Highway Holdings (HIHO) AI Stock Analysis

• Market Cap: $4.88M
• Dividend Yield: 9.6%
• Average Volume (3M): 134.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -19.68%
• EPS Growth: -2.61%
• Country: US
• Employees: 374
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.08
• Shares Outstanding: 4,601,825
• 10 Day Avg. Volume: 5,856
• 30 Day Avg. Volume: 134,976
• PEG Ratio: -0.69
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 1.10
• P/FCF Ratio: -17.66
• Enterprise Value/Market Cap: 0.52
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 1.08
• Enterprise Value/Ebitda: 50.52
• 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: 53 Neutral
• Price Target: $1.00 ▼(-13.79% Downside)

The score is held back primarily by declining revenues and weakening cash flow (including negative operating cash flow in 2025), which outweigh balance-sheet improvements. Technicals remain soft versus key moving averages, and valuation signals are mixed with a negative P/E and a high yield that may be pressured by cash generation.

Positive Factors

Strategic Acquisition

The acquisition of Regent-Feinbau could enhance Highway Holdings' capabilities in precision metal components, expanding its market reach and product offerings, particularly in the automotive sector. This strategic move may strengthen its competitive position and drive long-term growth.

Balance Sheet Health

Improved leverage indicates a stronger balance sheet, providing financial stability and flexibility to pursue growth opportunities and withstand economic fluctuations, enhancing long-term resilience.

Operational Efficiency

Slight improvement in gross profit margin reflects stable operational efficiency, which can support profitability and competitive pricing, crucial for sustaining business operations and market position.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in maintaining market share and customer demand, potentially affecting long-term growth and profitability if not addressed.

Cash Flow Challenges

Negative operating cash flow suggests difficulties in generating sufficient cash from operations, which could impact the company's ability to invest in growth and meet financial obligations.

Profitability Concerns

Minimal improvement in net profit margin highlights ongoing profitability challenges, which could limit reinvestment in the business and affect long-term sustainability if not improved.

Highway Holdings Business Overview & Revenue Model

Company Description

Highway Holdings Limited, together with its subsidiaries, manufactures and supplies metal, plastic, electric, and electronic components, subassemblies, and finished products for original equipment manufacturers (OEMs) and contract manufacturers. It operates through two segments, Metal Stamping and Mechanical OEM; and Electric OEM. The company also trades in plastic injection products; and manufactures and assembles automation equipment. Its products are used in the manufacture of products, such as photocopiers, laser printers, print cartridges, electrical connectors, electrical circuits, vacuum cleaners, LED power supplies, stepping motors, pumps for dishwashers, and other washing machine components. In addition, the company assists customers in the design and development of the tooling used in the metal and plastic manufacturing process, as well as provides an array of other manufacturing and engineering services, including metal stamping, screen printing, plastic injection molding, pad printing, and electronic assembly of printed circuit boards. It operates in Hong Kong and China, Europe, North America, and other Asian countries. Highway Holdings Limited was incorporated in 1990 and is headquartered in Sheung Shui, Hong Kong.

How the Company Makes Money

Highway Holdings generates revenue primarily through the sale of its manufactured products, which include a wide array of promotional and gift items. The company's revenue model is largely built on bulk orders from clients looking for custom-designed products. Key revenue streams include direct sales to retailers and wholesalers, as well as partnerships with promotional companies that require unique merchandise for their clients. The company may also benefit from long-term contracts with major clients, which provide a steady stream of income. Additionally, Highway Holdings capitalizes on its manufacturing capabilities in China to keep production costs low, thus enhancing its competitive edge in pricing and profitability.

Highway Holdings Financial Statement Overview

Summary

Mixed fundamentals: revenue declined materially from 2020 to 2025, profitability remains challenged despite a move to a modest positive net margin, and 2025 operating/free cash flow deterioration is a key concern. The balance sheet is healthier with lower leverage, but weak cash generation keeps the score moderate.

Income Statement

Highway Holdings has experienced a decline in revenue from $12.56M in 2020 to $7.41M in 2025, reflecting a negative growth trajectory. The gross profit margin improved from 33.1% in 2020 to 33.3% in 2025, indicating stable operational efficiency. However, the net profit margin improved only slightly from a negative position of -3.6% in 2020 to 1.4% in 2025. The repeated negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio decreased from 0.26 in 2020 to 0.13 in 2025, showcasing improved financial leverage. The equity ratio remained stable, indicating a solid capital structure with stockholders' equity consistently covering a significant portion of total assets. Return on equity improved from -6.3% in 2020 to 1.7% in 2025, reflecting recovering profitability.

Cash Flow

Operating cash flow turned negative in 2025 at -$0.36M, a concerning trend from the positive $0.44M in 2020. Free cash flow also deteriorated, indicating potential cash management challenges. The free cash flow to net income ratio reflects volatility, pointing towards inconsistencies in cash generation relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.08M	7.41M	6.32M	10.24M	12.37M	9.17M
Gross Profit	2.34M	2.47M	1.71M	3.14M	3.77M	2.71M
EBITDA	50.00K	756.00K	-381.00K	828.00K	1.67M	400.00K
Net Income	69.00K	106.00K	-959.00K	-294.00K	443.00K	-461.00K
Balance Sheet
Total Assets	9.12M	9.55M	11.32M	13.88M	14.86M	15.49M
Cash, Cash Equivalents and Short-Term Investments	5.82M	6.18M	6.60M	7.01M	7.38M	7.76M
Total Debt	652.00K	810.00K	1.39M	2.06M	1.20M	1.96M
Total Liabilities	2.76M	3.29M	4.68M	5.67M	5.59M	5.71M
Stockholders Equity	6.37M	6.27M	6.64M	8.20M	9.27M	9.76M
Cash Flow
Free Cash Flow	0.00	-461.00K	297.00K	717.00K	-298.00K	-192.00K
Operating Cash Flow	0.00	-360.00K	415.00K	809.00K	-164.00K	-104.00K
Investing Cash Flow	0.00	232.00K	-102.00K	991.00K	-1.20M	-78.00K
Financing Cash Flow	0.00	-492.00K	-557.00K	-920.00K	-549.00K	-902.00K

Highway Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIHO, the sentiment is Negative. The current price of 1.16 is below the 20-day moving average (MA) of 1.25, below the 50-day MA of 1.25, and below the 200-day MA of 1.56, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.52 is Neutral, neither overbought nor oversold. The STOCH value of 6.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HIHO.

Highway Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HIHO	53 Neutral	$4.88M	-8.98	-8.38%	9.60%	-19.68%	-2.61%
TPCS	47 Neutral	$50.16M	-96.72	-5.10%	―	1.15%	94.58%
AP	46 Neutral	$115.86M	-21.73	-8.73%	―	0.20%	88.39%
MTEN	46 Neutral	$215.63K	-0.23	-81.84%	―	―	―
SGBX	40 Underperform	$9.77M	>-0.01	-228.41%	―	-43.44%	85.17%

Highway Holdings Corporate Events

Highway Holdings Signs LOI to Acquire Majority Stake in German Metal Components Maker Regent-Feinbau

On December 23, 2025, Highway Holdings Limited announced it has signed a letter of intent to acquire a 51% stake in German precision metal components specialist Regent-Feinbau Adermann GmbH, in a deal to be paid mainly in cash with a smaller portion in unregistered shares, targeted to close by the end of March 2026 subject to due diligence and customary conditions. Regent-Feinbau, founded in 1949 and certified under IATF 16949, ISO 9001 and ISO 14001, supplies precision sheet metal components and welded assemblies to OEMs and Tier 1 suppliers in the automotive, commercial vehicle, aerospace and industrial sectors, and Highway Holdings views the planned acquisition as a strategic move to rebuild its OEM revenue base post-COVID, add advanced thick sheet metal cutting, bending and welding capabilities to its Chinese metal component division, and open direct access to China’s growing automotive sheet metal market while also scaling Regent-Feinbau’s European business using Highway’s resources and debt-free balance sheet with about $5.3 million in cash.

The most recent analyst rating on (HIHO) stock is a Hold with a $0.88 price target. To see the full list of analyst forecasts on Highway Holdings stock, see the HIHO Stock Forecast page.

Highway Holdings Reports Q2 Loss Amid OEM Business Shift

Highway Holdings Limited reported a significant decline in net sales and a net loss for the second quarter of fiscal year 2026, compared to the same period in the previous year. The company faced challenges due to a reorganization by a major customer, which reduced its OEM motor business. However, a new OEM customer has approved mass production of its motor product, which is expected to eventually offset this loss. Additionally, Highway Holdings received a substantial order from a gaming industry customer, indicating a potential recovery in that sector. The company is exploring mergers and acquisitions and new business opportunities, including entering the Chinese market and providing services for the elderly population, to diversify its revenue streams and reduce dependency on existing customers.

The most recent analyst rating on (HIHO) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Highway Holdings stock, see the HIHO Stock Forecast page.

Highway Holdings Announces Board Changes with New Director Appointment

Highway Holdings Limited announced changes in its Board of Directors on October 25, 2025. Tiko Aharonov retired from the Board, and Doron Aharonov was appointed as a Class III director to fill the vacancy. Doron Aharonov brings experience from his career as a real estate broker in New York and Israel. The transition is not due to any disagreements within the company, and the Board expressed gratitude for Tiko Aharonov’s contributions.

The most recent analyst rating on (HIHO) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Highway Holdings stock, see the HIHO Stock Forecast page.