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Hengxin Technology Ltd. (HK:1085)
:1085
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Hengxin Technology Ltd. (1085) AI Stock Analysis

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HK:1085

Hengxin Technology Ltd.

(1085)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
HK$2.00
▲(19.05% Upside)
Hengxin Technology Ltd.'s overall score is primarily influenced by its strong revenue growth and stable equity base, but is offset by pressure on profit margins and inconsistent cash flows. The technical analysis indicates weak market momentum, and the valuation reflects current financial challenges with a negative P/E ratio.

Hengxin Technology Ltd. (1085) vs. iShares MSCI Hong Kong ETF (EWH)

Hengxin Technology Ltd. Business Overview & Revenue Model

Company DescriptionHengxin Technology Ltd., an investment holding company, engages in the research, design, development, and manufacture of telecommunications and technological products, and the production of radio frequency coaxial cables for mobile communications and mobile communications systems exchange equipment in the People's Republic of China, India, and internationally. The company operates through Radio Frequency (RF) Coaxial Cables, Telecommunication Equipment and Accessories, and Antennas segments. It offers RF coaxial cables for mobile communications to transmit high-frequency signals between antenna and base station equipment in outdoor base station wireless signal coverage system and indoor wireless signal coverage system in buildings; and to radiate high frequency signals to surrounding environment through continuous small antenna elements along the cable in railways, highways, tunnels, underground car parks, elevators, and high rise buildings. The company also provides coaxial cables for telecommunications equipment and accessories to transmit signals within microwave communications systems, radio broadcast wireless systems, and air/sea radar systems, as well as accessories, such as connectors and jumper cables for wireless signal coverage systems equipment within base stations. In addition, it offers antennas for use in signal transmission for wireless communications; high temperature resistant cables, which are used as part of the raw material components for antennas; and antenna testing services. Further, the company provides technical services of antennas and related telecommunications products for mobile communications systems, as well as engages in trading and investment, and enterprise management consulting activities. It serves telecommunications operators and equipment manufacturers. The company was founded in 1996 and is headquartered in Singapore.
How the Company Makes MoneyHengxin Technology generates revenue through the sale of its core products, which include coaxial cables, fiber optic cables, and other connectivity solutions. The company benefits from a diversified revenue model that encompasses both direct sales to end-users and partnerships with telecommunications operators and equipment manufacturers. Key revenue streams include bulk orders from large enterprises and ongoing contracts for telecommunications infrastructure projects. Additionally, Hengxin Technology may capitalize on emerging trends in the telecom industry, such as the rollout of 5G networks, which can create new opportunities for sales growth. Strategic partnerships with major telecom players and ongoing investment in research and development further enhance the company's market position and revenue potential.

Hengxin Technology Ltd. Financial Statement Overview

Summary
Hengxin Technology Ltd. shows strong revenue growth and a stable equity base. However, profit margins are under pressure, and cash flows are inconsistent, indicating areas for improvement in cost management and cash flow stability.
Income Statement
75
Positive
Hengxin Technology Ltd. has demonstrated a consistent revenue growth trend, with a notable increase in the most recent year. Gross profit margin remains stable but has slightly decreased over the years. While there is a positive EBIT and EBITDA margin, the net profit margin has been under pressure, indicating potential cost management issues.
Balance Sheet
70
Positive
The company maintains a reasonable debt-to-equity ratio, which suggests a balanced approach to leveraging. The return on equity has been fluctuating, reflecting some inconsistencies in profitability. The equity ratio indicates a solid equity base relative to total assets, ensuring financial stability.
Cash Flow
65
Positive
There is variability in the free cash flow, with significant fluctuations over the years. Operating cash flow has been volatile, impacting the overall cash flow stability. The consistency of free cash flow to net income ratio needs improvement to enhance cash generation efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.43B2.52B2.26B2.04B1.63B1.14B
Gross Profit444.42M467.31M434.70M375.52M296.56M260.76M
EBITDA150.68M181.46M243.18M121.98M100.62M75.68M
Net Income-54.82M42.19M69.70M63.60M71.30M61.30M
Balance Sheet
Total Assets5.24B4.67B4.25B2.54B2.48B2.23B
Cash, Cash Equivalents and Short-Term Investments1.31B891.55M1.21B1.13B1.03B1.35B
Total Debt1.77B1.50B1.02B235.25M331.10M280.10M
Total Liabilities2.96B2.32B1.51B653.51M690.28M495.37M
Stockholders Equity1.49B1.56B1.93B1.86B1.79B1.73B
Cash Flow
Free Cash Flow-1.12M-2.23M297.36M403.91M-333.43M358.59M
Operating Cash Flow10.61M21.23M321.14M461.16M-312.83M376.00M
Investing Cash Flow-32.91M-65.82M-438.89M-38.06M-59.63M-63.26M
Financing Cash Flow-18.74M-37.49M236.31M-118.22M17.97M-27.98M

Hengxin Technology Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.68
Price Trends
50DMA
1.74
Negative
100DMA
1.54
Positive
200DMA
1.42
Positive
Market Momentum
MACD
-0.01
Positive
RSI
46.68
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1085, the sentiment is Neutral. The current price of 1.68 is below the 20-day moving average (MA) of 1.72, below the 50-day MA of 1.74, and above the 200-day MA of 1.42, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1085.

Hengxin Technology Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
HK$115.50M5.053.56%8.78%160.00%
61
Neutral
HK$174.01M2.667.40%-9.34%605.26%
60
Neutral
HK$772.90M-13.08-3.08%5.24%-201.60%
52
Neutral
HK$352.00M-0.09%-23.93%-109.41%
45
Neutral
HK$548.70M-0.68%6.88%-49.48%
40
Neutral
HK$125.98M-0.96-29.56%-12.03%-40.38%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1085
Hengxin Technology Ltd.
1.68
0.66
64.71%
HK:1202
Chengdu Putian Telecommunications Cable Co., Ltd. Class H
0.88
0.10
12.82%
HK:1720
Putian Communication Group Limited
0.11
0.06
120.00%
HK:0947
Mobi Development Co., Ltd.
0.16
0.00
0.00%
HK:1300
Trigiant Group Ltd.
0.30
0.00
0.00%
HK:1617
Nanfang Communication Holdings Ltd.
0.11
<0.01
10.00%

Hengxin Technology Ltd. Corporate Events

Hengxin Technology Secures Loan for Solar Thermal Power Project
Oct 15, 2025

Hengxin Technology Ltd. has announced that its subsidiary, Zhejiang Zhongguang New Energy Technology Co., Ltd., has entered into a loan agreement worth RMB200 million with Exim New-Type Policy Financial Instruments Co., Ltd. This loan will support the capital needs of the Delingha 350MW tower-based solar thermal power project in Qinghai Province, China. The project is expected to enhance the company’s position in the solar thermal power sector by providing stable and reliable clean energy to the Qinghai grid. The loan aligns with Hengxin’s renewable energy strategy and is anticipated to generate stable long-term revenue, boosting the company’s market reputation and competitiveness.

The most recent analyst rating on (HK:1085) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on Hengxin Technology Ltd. stock, see the HK:1085 Stock Forecast page.

Hengxin Technology Partners with University for Cryptographic Chip Innovation
Sep 28, 2025

Hengxin Technology Ltd. has announced the establishment of a Joint Laboratory for Intelligent Security Cryptographic Chips in collaboration with East China Normal University. This initiative aims to advance the industrialization of cryptographic chips by developing proprietary cryptographic algorithms and security chips, particularly in the field of post-quantum cryptography. The collaboration is expected to enhance Hengxin’s capabilities in foundational research and key technology breakthroughs, thereby strengthening its competitiveness in the digital security sector.

The most recent analyst rating on (HK:1085) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on Hengxin Technology Ltd. stock, see the HK:1085 Stock Forecast page.

Hengxin Technology Ltd. Clarifies Interim Results Announcement
Aug 27, 2025

Hengxin Technology Ltd. issued a clarification regarding its interim results for the six months ended 30 June 2025, correcting a clerical error in the ‘Other material items’ section related to depreciation and amortisation expenses. The correction does not affect any other financial information in the interim results, ensuring stakeholders that the rest of the data remains accurate and unchanged.

The most recent analyst rating on (HK:1085) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on Hengxin Technology Ltd. stock, see the HK:1085 Stock Forecast page.

Hengxin Technology Reports Financial Decline in H1 2025
Aug 26, 2025

Hengxin Technology Ltd. reported a decline in its financial performance for the first half of 2025. The company’s revenue decreased by 8.3% to RMB1,022.2 million, and it recorded a net loss of RMB70.4 million compared to a net profit in the same period last year. The gross profit margin also fell slightly, and no interim dividend was recommended, indicating challenging market conditions and potential impacts on stakeholders.

The most recent analyst rating on (HK:1085) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on Hengxin Technology Ltd. stock, see the HK:1085 Stock Forecast page.

Hengxin Technology Issues Profit Warning Amid Revenue Decline
Aug 20, 2025

Hengxin Technology Ltd. has issued a profit warning, expecting to report a net loss of at least RMB68 million for the first half of 2025, a significant decline from a net profit of RMB26.6 million in the same period last year. This downturn is primarily due to decreased revenue, a reduced gross profit margin, and increased interest expenses and corporate income tax. The company advises shareholders and potential investors to exercise caution as the final financial results may differ from the preliminary assessment.

The most recent analyst rating on (HK:1085) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Hengxin Technology Ltd. stock, see the HK:1085 Stock Forecast page.

Hengxin Technology Ltd. Schedules Board Meeting for Interim Results
Aug 12, 2025

Hengxin Technology Ltd. has announced an upcoming board meeting scheduled for August 26, 2025. The meeting will focus on reviewing and approving the interim financial results for the first half of 2025, which will subsequently be published on the company’s and the Hong Kong Stock Exchange’s websites. This announcement indicates the company’s commitment to transparency and regular communication with its stakeholders, potentially impacting its market positioning and investor relations.

Hengxin Technology Ltd. Announces Board Restructuring Amidst Past Financial Concerns
Aug 7, 2025

Hengxin Technology Ltd. announced changes in its board structure, appointing Mr. Chan as an independent non-executive director and altering the composition of its audit, remuneration, and nominating committees. Despite past financial issues related to CW Group, which Mr. Chan was previously associated with, the board supports his appointment, citing his expertise and independence.

Hengxin Technology Ltd. Contributes to National Metaverse Standard
Aug 1, 2025

Hengxin Technology Ltd. has participated in drafting the national Metaverse-Reference Architecture Standard, highlighting its technical expertise and industry contributions in the metaverse field. This involvement positions the company to lead in developing components and solutions that comply with the Standard, potentially enhancing its product offerings and strengthening its market position in the digital technology sector.

Hengxin Technology Announces Board Changes with New Director Appointment
Jul 31, 2025

Hengxin Technology Ltd. announced the resignation of Dr. Li Jun as an independent non-executive director and the appointment of Mr. Chan Hon Chung Johnny to the same position, effective 31 July 2025. Mr. Chan brings extensive experience in the banking industry and will also serve as chairman of the remuneration committee and a member of both the audit and nominating committees. This leadership change is expected to bring fresh perspectives to the company’s governance and strategic direction.

Hengxin Technology Ltd. Announces Board Composition and Roles
Jul 31, 2025

Hengxin Technology Ltd. has announced the composition of its board of directors and their roles within the company, effective from July 31, 2025. This announcement outlines the executive, non-executive, and independent non-executive directors, as well as their memberships in the company’s audit, remuneration, and nominating committees, which may impact the company’s governance and strategic direction.

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.Date of analysis: Oct 28, 2025