SEHK:1673

Stock Analysis Report

Huazhang Technology Holding

Executive Summary

Huazhang Technology Holding Limited, an investment holding company, engages in the research, development, manufacture, and sale of industrial automation systems and sludge treatment products in the People’s Republic of China.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

How has Huazhang Technology Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1673 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.4%

1673

0.3%

HK Machinery

-0.6%

HK Market


1 Year Return

-34.9%

1673

20.1%

HK Machinery

-7.6%

HK Market

Return vs Industry: 1673 underperformed the Hong Kong Machinery industry which returned 20.1% over the past year.

Return vs Market: 1673 underperformed the Hong Kong Market which returned -7.4% over the past year.


Shareholder returns

1673IndustryMarket
7 Day5.4%0.3%-0.6%
30 Day-1.7%3.3%-1.2%
90 Day-9.2%13.1%3.0%
1 Year-34.9%-34.9%23.6%20.1%-4.2%-7.6%
3 Year18.4%16.6%59.2%49.2%12.9%1.5%
5 Year60.4%56.1%60.6%46.8%13.1%-5.6%

Price Volatility Vs. Market

How volatile is Huazhang Technology Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Huazhang Technology Holding undervalued compared to its fair value and its price relative to the market?

2.98x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1673's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1673's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1673 is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: 1673 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1673's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1673 is overvalued based on its PB Ratio (3x) compared to the HK Machinery industry average (1x).


Next Steps

Future Growth

How is Huazhang Technology Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.4%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Huazhang Technology Holding has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Huazhang Technology Holding performed over the past 5 years?

-35.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1673 is currently unprofitable.

Growing Profit Margin: 1673 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1673 is unprofitable, and losses have increased over the past 5 years at a rate of -35% per year.

Accelerating Growth: Unable to compare 1673's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1673 is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (7.3%).


Return on Equity

High ROE: 1673 has a negative Return on Equity (-19.84%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Huazhang Technology Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 1673's short term assets (CN¥938.7M) exceed its short term liabilities (CN¥598.6M).

Long Term Liabilities: 1673's short term assets (CN¥938.7M) exceed its long term liabilities (CN¥32.4M).


Debt to Equity History and Analysis

Debt Level: 1673's debt to equity ratio (21.4%) is considered satisfactory.

Reducing Debt: 1673's debt to equity ratio has increased from 11.2% to 21.4% over the past 5 years.


Balance Sheet

Inventory Level: 1673 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1673's debt is covered by short term assets (assets are 6.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1673 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 1673 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Huazhang Technology Holding's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1673's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1673's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1673's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1673's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1673 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1673's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average board tenure


CEO

Ai Yan Wang (52yo)

5.3yrs

Tenure

CN¥995,381

Compensation

Mr. Ai Yan Wang has been Chief Executive Officer and Executive Director of Huazhang Technology Holding Limited since October 01, 2014. Mr. Wang oversees the Huazhang Technology's daily operation and accoun ...


CEO Compensation Analysis

Compensation vs Market: Ai Yan's total compensation ($USD141.62K) is below average for companies of similar size in the Hong Kong market ($USD289.95K).

Compensation vs Earnings: Ai Yan's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Gen Rong Zhu
Executive Chairman & President0yrsCN¥1.09m0.24% CN¥5.2m
Ai Yan Wang
Group CEO & Executive Director5.3yrsCN¥995.38kno data
Hao Jin
Compliance Officer & Executive Director6.8yrsCN¥732.75kno data
Chuan Jiang Liu
Executive Director1.1yrsCN¥1.36mno data
Chi Mo Kong
Independent Non-Executive Director6.8yrsCN¥99.76kno data
Tian Zhu Dai
Independent Non-Executive Director6.8yrsCN¥99.76kno data
Kai Neng Heng
Independent Non-Executive Director1.1yrsno datano data

6.0yrs

Average Tenure

52yo

Average Age

Experienced Board: 1673's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1673 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8%.


Top Shareholders

Company Information

Huazhang Technology Holding Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Huazhang Technology Holding Limited
  • Ticker: 1673
  • Exchange: SEHK
  • Founded: 2012
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$2.165b
  • Shares outstanding: 733.86m
  • Website: https://www.hzeg.com

Number of Employees


Location

  • Huazhang Technology Holding Limited
  • 1360 Zhenhua Road
  • No. 2 Industrial Area
  • Tongxiang
  • Zhejiang Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1673SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2013

Biography

Huazhang Technology Holding Limited, an investment holding company, engages in the research, development, manufacture, and sale of industrial automation systems and sludge treatment products in the People’s Republic of China. It operates through four segments: Industrial Products, Project Contracting Services, Environmental Products, and Supporting Services. The company offers paper-making machines and equipment; design, project management, and installation services; and wastewater treatment and refuse derived fuel products and services. It also provides after-sales, machine running, and renovation services; computer software and hardware, and technical services; supply chain financial services to papermaking companies; and logistics and warehousing services to papermaking factories. In addition, the company trades in electronic parts; and researches, develops, and distributes head boxes used in papermaking production line. The company was incorporated in 2012 and is headquartered in Tongxiang, the People’s Republic of China. Huazhang Technology Holding Limited is a subsidiary of Florescent Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 13:18
End of Day Share Price2020/02/21 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.