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Honghua Group LimitedSEHK:196 Stock Report

Market Cap HK$1.5b
Share Price
HK$0.15
HK$1.87
91.7% undervalued intrinsic discount
1Y-25.5%
7D-9.4%
1D
Portfolio Value
View

Honghua Group Limited

SEHK:196 Stock Report

Market Cap: HK$1.5b

Honghua Group (196) Stock Overview

An investment holding company, engages in the research, design, manufacture, setting, and sale of land rigs, and related parts and components. More details

196 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance5/6
Financial Health2/6
Dividends0/6

196 Community Fair Values

Create Narrative

See what others think this stock is worth. Follow their fair value or set your own to get alerts.

Honghua Group Limited Competitors

Price History & Performance

Summary of share price highs, lows and changes for Honghua Group
Historical stock prices
Current Share PriceHK$0.15
52 Week HighHK$0.26
52 Week LowHK$0.16
Beta-0.021
1 Month Change-19.69%
3 Month Change-17.55%
1 Year Change-25.48%
3 Year Change2.65%
5 Year Change-43.64%
Change since IPO-95.57%

Recent News & Updates

Analysis Article Jan 26

Honghua Group Limited (HKG:196) Might Not Be As Mispriced As It Looks

It's not a stretch to say that Honghua Group Limited's ( HKG:196 ) price-to-sales (or "P/S") ratio of 0.3x right now...
Analysis Article Dec 03

Is Honghua Group (HKG:196) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Recent updates

Analysis Article Jan 26

Honghua Group Limited (HKG:196) Might Not Be As Mispriced As It Looks

It's not a stretch to say that Honghua Group Limited's ( HKG:196 ) price-to-sales (or "P/S") ratio of 0.3x right now...
Analysis Article Dec 03

Is Honghua Group (HKG:196) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Analysis Article Jul 27

A Piece Of The Puzzle Missing From Honghua Group Limited's (HKG:196) 29% Share Price Climb

Honghua Group Limited ( HKG:196 ) shares have continued their recent momentum with a 29% gain in the last month alone...
Analysis Article Jun 10

It's A Story Of Risk Vs Reward With Honghua Group Limited (HKG:196)

There wouldn't be many who think Honghua Group Limited's ( HKG:196 ) price-to-sales (or "P/S") ratio of 0.3x is worth a...
Analysis Article Feb 13

A Piece Of The Puzzle Missing From Honghua Group Limited's (HKG:196) Share Price

It's not a stretch to say that Honghua Group Limited's ( HKG:196 ) price-to-sales (or "P/S") ratio of 0.2x right now...
Analysis Article Oct 02

Market Might Still Lack Some Conviction On Honghua Group Limited (HKG:196) Even After 58% Share Price Boost

Honghua Group Limited ( HKG:196 ) shares have had a really impressive month, gaining 58% after a shaky period...
Analysis Article May 03

Is Honghua Group (HKG:196) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Analysis Article Jan 12

Some Investors May Be Worried About Honghua Group's (HKG:196) Returns On Capital

When researching a stock for investment, what can tell us that the company is in decline? Typically, we'll see the...
Analysis Article Mar 16

Returns At Honghua Group (HKG:196) Are On The Way Up

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
Analysis Article Sep 14

Returns Are Gaining Momentum At Honghua Group (HKG:196)

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...
Analysis Article May 22

Honghua Group (HKG:196) Is Doing The Right Things To Multiply Its Share Price

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
Analysis Article Mar 30

Is Honghua Group (HKG:196) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Analysis Article Feb 17

Here's Why We Don't Think Honghua Group's (HKG:196) Statutory Earnings Reflect Its Underlying Earnings Potential

It might be old fashioned, but we really like to invest in companies that make a profit, each and every year. However...
Analysis Article Jan 22

Honghua Group's(HKG:196) Share Price Is Down 74% Over The Past Three Years.

Honghua Group Limited ( HKG:196 ) shareholders should be happy to see the share price up 21% in the last quarter. But...
Analysis Article Dec 27

Will the Promising Trends At Honghua Group (HKG:196) Continue?

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a...
Analysis Article Dec 07

These 4 Measures Indicate That Honghua Group (HKG:196) Is Using Debt In A Risky Way

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Analysis Article Nov 20

What Did Honghua Group's (HKG:196) CEO Take Home Last Year?

Mi Zhang is the CEO of Honghua Group Limited (HKG:196), and in this article, we analyze the executive's compensation...

Shareholder Returns

196HK Energy ServicesHK Market
7D-9.4%-2.6%0.2%
1Y-25.5%-8.8%4.5%

Return vs Industry: 196 underperformed the Hong Kong Energy Services industry which returned -8.8% over the past year.

Return vs Market: 196 underperformed the Hong Kong Market which returned 4.5% over the past year.

Price Volatility

Is 196's price volatile compared to industry and market?
196 volatility
196 Average Weekly Movement5.2%
Energy Services Industry Average Movement8.0%
Market Average Movement7.5%
10% most volatile stocks in HK Market16.0%
10% least volatile stocks in HK Market3.5%

Stable Share Price: 196 has not had significant price volatility in the past 3 months compared to the Hong Kong market.

Volatility Over Time: 196's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19972,843Hua Zhuwww.hh-gltd.com

Honghua Group Limited, an investment holding company, engages in the research, design, manufacture, setting, and sale of land rigs, and related parts and components. The company operates through five segments: Land Drilling Rigs; Parts and Components and Others; Drilling Engineering Services; Fracturing Services; and Offshore Engineering. The company offers drilling rigs equipment, such as smart, polar, desert, fast moving, artificial island, vehicle-mounted/semi-trailer, geothermal drilling rigs, and electric well workover rig, as well as parts and accessories.

Honghua Group Limited Fundamentals Summary

How do Honghua Group's earnings and revenue compare to its market cap?
196 fundamental statistics
Market capHK$1.53b
Earnings (TTM)HK$44.43m
Revenue (TTM)HK$6.37b
31.3x
P/E Ratio
0.2x
P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
196 income statement (TTM)
RevenueCN¥5.49b
Cost of RevenueCN¥4.81b
Gross ProfitCN¥684.50m
Other ExpensesCN¥646.18m
EarningsCN¥38.32m

Last Reported Earnings

Dec 31, 2025

Next Earnings Date

n/a

Earnings per share (EPS)0.0043
Gross Margin12.46%
Net Profit Margin0.70%
Debt/Equity Ratio128.7%

How did 196 perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/17 13:22
End of Day Share Price 2026/06/17 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Honghua Group Limited is covered by 22 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Clement ChenBarclays
Mark William KellockCGS International
Jimmy WongCGS International