Huazhang Technology Holding Ltd. (1673) AI Stock Analysis

• Market Cap: HK$376.69M
• Dividend Yield: N/A
• Average Volume (3M): 47.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -4.33%
• EPS Growth: 55.43%
• Country: HK
• Employees: 227
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): >-0.01
• Shares Outstanding: 1,596,134,000
• 10 Day Avg. Volume: 26,400
• 30 Day Avg. Volume: 47,933
• PEG Ratio: 0.53
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.77
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.21 ▼(-11.67% Downside)

The overall stock score is significantly influenced by the company's weak financial performance, marked by consistent net losses and negative cash flows. Technical analysis offers mixed indications, with RSI suggesting oversold conditions but Stochastic indicating overbought levels, leading to uncertainty in price direction. The valuation is unfavorably impacted by a negative P/E ratio, making the stock less attractive. These factors highlight the need for considerable improvements in financial health and stability.

Positive Factors

Market Position

The acquisition of the Debtor Company through bankruptcy restructuring will expand Huazhang's asset base, potentially strengthening its market position and competitive edge in the industrial automation sector.

Business Model Strength

The company's business model, which includes both equipment sales and recurring after-sales services, provides a diversified revenue stream and enhances customer retention, contributing to long-term stability.

Competitive Advantages

Offering both standard and customized solutions allows Huazhang to meet diverse customer needs, maintaining a competitive edge and fostering strong industry relationships.

Negative Factors

Financial Instability

Ongoing financial instability, marked by net losses and negative cash flows, poses a significant risk to Huazhang's long-term viability and limits its ability to invest in growth opportunities.

Cash Flow Challenges

Negative operating cash flow indicates difficulties in generating cash from core operations, which can hinder the company's ability to fund operations and strategic initiatives.

Profitability Issues

Persistent negative net profit margins highlight ongoing profitability challenges, which can affect the company's ability to reinvest in its business and sustain operations over the long term.

Huazhang Technology Holding Ltd. Business Overview & Revenue Model

Company Description

Huazhang Technology Holding Limited, an investment holding company, engages in the research, development, manufacture, and sale of industrial automation systems and sludge treatment products in the People's Republic of China. It operates through four segments: Industrial Products, Project Contracting Services, Environmental Products, and Supporting Services. The company offers paper-making machines and equipment; design, procurement, and installation services; and wastewater treatment and waste recycling services. It also provides after-sales services; computer software and hardware, and technical services; and logistics and warehousing services, as well as trades in electronic parts. In addition, Huazhang Technology Holding Limited engages in the design, manufacture, and sale of pulping and papermaking equipment and provision of the after-sales services. The company was founded in 1993 and is headquartered in Hangzhou, China. Huazhang Technology Holding Limited is a subsidiary of Florescent Holdings Limited.

How the Company Makes Money

Huazhang Technology Holding Ltd. generates revenue through the sale of its industrial automation equipment and systems to paper manufacturing companies. The company offers a comprehensive portfolio that includes both standard and customized solutions, allowing it to meet diverse customer requirements and maintain a competitive edge. In addition to equipment sales, Huazhang Technology also earns income from providing after-sales services, which include maintenance and technical support, ensuring long-term customer relationships and recurring revenue streams. Partnerships with key players in the paper industry and continued investment in research and development further bolster the company's revenue by enhancing product offerings and expanding market reach.

Huazhang Technology Holding Ltd. Financial Statement Overview

Summary

Huazhang Technology Holding Ltd. is facing financial instability with consistent net losses and negative cash flows. Although the balance sheet shows moderate leverage, the inability to generate positive cash flows and net income presents significant risks. Profitability and operational efficiency require improvement to achieve financial stability.

Income Statement

The company is facing negative profitability metrics with a net loss reported consistently over the periods. The Gross Profit Margin for the TTM stands at 19.4%, but the Net Profit Margin remains negative due to significant losses. Revenue has shown volatility, with the latest TTM revenue showing a decrease. The EBIT and EBITDA margins are also negative, indicating operating challenges.

Balance Sheet

The company's balance sheet shows a moderate financial structure with a Debt-to-Equity Ratio of 0.25 in the TTM, indicating manageable leverage. The Equity Ratio is 44.2%, reflecting reasonable stability. However, the negative net income impacts the Return on Equity, which is also negative, pointing to inefficiencies in generating returns for shareholders.

Cash Flow

The company faces cash flow challenges with negative Operating Cash Flow in the TTM. Free Cash Flow is also negative, reflecting difficulties in generating cash from core operations. The Operating Cash Flow to Net Income and Free Cash Flow to Net Income ratios are negative, underscoring the cash flow issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	430.00M	430.00M	448.04M	528.92M	323.87M	496.91M
Gross Profit	74.04M	74.04M	79.72M	83.16M	33.15M	105.63M
EBITDA	10.97M	11.74M	3.26M	-23.41M	-299.08M	60.42M
Net Income	-11.47M	-11.47M	-18.73M	-51.25M	-363.75M	17.98M
Balance Sheet
Total Assets	960.52M	960.52M	982.95M	972.31M	1.04B	1.38B
Cash, Cash Equivalents and Short-Term Investments	225.62M	225.62M	208.82M	77.33M	184.14M	188.79M
Total Debt	101.63M	101.63M	89.68M	88.22M	56.06M	153.46M
Total Liabilities	544.96M	544.96M	558.07M	620.71M	645.74M	701.83M
Stockholders Equity	413.66M	413.66M	431.25M	358.11M	400.99M	684.75M
Cash Flow
Free Cash Flow	-25.40M	0.00	15.66M	-126.08M	-57.13M	116.29M
Operating Cash Flow	-25.31M	0.00	16.52M	-124.95M	-52.00M	118.96M
Investing Cash Flow	3.64M	0.00	-57.71M	2.82M	-1.99M	-12.05M
Financing Cash Flow	13.79M	0.00	93.65M	24.68M	48.15M	-948.79K

Huazhang Technology Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1673, the sentiment is Positive. The current price of 0.24 is below the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.23, and above the 200-day MA of 0.22, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 64.35 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1673.

Huazhang Technology Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3348	67 Neutral	HK$640.00M	7.61	8.36%	3.34%	-21.28%	-29.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3302	51 Neutral	HK$312.93M	-5.45	-10.85%	―	-0.51%	-922.95%
1645	48 Neutral	HK$2.07B	-107.31	-6.34%	―	-2.88%	44.39%
0679	46 Neutral	HK$366.66M	-12.82	-2.06%	3.26%	-0.29%	-113.17%
0365	46 Neutral	HK$421.95M	-24.17	-5.21%	―	18.71%	61.54%
1673	39 Underperform	HK$376.69M	-30.26	-2.71%	―	-4.33%	55.43%

Huazhang Technology Holding Ltd. Corporate Events

Huazhang Technology Further Delays Circular on Major Acquisition Transaction

Huazhang Technology Holding Limited has announced a further postponement in sending a shareholder circular related to a previously disclosed major transaction involving participation in bankruptcy restructuring proceedings to acquire a debtor company. The company now expects to dispatch the circular by 31 January 2026 instead of the earlier target of 31 December 2025, citing the need for additional time to prepare and finalize the required information, extending uncertainty for shareholders around the transaction’s details and timing.

The most recent analyst rating on (HK:1673) stock is a Sell with a HK$0.21 price target. To see the full list of analyst forecasts on Huazhang Technology Holding Ltd. stock, see the HK:1673 Stock Forecast page.

Huazhang Technology Secures Creditor’s Rights through Public Auction

Huazhang Technology Holding Limited has successfully acquired creditor’s rights amounting to RMB54.8 million, including secured land and factory assets, for a consideration of RMB20 million through a public auction. This strategic acquisition, funded internally, positions the company to potentially benefit from the secured assets involved and aligns with its financial strategy, showcasing its focus on investment opportunities that bolster its operational and financial standing.

The most recent analyst rating on (HK:1673) stock is a Sell with a HK$0.21 price target. To see the full list of analyst forecasts on Huazhang Technology Holding Ltd. stock, see the HK:1673 Stock Forecast page.

Huazhang Technology Delays Circular Dispatch for Major Transaction

Huazhang Technology Holding Limited, a company incorporated in the Cayman Islands, has announced a further delay in the dispatch of its circular related to a major transaction involving bankruptcy restructuring proceedings and the acquisition of a debtor company. Initially expected to be sent to shareholders by 30 November 2025, the circular’s dispatch has been postponed to on or before 31 December 2025 to allow more time for preparation and finalization of the necessary information.

The most recent analyst rating on (HK:1673) stock is a Sell with a HK$0.21 price target. To see the full list of analyst forecasts on Huazhang Technology Holding Ltd. stock, see the HK:1673 Stock Forecast page.

Huazhang Technology Secures Shareholder Approval for Key Resolutions

Huazhang Technology Holding Limited announced that all proposed resolutions were passed at their annual general meeting held on November 28, 2025. The resolutions included the re-election of directors, re-appointment of auditors, and granting of mandates to the board regarding share issuance and repurchase. This outcome reflects strong shareholder support and may enhance the company’s governance and operational flexibility.

The most recent analyst rating on (HK:1673) stock is a Sell with a HK$0.21 price target. To see the full list of analyst forecasts on Huazhang Technology Holding Ltd. stock, see the HK:1673 Stock Forecast page.

Huazhang Technology Delays Circular Dispatch for Major Transaction

Huazhang Technology Holding Limited, a company incorporated in the Cayman Islands, announced a further delay in the dispatch of its circular related to a major transaction involving bankruptcy restructuring proceedings. Originally expected to be sent to shareholders by 31 October 2025, the circular’s dispatch has been postponed to on or before 30 November 2025 due to the need for additional time to finalize the information.

Huazhang Technology Holding Ltd. Announces 2025 Annual General Meeting

Huazhang Technology Holding Limited has announced its Annual General Meeting to be held on November 28, 2025, in Hong Kong. Key agenda items include the approval of audited financial statements, re-election of directors, and re-appointment of auditors. Additionally, the company seeks shareholder approval to authorize directors to manage the issuance of new shares, which could impact the company’s capital structure and market position.