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HG Semiconductor Limited (HK:6908)
:6908
Hong Kong Market
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HG Semiconductor Limited (6908) AI Stock Analysis

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HK:6908

HG Semiconductor Limited

(6908)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
HK$0.50
▼(-5.66% Downside)
The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and negative profitability. Technical analysis provides a neutral to slightly bearish outlook, while valuation metrics are unattractive due to a negative P/E ratio and no dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

HG Semiconductor Limited (6908) vs. iShares MSCI Hong Kong ETF (EWH)

HG Semiconductor Limited Business Overview & Revenue Model

Company DescriptionHG Semiconductor Limited, an investment holding company, designs, develops, manufactures, and sells light-emitting diode (LED) beads and LED lighting products in the People's Republic of China. It offers candle, flood, bulb, spot, down, oyster, and panel lights, as well as tube and torch. The company also provides subcontracting services. It serves manufacturers of backlight LED modules/panels, LCD panels, and other electronic products. The company was formerly known as HongGuang Lighting Holdings Company Limited and changed its name to HG Semiconductor Limited in September 2021. HG Semiconductor Limited was founded in 2010 and is headquartered in Zhuhai, the People's Republic of China.
How the Company Makes MoneyHG 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.
Income Statement
25
Negative
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
40
Negative
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue74.09M75.28M88.60M87.52M126.14M122.00M
Gross Profit8.29M7.79M8.53M16.43M25.51M26.37M
EBITDA-139.72M-160.73M-82.45M-86.29M-437.65M14.24M
Net Income-161.87M-156.82M-150.72M-101.29M-446.83M4.56M
Balance Sheet
Total Assets581.34M629.61M764.89M718.31M665.87M220.57M
Cash, Cash Equivalents and Short-Term Investments77.91M43.41M83.73M77.69M139.02M11.40M
Total Debt18.18M16.65M16.66M59.85M31.52M15.15M
Total Liabilities48.41M51.83M44.28M108.36M56.53M48.42M
Stockholders Equity502.69M540.84M683.73M593.75M609.34M172.16M
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-12.81M7.57M-108.57M-53.70M-217.41M3.05M
Financing Cash Flow104.07M21.47M137.16M75.54M385.81M-2.49M

HG Semiconductor Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.53
Price Trends
50DMA
0.59
Negative
100DMA
0.56
Negative
200DMA
0.57
Negative
Market Momentum
MACD
-0.01
Positive
RSI
39.82
Neutral
STOCH
15.54
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 0.53 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.59, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.82 is Neutral, neither overbought nor oversold. The STOCH value of 15.54 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$2.25B5.3522.34%5.60%18.32%14.06%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
55
Neutral
HK$1.43B39.9013.78%69.91%188.89%
54
Neutral
HK$201.00M10.205.04%8.96%4.01%
51
Neutral
HK$209.28M4.70-2.96%-11.18%-180.05%
45
Neutral
HK$510.60M7.87-18.92%-28.40%-350.00%
41
Neutral
HK$497.57M-29.34%-3.87%1.11%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6908
HG Semiconductor Limited
0.53
-0.38
-41.76%
HK:1399
Veson Holdings Limited
0.19
0.00
0.00%
HK:1539
Unity Group Holdings International Limited
0.42
-0.04
-8.70%
HK:1710
Trio Industrial Electronics Group Limited
0.20
0.06
42.86%
HK:1979
Ten Pao Group Holdings Limited
2.18
0.81
59.12%
HK:8328
Xinyi Electric Storage Holdings Limited
0.65
-0.54
-45.38%

HG Semiconductor Limited Corporate Events

HG Semiconductor Reports Increased Loss Despite Higher Gross Profit
Aug 29, 2025

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
Aug 21, 2025

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
Jul 31, 2025

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.

HG Semiconductor Announces EGM to Refresh Share Award Scheme Limits
Jul 15, 2025

HG Semiconductor Limited has announced an Extraordinary General Meeting (EGM) to be held on July 31, 2025, to discuss and potentially approve resolutions related to its 2023 Share Award Scheme. The resolutions include refreshing the Scheme Mandate Limit and the Service Provider Sublimit, allowing the company to grant further awards under these schemes. Additionally, CL Partners CPA Limited is proposed to be appointed as the company’s auditors. These measures aim to enhance the company’s operational flexibility and stakeholder engagement.

HG Semiconductor Proposes New Auditor Appointment
Jun 30, 2025

HG Semiconductor Limited has announced the proposed appointment of CL Partners CPA Limited as its new auditors, following the retirement of BDO Limited. The decision, recommended by the company’s audit committee, is based on CL Partners’ competence, resources, and independence, and is considered beneficial for the company and its shareholders.

HG Semiconductor Strengthens Governance with New Nomination Committee Appointment
Jun 30, 2025

HG Semiconductor Limited has announced the appointment of Ms. Liu Wanwen as an additional member of its Nomination Committee, effective June 30, 2025. This move is part of the company’s efforts to strengthen its governance structure, potentially enhancing its strategic decision-making and industry positioning.

HG Semiconductor Announces Board Restructuring and Committee Establishment
Jun 30, 2025

HG Semiconductor Limited has announced changes to its board of directors, effective from June 30, 2025. The board comprises executive directors and independent non-executive directors, with Dr. Xu Zhihong serving as the Chairman. The company has also established various committees, including the Audit, Remuneration, and Nomination Committees, to enhance its governance structure.

HG Semiconductor Limited Establishes Nomination Committee Terms
Jun 30, 2025

HG Semiconductor Limited has announced the terms of reference for its Nomination Committee, which will consist of at least three directors, primarily independent non-executive directors. This committee is tasked with reviewing the board’s structure and composition, identifying qualified board candidates, and making recommendations for appointments and succession planning, thereby potentially impacting the company’s governance and strategic direction.

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 11, 2025