Huabang Technology Holdings Limited (3638) AI Stock Analysis

• Market Cap: HK$419.63M
• Dividend Yield: N/A
• Average Volume (3M): 440.08K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.62
• Revenue Growth: -37.58%
• EPS Growth: N/A
• Country: HK
• Employees: 63
• Sector: Technology
• Sector Strength: 93
• Industry: Computer Hardware
• EPS (TTM): -1.00
• Shares Outstanding: 77,423,775
• 10 Day Avg. Volume: 626,769
• 30 Day Avg. Volume: 440,084
• PEG Ratio: 0.03
• Price to Book (P/B): 3.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.97
• 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

• Rating: 63 Neutral
• Price Target: ―

Huabang Technology Holdings Limited's stock score of 63 reflects a moderate overall performance. The company's financials show improvement in profitability and cash flow, though revenue growth remains a challenge. Technical analysis indicates strong positive momentum, but caution is advised due to overbought RSI levels. Valuation suggests the stock is reasonably priced, albeit with no dividend yield.

Huabang Technology Holdings Limited Business Overview & Revenue Model

Company Description

Huabang Technology Holdings Limited, an investment holding company, engages in the sale of computer and peripheral products in Hong Kong and the People's Republic of China. It operates through two segments, Trading Business, and Financial Services Business. The company assembles and trades in electronic components and products. It also offers brokerage services in securities trading, clearing, IPO subscription, shares custody, and nominee services, as well as shares margin financing for individual and corporate investors; lends money to high net worth corporations or individual borrowers who possess stocks of listed companies or real estate properties; and offers custom-made comprehensive financing plans. In addition, the company is involved in the equity, debt/bond, and mezzanine investments; provision of advisory services; and property holding businesses. The company was formerly known as Huabang Financial Holdings Limited and changed its name to Huabang Technology Holdings Limited in June 2021. The company was incorporated in 2011 and is headquartered in Kowloon Bay, Hong Kong. Huabang Technology Holdings Limited is a subsidiary of Forever Star Capital Limited.

How the Company Makes Money

Huabang Technology Holdings Limited generates revenue through two primary streams: the sale of electronic components and products, and its electronics manufacturing services. The company earns income by manufacturing and trading computer memory chips and other electronic components to various industries. This involves sourcing raw materials, manufacturing the products, and selling them to clients. Additionally, Huabang Technology provides electronics manufacturing services which include product design, prototyping, and assembly, thereby adding value to its offerings and enhancing its revenue potential. Key partnerships with suppliers and clients, alongside efficient supply chain management, contribute significantly to the company's earnings.

Huabang Technology Holdings Limited Financial Statement Overview

Summary

Huabang Technology Holdings Limited has shown signs of recovery and improvement in profitability and cash flow management. Despite negative revenue growth, the company has improved its operational efficiency and reduced leverage. The balance sheet remains stable, but further efforts are needed to enhance revenue generation and maintain equity strength.

Income Statement

The income statement shows a mixed performance with some notable improvements. Gross profit margin remained negative, indicating cost management issues. However, net profit margin improved significantly from the previous year, reflecting a recovery in profitability. EBIT and EBITDA margins also turned positive, indicating improved operational efficiency. Despite these improvements, the revenue growth rate was negative, highlighting challenges in revenue generation.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio improved, showing reduced leverage, which is a positive sign of financial health. Return on equity turned positive, indicating profitability for equity holders. However, the equity ratio decreased, suggesting a lower proportion of equity financing, which could indicate increased reliance on liabilities.

Cash Flow

The cash flow statement highlights a positive shift with a strong free cash flow growth rate, reflecting improved cash management. The operating cash flow to net income ratio indicates a good conversion of income into cash, and free cash flow to net income ratio shows a healthy alignment between profitability and cash generation. Overall, cash flow metrics suggest improved liquidity and cash management.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	357.11M	456.56M	1.70B	2.02B	933.64M
Gross Profit	14.20M	-53.84M	-207.02M	44.41M	60.52M
EBITDA	38.70M	-89.61M	-242.34M	-83.28M	39.92M
Net Income	14.76M	-127.61M	-241.02M	-93.11M	5.61M
Balance Sheet
Total Assets	478.16M	437.89M	514.77M	935.99M	1.06B
Cash, Cash Equivalents and Short-Term Investments	67.92M	74.56M	78.16M	94.40M	128.26M
Total Debt	132.66M	184.57M	177.37M	346.76M	342.75M
Total Liabilities	198.92M	251.60M	220.07M	402.11M	435.01M
Stockholders Equity	282.97M	179.94M	285.98M	526.76M	618.97M
Cash Flow
Free Cash Flow	38.17M	-4.57M	22.83M	-30.07M	-228.99M
Operating Cash Flow	39.03M	-785.00K	23.28M	-28.96M	-228.52M
Investing Cash Flow	-19.26M	-10.44M	120.59M	-15.42M	-11.36M
Financing Cash Flow	16.54M	-4.38M	-165.24M	-4.41M	155.58M

Huabang Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 13.38 is above the 20-day moving average (MA) of 10.01, above the 50-day MA of 9.07, and above the 200-day MA of 5.81, indicating a bullish trend. The MACD of 1.02 indicates Negative momentum. The RSI at 78.95 is Negative, neither overbought nor oversold. The STOCH value of 92.02 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$34.26B	5.42	-11.67%	1.85%	5.30%	-18.55%
3638	63 Neutral	HK$419.63M	15.28	-31.98%	―	-37.58%	―
JLMKF	―	$4.29M	―	-132.74%	―	―	―
PNY	―	€10.03M	0.29	-16.24%	―	―	―
8159	―	HK$63.36M	―	-52.67%	―	―	―
6939	57 Neutral	HK$241.22M	22.28	2.61%	4.37%	-14.89%	-59.44%
2436	45 Neutral	HK$999.72M	―	-7.86%	―	29.97%	53.06%

Huabang Technology Holdings Limited Corporate Events

Talent Virtue International Completes Partial Share Acquisition

Talent Virtue International Limited, formerly known as Huabang Technology Holdings Limited, has announced the closure of a conditional voluntary cash partial offer to acquire shares in Hunlicar Group Limited. The offer, facilitated by Zheshang International Financial Holdings Co., Limited, aimed to acquire a maximum of 19,439,034 shares and received valid acceptances for 21,527,700 shares, representing approximately 27.81% of the total shares issued. The offer was approved by 51.80% of the shareholders not affiliated with the offeror.

Hunlicar Group Announces Executive Changes

Hunlicar Group Limited announced the resignation of Mr. Qu Hongqing as an executive director and authorized representative, effective March 31, 2025, to focus on other commitments. The company expressed gratitude for Mr. Qu’s contributions and appointed Mr. Chan Wing Sum as the new authorized representative, ensuring a smooth transition in leadership.

Huabang Technology Holdings Updates Board Composition and Committee Roles

Huabang Technology Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The board comprises executive directors including the Chairman, Mr. Cheung Lit Wan Kenneth, and the CEO, Mr. Chan Wing Sum, as well as independent non-executive directors. The announcement highlights the structure of four board committees: Audit, Nomination, Remuneration, and Corporate Governance, with specific members assigned to each, indicating a focus on robust governance and oversight.

Talent Virtue’s Partial Offer Becomes Unconditional

Talent Virtue International Limited, formerly known as Huabang Technology Holdings Limited, has announced the fulfillment of the approval condition for a conditional voluntary cash partial offer. The offer, made by Zheshang International Financial Holdings Co., Limited on behalf of Talent Virtue, aims to acquire a maximum of 19,439,034 issued shares of Hunlicar Group Limited. As of the announcement, the offer has received valid approvals for 51.80% of the shares not held by the offeror, making the offer unconditional in all respects. The offer remains open for acceptance and approval until April 7, 2025, with further announcements to be made on the Stock Exchange’s website.

Talent Virtue Announces Dispatch of Composite Document for Partial Offer

Talent Virtue International Limited, formerly known as Huabang Technology Holdings Limited, has announced the dispatch of a Composite Document related to a conditional voluntary cash partial offer. This offer, made by Zheshang International Financial Holdings Co., Limited on behalf of Talent Virtue, aims to acquire up to 19,439,034 issued shares of Hunlicar Group Limited from qualifying shareholders. The document includes terms of the offer, recommendations from the Independent Board Committee, and a valuation report, with the dispatch scheduled for March 12, 2025.

Talent Virtue International Advances with Partial Offer for Hunlicar Group

Talent Virtue International Limited, formerly known as Huabang Technology Holdings Limited, has announced the satisfaction of a pre-condition for a pre-conditional voluntary cash partial offer to acquire shares in Hunlicar Group Limited. The consent from the Executive under Rule 28.1 of the Takeovers Code has been obtained, allowing the Offeror to proceed with the preparation of the Composite Document. However, the completion of the Partial Offer remains subject to further conditions, and stakeholders are advised to exercise caution.

Hunlicar Group Appoints Independent Adviser for Partial Offer

Hunlicar Group Limited has appointed Emperor Corporate Finance Limited as the Independent Financial Adviser to guide the Independent Board Committee on the Partial Offer. This move is aimed at ensuring the fairness and reasonableness of the Partial Offer, with the advice and recommendations to be included in a forthcoming Composite Document for shareholders. Stakeholders are advised to exercise caution and seek professional advice when dealing with shares.

Talent Virtue International Launches Strategic Partial Offer for Hunlicar Group

Talent Virtue International Limited has announced a pre-conditional voluntary cash partial offer through Zheshang International Financial Holdings Co., Limited to acquire up to 25.11% of Hunlicar Group Limited’s issued share capital. This move, contingent on regulatory consent, is a strategic effort to consolidate ownership and potentially enhance the company’s influence within its industry, with implications for shareholder dynamics and market positioning.