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Huabang Technology Holdings Limited (HK:3638)
:3638
Hong Kong Market
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Huabang Technology Holdings Limited (3638) AI Stock Analysis

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HK:3638

Huabang Technology Holdings Limited

(3638)

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Underperform 40 (OpenAI - 4o)
Rating:40Underperform
Price Target:
HK$13.50
▼(-5.53% Downside)
The overall stock score of 40 reflects significant financial challenges, including declining revenues and negative profitability margins. Technical analysis indicates weak momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively contribute to a low stock score.

Huabang Technology Holdings Limited (3638) vs. iShares MSCI Hong Kong ETF (EWH)

Huabang Technology Holdings Limited Business Overview & Revenue Model

Company DescriptionHunlicar Group Ltd. engages in the computer, peripheral products, and financial services business. It operates through the following segments: Computer and Peripheral Products Business, Financial Services Business, and Money Lending Business. The company was founded on February 23, 2011 and is headquartered in Hong Kong.
How the Company Makes MoneyHuabang Technology Holdings Limited generates revenue through several key streams. Primarily, the company earns money by providing technology solutions and services to businesses across different industries, including software development, IT consulting, and system integration. Additionally, the company may generate income from licensing its proprietary technologies and offering maintenance and support services for its products. Strategic partnerships with other technology firms and collaborations with industry players also enhance its market reach and revenue potential. The company may further benefit from government contracts or grants in technology advancement and innovation projects, contributing to its overall earnings.

Huabang Technology Holdings Limited Financial Statement Overview

Summary
Huabang Technology Holdings Limited is facing substantial financial challenges. The company is struggling with declining revenues, negative profitability margins, and weak cash flow generation. While the balance sheet shows moderate leverage, the negative return on equity and cash flow issues pose significant risks to financial stability. The company needs to address its operational inefficiencies and improve profitability to enhance its financial health.
Income Statement
25
Negative
Huabang Technology Holdings Limited has faced significant challenges in its income statement. The company has experienced a consistent decline in revenue over the years, with a notable revenue drop of 27.49% in the most recent year. Gross profit margins have been volatile, with a recent improvement to 40.90%, but net profit margins remain negative at -31.84%, indicating ongoing profitability issues. The negative EBIT and EBITDA margins further highlight operational inefficiencies.
Balance Sheet
40
Negative
The balance sheet shows a moderate debt-to-equity ratio of 0.49, suggesting manageable leverage levels. However, the return on equity is negative at -39.44%, reflecting the company's inability to generate profits from its equity base. The equity ratio stands at 34.46%, indicating a reasonable level of equity financing relative to total assets, but the negative ROE remains a significant concern.
Cash Flow
30
Negative
Cash flow analysis reveals a challenging situation, with a significant decline in free cash flow growth of -101.13% in the latest period. The operating cash flow to net income ratio is very low at 0.48%, indicating weak cash generation relative to net income. The free cash flow to net income ratio is negative, further emphasizing cash flow difficulties.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue329.55M238.98M357.11M456.56M1.70B2.02B
Gross Profit128.53M97.75M14.20M-53.84M-207.02M44.41M
EBITDA77.82M-48.91M38.70M-89.61M-242.34M-83.28M
Net Income48.81M-76.09M14.76M-127.61M-241.02M-93.11M
Balance Sheet
Total Assets491.66M559.69M478.16M437.89M514.77M935.99M
Cash, Cash Equivalents and Short-Term Investments60.48M22.93M67.92M74.56M78.16M94.40M
Total Debt110.22M93.61M132.66M184.57M177.37M346.76M
Total Liabilities212.55M361.56M198.92M251.60M220.07M402.11M
Stockholders Equity280.14M192.91M282.97M179.94M285.98M526.76M
Cash Flow
Free Cash Flow51.13M-580.00K38.17M-4.57M22.83M-30.07M
Operating Cash Flow52.00M1.57M39.03M-785.00K23.28M-28.96M
Investing Cash Flow-18.64M5.04M-19.26M-10.44M120.59M-15.42M
Financing Cash Flow-20.52M-52.80M16.54M-4.38M-165.24M-4.41M

Huabang Technology Holdings Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price14.29
Price Trends
50DMA
16.08
Negative
100DMA
14.29
Negative
200DMA
10.01
Positive
Market Momentum
MACD
-0.54
Negative
RSI
43.88
Neutral
STOCH
70.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3638, the sentiment is Neutral. The current price of 14.29 is below the 20-day moving average (MA) of 14.41, below the 50-day MA of 16.08, and above the 200-day MA of 10.01, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 70.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3638.

Huabang Technology Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$10.79B15.437.44%2.01%2.89%-14.66%
€444.45M-25.97-23.45%29.21%-137.50%
HK$269.75M-8.60-8.35%3.93%2.22%-434.25%
HK$65.47M-52.67%-1.15%-10025.00%
HK$1.44B-1.60%32.83%90.24%
HK$486.21M-13.98-31.98%-33.08%-2532.02%
$53.93M-948.40%-20.25%46.77%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3638
Huabang Technology Holdings Limited
14.29
9.84
221.12%
HK:2028
Jolimark Holdings
0.09
0.02
24.66%
HK:1079
Pine Technology Holdings Limited
0.45
0.39
772.55%
HK:8159
Glory Mark Hi-Tech (Holdings) Ltd
0.09
0.00
0.00%
HK:2436
LX Technology Group Limited
4.08
0.28
7.37%
HK:6939
MEGAIN Holding (Cayman) Co. Ltd.
0.50
-0.08
-13.79%

Huabang Technology Holdings Limited Corporate Events

Hunlicar Group Limited Announces Key Personnel Changes
Oct 10, 2025

Hunlicar Group Limited has announced a change in its key personnel, with Ms. Ma Wing Yee resigning from her roles as company secretary, authorised representative, and process agent, effective October 10, 2025. She will be succeeded by Mr. Yuen Kit Wai, who brings over a decade of experience in legal, compliance, and corporate governance, having previously served in various capacities at Renze Harvest International Limited. This transition is part of the company’s ongoing efforts to strengthen its corporate governance framework.

The most recent analyst rating on (HK:3638) stock is a Hold with a HK$14.50 price target. To see the full list of analyst forecasts on Huabang Technology Holdings Limited stock, see the HK:3638 Stock Forecast page.

Huabang Technology Secures Unanimous Approval at AGM
Sep 25, 2025

Huabang Technology Holdings Limited announced that all proposed resolutions were unanimously approved at their Annual General Meeting held on September 25, 2025. The resolutions included the re-election of directors, authorization of directors’ remuneration, re-appointment of auditors, and granting of mandates related to shares. The approval of these resolutions reflects strong shareholder support and positions the company for continued stability and governance.

The most recent analyst rating on (HK:3638) stock is a Hold with a HK$17.00 price target. To see the full list of analyst forecasts on Huabang Technology Holdings Limited stock, see the HK:3638 Stock Forecast page.

Hunlicar Group Plans Contingency for AGM Amid Weather Concerns
Sep 22, 2025

Hunlicar Group Limited has announced a contingency plan for its Annual General Meeting (AGM) scheduled for 25 September 2025 in Hong Kong, due to potential adverse weather conditions. If severe weather warnings are in effect, the AGM will be postponed to 29 September 2025, with all resolutions and proxy arrangements remaining unchanged. Shareholders are advised to consider weather conditions when deciding to attend.

The most recent analyst rating on (HK:3638) stock is a Hold with a HK$17.00 price target. To see the full list of analyst forecasts on Huabang Technology Holdings Limited stock, see the HK:3638 Stock Forecast page.

Huabang Technology Forms Joint Venture for Tech Consultancy Services
Sep 19, 2025

Huabang Technology Holdings Limited has announced the formation of a joint venture focused on providing consultancy services, particularly in the areas of comprehensive solutions and structural design, compliance advisory, and matching services for clients in sectors like AI, blockchain, and Web 3.0 integration with traditional finance. The joint venture aims to launch its services by early 2026, with a business model generating revenue through advisory, compliance, and matching service fees, potentially enhancing the company’s positioning in the tech consultancy market.

The most recent analyst rating on (HK:3638) stock is a Hold with a HK$17.00 price target. To see the full list of analyst forecasts on Huabang Technology Holdings Limited stock, see the HK:3638 Stock Forecast page.

Huabang Technology Secures Favorable Acquisition in Insurance Sector
Sep 19, 2025

Huabang Technology Holdings Limited has announced a supplemental update regarding its acquisition of 82% of the issued share capital of a target company within the insurance industry. The target company experienced a seasonal decline in revenue and an increase in losses for the first quarter of 2025, attributed to the off-season nature of the insurance sector during the Chinese New Year period. Despite this, the acquisition was negotiated at a favorable discount due to the vendor’s financial difficulties, with the market value of the acquired interest significantly exceeding the consideration paid.

The most recent analyst rating on (HK:3638) stock is a Hold with a HK$17.00 price target. To see the full list of analyst forecasts on Huabang Technology Holdings Limited stock, see the HK:3638 Stock Forecast page.

Hunlicar Group Limited Announces Annual General Meeting and Key Resolutions
Sep 1, 2025

Hunlicar Group Limited has announced its upcoming annual general meeting scheduled for September 25, 2025, in Hong Kong. The meeting will address several key resolutions, including the re-election of directors, the authorization of director remuneration, and the re-appointment of Baker Tilly Hong Kong Limited as auditors. Additionally, a resolution will be considered to empower directors to allot and issue additional shares, with certain conditions, not exceeding 20% of the current shares in issue.

The most recent analyst rating on (HK:3638) stock is a Hold with a HK$17.00 price target. To see the full list of analyst forecasts on Huabang Technology Holdings Limited stock, see the HK:3638 Stock Forecast page.

Hunlicar Group Proposes Amendments to Memorandum and Articles of Association
Aug 26, 2025

Hunlicar Group Limited has announced proposed amendments to its existing memorandum and articles of association to align with the latest regulatory requirements. These changes include updates for core shareholder protection standards, the expanded paperless listing regime, and electronic voting at general meetings, as well as allowing the company to hold repurchased shares in treasury and make other housekeeping amendments.

The most recent analyst rating on (HK:3638) stock is a Hold with a HK$17.00 price target. To see the full list of analyst forecasts on Huabang Technology Holdings Limited stock, see the HK:3638 Stock Forecast page.

Huabang Technology Acquires Majority Stake in CCIG Credit Limited
Aug 20, 2025

Huabang Technology Holdings Limited, through its indirect wholly-owned subsidiary, has entered into a Sale and Purchase Agreement to acquire a 65% interest in CCIG Credit Limited. This acquisition is classified as a discloseable transaction under the Hong Kong Stock Exchange Listing Rules, requiring reporting and announcement but not shareholder approval. The transaction is contingent upon meeting certain conditions, and stakeholders are advised to exercise caution as there is no guarantee of completion.

The most recent analyst rating on (HK:3638) stock is a Hold with a HK$17.00 price target. To see the full list of analyst forecasts on Huabang Technology Holdings Limited stock, see the HK:3638 Stock Forecast page.

Hunlicar Group Forms Joint Venture to Advance AI and Blockchain in Financial Services
Aug 14, 2025

Hunlicar Group Limited has formed a joint venture with AInnovation Technology Group Co., Ltd to create Hunlicar Chainnovation Limited, focusing on financial services, AI, and blockchain applications. The joint venture aims to leverage both companies’ expertise to develop intelligent blockchain applications for the financial sector and promote third-generation internet applications. This collaboration is expected to drive sustainable development through the ‘AI + Financial Services’ model, enhancing the company’s market position and offering new opportunities for stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 24, 2025