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2738

Huajin International Holdings SEHK:2738 Stock Report

Last Price

HK$2.15

Market Cap

HK$1.3b

7D

3.4%

1Y

-26.9%

Updated

29 Jun, 2022

Data

Company Financials
2738 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance3/6
Financial Health1/6
Dividends0/6

2738 Stock Overview

Huajin International Holdings Limited, an investment holding company, engages in the production and sale of cold-rolled and galvanized steel products in the People’s Republic of China and Southeast Asia.

Huajin International Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Huajin International Holdings
Historical stock prices
Current Share PriceHK$2.15
52 Week HighHK$3.21
52 Week LowHK$1.71
Beta0.51
1 Month Change-5.70%
3 Month Change-11.16%
1 Year Change-26.87%
3 Year Change-7.33%
5 Year Change-26.12%
Change since IPO-25.35%

Recent News & Updates

Shareholder Returns

2738HK Metals and MiningHK Market
7D3.4%-3.1%3.1%
1Y-26.9%-17.9%-21.2%

Return vs Industry: 2738 underperformed the Hong Kong Metals and Mining industry which returned -14.6% over the past year.

Return vs Market: 2738 underperformed the Hong Kong Market which returned -20.1% over the past year.

Price Volatility

Is 2738's price volatile compared to industry and market?
2738 volatility
2738 Average Weekly Movement5.7%
Metals and Mining Industry Average Movement6.7%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.7%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 2738 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 2738's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20051,155Canwen Luohttps://www.huajin-hk.com

Huajin International Holdings Limited, an investment holding company, engages in the production and sale of cold-rolled and galvanized steel products in the People’s Republic of China and Southeast Asia. The company offers cold-rolled carbon steel strips, sheets, welded steel tubes, and zinc coated steel products. It serves various industries, such as light industrial hardware, home appliances, furniture, motorcycle/bicycle accessories, LED, and lighting.

Huajin International Holdings Fundamentals Summary

How do Huajin International Holdings's earnings and revenue compare to its market cap?
2738 fundamental statistics
Market CapCN¥1.10b
Earnings (TTM)CN¥62.04m
Revenue (TTM)CN¥5.29b

17.8x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2738 income statement (TTM)
RevenueCN¥5.29b
Cost of RevenueCN¥5.08b
Gross ProfitCN¥208.75m
Other ExpensesCN¥146.71m
EarningsCN¥62.04m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.10
Gross Margin3.94%
Net Profit Margin1.17%
Debt/Equity Ratio213.1%

How did 2738 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 2738 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2738?

Other financial metrics that can be useful for relative valuation.

2738 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA19.8x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 2738's PE Ratio compare to its peers?

2738 PE Ratio vs Peers
The above table shows the PE ratio for 2738 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.2x
1029 IRC
1.3x11.6%HK$1.4b
1266 Xiwang Special Steel
7.2xn/aHK$544.9m
1203 GDH Guangnan (Holdings)
11.2xn/aHK$608.1m
2798 Perennial Energy Holdings
8.9xn/aHK$3.1b
2738 Huajin International Holdings
17.8xn/aHK$1.3b

Price-To-Earnings vs Peers: 2738 is expensive based on its Price-To-Earnings Ratio (17.8x) compared to the peer average (7.2x).


Price to Earnings Ratio vs Industry

How does 2738's PE Ratio compare vs other companies in the HK Metals and Mining Industry?

Price-To-Earnings vs Industry: 2738 is expensive based on its Price-To-Earnings Ratio (17.8x) compared to the Hong Kong Metals and Mining industry average (5.5x)


Price to Earnings Ratio vs Fair Ratio

What is 2738's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2738 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2738's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 2738 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 2738's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 2738's fair value for valuation analysis.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2738's PEG Ratio to determine if it is good value.


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Future Growth

How is Huajin International Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.0%

Forecasted Materials 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 Huajin International Holdings 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.


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  • Take a look at our analysis of 2738’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • Huajin International Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Huajin International Holdings performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-14.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2738 has high quality earnings.

Growing Profit Margin: 2738's current net profit margins (1.2%) are lower than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: 2738's earnings have declined by 14.9% per year over the past 5 years.

Accelerating Growth: 2738's earnings growth over the past year (70.4%) exceeds its 5-year average (-14.9% per year).

Earnings vs Industry: 2738 earnings growth over the past year (70.4%) exceeded the Metals and Mining industry 45.2%.


Return on Equity

High ROE: 2738's Return on Equity (10.6%) is considered low.


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Financial Health

How is Huajin International Holdings's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2738's short term assets (CN¥1.2B) do not cover its short term liabilities (CN¥1.4B).

Long Term Liabilities: 2738's short term assets (CN¥1.2B) exceed its long term liabilities (CN¥402.6M).


Debt to Equity History and Analysis

Debt Level: 2738's net debt to equity ratio (209.3%) is considered high.

Reducing Debt: 2738's debt to equity ratio has increased from 118.4% to 213.1% over the past 5 years.

Debt Coverage: 2738's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 2738's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


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Dividend

What is Huajin International Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2738's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2738'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 2738's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2738's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 2738 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 2738 has not reported any payouts.


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Management

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

6.5yrs

Average management tenure


CEO

Canwen Luo (47 yo)

6.5yrs

Tenure

CN¥471,000

Compensation

Mr. Canwen Luo has been the Chief Executive Officer and Executive Director of Huajin International Holdings Limited since December 18, 2015. Mr. Luo joined Huajin Group in May 2010 and serves as the Raw Ma...


CEO Compensation Analysis

Compensation vs Market: Canwen's total compensation ($USD70.22K) is below average for companies of similar size in the Hong Kong market ($USD308.34K).

Compensation vs Earnings: Canwen's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 2738's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: 2738's board of directors are considered experienced (6.3 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Huajin International Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Huajin International Holdings Limited
  • Ticker: 2738
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: HK$1.290b
  • Shares outstanding: 600.00m
  • Website: https://www.huajin-hk.com

Number of Employees


Location

  • Huajin International Holdings Limited
  • Xinsha Industrial Zone of Muzhou Town
  • Xinhui District
  • Jiangmen
  • Guangdong Province
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.