Huarong Investment Stock Corporation Limited, an investment holding company, engages in the investment, financial services and others, and foundation and substructure construction businesses in the People’s Republic of China.
Fair value with mediocre balance sheet.
Share Price & News
How has Huarong Investment Stock's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2277 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 2277 exceeded the Hong Kong Construction industry which returned -28.6% over the past year.
Return vs Market: 2277 underperformed the Hong Kong Market which returned -10.2% over the past year.
Price Volatility Vs. Market
How volatile is Huarong Investment Stock's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall StHuarong Investment Stock (HKG:2277) Use Of Debt Could Be Considered Risky
2 months ago | Simply Wall StInvestors Who Bought Huarong Investment Stock (HKG:2277) Shares Three Years Ago Are Now Down 87%
4 months ago | Simply Wall StHuarong Investment Stock (HKG:2277) Seems To Be Using An Awful Lot Of Debt
Is Huarong Investment Stock undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2277 (HK$0.31) is trading below our estimate of fair value (HK$50.71)
Significantly Below Fair Value: 2277 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 2277 is unprofitable, so we can't compare its PE Ratio to the Construction industry average.
PE vs Market: 2277 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 2277's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 2277 is good value based on its PB Ratio (0.3x) compared to the HK Construction industry average (1x).
How is Huarong Investment Stock forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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 Huarong Investment Stock 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.
- Examine whether Huarong Investment Stock is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Huarong Investment Stock competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Capital Goods industry.
How has Huarong Investment Stock performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2277 is currently unprofitable.
Growing Profit Margin: 2277 is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: 2277 is unprofitable, and losses have increased over the past 5 years at a rate of -17.9% per year.
Accelerating Growth: Unable to compare 2277's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: 2277 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-5.4%).
Return on Equity
High ROE: 2277 has a negative Return on Equity (-15.89%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
How is Huarong Investment Stock's financial position?
Financial Position Analysis
Short Term Liabilities: 2277's short term assets (HK$6.9B) exceed its short term liabilities (HK$3.8B).
Long Term Liabilities: 2277's short term assets (HK$6.9B) exceed its long term liabilities (HK$4.7B).
Debt to Equity History and Analysis
Debt Level: 2277's debt to equity ratio (399.3%) is considered high.
Reducing Debt: 2277's debt to equity ratio has increased from 19.3% to 399.3% over the past 5 years.
Inventory Level: 2277 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 2277's debt is not covered by short term assets (assets are 0.9x 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: 2277 has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: 2277 has been profitable on average in the past, therefore cash runway is not a concern.
What is Huarong Investment Stock's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate 2277's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate 2277'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 2277's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 2277's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 2277's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Xiaowu Xu (49yo)
Mr. Xiaowu Xu serves as Chief Executive Officer and Executive Director of Huarong Investment Stock Corporation Limited since July 8, 2019. Mr. Xu has been Chief Executive Officer and Executive Director of ...
CEO Compensation Analysis
Compensation vs Market: Xiaowu's total compensation ($USD331.40K) is above average for companies of similar size in the Hong Kong market ($USD226.90K).
Compensation vs Earnings: Xiaowu's compensation has increased whilst the company is unprofitable.
|Chairman of the Board||1.3yrs||HK$1.66m||no data|
|CEO, Chief Supervisor & Director||0.6yrs||HK$2.58m||no data|
|Executive Director & Deputy CEO||0.2yrs||no data||no data|
|Independent Non-Executive Director||2.4yrs||HK$240.00k||no data|
|Independent Non-Executive Director||3.8yrs||HK$240.00k||no data|
|Independent Non-Executive Director||3.7yrs||HK$240.00k||no data|
Experienced Board: 2277's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Huarong Investment Stock Corporation Limited's company bio, employee growth, exchange listings and data sources
- Name: Huarong Investment Stock Corporation Limited
- Ticker: 2277
- Exchange: SEHK
- Founded: 1993
- Industry: Construction and Engineering
- Sector: Capital Goods
- Market Cap: HK$562.960m
- Shares outstanding: 1.82b
- Website: https://www.hriv.com.hk
Number of Employees
- Huarong Investment Stock Corporation Limited
- Two Pacific Place
- Suite B
- Hong Kong
- Hong Kong
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|2277||SEHK (The Stock Exchange of Hong Kong Ltd.)||Yes||Ordinary Shares||HK||HKD||Dec 2014|
Huarong Investment Stock Corporation Limited, an investment holding company, engages in the investment, financial services and others, and foundation and substructure construction businesses in the People’s Republic of China. The company invests in equities, bonds, funds, derivative instruments, and other financial products; and offers finance lease, business consulting, and other related services. It also undertakes excavation and lateral support works; and pile cap and substructure construction for residential, commercial, and infrastructure projects, as well as rents related equipment. In addition, Huarong Investment Stock Corporation Limited provides securities trading and financial advisory services. The company was formerly known as Chun Sing Engineering Holdings Limited and changed its name to Huarong Investment Stock Corporation Limited in October 2016. Huarong Investment Stock Corporation Limited was founded in 1993 and is headquartered in Hong Kong, Hong Kong.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/25 13:17|
|End of Day Share Price||2020/02/24 00:00|
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.