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Aux Electric Co., Ltd.
(2580)
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Rating:62Neutral
Price Target:
HK$10.50
▼(-22.62% Downside)
Action:N/A
Date:07/02/26
The score is driven primarily by mixed financial performance: strong 2025 revenue growth is offset by margin compression, weaker net income, higher leverage, and deteriorating free-cash-flow conversion. Technicals are neutral-to-bearish with the stock trading below key moving averages and negative MACD. Valuation is a supporting positive due to the low P/E, but it does not fully offset the profitability and balance-sheet risks.
Positive Factors
Strong revenue growth
Revenue growth accelerated sharply in 2025, indicating stronger demand and an expanding sales base across the company’s electrical and industrial product activities. If maintained, this scale can improve operating leverage, support reinvestment, and strengthen the company’s position in project and infrastructure-related markets over the next several quarters.
Negative Factors
Margin compression and declining net income
The company is converting rapid sales growth into less profit, as gross and net margins both contracted and net income declined despite higher revenue. Persistent cost, pricing, or product-mix pressure would weaken operating leverage and reduce the earnings benefit of future expansion, making profitability less durable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Revenue growth accelerated sharply in 2025, indicating stronger demand and an expanding sales base across the company’s electrical and industrial product activities. If maintained, this scale can improve operating leverage, support reinvestment, and strengthen the company’s position in project and infrastructure-related markets over the next several quarters.
Read all positive factors
Aux Electric Co., Ltd. (2580) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$15.51B
Dividend Yield12.58%
Average Volume (3M)2.18M
Price to Earnings (P/E)8.8
Beta (1Y)0.50
Revenue GrowthN/A
EPS GrowthN/A
CountryHK
Employees15,246
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,588,235,200
10 Day Avg. Volume1,473,740
30 Day Avg. Volume2,183,615
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)1.72
Price to Sales (P/S)0.57
P/FCF Ratio16.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$11.93Price Target Upside-12.09% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Aux Electric Co., Ltd. Business Overview & Revenue Model
Company Description
Aux Electric Co., Ltd. is primarily involved in the production, commercialization, and promotion of air conditioning units. Its comprehensive product range features a variety of climate control solutions, including wall-mounted, vertical cabinet, ...
How the Company Makes Money
Aux Electric Co., Ltd. primarily makes money by selling electrical and industrial products (e.g., power distribution/control-related equipment and associated components) to business customers involved in construction, infrastructure, and industria...
Aux Electric Co., Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
55
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.47B | 30.05B | 29.76B | 24.83B | 19.53B |
| Gross Profit | 4.91B | 5.66B | 6.24B | 5.42B | 4.15B |
| EBITDA | 2.14B | 2.82B | 4.16B | 3.68B | 2.41B |
| Net Income | 1.47B | 2.23B | 2.91B | 2.49B | 1.44B |
Balance Sheet | |||||
| Total Assets | 35.00B | 31.44B | 24.17B | 19.97B | 14.71B |
| Cash, Cash Equivalents and Short-Term Investments | 9.00B | 10.11B | 2.91B | 5.61B | 2.39B |
| Total Debt | 2.62B | 6.02B | 1.67B | 1.21B | 1.67B |
| Total Liabilities | 25.83B | 21.47B | 20.34B | 15.73B | 12.98B |
| Stockholders Equity | 9.17B | 9.96B | 3.84B | 4.24B | 1.73B |
Cash Flow | |||||
| Free Cash Flow | 317.61M | 1.07B | 1.49B | 4.22B | 3.74B |
| Operating Cash Flow | 1.40B | 2.89B | 2.52B | 4.63B | 4.00B |
| Investing Cash Flow | -2.16B | -4.16B | -208.32M | -1.39B | -138.46M |
| Financing Cash Flow | 2.80B | 3.47B | -4.52B | -282.13M | -2.95B |
Aux Electric Co., Ltd. Technical Analysis
Positive
13.57
Price Trends
Market Momentum
0.24
Negative
56.76
Neutral
42.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2580, the sentiment is Positive. The current price of 13.57 is below the 20-day moving average (MA) of 15.20, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 42.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2580.
Aux Electric Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$219.67M | 7.26 | 22.32% | 12.99% | -39.08% | 1675.00% | |
62 Neutral | HK$15.51B | 8.83 | 15.37% | 12.58% | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | HK$90.09M | -3.46 | -44.35% | ― | 17.04% | 8.94% | |
45 Neutral | HK$112.18M | -1.32 | -26.71% | ― | -51.29% | 43.87% | |
34 Underperform | HK$74.44M | -15.41 | -337.41% | 1.07% | ― | ― |
* General Sector Average
HK:2580
Aux Electric Co., Ltd.
9.70
-3.81
-28.18%
HK:0145
CCIAM Future Energy Ltd.
0.24
0.06
34.27%
HK:1408
Macau E&M Holding Limited
0.37
0.19
107.87%
HK:1413
Kwong Luen Engineering Holdings Limited
0.24
-0.18
-42.96%
HK:8039
China Come Ride New Energy Group Limited
0.15
0.00
0.00%
HK:1690
Lap Kei Engineering (Holdings) Limited
0.15
0.10
170.18%
Aux Electric Co., Ltd. Corporate Events
Aux Electric’s Interim Profit Drops on Lower Revenue and Higher Expenses
Aug 28, 2026
Aux Electric Co., Ltd., a Hong Kong-listed electrical and consumer appliances manufacturer incorporated in the Cayman Islands, generates revenue from large-scale sales of electric products across domestic and overseas markets. Its cost structure h...
Aux Electric Sets Board Meeting to Approve Interim Results and Mull Dividend
Aug 18, 2026
Aux Electric Co., Ltd. has scheduled a board meeting for August 28, 2026, to review and approve its interim results for the six months ended June 30, 2026. The meeting will also consider the declaration of an interim dividend and deal with other c...
Aux Electric Warns of Sharp Profit Decline Amid Cost and Currency Headwinds
Jul 30, 2026
Aux Electric Co., Ltd. has issued a profit warning for the six months ended June 30, 2026, projecting revenue of about RMB17.5 billion and net profit of around RMB1.1 billion, down from RMB20.09 billion and RMB1.87 billion respectively a year earl...
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.