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

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
▼(-2.88% 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 (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 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
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 Revenue238.98M238.98M357.11M456.56M1.70B2.02B
Gross Profit91.58M97.75M14.20M-53.84M-207.02M44.41M
EBITDA-54.78M-48.91M38.70M-89.61M-242.34M-83.28M
Net Income-76.09M-76.09M14.76M-127.61M-241.02M-93.11M
Balance Sheet
Total Assets559.69M559.69M478.16M437.89M514.77M935.99M
Cash, Cash Equivalents and Short-Term Investments22.93M22.93M67.92M74.56M78.16M94.40M
Total Debt93.61M93.61M132.66M184.57M177.37M346.76M
Total Liabilities361.56M361.56M198.92M251.60M220.07M402.11M
Stockholders Equity192.91M192.91M282.97M179.94M285.98M526.76M
Cash Flow
Free Cash Flow-580.00K-580.00K38.17M-4.57M22.83M-30.07M
Operating Cash Flow1.57M1.57M39.03M-785.00K23.28M-28.96M
Investing Cash Flow5.04M5.04M-19.26M-10.44M120.59M-15.42M
Financing Cash Flow-52.80M-52.80M16.54M-4.38M-165.24M-4.41M

Huabang Technology Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.90
Price Trends
50DMA
13.84
Positive
100DMA
15.42
Negative
200DMA
11.32
Positive
Market Momentum
MACD
<0.01
Negative
RSI
53.15
Neutral
STOCH
65.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3638, the sentiment is Positive. The current price of 13.9 is above the 20-day moving average (MA) of 13.44, above the 50-day MA of 13.84, and above the 200-day MA of 11.32, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.15 is Neutral, neither overbought nor oversold. The STOCH value of 65.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
57
Neutral
€484.25M-28.29-23.45%29.21%-137.50%
57
Neutral
HK$269.75M-8.60-8.35%2.73%2.22%-434.25%
42
Neutral
HK$59.84M-58.39%2.76%-141.34%
41
Neutral
HK$1.43B-1.60%32.83%90.24%
40
Underperform
HK$464.71M-13.36-32.47%-52.55%-262.35%
40
Underperform
$60.68M-1.19-948.40%-20.25%46.77%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3638
Huabang Technology Holdings Limited
13.90
9.35
205.49%
HK:2028
Jolimark Holdings
0.07
0.02
32.73%
HK:1079
Pine Technology Holdings Limited
0.33
0.29
650.00%
HK:8159
Glory Mark Hi-Tech (Holdings) Ltd
0.09
>-0.01
-2.22%
HK:2436
LX Technology Group Limited
4.06
0.40
10.93%
HK:6939
MEGAIN Holding (Cayman) Co. Ltd.
0.67
0.25
59.52%

Huabang Technology Holdings Limited Corporate Events

Huabang Technology Reports Decline in Interim Results for 2025
Nov 28, 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.

Huabang Technology Reshapes Equity Interests with Strategic Transactions
Nov 28, 2025

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.

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.

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.

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.

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.

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.

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