Huabang Technology Holdings Limited (3638) AI Stock Analysis

• Market Cap: HK$474.42M
• Dividend Yield: N/A
• Average Volume (3M): 525.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -52.55%
• EPS Growth: -262.35%
• Country: HK
• Employees: 63
• Sector: Industrials
• Sector Strength: 72
• Industry: Computer Hardware
• EPS (TTM): <0.01
• Shares Outstanding: 77,423,775
• 10 Day Avg. Volume: 616,550
• 30 Day Avg. Volume: 525,985
• PEG Ratio: 0.01
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 1.66
• P/FCF Ratio: -684.38
• 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: 40 Underperform
• Price Target: HK$13.50 ▼(-1.32% 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.

Positive Factors

Business Model Diversification

Huabang's diverse revenue streams, including IT consulting and system integration, provide resilience against sector-specific downturns, supporting long-term stability.

Technological Innovation

By leveraging AI and big data analytics, Huabang positions itself at the forefront of technological innovation, potentially driving future growth and competitive advantage.

Moderate Leverage

Moderate leverage provides financial flexibility, allowing the company to invest in growth opportunities without excessive debt burden.

Negative Factors

Declining Revenue

Persistent revenue decline indicates challenges in market demand or competitive positioning, potentially impacting long-term growth prospects.

Negative Profit Margins

Sustained negative profit margins reflect operational inefficiencies and could hinder the company's ability to reinvest in growth or innovation.

Weak Cash Flow Generation

Weak cash flow generation limits the company's ability to fund operations and strategic initiatives, posing risks to financial health and growth potential.

Huabang Technology Holdings Limited Business Overview & Revenue Model

Company Description

Hunlicar 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 Money

Huabang Technology Holdings Limited generates revenue through multiple key streams, including software licensing, consulting services, and technology integration projects. The company often engages in long-term contracts with clients, which provide stable income over extended periods. Additionally, Huabang may earn revenue from maintenance and support services for its deployed solutions. Strategic partnerships with other technology firms and government agencies also play a crucial role in expanding its market reach and enhancing its service offerings, thereby contributing to its overall earnings.

Huabang Technology Holdings Limited Financial Statement Overview

Summary

Huabang Technology Holdings Limited is facing substantial financial challenges, including declining revenues, negative profitability margins, and weak cash flow generation. The balance sheet shows moderate leverage, but the negative return on equity and cash flow issues pose significant risks to financial stability.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	238.98M	238.98M	357.11M	456.56M	1.70B	2.02B
Gross Profit	91.58M	97.75M	14.20M	-53.84M	-207.02M	44.41M
EBITDA	-54.78M	-48.91M	38.70M	-89.61M	-242.34M	-83.28M
Net Income	-76.09M	-76.09M	14.76M	-127.61M	-241.02M	-93.11M
Balance Sheet
Total Assets	559.69M	559.69M	478.16M	437.89M	514.77M	935.99M
Cash, Cash Equivalents and Short-Term Investments	22.93M	22.93M	67.92M	74.56M	78.16M	94.40M
Total Debt	93.61M	93.61M	132.66M	184.57M	177.37M	346.76M
Total Liabilities	361.56M	361.56M	198.92M	251.60M	220.07M	402.11M
Stockholders Equity	192.91M	192.91M	282.97M	179.94M	285.98M	526.76M
Cash Flow
Free Cash Flow	-580.00K	-580.00K	38.17M	-4.57M	22.83M	-30.07M
Operating Cash Flow	1.57M	1.57M	39.03M	-785.00K	23.28M	-28.96M
Investing Cash Flow	5.04M	5.04M	-19.26M	-10.44M	120.59M	-15.42M
Financing Cash Flow	-52.80M	-52.80M	16.54M	-4.38M	-165.24M	-4.41M

Huabang Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.68
• 50DMA: Positive
• 100DMA: Negative
• 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:3638, the sentiment is Negative. The current price of 13.68 is below the 20-day moving average (MA) of 13.83, above the 50-day MA of 13.62, and above the 200-day MA of 12.16, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 61.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3638.

Huabang Technology Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6939	57 Neutral	HK$389.06M	-12.40	-8.35%	2.94%	2.22%	-434.25%
2436	48 Neutral	HK$4.15B	-356.36	-1.60%	―	32.83%	90.24%
2028	44 Neutral	HK$53.93M	-1.06	-948.40%	―	-20.25%	46.77%
1079	43 Neutral	HK$470.81M	-25.58	-23.45%	―	29.21%	-137.50%
8159	42 Neutral	HK$57.02M	-1.32	-58.39%	―	2.76%	-141.34%
3638	40 Underperform	HK$474.42M	-13.56	-32.47%	―	-52.55%	-262.35%

Huabang Technology Holdings Limited Corporate Events

Hunlicar Clarifies Valuation Basis in Adorable Stake Disposal and FSH Acquisition

Hunlicar Group Limited has issued a supplemental announcement detailing the valuation basis for its deemed disposal of a 45% equity interest in Adorable Golden Limited and the acquisition of a 40% equity interest in Hong Kong Financial Services Holding Limited. The company explains that its valuer adopted the price-to-book (P/B) ratio as the primary valuation metric for Adorable, citing industry practice in the securities brokerage sector and the unreliability of earnings- and revenue-based multiples for loss-making or volatile firms. Given the scarcity of directly comparable small-cap pure brokerages on the Hong Kong market, the peer group was broadened to companies generating more than half of their revenue from SFC Type 1 licensed activities while excluding materially different business models, supporting the company’s assertion that the selected comparables fairly reflect Adorable’s financial position, risk profile and market value for transaction purposes.

The most recent analyst rating on (HK:3638) stock is a Sell with a HK$13.50 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 Reports Decline in Interim Results for 2025

Huabang Technology Holdings Limited has announced its interim results for the six months ending September 30, 2025. The company’s revenue decreased significantly from HK$169,763,000 in 2024 to HK$87,143,000 in 2025, resulting in a reduced gross profit. Despite a gain on bargain purchase of a subsidiary and an increase in other income and gains, the company’s operating profit and profit before income tax both saw declines. The profit attributable to owners of the company also decreased, impacting earnings per share.

The most recent analyst rating on (HK:3638) stock is a Sell with a HK$13.50 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 Reshapes Equity Interests with Strategic Transactions

Huabang Technology Holdings Limited has announced a strategic shift in its equity interests, involving a deemed disposal and an acquisition. The company will reduce its stake in Adorable Golden Limited from 100% to 55% through a subscription agreement, while simultaneously increasing its interest in Hong Kong Financial Services Holding Limited from 30% to 70% through acquisition agreements. These transactions are expected to reshape the company’s subsidiary structure and consolidate financial results, impacting its market positioning and operational strategy.

The most recent analyst rating on (HK:3638) stock is a Sell with a HK$13.50 price target. To see the full list of analyst forecasts on Huabang Technology Holdings Limited stock, see the HK:3638 Stock Forecast page.