HG Semiconductor Limited (6908) AI Stock Analysis

• Market Cap: HK$460.02M
• Dividend Yield: N/A
• Average Volume (3M): 4.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.59
• Revenue Growth: -3.87%
• EPS Growth: 1.11%
• Country: HK
• Employees: 161
• Sector: Technology
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.08
• Shares Outstanding: 938,818,500
• 10 Day Avg. Volume: 3,077,631
• 30 Day Avg. Volume: 4,570,908
• PEG Ratio: 0.19
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 6.65
• P/FCF Ratio: -6.02
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: HK$0.50 ▲(6.38% Upside)

HG Semiconductor Limited's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative profitability. Technical indicators also reflect bearish momentum, further weighing down the score. The valuation metrics do not provide any positive offset, as the company is currently unprofitable with no dividend yield. These factors collectively result in a low overall stock score.

HG Semiconductor Limited Business Overview & Revenue Model

Company Description

HG Semiconductor Limited (6908) is a technology company specializing in the design, development, and manufacturing of semiconductor solutions. Operating within the electronics sector, the company focuses on innovative products that cater to various markets including consumer electronics, telecommunications, and automotive industries. Core offerings include integrated circuits (ICs), system-on-chip (SoC) solutions, and custom semiconductor designs aimed at enhancing performance and efficiency in electronic devices.

How the Company Makes Money

HG Semiconductor Limited generates revenue primarily through the sale of its semiconductor products, which includes both standard and custom-designed integrated circuits for a diverse range of applications. Key revenue streams involve direct sales to original equipment manufacturers (OEMs) and distributors, as well as licensing agreements for its proprietary technologies. Additionally, the company may benefit from strategic partnerships with other technology firms to co-develop products or access new markets, thus diversifying its income sources. The growing demand for advanced semiconductor solutions in emerging technologies such as 5G, IoT, and automotive electronics further supports its revenue growth.

HG Semiconductor Limited Financial Statement Overview

Summary

HG Semiconductor Limited is facing significant financial challenges, with declining revenues, negative profitability, and cash flow issues. While the company has low leverage, the persistent losses and negative cash flows pose risks to financial stability. Strategic improvements are needed to enhance revenue growth and profitability.

Income Statement

HG Semiconductor Limited has experienced declining revenue with a negative growth rate of -79.7% in the TTM period. The company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin is low at 11.18%, reflecting challenges in cost management or pricing power.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.036, suggesting conservative leverage. However, the return on equity is negative, indicating that the company is not generating returns for shareholders. The equity ratio is stable, but the overall financial health is weakened by persistent losses.

Cash Flow

HG Semiconductor Limited has negative operating cash flow and free cash flow, with a declining trend in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is above 1, suggesting some ability to cover net losses with free cash flow, but overall cash flow health is poor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.09M	75.28M	88.60M	87.52M	126.14M	122.00M
Gross Profit	8.29M	7.79M	8.53M	16.43M	25.51M	26.37M
EBITDA	-139.72M	-160.73M	-82.45M	-86.29M	-437.65M	14.24M
Net Income	-161.87M	-156.82M	-150.72M	-101.29M	-446.83M	4.56M
Balance Sheet
Total Assets	581.34M	629.61M	764.89M	718.31M	665.87M	220.57M
Cash, Cash Equivalents and Short-Term Investments	77.91M	43.41M	83.73M	77.69M	139.02M	11.40M
Total Debt	18.18M	16.65M	16.66M	59.85M	31.52M	15.15M
Total Liabilities	48.41M	51.83M	44.28M	108.36M	56.53M	48.42M
Stockholders Equity	502.69M	540.84M	683.73M	593.75M	609.34M	172.16M
Cash Flow
Free Cash Flow	-82.22M	-83.27M	-131.83M	-164.44M	-69.22M	-30.07M
Operating Cash Flow	-66.68M	-69.67M	-23.19M	-94.84M	-59.94M	-21.86M
Investing Cash Flow	-12.81M	7.57M	-108.57M	-53.70M	-217.41M	3.05M
Financing Cash Flow	104.07M	21.47M	137.16M	75.54M	385.81M	-2.49M

HG Semiconductor Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6908, the sentiment is Negative. The current price of 0.47 is below the 20-day moving average (MA) of 0.52, below the 50-day MA of 0.56, and below the 200-day MA of 0.56, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 32.50 is Neutral, neither overbought nor oversold. The STOCH value of 10.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6908.

HG Semiconductor Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1979	76 Outperform	HK$2.29B	5.45	22.34%	5.50%	18.32%	14.06%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1710	56 Neutral	HK$197.00M	10.00	5.04%	8.41%	4.01%	―
1539	55 Neutral	HK$1.26B	35.10	13.78%	―	69.91%	188.89%
1399	53 Neutral	HK$214.73M	-6.21	-2.96%	―	-11.18%	-180.05%
8328	51 Neutral	HK$534.16M	-2.61	-18.92%	―	-28.40%	-350.00%
6908	40 Underperform	HK$460.02M	-2.12	-29.34%	―	-3.87%	1.11%

HG Semiconductor Limited Corporate Events

HG Semiconductor Reports Increased Loss Despite Higher Gross Profit

HG Semiconductor Limited reported its interim financial results for the six months ending June 30, 2025. The company experienced a 3.5% decrease in revenue compared to the same period in 2024, with revenue totaling approximately RMB33.1 million. Despite the revenue decline, the gross profit increased by 18.2% to RMB3.2 million. However, the company faced a net loss of approximately RMB66.0 million, up from a net loss of RMB57.2 million in the previous period. The loss per share also increased slightly. These results indicate ongoing financial challenges for the company, impacting its market positioning and potentially affecting stakeholder confidence.

The most recent analyst rating on (HK:6908) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on HG Semiconductor Limited stock, see the HK:6908 Stock Forecast page.

HG Semiconductor to Review Interim Results and Dividend Proposal

HG Semiconductor Limited has announced that its board of directors will meet on August 29, 2025, to review and approve the company’s unaudited interim results for the first half of the year ending June 30, 2025. The board will also consider the recommendation of an interim dividend, which could have implications for shareholders and the company’s financial strategy.

The most recent analyst rating on (HK:6908) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on HG Semiconductor Limited stock, see the HK:6908 Stock Forecast page.

HG Semiconductor Secures Unanimous Approval for Key Resolutions at EGM

HG Semiconductor Limited announced the successful passing of all proposed resolutions during its Extraordinary General Meeting held on July 31, 2025. The resolutions included refreshing the Scheme Mandate Limit and the Service Provider Sublimit, as well as the appointment of new auditors, all of which received unanimous approval from shareholders. This outcome reflects strong shareholder support and could enhance the company’s operational flexibility and governance.