.32M	-70.97M	-73.83M	6.05M
Net Income	-85.57M	-37.63M	-22.75M	-82.30M	-90.42M	-9.76M
Balance Sheet
Total Assets	278.86M	327.90M	349.88M	468.78M	487.86M	560.07M
Cash, Cash Equivalents and Short-Term Investments	1.77M	5.69M	12.15M	15.27M	24.39M	35.02M
Total Debt	68.30M	62.29M	68.06M	141.88M	88.90M	107.99M
Total Liabilities	88.77M	82.90M	88.94M	192.59M	133.60M	144.48M
Stockholders Equity	200.98M	255.53M	270.76M	284.02M	358.86M	419.81M
Cash Flow
Free Cash Flow	-3.91M	91.00K	-20.04M	-6.95M	8.75M	1.70M
Operating Cash Flow	-3.85M	130.00K	-17.16M	-6.90M	8.85M	2.06M
Investing Cash Flow	107.00K	129.00K	6.03M	-51.69M	4.06M	20.00M
Financing Cash Flow	-12.14M	-8.21M	9.21M	65.60M	-14.29M	-18.29M

China Information Technology Development Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8178, the sentiment is Negative. The current price of 0.56 is above the 20-day moving average (MA) of 0.44, below the 50-day MA of 1.59, and below the 200-day MA of 2.34, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 27.15 is Positive, neither overbought nor oversold. The STOCH value of 65.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8178.

China Information Technology Development Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8319	71 Outperform	HK$99.61M	7.13	8.06%	6.47%	-9.11%	-8.90%
1460	70 Outperform	HK$272.05M	10.58	4.67%	3.39%	5.87%	54.21%
8033	68 Neutral	HK$78.86M	5.42	6.73%	7.81%	-1.57%	-18.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8611	55 Neutral	HK$421.20M	―	-57.46%	―	29.99%	-113.64%
1147	53 Neutral	HK$257.66M	21.36	5.44%	1.49%	28.18%	47.50%
8178	37 Underperform	HK$38.28M	―	-37.29%	―	―	―