Founder Holdings (0418) AI Stock Analysis

• Market Cap: $924.11M
• Dividend Yield: N/A
• Average Volume (3M): 427.42K
• Price to Earnings (P/E): 26.1
• Beta (1Y): -0.27
• Revenue Growth: -11.09%
• EPS Growth: -55.83%
• Country: HK
• Employees: 1,020
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 1,169,753,300
• 10 Day Avg. Volume: 436,140
• 30 Day Avg. Volume: 427,423
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 1.45
• Enterprise Value/Ebitda: 24.45
• 1Y Price Target: $1.01
• Price Target Upside: 28.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: HK$1.00 ▲(26.58% Upside)

The stock is moderately positioned with a strong financial foundation, but faces challenges in technical performance and valuation. The solid financial structure supports stability, yet the lack of bullish momentum and valuation concerns weigh negatively, emphasizing the need for improved revenue growth and market sentiment.

Founder Holdings Business Overview & Revenue Model

Company Description

Founder Holdings (0418) is a Hong Kong-based investment holding company primarily engaged in the printing business. The company operates through its subsidiaries and is involved in the provision of printing services, including the production of books, magazines, and other printed materials. Founder Holdings also invests in various sectors, enhancing its portfolio through strategic partnerships and acquisitions.

How the Company Makes Money

Founder Holdings makes money primarily through its printing business, which involves the production and sale of printed materials such as books and magazines. The company generates revenue by offering high-quality printing services to publishers and other clients, leveraging its advanced printing technology and facilities. In addition to its core printing services, Founder Holdings may also derive income from investments in other sectors, though the primary focus remains on maintaining and expanding its printing operations. The company may benefit from strategic partnerships or acquisitions that enhance its service offerings or expand its market reach.

Founder Holdings Financial Statement Overview

Summary

The income statement shows stable revenue with healthy profitability indicators like a 48% gross profit margin. However, inconsistent net profit margins and revenue growth present challenges. The balance sheet is solid with low leverage and strong equity ratio, while cash flows are positive but require more consistent growth.

Income Statement

The company has demonstrated stable revenue generation with a mixed growth trajectory. The gross profit margin has remained healthy, averaging around 48% over recent years, indicating strong cost management. However, the net profit margin fluctuated due to variability in net income, notably impacted by a significant loss in 2019. Recent EBIT and EBITDA margins show signs of improvement, reflecting better operational efficiency. Overall, the income statement reveals both strengths in profitability and challenges in maintaining consistent revenue growth.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio, showcasing minimal leverage risk. The equity ratio remains robust, indicating a solid capital structure with a high proportion of equity financing. Return on equity has improved after earlier downturns, suggesting better utilization of shareholder investments. Overall, the balance sheet reflects a stable financial position with prudent debt management and strong equity backing.

Cash Flow

Operating cash flows have been positive, supporting the company's ability to generate cash from core operations. The free cash flow has shown growth, indicative of effective capital expenditure management. However, fluctuations in free cash flow growth rate highlight the need for more consistent cash generation strategies. Despite these fluctuations, the company maintains a healthy cash flow position, ensuring liquidity and operational flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	924.85M	982.03M	957.58M	1.07B	936.54M
Gross Profit	454.33M	484.87M	489.91M	515.09M	443.86M
EBITDA	61.55M	78.44M	177.74M	66.23M	75.29M
Net Income	47.86M	59.76M	34.75M	43.48M	53.90M
Balance Sheet
Total Assets	1.44B	1.47B	1.48B	1.57B	1.52B
Cash, Cash Equivalents and Short-Term Investments	806.66M	749.97M	735.12M	604.94M	549.31M
Total Debt	1.65M	3.42M	4.35M	5.71M	2.16M
Total Liabilities	324.56M	366.33M	433.67M	473.41M	469.36M
Stockholders Equity	1.12B	1.10B	1.05B	1.09B	1.05B
Cash Flow
Free Cash Flow	66.43M	28.95M	41.81M	37.91M	56.69M
Operating Cash Flow	68.51M	31.38M	46.99M	47.82M	60.52M
Investing Cash Flow	-273.16M	-2.20M	136.82M	173.75M	-89.98M
Financing Cash Flow	-2.31M	-3.27M	-3.42M	-1.71M	-116.29M

Founder Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.79 is below the 20-day moving average (MA) of 0.81, below the 50-day MA of 0.89, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 37.40 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0418.

Founder Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0536	72 Outperform	834.37M	10.05	21.64%	9.62%	-6.93%	-18.99%
1588	65 Neutral	2.74B	32.44	0.00%	―	12.46%	0.00%
1808	62 Neutral	734.66M	6.86	19.71%	―	421.56%	328.43%
1450	59 Neutral	1.40B	24.16	19.50%	―	-1.52%	-67.16%
0418	59 Neutral	$924.11M	26.07	3.34%	―	-11.09%	-55.83%
8148	44 Neutral	286.34M	-60.48	-22.68%	―	1.55%	39.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Founder Holdings Corporate Events

Founder Holdings Announces Changes in Nomination Committee

Founder Holdings Limited, a company listed on the Hong Kong Stock Exchange, has announced changes in its Nomination Committee. The company has appointed Ms. Wu Jing and Mr. Chak Chi Shing as new members of the committee, effective from July 8, 2025. This restructuring aligns with the company’s regular corporate governance evaluation and compliance with the updated Listing Rules and Corporate Governance Code. The changes aim to enhance the diversity and effectiveness of the committee, which now includes three independent non-executive directors and two executive directors, with at least one member of a different gender.

Founder Holdings Announces Board Composition and Roles

Founder Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The board consists of both executive and independent non-executive directors, with specific members serving on the Audit, Remuneration, and Nomination Committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes.

Founder Holdings Updates Nomination Committee Structure

Founder Holdings Limited has amended the terms of reference for its Nomination Committee, emphasizing a structure primarily composed of independent non-executive directors. The changes, adopted by the board on July 8, 2025, aim to enhance the committee’s governance by ensuring diversity and independence, which may positively impact the company’s decision-making processes and stakeholder confidence.

Founder Holdings Secures Trademark License for Global Use

Founder Holdings has announced a Trademark License Agreement between its subsidiary, Founder Electronics, and New Founder. This agreement grants Founder Electronics a non-exclusive license to use New Founder’s trademark globally in their products and business activities from June 26, 2025, to December 31, 2027. The agreement is classified as a continuing connected transaction under Hong Kong’s Listing Rules, requiring reporting and announcement but exempting circular and independent shareholder approval. The license fee, determined through arm’s length negotiations and a valuation report, is set at RMB10,638,900 annually.

Founder Holdings Announces Successful AGM Resolutions

Founder Holdings Limited announced that all resolutions proposed at its annual general meeting on May 28, 2025, were approved by shareholders. The resolutions included the adoption of the company’s financial statements, re-election of directors, re-appointment of auditors, and granting of mandates to the board for share issuance and repurchase. These approvals are expected to support the company’s governance and operational strategies, potentially enhancing its market position and stakeholder confidence.