PAX Global Technology (0327) AI Stock Analysis

• Market Cap: HK$5.50B
• Dividend Yield: 9.63%
• Average Volume (3M): 3.01M
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.62
• Revenue Growth: -6.76%
• EPS Growth: -31.66%
• Country: HK
• Employees: 1,509
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 0.36
• Shares Outstanding: 1,060,822,000
• 10 Day Avg. Volume: 2,069,836
• 30 Day Avg. Volume: 3,005,191
• PEG Ratio: -0.21
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 5.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.44
• Revenue Forecast (FY): HK$44.88B

• Rating: 68 Neutral
• Price Target: HK$6.50 ▲(19.05% Upside)

PAX Global Technology's strong financial performance and attractive valuation are offset by bearish technical indicators. The company's low leverage and high dividend yield are significant strengths, but the current negative market momentum poses a risk. Continued focus on revenue growth and cash flow stability will be crucial for future performance.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, reducing risk and providing flexibility for future investments.

Cash Flow Generation

Positive cash flow growth indicates efficient operations and provides resources for reinvestment, supporting long-term business sustainability.

Operational Efficiency

Strong profit margins reflect effective cost management and pricing power, contributing to sustained profitability and competitive positioning.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in market demand or competitive pressures, which could impact future growth prospects.

Earnings Volatility

Variability in cash flow can lead to uncertainty in financial planning and may affect the company's ability to consistently fund operations and investments.

Revenue Growth Challenges

Challenges in maintaining revenue growth can hinder long-term expansion and market share gains, affecting overall business momentum.

PAX Global Technology Business Overview & Revenue Model

Company Description

PAX Global Technology (0327) is a leading provider of electronic payment solutions, specializing in the manufacture of point-of-sale (POS) terminals and payment processing systems. The company operates primarily in the financial technology sector, offering a range of products that facilitate secure and efficient transactions for merchants and consumers. PAX's core offerings include a variety of payment terminals that support multiple payment methods, including credit cards, mobile payments, and digital wallets, catering to diverse markets around the globe.

How the Company Makes Money

PAX Global Technology generates revenue primarily through the sale of its POS terminals and associated software solutions. The company earns income from the direct sale of hardware to retailers and financial institutions, along with recurring revenue from software licensing and transaction processing services. Additionally, PAX benefits from strategic partnerships with banks and payment service providers, enabling it to expand its market reach and enhance its product offerings. The company's revenue model is bolstered by a growing demand for cashless payment solutions, driven by the increasing adoption of digital payments across various sectors.

PAX Global Technology Financial Statement Overview

Summary

PAX Global Technology shows strong profitability and a stable balance sheet with low leverage, despite challenges in revenue growth and variability in cash flow generation. The company's operational efficiency and financial stability position it well for future 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.75B	6.04B	6.71B	8.06B	7.20B	5.65B
Gross Profit	2.72B	2.85B	2.99B	3.31B	2.83B	2.34B
EBITDA	825.43M	870.70M	1.32B	1.49B	1.35B	1.13B
Net Income	649.72M	713.43M	1.16B	1.26B	1.08B	900.12M
Balance Sheet
Total Assets	9.21B	9.17B	9.08B	9.49B	8.82B	7.64B
Cash, Cash Equivalents and Short-Term Investments	3.21B	3.30B	2.92B	3.19B	3.55B	3.83B
Total Debt	85.10M	87.83M	108.22M	85.93M	116.60M	122.59M
Total Liabilities	1.40B	1.60B	1.59B	2.58B	2.36B	2.06B
Stockholders Equity	7.77B	7.53B	7.46B	6.93B	6.49B	5.60B
Cash Flow
Free Cash Flow	866.03M	1.04B	314.27M	317.92M	-42.00K	616.59M
Operating Cash Flow	906.11M	1.16B	527.27M	648.53M	347.66M	735.05M
Investing Cash Flow	-144.91M	-335.75M	-172.21M	-300.02M	-234.77M	-113.38M
Financing Cash Flow	-601.60M	-570.45M	-525.92M	-449.17M	-448.14M	-207.07M

PAX Global Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 5.46 is above the 20-day moving average (MA) of 5.22, above the 50-day MA of 5.32, and above the 200-day MA of 5.33, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 63.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0327.

PAX Global Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0842	76 Outperform	HK$2.47B	5.31	9.11%	6.40%	13.14%	-28.26%
0327	68 Neutral	HK$5.50B	8.46	8.50%	9.63%	-6.76%	-31.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1662	56 Neutral	HK$1.19B	24.60	8.67%	―	-16.13%	5.48%
1463	52 Neutral	HK$732.93M	-2.19	-89.45%	―	12.16%	-16700.00%
1854	50 Neutral	HK$2.81B	-39.32	-39.92%	―	―	―

PAX Global Technology Corporate Events

PAX Global Technology Reports Revenue Decline Amid Economic Uncertainty

PAX Global Technology Limited is a Bermuda-incorporated company specializing in the development and sales of electronic funds transfer point-of-sale (E-payment Terminals) products and services, operating primarily in the E-payment Terminals solutions business. For the first half of 2025, PAX Global Technology reported a decline in revenue and profit, with revenue at HK$2,716.2 million, down 9.9% from the previous year, and profit for the period at HK$391.4 million, a decrease of 14.9%. The company experienced a drop in purchase orders due to global economic uncertainties, although it maintained a stable gross profit margin of 46.9%. Despite the revenue decline, PAX increased its interim dividend per share by 4.2% to HK$0.25. Looking ahead, PAX Global Technology is focusing on leveraging digital payment trends and enhancing its technological capabilities to capture new market opportunities, particularly in the growing stablecoin and Android smart terminal sectors.

PAX Global Technology Enhances Governance with Updated Nomination Committee Terms

PAX Global Technology Limited has updated the terms of reference for its Nomination Committee in compliance with the Corporate Governance Code under the Hong Kong Stock Exchange Listing Rules. The committee is tasked with reviewing the board’s structure, identifying qualified board candidates, assessing the independence of directors, and supporting board performance evaluations. This move aims to strengthen the company’s governance framework and ensure effective board operations.

PAX Global Technology Updates Remuneration Committee Terms

PAX Global Technology Limited has updated the terms of reference for its Remuneration Committee, aligning with the Corporate Governance Code under the Hong Kong Listing Rules. The committee, composed primarily of Independent Non-Executive Directors, is tasked with recommending remuneration policies and packages for directors and senior management, ensuring transparency and alignment with industry standards.

PAX Global Technology Reports Decline in Interim Revenue and Profit for 2025

PAX Global Technology Limited has announced its unaudited interim results for the six months ending June 30, 2025, showing a decline in revenue and profit compared to the same period in 2024. Despite the decrease in financial performance, the company declared an increase in interim dividends per share, indicating a commitment to returning value to shareholders.

PAX Global Technology Declares Interim Dividend for 2025

PAX Global Technology Limited has announced an interim dividend of HKD 0.25 per share for the six months ending June 30, 2025. This announcement reflects the company’s stable financial performance and commitment to providing returns to its shareholders, potentially strengthening its market position and investor confidence.

PAX Global Technology Updates Audit Committee Terms

PAX Global Technology Limited has updated the terms of reference for its Audit Committee, which are in line with the Corporate Governance Code under the Hong Kong Stock Exchange Listing Rules. The Audit Committee, composed of at least three non-executive directors, is responsible for overseeing the company’s relationship with its external auditors, including recommendations on their appointment and remuneration. This move is expected to strengthen the company’s governance structure and enhance transparency in its financial operations.

PAX Global Technology Schedules Board Meeting for Interim Results

PAX Global Technology Limited has announced that its board of directors will meet on August 18, 2025, to review and approve the interim results for the first half of 2025. The meeting will also consider the declaration of an interim dividend and address other business matters, potentially impacting the company’s financial strategy and shareholder returns.