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Founder Holdings
(0418)
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Rating:61Neutral
Price Target:
HK$0.68
▲(16.38% Upside)
Action:Reiterated
Date:09/29/26
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.
Positive Factors
Minimal leverage
Extremely low leverage and a stable equity base provide financial resilience and preserve flexibility for investment, working-capital needs, or downturns. The conservative capital structure also limits interest burden and refinancing exposure over the next several quarters.
Negative Factors
Limited revenue growth
Limited top-line expansion constrains operating leverage and makes it harder for the company to absorb costs or grow earnings organically. The recent modest increase follows declines in prior years, so revenue momentum does not yet appear strong enough to provide durable growth support.
Read all positive and negative factors
Positive Factors
Negative Factors
Minimal leverage
Extremely low leverage and a stable equity base provide financial resilience and preserve flexibility for investment, working-capital needs, or downturns. The conservative capital structure also limits interest burden and refinancing exposure over the next several quarters.
Read all positive factors
Founder Holdings (0418) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$784.29M
Dividend YieldN/A
Average Volume (3M)195.90K
Price to Earnings (P/E)23.7
Beta (1Y)-0.36
Revenue Growth1.72%
EPS Growth-17.49%
CountryHK
Employees992
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.03
Shares Outstanding1,153,369,000
10 Day Avg. Volume262,520
30 Day Avg. Volume195,898
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 | 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
Negative
0.58
Price Trends
0.65
Negative
0.67
Negative
0.71
Negative
Market Momentum
<0.01
Positive
43.64
Neutral
25.69
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 0.68, below the 50-day MA of 0.65, and below the 200-day MA of 0.71, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 25.69 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | HK$1.70B | 2.95 | 12.42% | ― | 8.65% | ― | |
67 Neutral | HK$1.34B | 12.77 | 9.51% | 10.69% | 21.19% | 19.81% | |
61 Neutral | HK$784.29M | 23.69 | 2.65% | ― | 1.72% | -17.49% | |
60 Neutral | HK$25.87B | 87.88 | 3.02% | 0.10% | 16.98% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | HK$3.63B | -15.76 | -2.55% | 1.46% | -2.82% | -152.77% | |
43 Neutral | HK$3.20B | -7.22 | -13.18% | ― | 40.17% | 76.39% |
* General Sector Average
HK:0418
Founder Holdings
0.64
-0.05
-7.25%
HK:8083
China Youzan
1.18
-3.08
-72.30%
HK:0268
Kingdee International Software Group Co
7.14
-9.17
-56.22%
HK:2013
Weimob
0.75
-1.88
-71.48%
HK:1675
AsiaInfo Technologies Limited
3.69
-5.82
-61.19%
HK:1588
Chanjet Information Technology Co., Ltd. Class H
4.19
-4.73
-53.04%
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 ...
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.