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Founder Holdings
(0418)
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Rating:59Neutral
Price Target:
HK$0.70
▼(-21.35% Downside)
Action:Reiterated
Date:04/21/26
The score is driven mainly by financials: a very conservative balance sheet and positive cash generation are meaningful strengths, but they are weighed down by sharply weaker operating profitability and subdued returns. Technicals are neutral with only mild near-term support, while valuation is a headwind given the high P/E and lack of dividend support.
Positive Factors
Conservative balance sheet
Extremely low leverage and a stable equity base provide durable financial resilience. This structural conservatism reduces default and refinancing risk, preserves strategic optionality for investments or acquisitions, and supports operating continuity through economic cycles.
Negative Factors
Compressed operating profitability
Very low EBIT/EBITDA margins materially limit the company's ability to self-fund growth, absorb cost shocks, or generate shareholder returns. Structural weakness in operating leverage suggests underlying cost or revenue mix issues that will restrain durable profitability absent structural fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage and a stable equity base provide durable financial resilience. This structural conservatism reduces default and refinancing risk, preserves strategic optionality for investments or acquisitions, and supports operating continuity through economic cycles.
Read all positive factors
Founder Holdings (0418) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$772.76M
Dividend YieldN/A
Average Volume (3M)411.88K
Price to Earnings (P/E)24.5
Beta (1Y)-0.40
Revenue Growth-1.91%
EPS Growth-35.59%
CountryHK
Employees1,020
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.03
Shares Outstanding1,153,369,000
10 Day Avg. Volume220,100
30 Day Avg. Volume411,883
Financial Highlights & Ratios
PEG Ratio-0.90
Price to Book (P/B)0.86
Price to Sales (P/S)1.05
P/FCF Ratio29.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Founder Holdings Business Overview & Revenue Model
Company Description
Founder Holdings Limited operates as an investment holding enterprise, primarily engaged in software creation, system integration, and the distribution of information technology products. Its business activities are conducted across Mainland China...
Founder Holdings Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
86
Very Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 907.16M | 924.85M | 982.03M | 957.58M | 1.07B |
| Gross Profit | 448.18M | 454.33M | 484.87M | 489.91M | 515.09M |
| EBITDA | 11.48M | 61.55M | 78.44M | 177.74M | 66.23M |
| Net Income | 29.81M | 47.86M | 59.76M | 34.75M | 43.48M |
Balance Sheet | |||||
| Total Assets | 1.43B | 1.44B | 1.47B | 1.48B | 1.57B |
| Cash, Cash Equivalents and Short-Term Investments | 821.22M | 806.66M | 749.97M | 735.12M | 604.94M |
| Total Debt | 1.69M | 1.65M | 3.42M | 4.35M | 5.71M |
| Total Liabilities | 315.20M | 324.56M | 366.33M | 433.67M | 473.41M |
| Stockholders Equity | 1.11B | 1.12B | 1.10B | 1.05B | 1.09B |
Cash Flow | |||||
| Free Cash Flow | 31.97M | 66.43M | 28.95M | 41.81M | 37.91M |
| Operating Cash Flow | 35.83M | 68.51M | 31.38M | 46.99M | 47.82M |
| Investing Cash Flow | -290.68M | -273.16M | -2.20M | 138.91M | 173.75M |
| Financing Cash Flow | -46.04M | -2.31M | -3.27M | -3.42M | -1.71M |
Founder Holdings Technical Analysis
Negative
0.89
Price Trends
0.71
Negative
0.72
Negative
0.76
Negative
Market Momentum
-0.02
Positive
45.50
Neutral
31.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0418, the sentiment is Negative. The current price of 0.89 is above the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.71, and above the 200-day MA of 0.76, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.50 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0418.
Founder Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | HK$4.18B | 38.47 | 6.30% | 3.47% | -5.00% | -79.97% | |
62 Neutral | HK$1.50B | 15.91 | 8.62% | ― | 14.29% | 142.01% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | HK$772.76M | 24.45 | 3.34% | ― | -1.91% | -35.59% | |
57 Neutral | HK$2.32B | 28.32 | -8.12% | ― | 3.16% | ― | |
57 Neutral | HK$20.97B | 127.01 | 1.75% | ― | 12.11% | ― | |
42 Neutral | HK$4.63B | -16.31 | -66.11% | ― | 18.94% | 89.36% |
* Technology Sector Average
HK:0418
Founder Holdings
0.67
-0.48
-41.74%
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0.07
-0.02
-23.40%
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Kingdee International Software Group Co
5.92
-9.20
-60.85%
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1.13
-0.66
-36.87%
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AsiaInfo Technologies Limited
4.45
-4.21
-48.60%
HK:1588
Chanjet Information Technology Co., Ltd. Class H
4.60
-3.21
-41.11%
Founder Holdings Corporate Events
Founder Holdings Revises Connected Lease and Management Deals for Reduced Premises
Jun 26, 2026
Founder Holdings’ subsidiary Founder Electronics has amended its lease and property management arrangements for certain premises with related-party entities New Founder Boya and Shanghai Fangshang. The supplemental lease agreement terminates...
Founder Holdings Reshapes Board with Executive Director Change
May 29, 2026
Founder Holdings Limited has announced board changes, with executive director Li Shuo Feng resigning on 29 May 2026 due to other business commitments, and the company emphasizing that he leaves without disagreement with the board or issues requiri...
Founder Holdings Sets Out Board and Committee Line-Up
May 29, 2026
Founder Holdings Limited has announced the current composition of its board, naming Zhang Jian Guo as chairman and president alongside five other executive directors and three independent non-executive directors. The updated structure underlines a...
Founder Holdings Wins Shareholder Backing for All AGM Resolutions, Secures Fresh Capital Mandates
May 28, 2026
Founder Holdings said shareholders approved all resolutions at its 28 May 2026 annual general meeting, including adoption of the 2025 audited accounts and re-election of executive directors Wang Jin Chao and Li Shuo Feng, as well as independent no...
Founder Holdings Sets 2026 AGM to Renew Mandates and Governance
Apr 15, 2026
Founder Holdings has called its annual general meeting for 28 May 2026 in Hong Kong, where shareholders will review the audited financial statements for the year ended 31 December 2025 and consider the re-election of key executive and independent ...
Founder Holdings Moves to Modernise Bye-Laws and Enable Virtual Meetings
Apr 2, 2026
Founder Holdings Limited plans to overhaul its corporate bye-laws to modernise shareholder governance and align with updated Hong Kong listing and Bermudian legal requirements. The amendments will enable virtual or hybrid general meetings with ele...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.