Innovax Holdings Limited (2680) AI Stock Analysis

• Market Cap: HK$691.20M
• Dividend Yield: N/A
• Average Volume (3M): 351.74K
• Price to Earnings (P/E): 117.6
• Beta (1Y): -0.28
• Revenue Growth: -22.46%
• EPS Growth: N/A
• Country: HK
• Employees: 36
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 60,000,000
• 10 Day Avg. Volume: 984,490
• 30 Day Avg. Volume: 351,740
• PEG Ratio: <0.01
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.42
• P/FCF Ratio: -2.24
• 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: 57 Neutral
• Price Target: HK$12.00 ▲(20.36% Upside)

The score is driven primarily by mixed financial performance (low leverage and revenue growth, but ongoing losses and weak operating cash flow). Technicals are supportive with strong uptrend and positive momentum, while valuation is a key headwind due to the very high P/E and no stated dividend yield.

Positive Factors

Very low leverage / solid equity base

Extremely low debt and a healthy equity ratio provide durable financial flexibility. This reduces interest burden, supports investment in R&D or M&A without stressing solvency, and increases resilience during downturns, enabling longer runway to achieve sustainable profitability.

Very high gross margin indicating cost control

A gross margin near 88% suggests strong unit economics and tight cost control, typical of software/SaaS-like businesses. If management sustains revenue growth, high gross margins enable operating leverage, funding for product investment, and faster path to positive operating profit long term.

Diversified, recurring revenue mix (software, subscriptions, consulting)

Multiple revenue streams including subscription and SaaS elements provide recurring income and cross-sell opportunities. This structural mix supports more predictable cash flows over months, improves customer stickiness, and allows scalable margins as SaaS adoption grows across telecom and fintech clients.

Negative Factors

Negative operating cash flow and weak cash conversion

Negative operating cash flow signals the business struggles to convert revenues into cash, forcing reliance on financing or equity to fund operations. Over months this constrains capital allocation, limits ability to invest in growth initiatives, and raises execution risk until cash generation stabilizes.

Persistent negative EBIT and net income margins

Ongoing negative EBIT and net margins indicate the company has yet to reach operating profitability despite revenue scale. This structural profitability gap pressures retained earnings and limits reinvestment capacity, making sustained margin improvement essential for long-term viability.

Recent volatile/declining revenue growth

Material negative revenue growth in the reported period reflects top-line volatility that undermines leverage from high gross margins. Persistent or recurring declines complicate the path to break-even, weaken investor and customer confidence, and increase uncertainty around scaling operating profitability.

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 key streams. The primary source of income comes from its technology solutions, including software licensing and subscription services, tailored to meet the needs of businesses in the telecommunications and financial sectors. Additionally, the company earns revenue from consulting services, where it provides expertise in implementing technology solutions and optimizing business processes. Strategic partnerships with other technology firms and service providers further enhance its market reach and revenue potential, allowing Innovax to expand its customer base and enhance service offerings. Moreover, Innovax may also benefit from recurring revenue models, particularly in software as a service (SaaS) arrangements, which provide ongoing income as clients renew their subscription agreements.

Innovax Holdings Limited Financial Statement Overview

Summary

Mixed fundamentals: strong revenue growth and very low leverage support stability, but persistent negative EBIT/net income and negative operating cash flow in 2025 point to weak profitability and cash generation.

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: Neutral
• Last Price: 9.97
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2680, the sentiment is Neutral. The current price of 9.97 is below the 20-day moving average (MA) of 12.76, below the 50-day MA of 11.63, and above the 200-day MA of 6.53, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 14.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8350	67 Neutral	HK$350.40M	20.39	47.28%	―	55.42%	159.42%
2680	57 Neutral	HK$691.20M	117.55	2.99%	―	-22.46%	―
8098	47 Neutral	HK$96.80M	-4.89	-10.11%	―	-3.21%	-184.91%
0510	46 Neutral	HK$314.76M	-10.66	-13.85%	―	51.58%	69.53%
0821	42 Neutral	HK$113.61M	-0.86	-28.22%	―	―	48.53%

Innovax Holdings Limited Corporate Events

Innovax Updates Investors on Pending Mandatory Cash Offer and Regulatory Approvals

Innovax Holdings Limited and controlling shareholder-to-be Wang Tingfa have issued a further monthly update on the proposed unconditional mandatory cash offer for all Innovax shares not already owned by Wang and his concert parties, which is tied to completion of a sale and purchase agreement and a connected disposal transaction. The offer remains contingent on regulatory approvals, notably the SFC’s consent for Wang or other parties to become substantial shareholders of the group’s regulated entities, and although the relevant SFC applications were filed in late October 2025, the parties are still responding to regulator requisitions and none of the conditions has yet been satisfied or waived, meaning the offer may or may not proceed; shareholders are advised to await the forthcoming composite offer document and independent advice before taking any action.

The most recent analyst rating on (HK:2680) stock is a Hold with a HK$14.00 price target. To see the full list of analyst forecasts on Innovax Holdings Limited stock, see the HK:2680 Stock Forecast page.

Innovax Updates Market on Progress of Possible Mandatory Cash Offer and Connected Disposal

Innovax Holdings Limited and its prospective acquirer, Mr. Wang Tingfa, have issued a monthly update on a possible unconditional mandatory cash offer for all Innovax shares not already owned by Wang and his concert parties, with AFG Securities Limited acting on Wang’s behalf. The transaction remains subject to completion of a sale and purchase agreement and regulatory approval from the Hong Kong SFC for Wang to become a substantial shareholder of each regulated group company, with the offer to proceed only if these conditions are met. Wang has submitted the substantial shareholder applications to the SFC and is responding to its requisitions, while no other material developments occurred during the month. Separately, Innovax’s independent shareholders have approved a disposal agreement treated as a connected transaction and special deal, thereby satisfying key conditions tied to that disposal, and the regulator has conditionally consented to the special deal. The company and the offeror plan to combine the offer document and offeree circular into a single composite document and will continue issuing monthly updates on the status and progress of the potential offer and related sale and purchase agreement.

The most recent analyst rating on (HK:2680) stock is a Hold with a HK$11.50 price target. To see the full list of analyst forecasts on Innovax Holdings Limited stock, see the HK:2680 Stock Forecast page.

Innovax Holdings Approves Strategic Disposal at EGM

Innovax Holdings Limited announced the successful passing of a resolution at its Extraordinary General Meeting held on December 5, 2025. The resolution involved the approval of a Disposal Agreement for the sale of Innovax Credit Limited and Innovax Management Limited to Maine Sky Limited for HK$58.2 million. This transaction, which was approved by the shareholders through a poll, signifies a strategic move by Innovax Holdings to streamline its operations and potentially reallocate resources, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:2680) stock is a Hold with a HK$11.50 price target. To see the full list of analyst forecasts on Innovax Holdings Limited stock, see the HK:2680 Stock Forecast page.

Innovax Holdings Faces Potential Takeover with Unconditional Cash Offer

Innovax Holdings Limited has announced a potential unconditional mandatory cash offer by AFG Securities Limited on behalf of Mr. Wang Tingfa to acquire all issued shares of the company not already owned by the offeror. The offer is contingent on the completion of certain conditions, including regulatory approvals. The company has dispatched a circular to shareholders detailing the disposal agreement and related recommendations, with an extraordinary general meeting scheduled for December 5, 2025. The outcome of this offer could significantly impact Innovax Holdings’ market positioning and shareholder structure.

The most recent analyst rating on (HK:2680) stock is a Hold with a HK$11.50 price target. To see the full list of analyst forecasts on Innovax Holdings Limited stock, see the HK:2680 Stock Forecast page.

Innovax Holdings Announces EGM to Approve Strategic Disposal

Innovax Holdings Limited has announced an extraordinary general meeting to be held on December 5, 2025, to discuss the approval of a Disposal Agreement. This agreement involves the sale of the entire issued share capital of Innovax Credit Limited and Innovax Management Limited to Maine Sky Limited for HK$58.2 million. This strategic move could impact Innovax’s operational focus and financial structure, potentially affecting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:2680) stock is a Hold with a HK$12.50 price target. To see the full list of analyst forecasts on Innovax Holdings Limited stock, see the HK:2680 Stock Forecast page.

Innovax Holdings Announces Circular Despatch for Disposal Transaction

Innovax Holdings Limited, a company incorporated in the Cayman Islands, has announced the despatch of a circular to its shareholders regarding a connected and discloseable transaction involving the disposal of Innovax Credit and Innovax Management. The circular includes details of the Disposal Agreement, recommendations from the Independent Board Committee, and advice from the Independent Financial Adviser. Shareholders are advised to review these documents before voting on the resolution to approve the Disposal Agreement and related transactions.

The most recent analyst rating on (HK:2680) stock is a Hold with a HK$12.50 price target. To see the full list of analyst forecasts on Innovax Holdings Limited stock, see the HK:2680 Stock Forecast page.

Innovax Holdings Announces Delay in Document Dispatch for Cash Offer

Innovax Holdings Limited has announced a delay in the dispatch of both a circular and a composite document related to a possible unconditional mandatory cash offer by AFG Securities Limited on behalf of Mr. Wang Tingfa. The delay is due to the need for additional time to finalize information and obtain necessary approvals from the SFC for the Offeror to become a substantial shareholder. The company has applied for an extension to meet regulatory requirements, with the Executive indicating a willingness to grant consent for this extension. Stakeholders are advised to await further announcements for updates on the offer’s progress.

The most recent analyst rating on (HK:2680) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on Innovax Holdings Limited stock, see the HK:2680 Stock Forecast page.