Huabang Technology Holdings Limited (3638) AI Stock Analysis

• Market Cap: HK$581.23M
• Dividend Yield: N/A
• Average Volume (3M): 667.23K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.71
• Revenue Growth: -33.08%
• EPS Growth: -2532.02%
• Country: HK
• Employees: 63
• Sector: Technology
• Sector Strength: 92
• Industry: Computer Hardware
• EPS (TTM): -1.02
• Shares Outstanding: 77,423,775
• 10 Day Avg. Volume: 788,005
• 30 Day Avg. Volume: 667,225
• 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

• Rating: 51 Neutral
• Price Target: HK$17.00 ▲(1.43% Upside)

The overall stock score for Huabang Technology Holdings Limited is primarily impacted by its poor financial performance, characterized by declining revenues and negative profitability margins. Despite strong technical indicators suggesting bullish momentum, the negative P/E ratio and lack of dividend yield highlight valuation concerns. The absence of earnings call data and corporate events means these factors did not influence the score.

Huabang Technology Holdings Limited Business Overview & Revenue Model

Company Description

Huabang Technology Holdings Limited (3638) is a technology company primarily engaged in the research, development, and provision of innovative technology solutions and products. The company operates in various sectors including information technology, telecommunications, and digital services. Huabang focuses on delivering advanced technological solutions that enhance operational efficiency and connectivity for its clients, leveraging cutting-edge technologies such as artificial intelligence and big data analytics.

How the Company Makes Money

Huabang 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

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	329.55M	238.98M	357.11M	456.56M	1.70B	2.02B
Gross Profit	128.53M	97.75M	14.20M	-53.84M	-207.02M	44.41M
EBITDA	77.82M	-48.91M	38.70M	-89.61M	-242.34M	-83.28M
Net Income	48.81M	-76.09M	14.76M	-127.61M	-241.02M	-93.11M
Balance Sheet
Total Assets	491.66M	559.69M	478.16M	437.89M	514.77M	935.99M
Cash, Cash Equivalents and Short-Term Investments	60.48M	22.93M	67.92M	74.56M	78.16M	94.40M
Total Debt	110.22M	93.61M	132.66M	184.57M	177.37M	346.76M
Total Liabilities	212.55M	361.56M	198.92M	251.60M	220.07M	402.11M
Stockholders Equity	280.14M	192.91M	282.97M	179.94M	285.98M	526.76M
Cash Flow
Free Cash Flow	51.13M	-580.00K	38.17M	-4.57M	22.83M	-30.07M
Operating Cash Flow	52.00M	1.57M	39.03M	-785.00K	23.28M	-28.96M
Investing Cash Flow	-18.64M	5.04M	-19.26M	-10.44M	120.59M	-15.42M
Financing Cash Flow	-20.52M	-52.80M	16.54M	-4.38M	-165.24M	-4.41M

Huabang Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 16.76 is above the 20-day moving average (MA) of 14.40, above the 50-day MA of 11.09, and above the 200-day MA of 6.55, indicating a bullish trend. The MACD of 1.88 indicates Negative momentum. The RSI at 73.16 is Negative, neither overbought nor oversold. The STOCH value of 78.96 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1079	57 Neutral	HK$181.76M	1.48	-16.24%	―	―	―
Sector *	57 Neutral	HK$14.02B	9.47	-2.83%	4.86%	9.29%	-48.65%
6939	52 Neutral	HK$243.81M	23.27	2.61%	4.37%	-14.89%	-59.44%
3638	51 Neutral	HK$581.23M	15.28	-31.98%	―	-33.08%	-2532.02%
2436	51 Neutral	HK$1.00B	―	-7.86%	―	29.97%	53.06%
2028	39 Underperform	HK$30.64M	―	-132.74%	―	-28.11%	25.96%

Huabang Technology Holdings Limited Corporate Events

Hunlicar Group Clarifies Member Register Closure for AGM

Hunlicar Group Limited has announced a clarification regarding the closure period of its register of members for the upcoming annual general meeting. The register will be closed from September 22 to September 25, 2025, during which no share transfers will be registered. Shareholders must submit transfer documents by September 19, 2025, to qualify for participation and voting. This announcement ensures transparency and proper shareholder engagement in the company’s governance processes.

Hunlicar Group Limited Reports Annual Loss Amid Revenue Decline

Hunlicar Group Limited announced its annual results for the year ended March 31, 2025, revealing a significant decline in revenue from HK$357.1 million to HK$238.9 million compared to the previous year. The company reported a gross profit increase to HK$97.7 million, but faced an operating loss of HK$62.9 million, largely due to increased general and administrative expenses and impairments. The overall loss for the year was HK$73.8 million, highlighting challenges in cost management and asset valuation.

Hunlicar Group Limited Announces Key Leadership Change

Hunlicar Group Limited has announced a change in its company secretary, authorized representative, and process agent. Ms. Yan Hoi Ling Jovian has resigned from these roles, effective June 30, 2025, and Ms. Ma Wing Yee has been appointed as her successor. Ms. Ma brings over 10 years of experience in corporate governance and company secretarial practice, enhancing the company’s operational capabilities.

Hunlicar Group Issues Profit Warning for 2025

Hunlicar Group Limited has issued a profit warning, indicating an expected loss of approximately HK$73 million to HK$77 million for the year ending March 31, 2025, compared to a profit of HK$11 million the previous year. This anticipated loss is primarily due to a change in the fair value of assets and an impairment loss related to goodwill and intangible assets. The financial figures are based on preliminary assessments and have not been audited, with the final results to be published as per regulatory requirements.

Hunlicar Group Limited Schedules Board Meeting to Approve Annual Results

Hunlicar Group Limited has announced a board meeting scheduled for June 30, 2025, to discuss and approve the annual consolidated final results for the year ending March 31, 2025. The meeting will also consider the recommendation for a final dividend payment, which could impact shareholder returns and the company’s financial strategy.

Huabang Technology Acquires Majority Stake in Target Company

Huabang Technology Holdings Limited has announced a discloseable transaction involving the acquisition of 82% of the share capital of a target company, making it a wholly-owned subsidiary. The acquisition, valued at HK$1,400,000, will be settled in cash and is subject to certain conditions. This move is expected to consolidate the target company’s results into Huabang’s financial statements, potentially impacting its market position and financial performance.

Huabang Technology Enters Strategic AI Partnership

Huabang Technology Holdings Limited has entered into a strategic cooperation agreement with AInnovation Technology Group Co., Ltd and Dingding (China) Information Technology Co., Ltd. The collaboration focuses on leveraging AI and digital transformation technologies to enhance financial services. This partnership aims to innovate in AI large models, intelligent asset management, and collaborative platform technologies, driving the digital and intelligent transformation of the financial industry. The agreement emphasizes mutual benefit and aims to create a sustainable development model through shared technological complementarity and ecosystem synergy.