Huazhang Technology Holding Ltd. (1673) AI Stock Analysis

• Market Cap: HK$354.34M
• Dividend Yield: N/A
• Average Volume (3M): 47.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• 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: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: HK$0.00 ▼(-100.00% 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.

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	234.36M	430.00M	448.04M	528.92M	323.87M	496.91M
Gross Profit	33.43M	74.04M	79.72M	83.16M	33.15M	105.63M
EBITDA	17.27M	11.74M	3.26M	-23.41M	-299.08M	60.42M
Net Income	-4.53M	-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	0.00	0.00	15.66M	-126.08M	-57.13M	116.29M
Operating Cash Flow	0.00	0.00	16.52M	-124.95M	-52.00M	118.96M
Investing Cash Flow	0.00	0.00	-57.71M	2.82M	-1.99M	-12.05M
Financing Cash Flow	0.00	0.00	93.65M	24.68M	48.15M	-948.79K

Huazhang Technology Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 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:1673, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.22, and below the 200-day MA of 0.23, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.16 is Neutral, neither overbought nor oversold. The STOCH value of 11.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	―	HK$545.00M	6.48	8.36%	3.91%	-21.28%	-29.40%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1645	―	HK$1.51B	-78.07	-6.34%	―	-2.88%	44.39%
0365	―	HK$465.60M	―	-5.21%	―	18.71%	61.54%
3302	―	HK$308.33M	―	-10.85%	―	-0.51%	-922.95%
0679	―	HK$359.02M	―	-2.06%	3.19%	-0.29%	-113.17%
1673	―	HK$354.34M	―	-2.71%	―	-4.33%	55.43%

Huazhang Technology Holding Ltd. Corporate Events

Huazhang Technology to Acquire Debtor Company Through Bankruptcy Restructuring

Huazhang Technology Holding Ltd., through its wholly-owned subsidiary Zhejiang Huazhang, has entered into a Restructuring Agreement to invest approximately RMB95.7 million in a Debtor Company undergoing bankruptcy restructuring. This investment will be used to settle the Debtor Company’s outstanding debts, and upon completion of the equity transfer, the Debtor Company will become a wholly-owned subsidiary of Huazhang Technology. This major transaction, which requires shareholder approval, is expected to strengthen Huazhang Technology’s market position by expanding its asset base.