Innovax Holdings Limited (2680) AI Stock Analysis

• Market Cap: HK$278.40M
• Dividend Yield: N/A
• Average Volume (3M): 18.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: 185.46%
• EPS Growth: -1997.94%
• Country: HK
• Employees: 36
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.21
• Shares Outstanding: 60,000,000
• 10 Day Avg. Volume: 2,900
• 30 Day Avg. Volume: 18,283
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$5.00
• Price Target Upside: 5.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: HK$5.00 ▲(5.26% Upside)

The overall score for Innovax Holdings Limited is influenced by strong technical performance, indicating bullish momentum, but is tempered by weak financials and valuation concerns due to persistent profitability challenges and the lack of dividend yield. The absence of recent earnings call and corporate events further emphasizes the need for improved financial management to enhance investor confidence.

Innovax Holdings Limited Business Overview & Revenue Model

Company Description

Innovax Holdings Limited, an investment holding company, provides financial and securities services in Hong Kong. It offers corporate finance advisory services, such as IPO sponsorship, financial and independent financial advisory, and compliance advisory services; and securities dealing and brokerage services. The company also provides securities financing services, including margin financing for purchasing securities on the secondary market, as well as IPO financing for subscribing shares offered under public tranche of IPOs; and asset management services comprising fund and discretionary account management services, as well as future dealing and money lending services. In addition, it acts as a placing or sub-placing agent for the issue of new shares by listed companies; and global coordinator or bookrunner or lead manager or underwriter for IPOs of listing applicants. The company was founded in 2014 and is headquartered in Wan Chai, Hong Kong. Innovax Holdings Limited is a subsidiary of Billion Shine International Investment Limited.

How the Company Makes Money

Innovax Holdings Limited generates revenue through multiple streams within the financial services industry. Its corporate finance advisory services involve assisting companies in fundraising activities, mergers and acquisitions, and other strategic financial decisions, earning fees and commissions in return. The placing and underwriting segment involves helping companies issue new stocks or bonds to the market, with the company earning underwriting fees. In its securities dealing and brokerage operations, Innovax makes money through commissions on trades executed on behalf of its clients. Additionally, the asset management division generates income through management and performance fees from managing investment portfolios for clients. These diverse revenue streams are bolstered by any strategic partnerships or collaborations with other financial institutions, which can enhance service offerings and broaden market reach.

Innovax Holdings Limited Financial Statement Overview

Summary

Innovax Holdings Limited exhibits a mixed financial performance. Strong revenue growth and a solid equity position are overshadowed by ongoing profitability issues and inconsistent cash flow generation. Low leverage suggests financial stability, but improvements are needed in operational efficiency and cash flow management.

Income Statement

The income statement reveals a volatile performance over the years. The Gross Profit Margin for 2025 was approximately 88.3%, indicating strong cost control, but the consistently negative Net Income and EBIT margins highlight operational inefficiencies. Revenue growth was substantial in 2025, driven by a significant increase in total revenue, yet the underlying profitability remains a concern due to negative EBIT and net income figures.

Balance Sheet

The balance sheet shows a solid equity base, with a Debt-to-Equity ratio of 0.007 in 2025, indicating very low leverage. The company's Equity Ratio of 52.9% suggests a healthy proportion of equity financing relative to total assets. However, the Return on Equity (ROE) is negative, reflecting the ongoing profitability challenges.

Cash Flow

Cash flow analysis indicates challenges in generating consistent cash from operations. The Operating Cash Flow was negative in 2025, but past years showed variability with some positive cash flow periods. The Free Cash Flow to Net Income Ratio is negative, reflecting the difficulty in converting earnings into cash flow. The company needs to stabilize its cash flow generation to improve financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.33M	158.02M	32.68M	45.24M	34.86M	83.95M
Gross Profit	92.54M	139.53M	8.71M	45.24M	34.86M	83.95M
EBITDA	-33.90M	-33.90M	3.37M	-3.49M	-4.34M	4.06M
Net Income	-35.29M	-35.29M	1.77M	-6.58M	-22.52M	2.38M
Balance Sheet
Total Assets	353.03M	353.03M	283.60M	307.62M	303.34M	408.03M
Cash, Cash Equivalents and Short-Term Investments	141.35M	141.35M	181.54M	129.98M	101.14M	125.80M
Total Debt	1.26M	1.26M	330.00K	1.83M	721.00K	3.02M
Total Liabilities	166.15M	166.15M	73.11M	98.90M	94.78M	176.96M
Stockholders Equity	186.87M	186.87M	210.49M	208.71M	208.55M	231.07M
Cash Flow
Free Cash Flow	-29.96M	-29.32M	22.73M	29.72M	-6.90M	-27.36M
Operating Cash Flow	-26.31M	-29.32M	22.73M	30.05M	-6.89M	-27.35M
Investing Cash Flow	1.78M	4.07M	3.44M	426.00K	-12.00K	169.00K
Financing Cash Flow	10.43M	10.43M	-1.54M	-1.91M	-2.36M	-2.09M

Innovax Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.75
• 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:2680, the sentiment is Positive. The current price of 4.75 is above the 20-day moving average (MA) of 4.68, above the 50-day MA of 4.12, and above the 200-day MA of 2.13, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 61.35 is Neutral, neither overbought nor oversold. The STOCH value of 71.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2680.

Innovax Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.80B	11.94	9.89%	3.74%	9.69%	1.17%
2680	58 Neutral	HK$278.40M	―	-17.76%	―	185.46%	-1997.94%
CFLSF	―	$26.29M	―	-13.85%	―	―	―
TJV	―		―		―	―	―
8350	56 Neutral	HK$182.40M	10.61	47.28%	―	55.42%	159.42%
8098	43 Neutral	HK$96.80M	5.19	-1.47%	―	0.25%	78.57%
0821	37 Underperform	HK$143.46M	―	-28.22%	―	―	48.54%

Innovax Holdings Limited Corporate Events

Innovax Holdings Announces Further Disposal of Hope Life Shares

Innovax Holdings Limited has announced a further disposal of listed securities, specifically 9,920,000 Hope Life Shares, for approximately HK$8.51 million. This transaction, which took place between June 25 and June 27, 2025, is classified as a discloseable transaction under the Hong Kong Listing Rules due to its size relative to the company’s previous transactions. The disposal reduces Innovax’s holdings in Hope Life from 1.38% to 0.85% of the total issued share capital. The sale was conducted on the open market, and the identities of the purchasers remain unknown, although they are considered independent third parties.

Innovax Holdings Limited Announces 2025 Annual General Meeting

Innovax Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for August 8, 2025, in Hong Kong. The AGM will address several key resolutions, including the adoption of financial statements, re-election of directors, and the re-appointment of BDO Limited as the company’s auditor. Additionally, the meeting will consider resolutions to authorize the board to allot and issue shares and to buy back shares, which could impact the company’s capital structure and shareholder value.

Innovax Holdings Announces Further Disposal of Hope Life Shares

Innovax Holdings Limited announced a further disposal of 9,824,000 shares of Hope Life, a company involved in construction and ancillary services, for approximately HK$8.49 million. This transaction is classified as a discloseable transaction under Hong Kong’s Listing Rules, impacting Innovax’s shareholding in Hope Life and reflecting its strategy in managing investment portfolios.

Innovax Holdings Reports Revenue Surge but Faces Annual Loss

Innovax Holdings Limited reported its annual financial results for the year ended 28 February 2025, showing a significant increase in total revenue to HK$167.7 million from HK$32.7 million in the previous year. Despite the revenue growth, the company faced a comprehensive loss of HK$35.3 million, a stark contrast to the profit of HK$1.8 million reported in 2024, indicating challenges in managing operating expenses and other losses.

Innovax Holdings Issues Profit Warning Amid Financial Asset Losses

Innovax Holdings Limited has issued a profit warning, indicating an expected loss of between HK$32 million and HK$37 million for the fiscal year ending February 28, 2025. This anticipated downturn from a previous profit of HK$1.8 million is primarily due to net unrealized and realized losses on financial assets at fair value through profit or loss. The company is still finalizing its financial statements, and actual results may vary, urging shareholders and potential investors to exercise caution.

Innovax Holdings Disposes Hope Life Shares for HK$7.85 Million

Innovax Holdings Limited has announced the disposal of 18,000,000 shares of Hope Life, a company engaged in construction and ancillary services, on the open market for approximately HK$7.85 million. This transaction allows Innovax to realize its investment and reallocate financial resources for other opportunities, resulting in a gain of approximately HK$4.88 million, which will be used as general working capital.

Innovax Holdings Schedules Board Meeting for Annual Results Approval

Innovax Holdings Limited has announced a board meeting scheduled for May 30, 2025, to approve the company’s annual results for the year ending February 28, 2025. The meeting will also consider the declaration of a final dividend and other business matters, potentially impacting stakeholders and the company’s financial positioning.