Qian Xun Technology (SEHK:1640) Returns To Profit In 1H FY 2025 Challenging Loss Narratives

Qian Xun Technology (SEHK:1640) has opened FY 2025 with first half revenue of C¥647.4 million and basic EPS of C¥0.09, a sharp contrast with the prior half in FY 2024, when revenue was C¥289.7 million on a basic EPS loss of C¥0.24. Over the past year, the TTM view shows revenue stepping up from C¥356.8 million in 2H 2024 to C¥1.49 billion in 2H 2025. Over the same period, basic EPS moved from a loss of C¥0.26 to a loss of C¥0.02, so the story now hinges on whether this higher revenue base can translate into more stable margins.

See our full analysis for Qian Xun Technology.

With the headline numbers in place, the next step is to see how this revenue scale-up and earnings profile line up with the most common narratives around Qian Xun Technology and where those stories might need a reset.

Curious how numbers become stories that shape markets? Explore Community Narratives

Losses Still Showing In TTM Picture

• On a trailing 12 month view to 2H FY 2025, Qian Xun Technology booked C¥1.49b in revenue with net income excluding extra items of C¥12.49 million loss and basic EPS of C¥0.02 loss.
• Critics highlight that the business has been unprofitable over the past year and refer to the five year trend of net losses growing at about 59.3% per year. The latest TTM loss of C¥12.49 million alongside basic EPS of C¥0.02 loss keeps that bearish concern in play.
  • The bearish view points to the move from a C¥51.47 million profit in 1H FY 2025 to a TTM loss of C¥12.49 million as evidence that recent profit in one half year period has not yet shifted the longer term pattern.
  • The same camp also leans on the five year loss growth rate of roughly 59.3% a year as a reminder that the company has a history of deepening losses, even with the more recent profitable half now in the mix.

1H FY 2025 Swings Back To Profit

• In 1H FY 2025, the company reported C¥647.38 million in revenue and C¥51.47 million in net income excluding extra items, which produced basic EPS of C¥0.09.
• What stands out for a more bullish angle is that this 1H FY 2025 profit of C¥51.47 million and EPS of C¥0.09 sit against a loss of C¥129.07 million and EPS of C¥0.24 loss in 2H FY 2024. This suggests the latest half year period looks very different from the immediately preceding one.
  • Supporters of a bullish narrative point to the move from a C¥5.37 million profit in 1H FY 2024 to C¥51.47 million in 1H FY 2025 as an example of how the company can report meaningfully higher profit in individual half year periods, even though longer term data still shows unprofitability.
  • They also highlight that positive basic EPS in 1H FY 2025 contrasts with basic EPS losses in the TTM view, arguing that recent half year profitability could be an early sign that the business model can generate profit at the current revenue scale.

Low 0.7x P/S Versus Peers

• The shares trade on a TTM P/S of about 0.7x, compared with roughly 3.4x for peers and around 1.2x for the Hong Kong Media industry.
• Market watchers weighing a cautious or bearish stance often argue that the low 0.7x P/S multiple reflects concern about the history of losses. The data showing net losses growing at about 59.3% a year and a TTM loss of C¥12.49 million fits that view that the discount comes with earnings risk attached.
  • At the same time, some investors see tension here, because C¥1.49b of TTM revenue against a low P/S implies the market is assigning a smaller value to each unit of sales than it does for peers, even though the company has recently posted a profitable 1H FY 2025.
  • Others focus on the recent three month share price volatility flagged in the risk summary and link it back to this valuation gap, suggesting that the low P/S is being weighed against the pattern of unprofitability when buyers and sellers set the price.

If you want to see how other investors are framing these mixed signals around profitability, revenue scale and valuation, it helps to read through the wider community views on the company via Curious how numbers become stories that shape markets? Explore Community Narratives

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Qian Xun Technology's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Feeling unsure whether the latest profits or the trailing losses matter more right now? Take a closer look at the underlying figures and move quickly to shape your own view by weighing up the 2 important warning signs.

See What Else Is Out There

The TTM loss of C¥12.49 million, continued basic EPS loss and history of deepening losses show that earnings quality and consistency remain a clear weak spot.

If that earnings volatility makes you cautious, it can help to focus on companies with steadier profiles by screening for 262 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com