Hao Bai International (Cayman) Ltd (8431) AI Stock Analysis

• Market Cap: HK$108.05M
• Dividend Yield: N/A
• Average Volume (3M): 249.63K
• Price to Earnings (P/E): 1.8
• Beta (1Y): 0.56
• Revenue Growth: 156.20%
• EPS Growth: -101.70%
• Country: HK
• Employees: 11
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.03
• Shares Outstanding: 227,465,000
• 10 Day Avg. Volume: 405,530
• 30 Day Avg. Volume: 249,633
• PEG Ratio: -0.13
• Price to Book (P/B): 16.86
• Price to Sales (P/S): 3.88
• P/FCF Ratio: 9.40
• 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: 46 Neutral
• Price Target: HK$0.47 ▲(86.40% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held down primarily by weak financial performance, especially deeply negative margins and ongoing losses despite strong revenue growth. Technicals are supportive with price above major moving averages and positive MACD, but overbought RSI/Stoch temper the outlook. Valuation is also constrained by a negative P/E and lack of dividend yield data.

Positive Factors

Revenue Growth

Sustained near-50% annual revenue growth reflects strong demand or successful contract wins in its engineering and construction niche. Durable top-line expansion supports economies of scale, improves supplier negotiation leverage, and creates a runway to recover margins if management addresses cost structure over the next several quarters.

Cash Generation

Positive operating and free cash flow, despite accounting losses, show the business converts revenue into cash, which is critical for funding operations, servicing debt, and investing in projects without immediate reliance on equity injections. This cash resilience supports survival while margins are being repaired.

Improving Leverage

An improved debt-to-equity ratio to 1.00 signals a more balanced capital structure and reduced refinancing pressure. Combined with positive cash flow, this gives management more flexibility to prioritize deleveraging, fund working capital, or invest in margin-improvement initiatives without immediate liquidity strain.

Negative Factors

Deep Negative Margins

Very large negative margins indicate structural profitability problems—either pricing, cost overruns, or execution issues—undermining long-term viability. Persistent operating losses erode equity, limit reinvestment capacity, and heighten the need for sustained operational fixes or capital support to avoid solvency stress.

Declining Free Cash Flow Growth

Although free cash flow is positive today, a negative growth trend signals weakening cash generation that can curtail the firm's ability to invest, pay down debt, or absorb shocks. Over 2–6 months this trend risks forcing external financing or delaying needed capital expenditures and margin-recovery programs.

Low Equity Ratio & Negative ROE

Negative ROE and a low equity ratio suggest shareholders are not receiving returns and the firm has limited capital buffer. This structural weakness increases vulnerability to project overruns or revenue swings, raising the probability of dilutive funding or restrictive covenant pressures if profitability doesn't improve.

Hao Bai International (Cayman) Ltd Business Overview & Revenue Model

Company Description

Hao Bai International (Cayman) Limited, an investment holding company, engages in the design, procurement, and installation of water circulation systems in Hong Kong and Macau. It operates through Management Contracting Services, Consultancy Services, and Maintenance Services segments. The company's water circulation systems include swimming pools, water fountains, water curtains, etc. It also offers consulting, maintenance, and repair services for water circulation systems. The company was founded in 2006 and is headquartered in Kowloon, Hong Kong. Hao Bai International (Cayman) Limited is a subsidiary of Harmony Asia international Limited.

How the Company Makes Money

Hao Bai International (Cayman) Ltd Financial Statement Overview

Summary

Strong revenue growth (49.86%) is offset by very weak profitability (net margin -78.85% with negative EBIT/EBITDA margins). Leverage has improved (debt-to-equity 1.00), but returns remain negative, and while operating/free cash flow are positive, free cash flow is declining.

Income Statement

The company has shown significant revenue growth of 49.86% in the latest year, indicating strong top-line expansion. However, the net profit margin remains deeply negative at -78.85%, reflecting ongoing profitability challenges. The EBIT and EBITDA margins are also negative, suggesting operational inefficiencies. Despite the revenue growth, the persistent losses highlight the need for improved cost management and operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved to 1.00, indicating a more balanced capital structure compared to previous years. However, the return on equity remains negative, suggesting that the company is not generating sufficient returns on shareholders' investments. The equity ratio is relatively low, which could indicate potential financial instability. Overall, while there is some improvement in leverage, profitability remains a concern.

Cash Flow

The company has achieved positive operating and free cash flow, which is a positive sign. However, the free cash flow growth rate is negative, indicating a decline in cash generation capabilities. The operating cash flow to net income ratio is positive, suggesting that cash flows are more stable than accounting profits. Despite these positives, the overall cash flow position needs strengthening to support long-term sustainability.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	24.50M	21.88M	15.60M	6.46M	26.59M
Gross Profit	8.68M	5.45M	3.49M	1.61M	2.36M
EBITDA	-17.40M	-8.31M	-32.38M	-29.26M	-25.03M
Net Income	-19.32M	-10.73M	-33.21M	-30.43M	-28.93M
Balance Sheet
Total Assets	81.08M	107.17M	84.14M	73.34M	117.60M
Cash, Cash Equivalents and Short-Term Investments	1.82M	170.00K	248.00K	107.00K	438.00K
Total Debt	5.65M	8.61M	7.64M	10.63M	36.77M
Total Liabilities	75.10M	95.78M	83.25M	56.27M	70.10M
Stockholders Equity	5.63M	11.09M	788.00K	17.07M	47.50M
Cash Flow
Free Cash Flow	10.10M	-16.19M	-18.00M	17.41M	-6.23M
Operating Cash Flow	10.10M	-16.19M	-18.00M	17.41M	-6.23M
Investing Cash Flow	-4.21M	233.00K	3.00K	17.45M	-3.94M
Financing Cash Flow	-4.24M	16.81M	18.35M	-27.95M	-12.31M

Hao Bai International (Cayman) Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8431, the sentiment is Positive. The current price of 0.25 is below the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.34, and above the 200-day MA of 0.24, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 62.05 is Neutral, neither overbought nor oversold. The STOCH value of 27.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8431.

Hao Bai International (Cayman) Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8208	53 Neutral	HK$102.24M	-3.98	20.34%	―	11.56%	―
8460	51 Neutral	HK$374.51M	6.24	-1.55%	―	-46.96%	98.17%
8422	49 Neutral	HK$14.16M	-26.25	-16.34%	―	11.29%	-262.50%
8431	46 Neutral	HK$108.05M	1.78	-154.33%	―	156.20%	-101.70%
8516	40 Underperform	HK$48.92M	-5.40	-126.14%	―	-15.62%	-11.50%
8532	40 Underperform	HK$5.77M	-0.62	230.51%	―	-75.80%	-6540.74%