Hao Wen Holdings Ltd. (8019) AI Stock Analysis

• Market Cap: HK$68.72M
• Dividend Yield: N/A
• Average Volume (3M): 44.39K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.76
• Revenue Growth: -13.23%
• EPS Growth: N/A
• Country: HK
• Employees: 10
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): N/A
• Shares Outstanding: 356,072,050
• 10 Day Avg. Volume: 58,930
• 30 Day Avg. Volume: 44,391
• PEG Ratio: 2.55
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 5.89
• P/FCF Ratio: 36.96
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$0.20 ▲(23.13% Upside)

The score is driven primarily by mixed financial performance: a solid balance sheet and improved cash generation are offset by declining revenue and persistent losses. Technical signals are a meaningful drag due to a weak longer-term trend (below key moving averages and negative MACD), while valuation provides a modest offset with a relatively low P/E.

Positive Factors

Strong balance sheet

A high equity ratio and low leverage provide durable financial flexibility, lowering refinancing and solvency risk. This structural strength supports the firm's ability to absorb shocks, fund strategic investments or partnerships, and maintain operations while pursuing a turnaround over several months.

Improved cash generation

Conversion to positive operating and free cash flow signals improved cash collection and cost management, enabling self-funding of working capital and investments. Sustainable cash generation reduces reliance on external financing and supports operational continuity over the medium term.

High gross margin

A very high gross margin indicates the core services (asset management, trading) capture substantial spread or fee economics. This structural margin provides a cushion to absorb SG&A and investment spending, improving prospects for eventual operating leverage if revenue trends stabilize.

Negative Factors

Declining revenue trend

A persistent revenue decline undermines scale economics and fee-based income, making it harder to cover fixed costs and leverage the high gross margin. Continued top-line erosion over several quarters materially increases the challenge of restoring sustainable profitability.

Persistent net losses

Ongoing net losses deplete equity despite a strong starting balance, reducing capital buffers and constraining strategic options. If losses persist, the company may face pressure to cut investments, raise dilutive capital, or restructure—adversely affecting medium-term stability.

Negative operating profitability

Failure to convert high gross profit into positive EBIT/EBITDA points to structural cost or operating inefficiencies. Without durable expense reduction or revenue recovery, margin deficits will continue to impair cash retention and long-term competitiveness in financial services.

Hao Wen Holdings Ltd. Business Overview & Revenue Model

Company Description

Hao Wen Holdings Ltd. (8019) is a diversified investment holding company based in Hong Kong, primarily engaged in the provision of financial services, including asset management, securities trading, and investment in various sectors. The company focuses on identifying growth opportunities in emerging markets and sectors, leveraging its expertise to create value for its stakeholders. Hao Wen Holdings also explores strategic partnerships and investments in technology and innovation-driven businesses, aiming to enhance its portfolio and deliver sustainable returns.

How the Company Makes Money

Hao Wen Holdings generates revenue through multiple streams, primarily from its financial services operations, which include asset management fees, commissions from securities trading, and returns from its investment portfolio. The company charges management fees based on the assets under management (AUM) for its asset management services, while trading commissions are earned from executing buy and sell orders for clients. Additionally, Hao Wen Holdings profits from capital gains and dividends received from its investments in various sectors. Strategic partnerships with other financial institutions and technology firms further enhance its revenue potential by expanding its service offerings and market reach.

Hao Wen Holdings Ltd. Financial Statement Overview

Summary

Mixed fundamentals: strong gross margin and improved operating/free cash flow, supported by low leverage and a high equity ratio. However, revenues are declining and profitability remains negative with negative EBIT/EBITDA and ongoing net losses.

Income Statement

The income statement reveals a challenging financial situation for Hao Wen Holdings Ltd. with declining revenues and negative net income over the years. The gross profit margin for 2024 is approximately 74.2%, which is strong. However, the net profit margin remains negative due to consistent net losses. Notably, the company's revenue decreased by approximately 15.6% from 2023 to 2024, indicating a downward trend. Additionally, negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The balance sheet presents a mixed picture with some strengths. The company has a strong equity base with a high equity ratio of about 78.3% in 2024, showcasing financial stability. The debt-to-equity ratio is approximately 0.21, indicating low leverage, which is positive for the company's financial health. However, consistent net losses have been eroding stockholders' equity over the years, which could pose long-term risks.

Cash Flow

Cash flow analysis shows some positive aspects, such as positive operating cash flow and free cash flow for 2024. There is significant improvement in cash flow from operations, turning positive after being negative in 2023. The operating cash flow to net income ratio is negative due to the net loss, yet the company has managed to generate free cash flow despite challenges. The free cash flow growth rate is significant, reflecting improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.59M	38.58M	45.74M	62.41M	65.67M	52.82M
Gross Profit	10.59M	28.63M	33.30M	38.91M	38.19M	34.57M
EBITDA	0.00	-2.92M	-3.20M	-46.27M	-2.21M	-19.67M
Net Income	5.70M	-8.36M	-9.38M	-52.80M	-9.43M	-25.59M
Balance Sheet
Total Assets	360.39M	370.01M	378.67M	360.64M	360.85M	366.90M
Cash, Cash Equivalents and Short-Term Investments	0.00	61.41M	38.28M	17.41M	29.08M	14.72M
Total Debt	18.73M	60.72M	58.88M	57.48M	48.24M	49.72M
Total Liabilities	86.45M	80.22M	85.94M	65.56M	70.47M	56.55M
Stockholders Equity	273.94M	289.80M	292.73M	295.08M	303.93M	323.73M
Cash Flow
Free Cash Flow	5.56M	6.15M	-690.00K	-19.92M	14.14M	-2.25M
Operating Cash Flow	5.56M	6.15M	-690.00K	-19.92M	23.97M	-2.25M
Investing Cash Flow	972.00K	75.00K	6.00K	64.00K	-20.71M	-2.64M
Financing Cash Flow	-5.56M	-5.56M	-995.00K	18.42M	-5.27M	11.73M

Hao Wen Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8019, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.17, and below the 200-day MA of 0.28, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.82 is Neutral, neither overbought nor oversold. The STOCH value of 94.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8019.

Hao Wen Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8019	54 Neutral	HK$68.72M	10.92	2.03%	―	-13.23%	―
8452	47 Neutral	HK$107.80M	-12.05	-1.99%	―	135.97%	-271.72%
8239	45 Neutral	HK$1.04B	-81.99	-35.17%	―	26.82%	68.75%
0736	44 Neutral	HK$198.77M	-7.23	-4.78%	―	-31.23%	33.60%
0379	42 Neutral	HK$107.99M	-1.42	-21.07%	―	25.64%	-25.07%