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

• Market Cap: HK$81.89M
• Dividend Yield: N/A
• Average Volume (3M): 249.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• 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: 48 Neutral
• Price Target: HK$0.34 ▲(34.80% Upside)

The score is held back primarily by weak financial performance (large losses and negative operating margins despite strong revenue growth) and valuation constraints tied to loss-making earnings (negative P/E). Technicals are supportive (price above major moving averages and positive MACD), but very overbought momentum signals (high RSI/Stochastic) add near-term risk.

Positive Factors

Revenue Growth

Sustained high top-line growth indicates the company is expanding distribution and demand for its product mix. Durable revenue expansion supports operating scale, strengthens bargaining with suppliers, and provides a platform to invest in margin improvement and geographic expansion over the next several quarters.

Cash Flow Generation

Positive operating and free cash flow demonstrate the business currently converts sales into cash, which reduces reliance on external funding. This supports ongoing operations, working capital needs and selective reinvestment, providing a more resilient footing for multi-quarter strategic initiatives.

Improved Leverage

An improved debt-to-equity ratio signals progress toward a more balanced capital structure, lowering refinancing and solvency risk. Over a multi-month horizon this enhances financial flexibility to fund growth, absorb shocks, and pursue commercial partnerships without immediate dilutive financing.

Negative Factors

Severe Profitability Shortfall

Large, persistent operating losses reflect structural cost or pricing gaps that erode equity and limit reinvestment. If margins remain deeply negative, the company will struggle to convert revenue growth into sustainable earnings, increasing long-term solvency and strategic risk absent operational fixes.

Negative ROE and Low Equity Ratio

Negative ROE means shareholders are not receiving returns on capital, undermining investor economics. A low equity ratio raises leverage sensitivity to shocks and reduces the cushion for losses, constraining the firm’s ability to finance growth or withstand downturns without raising costly external capital.

Declining Free Cash Flow Growth

A falling free cash flow growth trend weakens the firm’s capacity to fund capital expenditure, reduce debt or build reserves. Even with positive absolute FCF, declining growth signals deteriorating cash generation momentum, making long-term investment plans and debt reduction harder to execute without operational improvement.

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 generates revenue primarily through the sale of consumer goods, including electronics and home appliances, to a network of retailers and wholesalers around the world. The company's revenue model is based on wholesale distribution, where it purchases products in bulk from manufacturers and sells them at a markup to its clients. Key revenue streams include contracts with large retailers, online sales platforms, and partnerships with manufacturers that enable exclusive distribution rights. The company also benefits from its ability to source products at competitive prices, allowing for higher profit margins. Additionally, any significant collaborations with international brands or participation in trade shows further enhance its market reach and revenue potential.

Hao Bai International (Cayman) Ltd Financial Statement Overview

Summary

Strong revenue growth (49.86%) is a key positive, but profitability is a major कमजोरी with deeply negative net margin (-78.85%) and negative EBIT/EBITDA margins. The balance sheet shows improved leverage (debt-to-equity at 1.00) but negative ROE and a relatively low equity ratio add risk. Operating and free cash flow are positive, yet declining free cash flow growth points to weakening cash generation.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.77M	24.50M	21.88M	15.60M	6.46M	26.59M
Gross Profit	9.13M	8.68M	5.45M	3.49M	1.61M	2.36M
EBITDA	-12.33M	-17.40M	-8.31M	-32.38M	-29.26M	-25.03M
Net Income	-17.09M	-19.32M	-10.73M	-33.21M	-30.43M	-28.93M
Balance Sheet
Total Assets	81.08M	81.08M	107.17M	84.14M	73.34M	117.60M
Cash, Cash Equivalents and Short-Term Investments	1.82M	1.82M	170.00K	248.00K	107.00K	438.00K
Total Debt	5.65M	5.65M	8.61M	7.64M	10.63M	36.77M
Total Liabilities	75.10M	75.10M	95.78M	83.25M	56.27M	70.10M
Stockholders Equity	5.63M	5.63M	11.09M	788.00K	17.07M	47.50M
Cash Flow
Free Cash Flow	10.10M	10.10M	-16.19M	-18.00M	17.41M	-6.23M
Operating Cash Flow	10.10M	10.10M	-16.19M	-18.00M	17.41M	-6.23M
Investing Cash Flow	-4.21M	-4.21M	233.00K	3.00K	17.45M	-3.94M
Financing Cash Flow	-4.24M	-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: Negative
• 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 0.28, below the 50-day MA of 0.25, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 65.77 is Neutral, neither overbought nor oversold. The STOCH value of 75.33 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$135.36M	29.84	23.66%	―	11.56%	―
8460	51 Neutral	HK$419.66M	-509.68	-1.55%	―	-46.96%	98.17%
8431	48 Neutral	HK$81.89M	-1.44	-114.36%	―	156.20%	-101.70%
8422	46 Neutral	HK$21.00M	-3.45	-16.34%	―	11.29%	-262.50%
8516	41 Neutral	HK$52.94M	-1.66	-126.14%	―	-15.62%	-11.50%
8532	40 Underperform	HK$5.35M	-0.04	-3118.37%	―	-75.80%	-6540.74%