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Founder Holdings (0418) AI Stock Analysis
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Founder Holdings
(HKEX:0418)
The score is primarily supported by a very strong, low-debt balance sheet and continued positive cash generation, but is held back by meaningful deterioration in operating profitability and a relatively high P/E multiple without a dividend yield. Technical indicators are mildly supportive, showing partial trend improvement but not a clear long-term uptrend.
Founder Holdings (0418) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 92.25M
- Dividend Yield
- ―
- Average Volume (3M)
- 168.74K
- Price to Earnings (P/E)
- 22.2
- Beta (1Y)
- -0.37
- Revenue Growth
- 1.72%
- EPS Growth
- -17.49%
- Country
- Hong Kong
- Employees
- 992
- Sector
- General
- Sector Strength
- 55
- Industry
- Software - Application
Founder Holdings Business Overview & Revenue Model
Company Description
Founder Holdings Limited operates as an investment holding enterprise, primarily engaged in software creation, system integration, and the distribution of information technology products. Its business activities are conducted across Mainland China, H...
Founder Holdings Financial Statement Overview
Summary
Financials show low balance-sheet risk but pressured operating results. The balance sheet is very conservative (minimal leverage; strong equity base), while income statement trends are weaker with largely flat revenue and a sharp drop in operating profitability (very low EBIT/EBITDA margins in 2025). Cash flow remains positive with reasonable earnings-to-FCF conversion, but free cash flow declined materially and has been volatile.
Income Statement
52NeutralBalance Sheet
86Very PositiveCash Flow
58Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 899.02M | 907.16M | 924.85M | 982.03M | 957.58M | 1.07B |
| Gross Profit | 460.50M | 448.18M | 454.33M | 484.87M | 489.91M | 515.09M |
| EBITDA | 19.07M | 12.91M | 61.55M | 78.44M | 177.74M | 66.23M |
| Net Income | 29.72M | 29.81M | 47.86M | 59.76M | 34.75M | 43.48M |
Balance Sheet | ||||||
| Total Assets | 1.40B | 1.43B | 1.44B | 1.47B | 1.48B | 1.57B |
| Cash, Cash Equivalents and Short-Term Investments | 757.00M | 821.22M | 806.66M | 749.97M | 735.12M | 604.94M |
| Total Debt | 1.10M | 1.69M | 1.65M | 3.42M | 4.35M | 5.71M |
| Total Liabilities | 263.34M | 315.20M | 324.56M | 366.33M | 433.67M | 473.41M |
| Stockholders Equity | 1.13B | 1.11B | 1.12B | 1.10B | 1.05B | 1.09B |
Cash Flow | ||||||
| Free Cash Flow | 28.37M | 31.97M | 66.43M | 28.95M | 41.81M | 37.91M |
| Operating Cash Flow | 32.70M | 35.83M | 68.51M | 31.38M | 46.99M | 47.82M |
| Investing Cash Flow | -277.06M | -290.68M | -273.16M | -2.20M | 138.91M | 173.75M |
| Financing Cash Flow | -34.61M | -46.04M | -2.31M | -3.27M | -3.42M | -1.71M |
Founder Holdings Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0418, the sentiment is Negative. The current price of 0.59 is below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.65, and below the 200-day MA of 0.70, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.19 is Neutral, neither overbought nor oversold. The STOCH value of 14.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0418.
Founder Holdings Peers Comparison
Overall Rating
HK:026872Outperform
HK:158867Neutral
HK:808364Neutral- HK:041861Neutral
HK:167548Neutral
HK:201342Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:0268 | 72Outperform | HKD 29.85B | 103.84 | 3.02% | ― | 16.98% | ― |
| HK:1588 | 67Neutral | HKD 1.39B | 13.08 | 9.51% | 10.38% | 21.19% | 19.81% |
| HK:8083 | 64Neutral | HKD 1.31B | 2.94 | 12.42% | ― | 8.65% | ― |
| HK:0418 | 61Neutral | HKD 686.25M | 22.20 | 2.65% | ― | 1.72% | -17.49% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| HK:1675 | 48Neutral | HKD 2.98B | -13.45 | -2.55% | 1.70% | -2.82% | -152.77% |
| HK:2013 | 42Neutral | HKD 2.70B | -6.31 | -13.18% | ― | 40.17% | 76.39% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:0418 | Founder Holdings | 0.59 | -0.19 | -23.72% | |
| HK:8083 | China Youzan | 0.91 | -2.97 | -76.68% | |
| HK:0268 | Kingdee International Software Group Co | 8.51 | -6.60 | -43.68% | |
| HK:2013 | Weimob | 0.66 | -1.64 | -71.30% | |
| HK:1675 | AsiaInfo Technologies Limited | 3.17 | -5.79 | -64.64% | |
| HK:1588 | Chanjet Information Technology Co., Ltd. Class H | 4.32 | -4.19 | -49.29% |
Founder Holdings Corporate Events
Founder Holdings Shareholders Reject Deposit Service Agreement Resolution
Independent shareholders of Founder Holdings Limited have voted down an ordinary resolution seeking approval for transactions under a Supplemental Agreement to the Deposit Service Framework Agreement, along with proposed annual caps through 31 Decemb...
Founder Holdings Calls SGM to Approve New Banking Agreement with Ping An Bank
Founder Holdings Limited has called a Special General Meeting for 15 October 2026 in Hong Kong, inviting shareholders to vote on a key banking arrangement with Ping An Bank. The meeting will be conducted by poll, with shareholder registration and pro...
Founder Holdings Expands Ping An Bank Services in Major Connected Deal
Founder Holdings has entered into a supplemental agreement with Ping An Bank, renaming their existing framework to the Deposit and Wealth Management Products Services Framework Agreement and extending its term to 31 December 2028. The deal adds a ded...
Founder Holdings narrows outlook with higher gross profit but stays in the red
Founder Holdings Limited reported unaudited interim results for the six months ended 30 June 2026, showing revenue of HK$335.8 million, slightly down from HK$344.0 million a year earlier, but with gross profit improving to HK$180.1 million. The group...
Founder Holdings Sets Board Meeting to Approve Interim Results and Consider Dividend
Founder Holdings Limited has scheduled a board meeting for 27 August 2026 to review and approve the interim results for the six months ended 30 June 2026 and to decide on the publication of those results.The board will also consider the potential dec...
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: Sep 29, 2026