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Aux Electric Co., Ltd. (HK:2580)
:2580
Hong Kong Market
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Aux Electric Co., Ltd. (2580) AI Stock Analysis

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HK:2580

Aux Electric Co., Ltd.

(2580)

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Neutral 64 (OpenAI - Gpt-5.6Sol)
Rating:64Neutral
Price Target:
HK$7.00
▼(-48.42% Downside)
Action:Reiterated
Date:10/02/26
The score is supported most by attractive valuation (low P/E and very high dividend yield). Offsetting this, financial performance is mixed with margin compression, weaker net income, higher leverage, and poorer free-cash-flow conversion. Technicals further weigh on the score due to a clear downtrend and weak momentum signals.
Positive Factors
Revenue acceleration
The sharp 2025 revenue acceleration indicates stronger demand and greater sales scale across the company’s electrical and industrial product activities. If sustained, this expanded revenue base can support operating leverage, strengthen customer reach, and provide a platform for continued investment over the next several quarters.
Negative Factors
Margin compression
Margin compression means the company converted less of each revenue dollar into operating and bottom-line profit even as sales grew rapidly. Persistent pressure from costs, pricing, or product mix would reduce the earnings benefit of scale and could limit the durability of future profit growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue acceleration
The sharp 2025 revenue acceleration indicates stronger demand and greater sales scale across the company’s electrical and industrial product activities. If sustained, this expanded revenue base can support operating leverage, strengthen customer reach, and provide a platform for continued investment over the next several quarters.
Read all positive factors

Aux Electric Co., Ltd. (2580) vs. iShares MSCI Hong Kong ETF (EWH)

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
Strong revenue acceleration in 2025 (~49.6%), but profitability weakened with lower gross and net margins and net income declining despite higher sales. Balance sheet risk increased as debt rose materially and debt-to-equity moved up (~0.60). Cash flow is positive, yet free-cash-flow conversion versus net income deteriorated notably (~37%), reducing confidence in earnings quality.
Income Statement
72
Positive
Balance Sheet
55
Neutral
Cash Flow
57
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022
Income Statement
Total Revenue27.47B30.05B29.76B24.83B19.53B
Gross Profit4.91B5.66B6.24B5.42B4.15B
EBITDA2.24B2.91B4.16B3.68B2.41B
Net Income1.47B2.23B2.91B2.49B1.44B
Balance Sheet
Total Assets35.00B31.44B24.17B19.97B14.71B
Cash, Cash Equivalents and Short-Term Investments9.00B10.11B2.91B5.61B2.39B
Total Debt2.62B6.02B1.67B1.21B1.67B
Total Liabilities25.83B21.47B20.34B15.73B12.98B
Stockholders Equity9.17B9.96B3.84B4.24B1.73B
Cash Flow
Free Cash Flow317.61M1.07B1.49B4.22B3.74B
Operating Cash Flow1.40B2.89B2.52B4.63B4.00B
Investing Cash Flow-2.16B-4.16B-208.32M-1.39B-138.46M
Financing Cash Flow2.80B3.47B-4.52B-282.13M-2.95B

Aux Electric Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price13.57
Price Trends
50DMA
8.73
Negative
100DMA
8.99
Negative
200DMA
9.41
Negative
Market Momentum
MACD
-0.59
Positive
RSI
15.50
Positive
STOCH
4.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2580, the sentiment is Negative. The current price of 13.57 is above the 20-day moving average (MA) of 7.76, above the 50-day MA of 8.73, and above the 200-day MA of 9.41, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 15.50 is Positive, neither overbought nor oversold. The STOCH value of 4.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2580.

Aux Electric Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$202.33M6.6022.32%21.43%-39.08%1675.00%
64
Neutral
HK$10.24B5.8215.37%18.91%――
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
HK$72.87M-2.88-44.35%―17.04%8.94%
45
Neutral
HK$102.34M-1.15-26.71%―-51.29%43.87%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2580
Aux Electric Co., Ltd.
6.45
-7.87
-54.97%
HK:0145
CCIAM Future Energy Ltd.
0.20
<0.01
3.65%
HK:1408
Macau E&M Holding Limited
0.39
0.15
65.95%
HK:1413
Kwong Luen Engineering Holdings Limited
0.21
-0.20
-48.77%
HK:1690
Lap Kei Engineering (Holdings) Limited
0.14
0.08
129.51%

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...
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: Oct 02, 2026