Hengxin Technology Ltd. (1085) AI Stock Analysis

• Market Cap: HK$568.03M
• Dividend Yield: N/A
• Average Volume (3M): 43.52K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.55
• Revenue Growth: 9.68%
• EPS Growth: -46.76%
• Country: HK
• Employees: 1,209
• Sector: Technology
• Sector Strength: 86
• Industry: Communication Equipment
• EPS (TTM): 0.04
• Shares Outstanding: 465,600,000
• 10 Day Avg. Volume: 75,000
• 30 Day Avg. Volume: 43,521
• PEG Ratio: -1.20
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 67 Neutral
• Price Target: HK$1.50 ▲(29.31%Upside)

Hengxin Technology Ltd. has a solid financial foundation with strong revenue growth, but challenges in managing profit margins and cash flow variability impact its financial performance. Technical indicators suggest a neutral market sentiment, while a reasonable P/E ratio supports its valuation. The absence of earnings call insights and corporate events limits additional context.

Hengxin Technology Ltd. Business Overview & Revenue Model

Company Description

Hengxin 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 Money

Hengxin Technology Ltd. generates revenue through the sale of its telecommunications equipment, primarily radio frequency coaxial cables and antennas. These products are sold to mobile network operators, broadcasters, and other organizations requiring robust wireless communication infrastructure. The company may also engage in strategic partnerships and collaborations with technology firms and telecom service providers to enhance its product offerings and market reach. Its earnings are influenced by the demand for advanced communication solutions and the ongoing expansion of wireless networks globally.

Hengxin Technology Ltd. Financial Statement Overview

Summary

Hengxin Technology Ltd. has shown strong revenue growth and a stable equity base, but faces challenges with profit margins and cash flow fluctuations, indicating a need for better cost management and cash flow consistency.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.52B	2.26B	2.04B	1.63B	1.14B
Gross Profit	467.31M	434.70M	375.52M	296.56M	260.76M
EBITDA	181.46M	243.18M	160.92M	100.62M	142.73M
Net Income	42.19M	69.70M	63.60M	71.30M	61.30M
Balance Sheet
Total Assets	4.67B	4.25B	2.54B	2.48B	2.23B
Cash, Cash Equivalents and Short-Term Investments	891.55M	1.21B	1.13B	1.03B	1.35B
Total Debt	1.50B	1.02B	235.25M	331.10M	280.10M
Total Liabilities	2.32B	1.51B	653.51M	690.28M	495.37M
Stockholders Equity	1.56B	1.93B	1.86B	1.79B	1.73B
Cash Flow
Free Cash Flow	-2.23M	269.19M	398.95M	-333.43M	358.59M
Operating Cash Flow	21.23M	321.14M	461.16M	-312.83M	376.00M
Investing Cash Flow	-65.82M	-438.89M	-37.97M	-59.63M	-63.26M
Financing Cash Flow	-37.49M	236.31M	-118.22M	17.97M	-27.98M

Hengxin Technology Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1085, the sentiment is Positive. The current price of 1.16 is below the 20-day moving average (MA) of 1.24, below the 50-day MA of 1.23, and below the 200-day MA of 1.22, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1085.

Hengxin Technology Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1085	67 Neutral	HK$568.03M	10.86	2.42%	―	9.68%	-46.76%
Sector *	63 Neutral	$33.61B	6.06	-11.53%	1.82%	5.53%	-18.79%
CUEH		€33.79M	182.50	0.15%	―	―	―
1720	61 Neutral	HK$114.40M	5.71	3.16%	―	6.07%	136.36%
1617	59 Neutral	HK$183.77M	4.44	5.02%	―	1.01%	660.00%
1300	46 Neutral	HK$591.20M	―	-0.23%	―	-1.80%	61.90%
0947	41 Neutral	HK$97.68M	―	-27.13%	―	-21.31%	-105.30%

Hengxin Technology Ltd. Corporate Events

Hengxin Technology Ltd. Successfully Passes All AGM Resolutions

Hengxin Technology Ltd. announced the successful passage of all resolutions proposed at its annual general meeting held on June 24, 2025. The resolutions included the adoption of financial statements and the re-election of several directors, indicating strong shareholder support and stability in the company’s governance structure.

Hengxin Technology Ltd. Announces 2025 AGM and Key Resolutions

Hengxin Technology Ltd. has announced its upcoming Annual General Meeting (AGM), scheduled for June 24, 2025, in Hong Kong. Key agenda items include the adoption of the Directors’ Report and Audited Financial Statements for 2024, re-election of directors, approval of directors’ fees, and re-appointment of auditors in both Hong Kong and Singapore. Additionally, a special resolution regarding the Proposed Share Issue Mandate will be considered, which could impact the company’s capital structure and shareholder value.

Hengxin Technology Secures AI Server Contract with Peking University

Hengxin Technology Ltd. announced that its subsidiary, Shanghai Zhangyu Information Technology Co., Ltd., has secured a contract with Peking University for the AI Server Cluster Procurement Project. This achievement highlights the company’s strategic shift towards digital security and cloud computing services, enhancing its market position and supporting its long-term growth and profitability.