Hengxin Technology Ltd. (1085) AI Stock Analysis

• Market Cap: HK$609.94M
• Dividend Yield: N/A
• Average Volume (3M): 57.07K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.47
• 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: 80,600
• 30 Day Avg. Volume: 57,066
• PEG Ratio: -1.19
• Price to Book (P/B): 0.33
• 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: 72 Outperform
• Price Target: HK$1.50 ▲(14.50%Upside)

The overall stock score reflects robust financial performance but highlights issues with profit margin pressures and cash flow volatility. Technical analysis suggests weak momentum, while valuation is reasonable but lacks dividend yield appeal.

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 radio frequency coaxial cables and other related telecommunications products. The company primarily serves mobile network operators and broadcasting companies, providing them with essential components for building and maintaining their communication networks. Revenue streams include direct sales to these operators and through partnerships with distributors and integrators in the telecommunications industry. Additionally, Hengxin Technology may engage in strategic partnerships and collaborations to expand its market reach and enhance its product offerings, contributing to its overall earnings.

Hengxin Technology Ltd. Financial Statement Overview

Summary

Hengxin Technology Ltd. displays a robust revenue growth trajectory, supported by a stable equity base. However, the pressure on profit margins and fluctuating cash flows highlight areas for improvement. Maintaining control over operational costs and enhancing cash flow consistency will be pivotal for sustaining long-term financial health.

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: 1.31
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.31 is above the 20-day moving average (MA) of 1.22, above the 50-day MA of 1.22, and above the 200-day MA of 1.24, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 55.08 is Neutral, 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	72 Outperform	HK$609.94M	12.27	2.42%	―	9.68%	-46.76%
Sector *	68 Neutral	¥234.20B	14.80	7.50%	2.60%	9.27%	6.74%
CUEH	―	€44.27M	247.50	0.15%	―	―	―
1720	65 Neutral	HK$125.40M	6.26	3.16%	―	6.07%	136.36%
1617	59 Neutral	HK$203.28M	4.70	5.02%	―	1.01%	660.00%
1300	46 Neutral	HK$600.15M	―	-0.23%	―	-1.80%	61.90%
0947	40 Underperform	HK$91.27M	―	-27.13%	―	-21.31%	-105.30%

Hengxin Technology Ltd. Corporate Events

Hengxin Technology’s Major Energy Storage Project Gains Approval in Shandong

Hengxin Technology Ltd. announced that its proposed 800MW/1600MWh energy storage project in Binzhou City, Shandong Province, China, has been included in the 2025 list of new energy storage projects by the Shandong Energy Administration. This project is the largest among the selected projects and marks a significant milestone in the company’s strategic expansion into the green energy sector, potentially enhancing profitability and supporting long-term growth.

Hengxin Technology Announces Board Reshuffle with New Executive Appointment

Hengxin Technology Ltd. announced significant changes in its board of directors, with the resignation of Ms. Zhang Zhong and Mr. Pu Hong from their respective non-executive roles, effective July 11, 2025. These changes are attributed to their desire to focus on other commitments. The company expressed gratitude for their contributions and simultaneously appointed Mr. Lau Fai Lawrence as an executive director, who will oversee financial management and compliance. Mr. Lau, who has been with the company since 2017, brings extensive experience in financial management and corporate governance, which is expected to strengthen the company’s operational and strategic capabilities.

Hengxin Technology Ltd. Announces New Board Structure

Hengxin Technology Ltd. has announced the list of its board of directors and their roles, effective from July 11, 2025. The board comprises executive, non-executive, and independent non-executive directors, with specific members assigned to the audit, remuneration, and nominating committees. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic direction and stakeholder confidence.

Hengxin Technology Updates Nominating Committee Terms

Hengxin Technology Ltd. has amended and restated the terms of reference for its Nominating Committee. The committee is tasked with ensuring a formal, transparent, and objective process for appointing and evaluating board members. This includes making recommendations on board appointments, succession planning, and evaluating board performance. The changes aim to align the board’s structure and composition with the company’s strategic objectives and enhance long-term shareholder value.

Hengxin Technology Announces Auditor Name Change

Hengxin Technology Ltd., a company incorporated in Singapore and operating in Hong Kong, has announced a change in the name of its Hong Kong auditor. The auditor’s English name has been changed from ‘CL Partners CPA Limited’ to ‘Rongcheng (Hong Kong) CPA Limited’ effective June 30, 2025. This change reflects a rebranding effort within the company’s auditing services, potentially impacting its financial reporting and stakeholder relations.

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.