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

• Market Cap: HK$8.87M
• Dividend Yield: N/A
• Average Volume (3M): 102.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: 12.02%
• EPS Growth: 91.93%
• Country: HK
• Employees: 11
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): -0.16
• Shares Outstanding: 45,493,000
• 10 Day Avg. Volume: 208,000
• 30 Day Avg. Volume: 102,466
• PEG Ratio: -0.34
• Price to Book (P/B): 8.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.38
• 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

• Rating: 39 Underperform
• Price Target: ―

Hao Bai International is experiencing significant financial and operational difficulties, evidenced by negative profitability metrics, high leverage, and cash flow issues. The technical analysis offers some short-term optimism, but long-term indicators remain negative. Valuation concerns, highlighted by a negative P/E ratio and lack of dividends, further weigh on the stock's attractiveness. The overall score reflects these challenges, underscoring the need for significant improvement in financial health and operational efficiency.

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 makes money by providing end-to-end water circulation system solutions. Its revenue model largely relies on project-based contracts where it charges for the design, procurement, and installation of systems. The company also generates income through ongoing maintenance services which ensure the longevity and efficiency of installed systems. Key revenue streams include commercial projects for hotels, resorts, and entertainment complexes, as well as residential projects. Significant partnerships with construction companies and property developers further contribute to its earnings, facilitating access to large-scale projects and new business opportunities.

Hao Bai International (Cayman) Ltd Financial Statement Overview

Summary

Hao Bai International is facing significant financial challenges characterized by operating losses, high leverage, and negative cash flows. While there are signs of revenue recovery, the company's profitability remains under pressure. The balance sheet shows high reliance on debt, and cash flow problems persist, posing risks to financial stability. Continued efforts are needed to improve operational efficiency and financial resilience.

Income Statement

The company shows inconsistent revenue with significant fluctuations over the years, notably a decline from 2020 to 2022, before a slight recovery in 2023. Gross profit margins have improved slightly but remain low, indicating limited profitability. Net profit margins are negative, reflecting ongoing losses. Both EBIT and EBITDA margins are negative, underscoring operational challenges.

Balance Sheet

The balance sheet indicates high leverage with a debt-to-equity ratio that suggests significant financial risk. Stockholders' equity is low, and the equity ratio has declined over time, which could indicate vulnerability to financial pressures. However, the company has managed to maintain assets, providing some stability.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, highlighting cash management challenges. The company has not been generating sufficient cash from operations to cover its expenses, which could impact future financial health. There is no consistent improvement in free cash flow growth, indicating ongoing cash flow issues.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
16.35M	21.88M	15.60M	6.46M	26.59M	87.11M
	Gross Profit
7.36M	5.45M	3.49M	1.61M	2.36M	7.20M
	EBIT
890.50K	-6.47M	-32.77M	-29.89M	-27.82M	-19.12M
	EBITDA
-274.00K	-8.31M	-32.38M	-29.26M	-25.03M	-16.54M
	Net Income Common Stockholders
-2.95M	-10.73M	-33.21M	-30.43M	-28.93M	-21.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.45M	170.00K	248.00K	107.00K	438.00K	21.05M
	Total Assets
188.01M	107.17M	84.14M	73.34M	117.60M	155.10M
	Total Debt
53.84M	8.61M	7.64M	10.63M	36.77M	43.07M
	Net Debt
30.39M	8.44M	7.39M	10.52M	36.34M	22.02M
	Total Liabilities
89.67M	95.78M	83.25M	56.27M	70.10M	78.67M
	Stockholders Equity
98.34M	11.09M	788.00K	17.07M	47.50M	76.43M
Cash Flow		Free Cash Flow
-29.54M	-16.19M	-18.00M	17.41M	-6.23M	-6.20M
	Operating Cash Flow
-29.54M	-16.19M	-18.00M	17.41M	-6.23M	-6.20M
	Investing Cash Flow
233.00K	233.00K	3.00K	17.45M	-3.94M	6.39M
	Financing Cash Flow
12.79M	16.81M	18.35M	-27.95M	-12.31M	-4.44M

Hao Bai International (Cayman) Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 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:8431, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.26, and below the 200-day MA of 0.32, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 31.69 is Neutral, neither overbought nor oversold. The STOCH value of 24.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
8431	39 Underperform	HK$8.87M	―	-34.57%	―	12.02%	91.93%
CQH3		€106.05M	6.11	-2.79%	5.40%	―	―
41O		S$250.03M	5.03	19.75%	3.42%	―	―
0382	75 Outperform	HK$1.76B	2.55	15.41%	13.79%	9.66%	-8.34%
1587	72 Outperform	HK$394.40M	8.32	9.10%	2.83%	-4.97%	111.21%
1993	45 Neutral	HK$329.93M	―		―	-34.67%	-99.72%