Hunlicar Clarifies Valuation Basis in Adorable Stake Disposal and FSH Acquisition

Huabang Technology Holdings Limited ( (HK:3638) ) has issued an announcement.

Hunlicar Group Limited has issued a supplemental announcement detailing the valuation basis for its deemed disposal of a 45% equity interest in Adorable Golden Limited and the acquisition of a 40% equity interest in Hong Kong Financial Services Holding Limited. The company explains that its valuer adopted the price-to-book (P/B) ratio as the primary valuation metric for Adorable, citing industry practice in the securities brokerage sector and the unreliability of earnings- and revenue-based multiples for loss-making or volatile firms. Given the scarcity of directly comparable small-cap pure brokerages on the Hong Kong market, the peer group was broadened to companies generating more than half of their revenue from SFC Type 1 licensed activities while excluding materially different business models, supporting the company’s assertion that the selected comparables fairly reflect Adorable’s financial position, risk profile and market value for transaction purposes.

The most recent analyst rating on (HK:3638) stock is a Sell with a HK$13.50 price target. To see the full list of analyst forecasts on Huabang Technology Holdings Limited stock, see the HK:3638 Stock Forecast page.

More about Huabang Technology Holdings Limited

Hunlicar Group Limited, listed in Hong Kong, operates in the financial services sector with a focus on securities brokerage and related licensed activities. Through subsidiaries such as Adorable Golden Limited and Hong Kong Financial Services Holding Limited, the group participates in SFC Type 1 regulated businesses, targeting the Hong Kong capital markets and smaller-cap financial services segment.

Average Trading Volume: 458,014

Technical Sentiment Signal: Buy

Current Market Cap: HK$483.8M

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