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

• Market Cap: HK$10.24M
• Dividend Yield: N/A
• Average Volume (3M): 105.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: 12.02%
• EPS Growth: 91.93%
• Country: HK
• Employees: 11
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): -0.33
• Shares Outstanding: 45,493,000
• 10 Day Avg. Volume: 14,800
• 30 Day Avg. Volume: 105,266
• PEG Ratio: -0.33
• Price to Book (P/B): 7.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.37
• 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) Ltd (8431) is a Hong Kong-based company primarily engaged in the design, procurement, and installation of water circulation systems such as swimming pools, water fountains, and water curtains. The company serves both commercial and residential clients, providing comprehensive solutions that include project management and maintenance services. Its operations are mainly concentrated in the Hong Kong and Macau markets.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	21.88M	15.60M	6.46M	26.59M	87.11M
Gross Profit	5.45M	3.49M	1.61M	2.36M	7.20M
EBITDA	-8.31M	-32.38M	-29.26M	-25.03M	-16.54M
Net Income	-10.73M	-33.21M	-30.43M	-28.93M	-21.91M
Balance Sheet
Total Assets	107.17M	84.14M	73.34M	117.60M	155.10M
Cash, Cash Equivalents and Short-Term Investments	170.00K	248.00K	107.00K	438.00K	21.05M
Total Debt	8.61M	7.64M	10.63M	36.77M	43.07M
Total Liabilities	95.78M	83.25M	56.27M	70.10M	78.67M
Stockholders Equity	11.09M	788.00K	17.07M	47.50M	76.43M
Cash Flow
Free Cash Flow	-16.19M	-18.00M	17.41M	-6.23M	-6.20M
Operating Cash Flow	-16.19M	-18.00M	17.41M	-6.23M	-6.20M
Investing Cash Flow	233.00K	3.00K	17.45M	-3.94M	6.39M
Financing Cash Flow	16.81M	18.35M	-27.95M	-12.31M	-4.44M

Hao Bai International (Cayman) Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.24
• 50DMA: Negative
• 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:8431, the sentiment is Neutral. The current price of 0.24 is above the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.24, and below the 200-day MA of 0.29, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 60.25 is Neutral, neither overbought nor oversold. The STOCH value of 90.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
0382	78 Outperform	HK$2.04B	2.98	15.41%	11.49%	9.66%	-8.34%
1587	71 Outperform	HK$428.40M	9.04	9.10%	3.57%	-4.97%	111.21%
Sector *	58 Neutral	HK$14.11B	4.63	-3.01%	6.76%	3.67%	-54.16%
0131	54 Neutral	€965.96M	6.08	-2.79%	6.08%	92.46%	-154.18%
1993	45 Neutral	HK$306.02M	―		―	-34.67%	-99.72%
8431	39 Underperform	HK$10.24M	―	-231.03%	―	12.02%	91.93%