Hygon Information Technology Co., Ltd. (688041.SS) stock analysis

In our weekly check, Hygon Information Technology Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 2, red flags: 5.

About Hygon Information Technology Co., Ltd.

Hygon Information Technology Co., Ltd. is a Technology company (Computer Hardware) based in China, listed on SHH as 688041.SS.

What our checks show for 688041.SS

Red flags

• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Free cash flow is negative (-21.7% of revenue): the business spends more cash than it brings in.
• The price is 115 times earnings (P/E): the market already pays for a lot of future growth.
• The price swings a lot: 56.8% annual volatility. Expect large ups and downs.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The stock has fallen as much as 54% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• Debt is low: 0.27x equity.
• Operating profit covers interest 65.4 times over.
• The net margin rose by 3.1 points over 5 years, to 17.3%.
• Analysts expect earnings per share to grow about 63.4% a year over the next years.
• Analysts expect revenue to grow about 47.2% a year over the next years.
• Analysts expect the net margin to improve by 6.6 points from today's 17.3%.

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Questions

What grade does Hygon Information Technology Co., Ltd. (688041.SS) have?

In our weekly check, Hygon Information Technology Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 2, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 688041.SS stock?

This week's biggest flags for Hygon Information Technology Co., Ltd.: Profits not backed by cash, Weak free cash flow, High P/E. In total 7 of 25 checks show a warning or a red flag.

What does Hygon Information Technology Co., Ltd. do?

Hygon Information Technology Co., Ltd. is a Technology company (Computer Hardware) based in China, listed on SHH as 688041.SS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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