Hao Bai International (Cayman) Ltd (8431) AI Stock Analysis

Hao Bai International (Cayman) Ltd

(HKEX:8431)

Select Model

Rating:62Neutral

Price Target:HKD 0.92▼(-33.91% Downside)

Action:reiterated

Date:04/25/26

The score is primarily held back by below-average financial performance: despite a 2025 revenue and cash-flow rebound, the company remains structurally loss-making with very weak margins and negative returns. Offsetting this, technicals are strong with the price trading above all major moving averages and a positive MACD, though momentum is overheated (high RSI/Stoch). Valuation is supportive on a low P/E, but yield data is unavailable.

Positive Factors

Revenue rebound and margin improvementA 19% revenue rebound and gross margin expanding to ~35% indicate improving unit economics in the company’s project-based water systems business. Sustained top-line recovery and better gross margins support improved cash conversion and a clearer path to durable operating improvements if maintained.

Negative Factors

Deep structural losses and negative returnsA net margin near -79% and very negative ROE indicate the core business remains loss-making after 2025 improvements. Persistent structural losses erode equity, constrain retained-earnings-driven strengthening, and limit capacity to invest in scaling operations or absorb adverse contract margins over the medium term.

Hao Bai International (Cayman) Ltd (8431) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 331.19M
Dividend Yield: ―
Average Volume (3M): 1.89M
Price to Earnings (P/E): 22.2
Beta (1Y): -0.25
Revenue Growth: ―
EPS Growth: ―
Country: Hong Kong
Employees: 11
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Hao Bai International (Cayman) Ltd Business Overview & Revenue Model

Company Description

Hao Bai International (Cayman) Limited operates as an investment holding enterprise, specializing in the conceptualization, acquisition, and installation of various water circulation systems across Hong Kong and Macau. The company's activities are se...

How the Company Makes Money

Hao Bai International (Cayman) Ltd generates revenue primarily through project-based contracts for the design and implementation of water-related systems. These contracts include services for design consultancy, procurement of equipment, installation...

Hao Bai International (Cayman) Ltd Financial Statement Overview

Summary

Revenue rebounded in 2025 (+19.17%) and gross margin improved (~35%), with operating/free cash flow turning positive (~10.1M). However, profitability remains deeply negative (net margin ~-79%, very negative ROE), and cash flow has been highly volatile across years, keeping overall financial quality below average despite the recent improvement.

Income Statement

22Negative

Balance Sheet

40Negative

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.12M	19.27M	24.50M	21.88M	15.60M	6.46M
Gross Profit	12.56M	-1.08M	8.68M	5.45M	3.49M	1.61M
EBITDA	-7.72M	-37.16M	-17.40M	-8.31M	-32.38M	-29.26M
Net Income	-13.53M	-30.33M	-19.32M	-10.73M	-33.21M	-30.43M
Balance Sheet
Total Assets	0	46.28M	81.08M	107.17M	84.14M	73.34M
Cash, Cash Equivalents and Short-Term Investments	1.82M	15.40M	1.82M	170.00K	248.00K	107.00K
Total Debt	0	3.47M	5.65M	8.61M	7.64M	10.63M
Total Liabilities	-5.99M	32.40M	75.10M	95.78M	83.25M	56.27M
Stockholders Equity	5.99M	13.88M	5.63M	11.09M	788.00K	17.07M
Cash Flow
Free Cash Flow	20.53M	0	10.10M	-16.19M	-18.00M	17.41M
Operating Cash Flow	20.53M	0	10.10M	-16.19M	-18.00M	17.41M
Investing Cash Flow	-4.22M	0	-4.21M	233.00K	3,000	17.45M
Financing Cash Flow	-14.83M	0	-4.24M	16.81M	18.35M	-27.95M

Hao Bai International (Cayman) Ltd Technical Analysis

Technical Analysis SentimentPositive

Last Price1.40

Price Trends

50DMA1.32Positive

100DMA1.38Positive

200DMA0.99Positive

Market Momentum

MACD0.01Negative

RSI69.59Neutral

STOCH75.70Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8431, the sentiment is Positive. The current price of 1.40 is above the 20-day moving average (MA) of 1.26, above the 50-day MA of 1.32, and above the 200-day MA of 0.99, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 69.59 is Neutral, neither overbought nor oversold. The STOCH value of 75.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8431.

Hao Bai International (Cayman) Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

HK:8431 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:0240	84Outperform	HKD 1.73B	3.76	15.72%	12.19%	-12.79%	-0.62%
HK:8411	76Outperform	HKD 159.52M	13.24	26.35%	5.63%	126.12%	―
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HK:8431	62Neutral	HKD 330.01M	22.21	25.34%	―	―	―
HK:2262	48Neutral	HKD 370.96M	31.25	3.68%	―	4.28%	25.30%
HK:1903	48Neutral	HKD 992.50M	-935.39	-0.44%	―	4.76%	-144.68%
HK:0896	47Neutral	HKD 316.56M	-0.35	-31.01%	―	-22.33%	-203.23%

* Industrials Sector Average

Performance Comparison

HK:8431 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:8431	Hao Bai International (Cayman) Ltd	1.40	1.19	567.46%
HK:0240	Build King Holdings	1.39	-0.01	-0.43%
HK:0896	Hanison Construction Holdings	0.29	0.05	19.43%
HK:1903	JBB Builders International Ltd.	1.99	0.20	10.89%
HK:2262	Steve Leung Design Group Limited	0.33	-0.78	-70.45%
HK:8411	K W Nelson Interior Design and Contracting Group Limited	0.16	0.09	138.81%

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: Apr 24, 2026

Hao Bai International (Cayman) Ltd AI Stock Analysis