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Huitongda Network Co., Ltd. Class H
(9878)
Select Model
Select Model
Rating:57Neutral
Price Target:
HK$7.00
▼(-22.91% Downside)
Action:Reiterated
Date:08/06/26
The score is driven mainly by mixed financial fundamentals: strong recent free-cash-flow generation is offset by sharply declining revenue, very thin margins, and a significant increase in leverage that heightens balance-sheet risk. Technicals add support with improving short-to-medium-term momentum, while valuation appears reasonable on a moderate P/E.
Positive Factors
Strong cash generation
Strong 2025 operating cash flow of about 1.78B and free cash flow of about 1.76B provide internally generated funding for operations and investment. This supports liquidity and gives management greater capacity to manage the platform through demand volatility, although debt coverage remains limited.
Negative Factors
Severe revenue contraction
The recent revenue contraction is a major threat to the scale of the retailer platform and its transaction-based model. Shrinking sales can weaken operating leverage, reduce supplier and customer network activity, and make it harder for the company to sustain or expand earnings over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Strong 2025 operating cash flow of about 1.78B and free cash flow of about 1.76B provide internally generated funding for operations and investment. This supports liquidity and gives management greater capacity to manage the platform through demand volatility, although debt coverage remains limited.
Read all positive factors
Huitongda Network Co., Ltd. Class H (9878) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.79B
Dividend YieldN/A
Average Volume (3M)178.99K
Price to Earnings (P/E)10.0
Beta (1Y)0.90
Revenue Growth3.29%
EPS Growth15.14%
CountryHK
Employees4,040
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.57
Shares Outstanding530,016,200
10 Day Avg. Volume154,830
30 Day Avg. Volume178,991
Financial Highlights & Ratios
PEG Ratio1.61
Price to Book (P/B)0.61
Price to Sales (P/S)0.09
P/FCF Ratio2.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$13.00Price Target Upside43.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.61
Revenue Forecast (FY)HK$55.70B
Huitongda Network Co., Ltd. Class H Business Overview & Revenue Model
Company Description
Huitongda Network Co., Ltd. operates a comprehensive e-commerce and support platform tailored for business clients within the retail sector. Its commerce division acquires a diverse range of goods, such as home appliances, electronics, agricultura...
How the Company Makes Money
Huitongda makes money primarily by facilitating transactions and services for small retailers in lower-tier markets. Its key revenue streams include: (1) sales of goods and/or commissions and service fees tied to the distribution of branded and no...
Huitongda Network Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
38
Negative
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 51.21B | 52.30B | 60.06B | 82.43B | 82.11B | 65.76B |
| Gross Profit | 2.39B | 2.33B | 2.31B | 2.74B | 2.59B | 1.87B |
| EBITDA | 794.25M | 706.64M | 619.30M | 1.13B | 536.79M | 583.76M |
| Net Income | 312.68M | 300.29M | 269.74M | 448.27M | 316.38M | -349.88M |
Balance Sheet | ||||||
| Total Assets | 32.57B | 30.52B | 28.49B | 29.11B | 29.39B | 25.60B |
| Cash, Cash Equivalents and Short-Term Investments | 12.04B | 12.32B | 7.07B | 7.03B | 8.26B | 5.67B |
| Total Debt | 17.39B | 16.07B | 1.40B | 701.80M | 816.64M | 254.31M |
| Total Liabilities | 22.54B | 20.49B | 18.88B | 19.62B | 19.78B | 27.32B |
| Stockholders Equity | 7.97B | 8.03B | 7.79B | 7.77B | 8.10B | -3.08B |
Cash Flow | ||||||
| Free Cash Flow | 366.52M | 1.76B | 247.40M | 437.85M | 218.42M | 1.34B |
| Operating Cash Flow | 1.87B | 1.78B | 275.28M | 470.81M | 273.36M | 1.37B |
| Investing Cash Flow | -1.37B | 365.85M | -880.08M | 942.85M | -1.04B | -2.29B |
| Financing Cash Flow | 492.44M | -920.60M | -363.00M | -1.75B | 1.82B | -686.14M |
Huitongda Network Co., Ltd. Class H Technical Analysis
Negative
9.08
Price Trends
7.41
Negative
7.51
Negative
7.83
Negative
Market Momentum
-0.12
Negative
42.29
Neutral
76.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9878, the sentiment is Negative. The current price of 9.08 is above the 20-day moving average (MA) of 6.99, above the 50-day MA of 7.41, and above the 200-day MA of 7.83, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 42.29 is Neutral, neither overbought nor oversold. The STOCH value of 76.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9878.
Huitongda Network Co., Ltd. Class H Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | HK$895.57M | 10.55 | 22.37% | 9.03% | 7.71% | 2.01% | |
71 Outperform | HK$1.31B | 2.95 | 12.42% | ― | 8.65% | ― | |
71 Outperform | HK$12.50B | 40.44 | 37.54% | ― | 36.00% | 60.00% | |
64 Neutral | HK$7.70B | 36.63 | 22.34% | ― | 19.34% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | HK$3.79B | 10.05 | 3.91% | ― | 3.29% | 15.14% | |
42 Neutral | HK$2.70B | -6.31 | -13.18% | ― | 40.17% | 76.39% |
* Technology Sector Average
HK:9878
Huitongda Network Co., Ltd. Class H
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Huitongda Network Co., Ltd. Class H Corporate Events
Huitongda Signs New Connected Framework Deal with Five Star Holdings
Sep 24, 2026
Huitongda Network Co., Ltd., a PRC-incorporated company listed in Hong Kong, operates in the retail and distribution of household appliances and consumer electronics. The group procures and supplies such goods across its network, and maintains sig...
Huitongda boosts profitability as AI-driven retail shift gains momentum in China’s lower-tier markets
Aug 28, 2026
In the first half of 2026, Huitongda Network Co., Ltd. strengthened its focus on fast-moving consumer goods retail chains and AI-driven retail solutions, targeting structurally growing rural and lower-tier markets in China. The group continued to ...
Huitongda Board Sets August Meeting to Approve 2026 Interim Results
Aug 17, 2026
Huitongda Network Co., Ltd. has scheduled a board meeting for 28 August 2026 to review and approve its interim results for the six months ended 30 June 2026 and to consider publishing those results. The board will also discuss whether to recommend...
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.