Honbridge Holdings (SEHK:8137) Deepening Losses Reinforce Bearish Narratives Despite 27x Sales Multiple

Honbridge Holdings (SEHK:8137) has reported its FY 2025 first half with revenue of HK$15.5 million and a basic EPS loss of HK$0.0024, while the trailing twelve months show revenue of HK$231.0 million and a basic EPS loss of HK$0.0033. Over recent reporting periods, revenue has moved from HK$46.1 million in 1H 2024 to HK$54.7 million in 2H 2024 and HK$15.5 million in 1H 2025, alongside basic EPS losses of HK$0.0035, HK$0.0379 and HK$0.0024 respectively. With the shares trading at HK$0.43, investors are weighing these loss-making results and compressed margins against the potential for any future improvement in the business model.

See our full analysis for Honbridge Holdings.

With the headline numbers on the table, the next step is to see how this earnings profile lines up against the most widely held narratives about Honbridge Holdings and where those stories collide with the data.

Curious how numbers become stories that shape markets? Explore Community Narratives

TTM loss of HK$46.6 million keeps profitability under pressure

• Over the trailing twelve months, Honbridge reported total revenue of HK$231.0 million and a net income loss excluding extra items of HK$46.6 million, so the business remains unprofitable even on this higher revenue base.
• Bears often focus on the fact that earnings have declined at an average rate of 73.9% per year over the past five years, and the recent HK$46.6 million trailing loss together with half year losses of HK$29.5 million in 1H 2025 and HK$370.4 million in 2H 2024 fits that cautious view. At the same time, the smaller 1H 2025 loss suggests the picture can look very different from one period to the next.

Price to sales at 27x versus 0.7x industry

• The P/S ratio of 27x stands far above both the peer average of 4.6x and the Hong Kong Electrical industry average of 0.7x, so Honbridge’s valuation is being set at a much higher multiple of sales than many listed comparables.
• Critics highlight this rich multiple as a bearish signal, and the TTM loss of HK$46.6 million together with the absence of any profitable periods in the data provided leaves little earnings support for that 27x sales valuation. The current share price of HK$0.43 means investors are paying this high multiple for a company where profit margins are still negative.
• The contrast between a 27x P/S and a 0.7x industry average is very large, which is why bears often flag valuation risk as one of the core concerns.
• The combination of no positive net profit in the last year and a five year earnings decline rate of 73.9% per year gives those bears concrete numbers to point to rather than just sentiment.

Stay focused on what that 27x sales multiple really buys you in terms of losses and revenue today, then weigh that against how other investors are framing the cautious case for Honbridge Holdings. 🐻 Honbridge Holdings Bear Case

Five year 73.9% annual earnings decline shapes the story

• Earnings have declined at an average rate of 73.9% per year over the past five years, and the recent sequence of net income losses excluding extra items, from HK$33.7 million in 1H 2024 to HK$370.4 million in 2H 2024 and HK$29.5 million in 1H 2025, shows how volatile those losses have been across recent periods.
• What stands out against any bullish angle is that this long run 73.9% annual earnings decline, together with the HK$46.6 million loss over the latest twelve months and basic EPS losses in every period shown, means any optimistic story about the business has to contend with a track record where profitability has not yet appeared in the numbers.
• The 1H 2025 basic EPS loss of HK$0.0024 compares with a trailing twelve month basic EPS loss of HK$0.0033, which keeps per share performance in negative territory even when looking at different time frames.
• Trailing twelve month revenue of HK$231.0 million is higher than any single half year figure provided, yet the period still ends in a loss, reinforcing the idea that higher sales alone have not converted into positive earnings so far.

For a fuller picture of how these earnings trends fit into the broader story and how other investors interpret them, it is worth seeing how the community pulls the numbers together in one place. 📊 Read the what the Community is saying about Honbridge Holdings.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Honbridge Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

If the tone of this update feels cautious, that is exactly why it helps to look at the raw figures yourself and stress test the story against your own expectations. To round out that picture, make sure you understand the 1 important warning sign

Explore Alternatives

Honbridge Holdings is still loss making with a HK$46.6 million trailing twelve month loss, a five year 73.9% annual earnings decline and a P/S of 27x versus a 0.7x industry average.

If you want ideas where pricing looks more grounded in current fundamentals, compare this situation against companies screened as 236 high quality undervalued stocks to see what else might deserve attention right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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