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Highway Holdings (HIHO) AI Stock Analysis

HIHO

Highway Holdings

(NASDAQ:HIHO)

Select Model
Rating:47Neutral
Price Target:$0.77â–¼(-15.15% Downside)
Action:reiterated
Date:08/20/26

Highway Holdings’ overall score is driven primarily by weak and deteriorating financial performance, including sharp revenue declines, recent operating and net losses, and recurring negative operating and free cash flow that elevate risk. This is partially offset by a relatively stable technical setup with price holding above key longer-term moving averages and neutral momentum, while valuation remains mixed, combining a high dividend yield with negative earnings and a more leveraged balance sheet that limit the attractiveness of the stock.

Positive Factors
Integrated Manufacturing PlatformHighway Holdings offers a broad set of integrated manufacturing capabilities across electrical, electronics, industrial and consumer markets. This platform can deepen customer relationships, support multiple production stages, and create opportunities to capture more value when demand improves.
Negative Factors
Revenue ContractionThe steep multi-year revenue decline indicates that Highway Holdings has not maintained demand or production scale across its customer markets. A smaller revenue base makes fixed costs harder to absorb, weakens operating leverage, and limits the resources available for reinvestment.

Highway Holdings (HIHO) vs. SPDR S&P 500 ETF (SPY)

-60%-50%-40%-30%-20%-10%0%10%20%HIHO-38.00%SPY+12.58%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
$3.87M
Dividend Yield
5.97%
Average Volume (3M)
50.89K
Price to Earnings (P/E)
-2.6
Beta (1Y)
0.70
Revenue Growth
-25.75%
EPS Growth
-2160.65%
Country
US
Employees
147
Sector
Industrials
Sector Strength
63
Industry
Manufacturing - Metal Fabrication

Highway Holdings Business Overview & Revenue Model

Company Description

Highway Holdings Limited, including its various subsidiaries, is primarily involved in the creation and distribution of a wide array of components, subassemblies, and complete products. These offerings encompass metal, plastic, electrical, and electr...

Highway Holdings Financial Statement Overview

Summary

Revenue has fallen sharply from about $12.4M in 2022 to $4.8M in 2026, with the latest year showing large operating and net losses, negative cash earnings, and sustained negative free cash flow, only partly offset by a still-tangible equity base and a history of occasional profitability.

Income Statement

23Negative

Balance Sheet

47Neutral

Cash Flow

26Negative
Financial statement breakdown
BreakdownTTMJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue4.80M4.80M7.41M6.32M10.24M12.37M
Gross Profit1.37M1.37M2.47M1.71M3.14M3.77M
EBITDA-1.94M-1.46M756.00K-381.00K828.00K1.67M
Net Income-1.52M-1.52M106.00K-959.00K-294.00K443.00K
Balance Sheet
Total Assets11.32M11.32M9.55M11.32M13.88M14.86M
Cash, Cash Equivalents and Short-Term Investments4.41M4.41M6.18M6.60M7.01M7.38M
Total Debt3.15M3.15M810.00K1.39M2.06M1.20M
Total Liabilities5.88M5.88M3.29M4.68M5.67M5.59M
Stockholders Equity4.89M4.89M6.27M6.64M8.20M9.27M
Cash Flow
Free Cash Flow-77.00K-1.51M-461.00K297.00K717.00K-298.00K
Operating Cash Flow26.00K-1.41M-360.00K415.00K809.00K-164.00K
Investing Cash Flow-6,000-109.00K232.00K-102.00K991.00K-1.20M
Financing Cash Flow-25.00K-25.00K-492.00K-557.00K-920.00K-549.00K

Highway Holdings Technical Analysis

Technical Analysis SentimentNeutral
Last Price0.91

Price Trends

50DMA0.86Negative
100DMA0.88Negative
200DMA0.85Negative

Market Momentum

MACD-0.03Negative
RSI56.21Neutral
STOCH68.46Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIHO, the sentiment is Neutral. The current price of 0.91 is above the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.86, and above the 200-day MA of 0.85, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 56.21 is Neutral, neither overbought nor oversold. The STOCH value of 68.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HIHO.

Highway Holdings Risk Analysis

Highway Holdings disclosed 33 risk factors in its most recent earnings report. Highway Holdings reported the most risks in the "Macro & Political" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Macro & Political - Risks related to catastrophic events or geopolitical conditions that may disrupt the company’s business

Latest Risks Added

3 New Risks
1.Our Rights Plan And Certain Provisions of Our Amended and Restated Memorandum and Articles of Association May Discourage a Change of Control.Q1, 2018
2.The Company's Long Hua, Shenzhen, Leases Expire in February 2020, and the Termination of Leases Would Materially Change The Company's Future Operations and Could Require the Company to Make Substantial Payments to its Employees.Q1, 2018
3.The Company's Subsidiary in Myanmar Will Incur Significant Costs and Possible Business Interruption as a Result of Its Need to Relocate Its Myanmar Manufacturing Facilities in 2018Q1, 2018

Highway Holdings Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

HIHO against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
APAP53Neutral$159.07M-2.63-152.73%―3.27%-1069.57%
HIHOHIHO47Neutral$3.87M-2.60-27.18%5.97%-25.75%-2160.65%
TPCSTPCS45Neutral$54.04M-42.73-15.08%―-0.19%38.34%
MTENMTEN42Neutral$6.53M-0.02-4.23%―406.85%58.48%

* Industrials Sector Average

Performance Comparison

0%200%400%HIHOAPTPCSMTENLNKSDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
HIHO and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HIHOHighway Holdings0.90-0.56-38.38%
APAmpco-Pittsburgh Corporation7.565.52270.59%
TPCSTechprecision Corporation5.300.7315.97%
MTENMingteng International Corp., Inc.0.50-507.50-99.90%
LNKSLinkers Industries Limited Class A0.59-111.66-99.47%

Highway Holdings Corporate Events

Highway Holdings Sets October 26, 2026 Shareholder Meeting and Distributes Proxy Materials

Sep 28, 2026

On September 16, 2026, Highway Holdings began mailing its 2026 annual meeting materials to shareholders of record as part of its regular corporate governance cycle. The package included the annual report based on its Form 20-F filed July 14, 2026, a...

Highway Holdings Wins Second Nasdaq Extension to Restore Minimum Bid Price Compliance

Sep 18, 2026

On September 17, 2026, Hong Kong-based manufacturer Highway Holdings said it received a second 180-day extension from Nasdaq on September 15, 2026, to regain compliance with the exchange’s minimum US$1.00 bid price requirement, giving the compa...

Highway Holdings Forms Majority-Owned Energy Storage Joint Venture with Huahu to Enter Global BESS Market

Aug 11, 2026

On August 10, 2026, Highway Holdings Limited announced it had signed a master agreement to form Huahu International New Energy Technology Company Limited, a majority-owned Hong Kong joint venture with Guangdong Huahu New Energy Technology Co., Ltd.,...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 01, 2026