Honghua Group Limited, an investment holding company, engages in the research, design, manufacture, setting, and sale of land rigs, related parts, and components.
No risks detected for 196 from our risk checks.
Share Price & News
How has Honghua Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 196 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: 196's weekly volatility (8%) has been stable over the past year.
7 Day Return
HK Energy Services
1 Year Return
HK Energy Services
Return vs Industry: 196 underperformed the Hong Kong Energy Services industry which returned 34.7% over the past year.
Return vs Market: 196 exceeded the Hong Kong Market which returned 5.6% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Honghua Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StReturns Are Gaining Momentum At Honghua Group (HKG:196)
4 months ago | Simply Wall StIf You Had Bought Honghua Group's (HKG:196) Shares Three Years Ago You Would Be Down 68%
5 months ago | Simply Wall StIs Honghua Group (HKG:196) A Risky Investment?
Honghua Group Fundamentals Summary
|196 fundamental statistics|
Is 196 overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|196 income statement (TTM)|
|Cost of Revenue||CN¥2.79b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-0.01|
|Net Profit Margin||-1.48%|
How did 196 perform over the long term?See historical performance and comparison
Is Honghua Group undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate 196's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate 196's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: 196 is unprofitable, so we can't compare its PE Ratio to the Hong Kong Energy Services industry average.
PE vs Market: 196 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 196's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 196 is good value based on its PB Ratio (0.2x) compared to the HK Energy Services industry average (0.6x).
How is Honghua Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 196 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).
Earnings vs Market: 196 is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: 196's is expected to become profitable in the next 3 years.
Revenue vs Market: 196's revenue (19.2% per year) is forecast to grow faster than the Hong Kong market (12.3% per year).
High Growth Revenue: 196's revenue (19.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 196's Return on Equity is forecast to be low in 3 years time (5.7%).
How has Honghua Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 196 is currently unprofitable.
Growing Profit Margin: 196 is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: 196 is unprofitable, but has reduced losses over the past 5 years at a rate of 61.8% per year.
Accelerating Growth: Unable to compare 196's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: 196 is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (46.6%).
Return on Equity
High ROE: 196 has a negative Return on Equity (-1.02%), as it is currently unprofitable.
How is Honghua Group's financial position?
Financial Position Analysis
Short Term Liabilities: 196's short term assets (CN¥8.5B) exceed its short term liabilities (CN¥5.8B).
Long Term Liabilities: 196's short term assets (CN¥8.5B) exceed its long term liabilities (CN¥2.4B).
Debt to Equity History and Analysis
Debt Level: 196's debt to equity ratio (112.2%) is considered high.
Reducing Debt: 196's debt to equity ratio has increased from 98.6% to 112.2% over the past 5 years.
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: Insufficient data to determine if 196 has enough cash runway based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if 196 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
What is Honghua Group current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate 196's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate 196's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 196's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 196's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: 196 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 196'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 management tenure
Mi Zhang (64 yo)
Mr. Mi Zhang serves as the President of Honghua Group Limited and has been its Executive Director since June 2007. Mr. Zhang is responsible for the development of the ZJ70LC drilling rig, which was one of...
CEO Compensation Analysis
Compensation vs Market: Mi's total compensation ($USD225.78K) is about average for companies of similar size in the Hong Kong market ($USD287.19K).
Compensation vs Earnings: Mi's compensation has been consistent with company performance over the past year.
Experienced Management: 196's management team is considered experienced (4.8 years average tenure).
Experienced Board: 196's board of directors are considered experienced (4.5 years average tenure).
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.
Honghua Group Limited's company bio, employee growth, exchange listings and data sources
- Name: Honghua Group Limited
- Ticker: 196
- Exchange: SEHK
- Founded: 1997
- Industry: Oil and Gas Equipment and Services
- Sector: Energy
- Market Cap: HK$1.193b
- Shares outstanding: 5.23b
- Website: https://www.hh-gltd.com
Number of Employees
- Honghua Group Limited
- Information Park
- 99 East Road
- Sichuan Province
Honghua Group Limited, an investment holding company, engages in the research, design, manufacture, setting, and sale of land rigs, related parts, and components. It operates through Land Drilling Rigs; Pa...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/22 10:03|
|End of Day Share Price||2021/09/21 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.