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Founder Holdings
(0418)
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Rating:57Neutral
Price Target:
HK$0.74
▲(26.72% 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
Extremely low leverage and a stable equity base provide meaningful financial resilience. This reduces interest burdens and balance-sheet stress, preserves flexibility to fund operations, and improves the company’s ability to withstand weaker earnings over the next several quarters.
Negative Factors
Stagnant revenue base
Limited sustained revenue growth constrains operating leverage and makes it harder to expand earnings without relying on cost reductions. The recent modest increase follows prior declines, so it does not yet demonstrate a durable acceleration in demand or market expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage and a stable equity base provide meaningful financial resilience. This reduces interest burdens and balance-sheet stress, preserves flexibility to fund operations, and improves the company’s ability to withstand weaker earnings over the next several quarters.
Read all positive factors
Founder Holdings (0418) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$772.76M
Dividend YieldN/A
Average Volume (3M)82.99K
Price to Earnings (P/E)26.5
Beta (1Y)-0.33
Revenue Growth1.72%
EPS Growth-17.49%
CountryHK
Employees992
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.03
Shares Outstanding1,153,369,000
10 Day Avg. Volume159,175
30 Day Avg. Volume82,991
Financial Highlights & Ratios
PEG Ratio-0.90
Price to Book (P/B)0.86
Price to Sales (P/S)1.05
P/FCF Ratio29.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
52
Neutral
Balance Sheet
86
Very Positive
Cash Flow
58
Neutral
| 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 | 17.51M | 11.48M | 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 | 122.16M | 31.97M | 66.43M | 28.95M | 41.81M | 37.91M |
| Operating Cash Flow | 125.32M | 35.83M | 68.51M | 31.38M | 46.99M | 47.82M |
| Investing Cash Flow | -241.44M | -290.68M | -273.16M | -2.20M | 138.91M | 173.75M |
| Financing Cash Flow | -31.99M | -46.04M | -2.31M | -3.27M | -3.42M | -1.71M |
Founder Holdings Technical Analysis
Positive
0.58
Price Trends
0.65
Positive
0.68
Negative
0.73
Negative
Market Momentum
<0.01
Negative
61.17
Neutral
93.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0418, the sentiment is Positive. 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 0.73, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.17 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0418.
Founder Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | HK$1.38B | 12.77 | 9.51% | 10.70% | 21.19% | 19.81% | |
62 Neutral | HK$1.69B | 22.50 | 13.67% | ― | 8.65% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | HK$25.48B | 92.98 | 3.02% | 0.10% | 16.98% | ― | |
57 Neutral | HK$772.76M | 26.49 | 2.65% | ― | 1.72% | -17.49% | |
54 Neutral | HK$3.62B | -17.40 | -2.55% | 1.33% | -2.82% | -152.77% | |
43 Neutral | HK$3.28B | -7.80 | -13.18% | ― | 40.17% | 76.39% |
* Technology Sector Average
HK:0418
Founder Holdings
0.71
-0.08
-10.13%
HK:8083
China Youzan
1.17
-2.32
-66.52%
HK:0268
Kingdee International Software Group Co
7.56
-9.04
-54.46%
HK:2013
Weimob
0.81
-2.05
-71.68%
HK:1675
AsiaInfo Technologies Limited
4.08
-6.86
-62.73%
HK:1588
Chanjet Information Technology Co., Ltd. Class H
4.19
-3.53
-45.72%
Founder Holdings Corporate Events
Founder Holdings Calls SGM to Approve New Banking Agreement with Ping An Bank
Sep 17, 2026
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 ...
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...
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.