Hengxin Technology Ltd. (1085) AI Stock Analysis

• Market Cap: HK$591.31M
• Dividend Yield: N/A
• Average Volume (3M): 35.76K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.64
• Revenue Growth: 9.68%
• EPS Growth: -47.81%
• Country: HK
• Employees: 1,209
• Sector: Technology
• Sector Strength: 79
• Industry: Communication Equipment
• EPS (TTM): 0.04
• Shares Outstanding: 465,600,000
• 10 Day Avg. Volume: 15,800
• 30 Day Avg. Volume: 35,755
• PEG Ratio: -2.47
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.38
• 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: 64 Neutral
• Price Target: ―

Hengxin Technology Ltd.'s strong revenue growth and stable equity base are key strengths, contributing positively to its financial performance. However, challenges with profit margin pressure and volatile cash flows present risks. Technical indicators suggest bearish momentum, reinforcing the need for cautious optimism. The reasonable valuation offers a potential entry point for growth investors, although the lack of dividends may be a downside for others.

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. 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
	EBIT
140.17M	156.52M	125.84M	80.80M	114.46M
	EBITDA
181.46M	243.18M	160.92M	100.62M	142.73M
	Net Income Common Stockholders
42.19M	69.70M	63.60M	71.30M	61.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
891.55M	1.21B	1.13B	1.03B	1.35B
	Total Assets
4.67B	4.25B	2.54B	2.48B	2.23B
	Total Debt
1.50B	1.02B	235.25M	331.10M	280.10M
	Net Debt
639.81M	78.10M	-591.55M	-190.12M	-596.13M
	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
0.00	269.19M	398.95M	-333.43M	358.59M
	Operating Cash Flow
0.00	321.14M	461.16M	-312.83M	376.00M
	Investing Cash Flow
0.00	-438.89M	-37.97M	-59.63M	-63.26M
	Financing Cash Flow
0.00	236.31M	-118.22M	17.97M	-27.98M

Hengxin Technology Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.21
• 50DMA: Negative
• 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 Negative. The current price of 1.21 is below the 20-day moving average (MA) of 1.21, below the 50-day MA of 1.26, and above the 200-day MA of 1.20, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.39 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, 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
1085	64 Neutral	HK$591.31M	11.33	2.42%	―	9.68%	-47.81%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
PIAIF		$127.66B	6.18		7.26%	―	―
CLPHF		$21.27B	14.14	11.36%	3.82%	―	―
SNPTF		$9.30B	23.29	11.45%	0.80%	―	―
TTNDF		$21.17B	17.43	18.52%	2.82%	―	―
ZTCOF		$20.19B	12.37	11.39%	2.86%	―	―

Hengxin Technology Ltd. Corporate Events

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.

Hengxin Technology Ltd. Reports Revenue Growth but Declining Profits in 2024

Hengxin Technology Ltd. reported a revenue increase of approximately 11.7% to RMB2,520.0 million for the year ended 31 December 2024. Despite this growth, the company’s net profit attributable to equity shareholders decreased by 39.5% to RMB42.2 million, and no final dividend was recommended. The gross profit margin slightly decreased, and the basic earnings per share stood at RMB0.097. These results indicate a challenging year for the company, with increased costs and expenses impacting profitability, which may affect stakeholder confidence and future strategic decisions.

Hengxin Technology Issues Profit Warning for 2024

Hengxin Technology Ltd. has issued a profit warning, indicating a significant anticipated decline in net profit for the year ending December 31, 2024. The expected decrease in profit, ranging from 25% to 45%, is attributed to a reduction in gross profit margin, increased expenses in selling, distribution, administration, and R&D, as well as higher interest expenses. This announcement suggests potential challenges for the company, impacting its financial performance and possibly affecting investor confidence.

Hengxin Technology Ltd. Schedules Board Meeting for Annual Results

Hengxin Technology Ltd. has announced that its board of directors will hold a meeting on March 25, 2025, to consider and approve the company’s annual results for the year ending December 31, 2024. This meeting is significant as it will determine the company’s financial performance and provide insights to stakeholders about its operational health and strategic direction.

Hengxin Technology’s Solar Project Gains Recognition in China’s Green Technology Catalog

Hengxin Technology Ltd. announced that its subsidiary, Zhejiang Zhongguang New Energy Technology Co., Ltd., has had its Delingha 50MW Tower-type Molten Salt Thermal Storage Solar Thermal Project included in the Green Technology Promotion Catalog (2024 Edition) by China’s National Development and Reform Commission. This inclusion highlights the project’s significance as a benchmark in the green and low-carbon energy transformation industry, showcasing its potential to save 46,000 tonnes of standard coal annually and reduce carbon dioxide emissions by approximately 121,000 tonnes. The recognition is expected to bolster the company’s long-term growth and industry positioning.