PAX Global Technology (0327) AI Stock Analysis

• Market Cap: $7.37B
• Dividend Yield: 6.41%
• Average Volume (3M): 11.42M
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.63
• Revenue Growth: -9.88%
• EPS Growth: -37.81%
• Country: HK
• Employees: 1,509
• Sector: Industrials
• Sector Strength: 78
• Industry: Business Equipment & Supplies
• EPS (TTM): 0.24
• Shares Outstanding: 1,059,842,000
• 10 Day Avg. Volume: 11,649,903
• 30 Day Avg. Volume: 11,421,434
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 0.91
• Enterprise Value/Ebitda: 2.99
• 1Y Price Target: $8.00
• Price Target Upside: 16.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: HK$8.00 ▲(16.79% Upside)

PAX Global Technology's stock is rated highly due to its strong financial position and attractive valuation. The stock also benefits from positive technical indicators. However, caution is advised due to revenue growth challenges and potential overbought conditions.

PAX Global Technology Business Overview & Revenue Model

Company Description

PAX Global Technology Limited, an investment holding company, engages in the development and sale of electronic funds transfer point-of-sale products worldwide. Its E-payment terminal products include smart E-payment solutions, smart electronic cash register solutions, unattended solutions, smart PayPhone and PayTablet solutions, and classic E-payment solutions, as well as other accessory items. The company also develops PAXSTORE, a cloud-based platform that allows users to create and manage their own independent white-label marketplace for software application distribution; paxRhino, a key injection service; and CyberLab, a payment application cloud test platform that provides professional one-stop online debugging and testing service. In addition, it offers payment solutions services, and maintenance and installation services. The company was founded in 2000 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

PAX Global Technology generates revenue through the sale of its electronic payment terminals and related solutions. The company's key revenue streams include the direct sale of POS terminals, licensing fees from its proprietary software solutions, and service fees for maintenance and support. Additionally, PAX Global Technology may engage in strategic partnerships with financial institutions, payment processors, and other technology providers to expand its market reach and enhance its service offerings. These partnerships often involve collaborative product development and joint marketing efforts, contributing to the company's earnings growth.

PAX Global Technology Financial Statement Overview

Summary

PAX Global Technology shows a strong financial position with solid profitability and a stable balance sheet. Despite challenges in revenue growth and cash flow variability, the company's low leverage and efficient operations provide resilience.

Income Statement

PAX Global Technology has demonstrated a mixed performance in terms of revenue growth, with fluctuations over the past years. The most recent year shows a decline in revenue compared to the previous year, indicating potential challenges in maintaining growth. However, the company maintains healthy gross profit and net profit margins, suggesting operational efficiency and profitability. The EBIT and EBITDA margins are also robust, indicating strong earnings relative to revenue.

Balance Sheet

The company's balance sheet is solid, with a strong equity position and a low debt-to-equity ratio, highlighting financial stability and low leverage risk. The equity ratio is high, indicating that a significant portion of the company's assets is financed by equity. This positions the company well for long-term sustainability and reduces financial risk.

Cash Flow

Cash flow analysis shows a positive trajectory in free cash flow, with substantial growth in recent years. The operating cash flow to net income ratio is favorable, suggesting efficient cash conversion from net income. However, fluctuations in free cash flow growth rate indicate some variability in cash generation, which could pose challenges in maintaining consistent cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.04B	6.71B	8.06B	7.20B	5.65B
Gross Profit	2.85B	2.99B	3.31B	2.83B	2.34B
EBITDA	870.70M	1.32B	1.49B	1.35B	1.13B
Net Income	713.43M	1.16B	1.26B	1.08B	900.12M
Balance Sheet
Total Assets	9.17B	9.08B	9.49B	8.82B	7.64B
Cash, Cash Equivalents and Short-Term Investments	3.30B	2.92B	3.19B	3.55B	3.83B
Total Debt	87.83M	108.22M	85.93M	116.60M	122.59M
Total Liabilities	1.60B	1.59B	2.58B	2.36B	2.06B
Stockholders Equity	7.53B	7.46B	6.93B	6.49B	5.60B
Cash Flow
Free Cash Flow	1.04B	314.27M	317.92M	-42.00K	616.59M
Operating Cash Flow	1.19B	527.27M	648.53M	347.66M	735.05M
Investing Cash Flow	-335.75M	-172.21M	-300.02M	-234.77M	-113.38M
Financing Cash Flow	-570.45M	-525.92M	-449.17M	-448.14M	-207.07M

PAX Global Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0327, the sentiment is Positive. The current price of 6.85 is above the 20-day moving average (MA) of 6.59, above the 50-day MA of 6.14, and above the 200-day MA of 5.06, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 62.45 is Neutral, neither overbought nor oversold. The STOCH value of 74.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0327.

PAX Global Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0327	80 Outperform	$7.37B	10.39	9.50%	6.41%	-9.88%	-37.81%
Sector *	65 Neutral	$2.67B	15.36	15.18%	3.45%	-0.30%	27.34%
1463	58 Neutral	HK$776.05M	357.14	-11.77%	―	2.77%	-322.58%
1596	―	HK$736.23M	45.95	-2.10%	2.21%	―	―
0842	67 Neutral	HK$2.74B	4.27	12.91%	5.76%	17.69%	3.08%
1662	64 Neutral	HK$1.24B	30.99	8.13%	―	33.22%	80.73%
1854	42 Neutral	HK$2.04B	―		―	―	―

PAX Global Technology Corporate Events

PAX Global Technology Announces Leadership Change

PAX Global Technology Limited has announced a leadership change with the resignation of Mr. Lu Jie as Executive Director and CEO, effective July 3, 2025, due to other work engagements. Mr. Nie Guoming, the current Chairman of the Board and Executive Director, will assume the role of CEO, bringing over 25 years of experience in the card payment industry to the position. This transition is expected to maintain the company’s strategic direction and operational stability.

PAX Global Technology Announces Board Composition and Roles

PAX Global Technology Limited has announced the composition of its board of directors and the roles and functions of its members. The board comprises both executive and independent non-executive directors, with specific committees for audit, nomination, and remuneration, indicating a structured governance approach that may enhance operational oversight and strategic decision-making.

PAX Global Technology Announces Successful 2025 AGM Resolutions

PAX Global Technology Limited announced the successful results of its 2025 Annual General Meeting, where all proposed resolutions were approved by shareholders. Key resolutions included the adoption of the company’s financial statements, the declaration of a final dividend, re-election of directors, and granting of mandates to the board for share issuance and repurchase. These outcomes reinforce the company’s strategic direction and governance, potentially enhancing shareholder confidence and market positioning.