Recon Technology Ltd. Class A Ordinary Shares (RCON)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business bought at a sensible price with a margin of safety. Recon Technology does not yet show durability. Revenue fell from $15.2M in fiscal year 2014 (the year ended 2014-06-30) to $8.5M in fiscal year 2015 and $6.4M in fiscal year 2016. Net income went from a small profit of $131,140 in fiscal year 2014 to losses of $4.7M in fiscal year 2015 and $6.2M in fiscal year 2016. The first quarter of fiscal 2017 (the quarter ended 2016-09-30) still showed a net loss of $818,652 on revenue of $1.2M. That is not a moat; it is a shrinking, loss-making enterprise. The balance sheet has low leverage, with debt-to-equity of 0.08, and the FairStock P/B of 0.30 at the close on 2026-10-13 suggests the market values the company below book. But a low P/B with negative ROE of -6.51%, ROCE of -4.94%, a Piotroski F-Score of 1/9, and an Altman Z-Score of 0.47 warns that the assets may not be earning their keep. FairStock's P/E is negative at -0.01. FairStock's Lynch category is TURNAROUND, based on a loss in the latest year after earlier profits. The beta of 1.41 and 52-week range of $0.02 to $6.42 show speculation. I would need evidence of stabilizing revenue and positive earnings before treating this as a Graham-style bargain. Cheapness alone is not enough.

In plain English: Recon Technology provides equipment, software, and services to oil and gas companies in China. The business looks weak now: revenue has shrunk and it is losing money, although it carries little debt. At the recent price, it looks cheap compared with its accounting book value, but the losses make it hard to call a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2017 10-Q (period ended 2016-09-30) · fiscal Q3 2016 10-Q (period ended 2016-03-31) · fiscal Q2 2016 10-Q (period ended 2015-12-31) · fiscal Q1 2016 10-Q (period ended 2015-09-30) · FY2016 10-K (period ended 2016-06-30) · FY2015 10-K (period ended 2015-06-30) · FY2014 10-K (period ended 2014-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer