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Founder Holdings Limited (HK:0418)
:0418
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Founder Holdings (0418) AI Stock Analysis

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HK:0418

Founder Holdings

(0418)

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Neutral 57 (OpenAI - Gpt-5.6Sol)
Rating:57Neutral
Price Target:
HK$0.61
▲(4.31% Upside)
Action:Reiterated
Date:08/29/26
The score is anchored by strong balance-sheet safety and generally positive (though recently weaker) cash generation, but is capped by a sharp deterioration in operating profitability and clear bearish technical momentum. Valuation is only moderate relative to the current earnings/margin pressure and lacks dividend support in the provided data.
Positive Factors
Conservative Balance Sheet
Minimal leverage and a stable equity base provide substantial financial resilience. Low financing dependence preserves flexibility to absorb weaker earnings or invest without significant balance-sheet strain.
Negative Factors
Limited Revenue Growth
Muted and inconsistent revenue growth points to limited expansion in the current business base. Without stronger demand, product adoption, or market gains, the company may struggle to rebuild operating leverage and earnings momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Minimal leverage and a stable equity base provide substantial financial resilience. Low financing dependence preserves flexibility to absorb weaker earnings or invest without significant balance-sheet strain.
Read all positive factors

Founder Holdings (0418) vs. iShares MSCI Hong Kong ETF (EWH)

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...

Founder Holdings Financial Statement Overview

Summary
Financial risk is low thanks to an extremely conservative balance sheet (very low debt and stable equity), but operating performance has weakened: revenue has been flat and profitability compressed sharply (very low 2025 EBIT/EBITDA margins and lower net margin). Cash generation remains positive with reasonable earnings-to-FCF conversion, though free cash flow fell materially in 2025 and has been volatile.
Income Statement
52
Neutral
Balance Sheet
86
Very Positive
Cash Flow
58
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue907.16M924.85M982.03M957.58M1.07B
Gross Profit448.18M454.33M484.87M489.91M515.09M
EBITDA11.48M61.55M78.44M177.74M66.23M
Net Income29.81M47.86M59.76M34.75M43.48M
Balance Sheet
Total Assets1.43B1.44B1.47B1.48B1.57B
Cash, Cash Equivalents and Short-Term Investments821.22M806.66M749.97M735.12M604.94M
Total Debt1.69M1.65M3.42M4.35M5.71M
Total Liabilities315.20M324.56M366.33M433.67M473.41M
Stockholders Equity1.11B1.12B1.10B1.05B1.09B
Cash Flow
Free Cash Flow31.97M66.43M28.95M41.81M37.91M
Operating Cash Flow35.83M68.51M31.38M46.99M47.82M
Investing Cash Flow-290.68M-273.16M-2.20M138.91M173.75M
Financing Cash Flow-46.04M-2.31M-3.27M-3.42M-1.71M

Founder Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.58
Price Trends
50DMA
0.65
Negative
100DMA
0.68
Negative
200DMA
0.74
Negative
Market Momentum
MACD
-0.02
Negative
RSI
48.23
Neutral
STOCH
76.54
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 0.58 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.65, and below the 200-day MA of 0.74, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.23 is Neutral, neither overbought nor oversold. The STOCH value of 76.54 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$1.47B14.059.51%9.77%21.19%19.81%
62
Neutral
HK$1.80B28.3214.27%8.65%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
HK$28.59B96.823.02%0.10%16.98%
57
Neutral
HK$715.09M23.132.65%1.72%-17.49%
54
Neutral
HK$3.83B-16.87-2.55%1.37%-2.82%-152.77%
43
Neutral
HK$3.73B-8.39-13.18%40.17%76.39%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0418
Founder Holdings
0.62
-0.19
-23.46%
HK:8083
China Youzan
1.17
-1.92
-62.18%
HK:0268
Kingdee International Software Group Co
7.86
-8.24
-51.18%
HK:2013
Weimob
0.87
-1.54
-63.90%
HK:1675
AsiaInfo Technologies Limited
3.95
-6.94
-63.75%
HK:1588
Chanjet Information Technology Co., Ltd. Class H
4.60
-2.43
-34.58%

Founder Holdings Corporate Events

Founder Holdings Expands Ping An Bank Services in Major Connected Deal
Aug 28, 2026
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 ...
Founder Holdings narrows outlook with higher gross profit but stays in the red
Aug 27, 2026
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 gr...
Founder Holdings Sets Board Meeting to Approve Interim Results and Consider Dividend
Aug 14, 2026
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 ...
Founder Holdings Revises Connected Lease and Management Deals for Reduced Premises
Jun 26, 2026
Founder Holdings’ subsidiary Founder Electronics has amended its lease and property management arrangements for certain premises with related-party entities New Founder Boya and Shanghai Fangshang. The supplemental lease agreement terminates...
Founder Holdings Reshapes Board with Executive Director Change
May 29, 2026
Founder Holdings Limited has announced board changes, with executive director Li Shuo Feng resigning on 29 May 2026 due to other business commitments, and the company emphasizing that he leaves without disagreement with the board or issues requiri...
Founder Holdings Sets Out Board and Committee Line-Up
May 29, 2026
Founder Holdings Limited has announced the current composition of its board, naming Zhang Jian Guo as chairman and president alongside five other executive directors and three independent non-executive directors. The updated structure underlines a...
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: Aug 29, 2026