Hengxin Technology Ltd. (1085) AI Stock Analysis

• Market Cap: HK$633.22M
• Dividend Yield: N/A
• Average Volume (3M): 202.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 5.24%
• EPS Growth: -201.60%
• Country: HK
• Employees: 1,209
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.16
• Shares Outstanding: 465,600,000
• 10 Day Avg. Volume: 166,000
• 30 Day Avg. Volume: 202,866
• PEG Ratio: -0.26
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -229.46
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: HK$1.50 ▲(10.29% Upside)

The overall score reflects strong revenue growth and a stable equity base, but is significantly impacted by poor profitability and bearish technical indicators. The lack of earnings call data and corporate events further limits the assessment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Stable Equity Base

A stable equity base provides financial stability and resilience, enabling the company to withstand market fluctuations.

5G Network Opportunities

The rollout of 5G networks offers significant growth potential, positioning the company to capitalize on increased demand for connectivity solutions.

Negative Factors

Profit Margin Pressure

Pressure on profit margins suggests challenges in cost management, which could impact long-term profitability if not addressed.

Inconsistent Cash Flows

Inconsistent cash flows can hinder investment and operational flexibility, affecting the company's ability to fund growth initiatives.

Fluctuating Return on Equity

Fluctuating return on equity indicates variability in profitability, which may affect investor confidence and long-term financial health.

Hengxin Technology Ltd. Business Overview & Revenue Model

Company Description

Hengxin Technology Ltd. (1085) is a leading provider of communication and data connectivity solutions, primarily operating in the telecommunications and technology sectors. The company specializes in the design, manufacturing, and distribution of a wide range of products, including coaxial cables, fiber optic cables, and related accessories. With a strong focus on innovation and quality, Hengxin Technology serves various markets, including mobile communication, broadband, and data centers, catering to both domestic and international customers.

How the Company Makes Money

Hengxin 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.43B	2.52B	2.26B	2.04B	1.63B	1.14B
Gross Profit	444.42M	467.31M	434.70M	375.52M	296.56M	260.76M
EBITDA	150.68M	181.46M	243.18M	121.98M	100.62M	75.68M
Net Income	-54.82M	42.19M	69.70M	63.60M	71.30M	61.30M
Balance Sheet
Total Assets	5.24B	4.67B	4.25B	2.54B	2.48B	2.23B
Cash, Cash Equivalents and Short-Term Investments	1.31B	891.55M	1.21B	1.13B	1.03B	1.35B
Total Debt	1.77B	1.50B	1.02B	235.25M	331.10M	280.10M
Total Liabilities	2.96B	2.32B	1.51B	653.51M	690.28M	495.37M
Stockholders Equity	1.49B	1.56B	1.93B	1.86B	1.79B	1.73B
Cash Flow
Free Cash Flow	-1.12M	-2.23M	297.36M	403.91M	-333.43M	358.59M
Operating Cash Flow	10.61M	21.23M	321.14M	461.16M	-312.83M	376.00M
Investing Cash Flow	-32.91M	-65.82M	-438.89M	-38.06M	-59.63M	-63.26M
Financing Cash Flow	-18.74M	-37.49M	236.31M	-118.22M	17.97M	-27.98M

Hengxin Technology Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1.36 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.63, and below the 200-day MA of 1.45, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 36.34 is Neutral, neither overbought nor oversold. The STOCH value of 5.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1085.

Hengxin Technology Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1720	63 Neutral	HK$130.90M	5.72	3.56%	―	8.78%	160.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1617	61 Neutral	HK$162.62M	2.49	7.40%	―	-9.34%	605.26%
1085	58 Neutral	HK$633.22M	-10.72	-3.08%	―	5.24%	-201.60%
1202	52 Neutral	€360.00M	-473.68	-0.09%	―	-23.93%	-109.41%
1300	45 Neutral	HK$539.85M	-21.03	-0.68%	―	6.88%	-49.48%
0947	41 Neutral	HK$121.99M	-0.93	-29.56%	―	-12.03%	-40.38%

Hengxin Technology Ltd. Corporate Events

Hengxin Technology Ltd. Announces Further Delay in Circular Dispatch

Hengxin Technology Ltd. announced a further delay in the dispatch of a circular related to its New Purchases and Sales Master Agreements, originally expected by November 21, 2025. The delay, now extended to December 19, 2025, is due to the need for additional time to finalize certain information, impacting the company’s compliance timeline with the Listing Rules and potentially affecting shareholder communications.

Hengxin Technology Ltd. Delays Circular Dispatch for New Agreements

Hengxin Technology Ltd. announced a delay in the dispatch of a circular related to its New Purchases Master Agreement and New Sales Master Agreement. Initially planned for release by 21 November 2025, the circular will now be dispatched by 5 December 2025 due to the need for additional time to finalize certain information. This delay may impact the company’s stakeholders as it involves important details and advice from the Independent Board Committee and Financial Adviser.

Hengxin Technology Ltd. Revises Annual Caps for Connected Transactions

Hengxin Technology Ltd. has announced the revision and renewal of annual caps for its continuing connected transactions involving purchases and sales agreements with Hengtong Group and Hengtong Optic-Electric. The company has entered into new master agreements to accommodate the anticipated increase in transaction volumes through 2026. These agreements are subject to regulatory requirements due to their scale, and the company will seek approval from independent shareholders, excluding votes from Mr. Cui Wei and his associates, at an upcoming extraordinary general meeting.

Hengxin Technology Secures Loan for Solar Thermal Power Project

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.

Hengxin Technology Partners with University for Cryptographic Chip Innovation

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.