HG Semiconductor Limited (6908) AI Stock Analysis

• Market Cap: HK$525.74M
• Dividend Yield: N/A
• Average Volume (3M): 6.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.70
• Revenue Growth: -3.87%
• EPS Growth: 1.11%
• Country: HK
• Employees: 161
• Sector: Industrials
• Sector Strength: 73
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.08
• Shares Outstanding: 938,818,500
• 10 Day Avg. Volume: 5,693,006
• 30 Day Avg. Volume: 6,388,968
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: -10.71% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• Price Target: HK$0.50 ▼(-10.71% Downside)

HG Semiconductor Limited's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative cash flows. The technical analysis indicates weak market momentum, and the valuation is unattractive due to a negative P/E ratio and no dividend yield. These factors collectively result in a low stock score, highlighting significant risks and challenges for potential investors.

HG Semiconductor Limited Business Overview & Revenue Model

Company Description

HG 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 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, persistent losses, and negative cash flows. Despite a low debt-to-equity ratio indicating some financial stability, the company's profitability and cash management issues are concerning and require urgent attention.

Income Statement

HG Semiconductor Limited has shown a declining revenue trend over the years, with total revenue decreasing significantly from 2019. The company has been operating at a loss with negative EBIT and net income margins, indicating profitability challenges. The gross profit margin has also been decreasing, reflecting cost pressures or inefficiencies. Overall, the income statement reflects poor financial health with ongoing profitability issues.

Balance Sheet

The company's financial leverage appears to be manageable with a low debt-to-equity ratio, indicating limited reliance on debt. However, the return on equity is negative due to consistent losses, which is a concern. The equity ratio remains strong, suggesting that the company has a cushion of equity to absorb potential losses. Despite some stability in the balance sheet, profitability remains a major concern.

Cash Flow

HG Semiconductor Limited has consistently reported negative free cash flow, highlighting cash management challenges. The operating cash flow to net income ratio indicates inefficiencies in converting net income to cash flow, compounded by negative net income. The company also reports negative free cash flow to net income ratio, pointing to unsustainable cash flow operations. This weak cash flow performance significantly impacts the company's ability to reinvest and sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.95M	75.28M	88.60M	87.52M	126.14M	122.00M
Gross Profit	8.21M	7.79M	8.53M	16.43M	25.51M	26.37M
EBITDA	-102.73M	-160.73M	-82.45M	-86.29M	-437.65M	14.24M
Net Income	-155.85M	-156.82M	-150.72M	-101.29M	-446.83M	4.56M
Balance Sheet
Total Assets	697.08M	629.61M	764.89M	718.31M	665.87M	220.57M
Cash, Cash Equivalents and Short-Term Investments	56.29M	43.41M	83.73M	77.69M	139.02M	11.40M
Total Debt	16.06M	16.65M	16.66M	59.85M	31.52M	15.15M
Total Liabilities	36.30M	51.83M	44.28M	108.36M	56.53M	48.42M
Stockholders Equity	597.56M	540.84M	683.73M	593.75M	609.34M	172.16M
Cash Flow
Free Cash Flow	-102.26M	-83.27M	-131.83M	-164.44M	-69.22M	-30.07M
Operating Cash Flow	-33.45M	-69.67M	-23.19M	-94.84M	-59.94M	-21.86M
Investing Cash Flow	4.13M	7.57M	-108.57M	-53.70M	-217.41M	3.05M
Financing Cash Flow	-658.00K	21.47M	82.16M	75.54M	385.81M	-2.49M

HG Semiconductor Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.56
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.56 is below the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.57, and below the 200-day MA of 0.56, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.60 is Neutral, neither overbought nor oversold. The STOCH value of 23.26 is Neutral, 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	74 Outperform	HK$2.32B	5.52	22.34%	4.98%	18.32%	14.06%
Sector *	64 Neutral	$10.75B	15.57	7.24%	2.01%	2.80%	-14.32%
1710	54 Neutral	HK$204.00M	10.36	5.04%	5.50%	4.01%	―
1539	52 Neutral	HK$1.19B	33.17	13.78%	―	69.91%	188.89%
1399	46 Neutral	HK$204.92M	4.70	-2.96%	―	-11.18%	-180.05%
8328	46 Neutral	HK$534.16M	7.87	-18.92%	―	-28.40%	-350.00%
6908	40 Underperform	HK$525.74M	―	-29.34%	―	-3.87%	1.11%

HG Semiconductor Limited Corporate Events

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.

HG Semiconductor Announces EGM to Refresh Share Award Scheme Limits

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

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

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

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

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.

HG Semiconductor Limited Passes Key Resolutions at 2025 AGM

HG Semiconductor Limited held its 2025 Annual General Meeting on May 28, 2025, where all proposed resolutions, except one that was withdrawn, were passed unanimously. The resolutions included re-electing directors, authorizing the board to fix remuneration, and granting mandates for share issuance and repurchase, indicating strong shareholder support and strategic flexibility for the company.

HG Semiconductor Announces Auditor Retirement and Search for Successor

HG Semiconductor Limited announced the retirement of BDO Limited as its auditors, effective after the upcoming annual general meeting on May 28, 2025, due to an inability to agree on the audit fee for the financial year ending December 31, 2025. The company assured stakeholders that there is no disagreement with BDO and will seek suitable auditors to fill the vacancy, maintaining stability in its operations and compliance with listing rules.