Honghua Group Limited - 0196.HK

0196.HK Returns vs S&P 500 ⓘ

ticker	1 day return %	1 week return %	1 month return %	3 months return %	6 months return %	1 year return %	3 years return %	5 years return %	10 years return %	maximum return %
0196.HK	1.8	-1.7	-8.7	-19.0	42.0	16.2	-55.8	-76.0	-88.3	-96.7
S&P 500	0.9	1.4	2.0	3.3	9.9	24.7	37.5	82.2	197.7	34153.9

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Returns Charts ⓘ

Interactive Price Chart

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Real-time Full Quote

Attribute	Value
symbol	0196.HK
name	Honghua Group Limited
price	0.115
changes percentage	1.7699
change	0.002
day low	0.113
day high	0.115
year high	0.18
year low	0.071
market cap	1032631081
price avg 50	0.1239
price avg 200	0.101755
exchange	HKSE
volume	157000
avg volume	1215887
open	0.115
previous close	0.113
eps	-0.03
pe	-3.83
earnings announcement	2025-03-24T10:59:00.000+0000
shares outstanding	8979400700
timestamp	2025-01-22 03:58:48

Financial Statements ⓘ

We derive the score of a company's financial statements by evaluating the weighted average sentiment across key within the statements. The cumulative score, normalized to a sum of 1, serves as a metric for assessing the company's performance during the specified period. A higher score indicates stronger performance. However, it's crucial to note that while this score provides valuable insights, it is just one of many factors to consider when making informed investment decisions. A holistic evaluation, considering various aspects of the company's financial health and market conditions, is essential for a well-rounded investment strategy.

Overall Annual Financial Health: 74.3%

Overall Quarterly Financial Health: 63.0%

Income Statements ⓘ

• Annual Income Statement

Note: The years below are fiscal years in accounting.

	2023	2022	Y/Y change %
0000000000
revenue	5473234000	4476104000	22.28
gross profit	541773000	459893000	17.80
gross profit ratio	0.1	0.1	-3.66
research and development expenses	112415000	123587000	-9.04
operating expenses	741635000	626566000	18.37
interest income	38277000	67533000	-43.32
interest expense	215754000	211473000	2.02
ebitda	129528000	-99861000	229.71
ebitdaratio	0.02	0.05	-54.80
operating income	-199862000	-99644000	-100.58
operating income ratio	-0.04	-0.02	-64.03
net income	-386597000	-625111000	38.16
net income ratio	-0.07	-0.14	49.42
eps	-0.06	-0.12	53.83

Overall Score of Annual Income Statement

0.5 out of 1

Detailed Analysis

• 📈 Positive Indicators

  Revenue Growth: revenue increased to 5,473 million in 2023 from 4,476 million in 2022 representing a change of 22.28%. This indicates a sales growth, which is a positive sign for the company.

  Gross Profit: Gross Profit increased to 542 million in 2023 from 460 million in 2022 representing a change of 17.8%. This indicates a sales profitability growth, which is a positive sign for the company.

  EBITDA: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to 130 million in 2023 from -100 million in 2022 representing a change of 229.71%. The increase in EBITDA indicates improved operational efficiency and profitability.

  Earnings per Share (EPS): EPS increased to -0.06 in 2023 from -0.06 in 2022 representing a change of 53.83%. This indicates that the company's earnings are increasing and it is becoming more profitable on a per-share basis.

• 📉 Negative Indicators

  Research and Development (R&D) Expenses: R&D Expenses decreased to 112 million in 2023 from 124 million in 2022 representing a change of -9.04%. This shows that the company decreased investment in innovation and product development, which is not a good sign for long-term growth.

  Operating Expenses: Operating Expenses increased to 742 million in 2023 from 627 million in 2022 representing a change of 18.37%. The increase in operating expenses can be attributed to various factors such as marketing, administrative costs, and investments in infrastructure. It's important to monitor if these expenses are growing at a sustainable rate compared to revenue.

  Operating Income: Operating income decreased to -200 million in 2023 from -100 million in 2022 representing a change of -100.58%. The decrease in operating income indicates worse operational performance and decreased profitability.

  Net Income: Net income decreased to -387 million in 2023 from -625 million in 2022 representing a change of 38.16%. The decrease in net income shows worsen profitability and indicates that the company is generating less profit for each dollar of revenue.

• Quarterly Income Statement

Note: The years below are fiscal years in accounting.

	2024Q2	2023Q4	Q/Q change %
0000000000
revenue	2776000000	2978797000	-6.81
gross profit	301514000	389571000	-22.60
gross profit ratio	0.11	0.13	-16.95
research and development expenses	58212000	75397000	-22.79
operating expenses	220544000	566870000	-61.09
interest income	0	34262000	-100.00
interest expense	0	0	NaN
ebitda	199898000	-60146000	432.35
ebitdaratio	0.07	-0.02	456.63
operating income	80970000	-177299000	145.67
operating income ratio	0.03	-0.06	149.00
net income	2419000	-232405000	101.04
net income ratio	0.0	-0.08	101.12
eps	0.0	-0.03	101.12

Overall Score of Quarterly Income Statement

0.62 out of 1

Detailed Analysis

• 📉 Negative Indicators

  Revenue Growth: revenue decreased to 2,776 million in 2024Q2 from 2,979 million in 2023Q4 representing a change of -6.81%. This indicates a sales shrinking, which is a negative sign for the company.

  Gross Profit: Gross Profit decreased to 302 million in 2024Q2 from 390 million in 2023Q4 representing a change of -22.6%. This indicates a sales profitability decline, which is a negative sign for the company.

  Research and Development (R&D) Expenses: R&D Expenses decreased to 58 million in 2024Q2 from 75 million in 2023Q4 representing a change of -22.79%. This shows that the company decreased investment in innovation and product development, which is not a good sign for long-term growth.

• 📈 Positive Indicators

  Operating Expenses: Operating Expenses decreased to 221 million in 2024Q2 from 567 million in 2023Q4 representing a change of -61.09%. The decrease in operating expenses can be attributed to various factors such as improved profitability, cost optimization and financial stability, lower operating expenses can be positive indicators.

  EBITDA: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to 200 million in 2024Q2 from -60 million in 2023Q4 representing a change of 432.35%. The increase in EBITDA indicates improved operational efficiency and profitability.

  Operating Income: Operating income increased to 81 million in 2024Q2 from -177 million in 2023Q4 representing a change of 145.67%. The increase in operating income indicates better operational performance and increased profitability.

  Net Income: Net income increased to 2 million in 2024Q2 from -232 million in 2023Q4 representing a change of 101.04%. The increase in net income shows improved profitability and indicates that the company is generating more profit for each dollar of revenue.

  Earnings per Share (EPS): EPS increased to 0.0 in 2024Q2 from 0.0 in 2023Q4 representing a change of 101.12%. This indicates that the company's earnings are increasing and it is becoming more profitable on a per-share basis.

Balance Sheets ⓘ

• Annual Balance Sheet

Note: The years below are fiscal years in accounting.

	2023	2022	Y/Y change %
0000000000
total assets	12519539000	12322487000	1.60
total liabilities	8937777000	9128492000	-2.09
total equity	3581762000	3193995000	12.14
cash and cash equivalents	777660000	601001000	29.39
short term investments	26539000	121238000	-78.11
long term investments	124536000	-4015000	3201.77
total current assets	8066225000	7886451000	2.28
total non current assets	4453314000	4436036000	0.39
total current liabilities	6762104000	8377067000	-19.28
total non current liabilities	2175673000	751425000	189.54
common stock	823804000	488023000	68.80
retained earnings	-1702227000	-1788991000	4.85
total debt	4506118000	5013588000	-10.12

Overall Score of Annual Balance Sheet

0.9 out of 1

Detailed Analysis

• 📈 Positive Indicators

  Total Assets: Total Assets increased to 12,520 million in 2023 from 12,322 million in 2022 representing a change of 1.6%. Suggesting a growth in asset holdings.

  Total Liabilities: Total Liabilities decreased to 8,938 million in 2023 from 9,128 million in 2022 representing a change of -2.09%. This indicates a decrease in overall liabilities.

  Total Equity: Total Equity increased to 3,582 million in 2023 from 3,194 million in 2022 representing a change of 12.14%. This indicates an increase in shareholders' equity.

  Cash And Cash Equivalents: Cash And Cash Equivalents increased to 778 million in 2023 from 601 million in 2022 representing a change of 29.39%. This indicates an increase in available liquid assets.

  Total Current Assets: Total Current Assets increased to 8,066 million in 2023 from 7,886 million in 2022 representing a change of 2.28%. This indicates a better liquidity position.

  Total Current Liabilities: Total Current Liabilities decreased to 6,762 million in 2023 from 8,377 million in 2022 representing a change of -19.28%. This indicates a lower short-term debt burden.

  Common Stock: Common Stock increased to 824 in 2023 from 488 in 2022 representing a change of 68.8%. This indicates an increase in ownership interest.

  Retained Earnings: Retained Earnings increased to -1,702 million in 2023 from -1,789 million in 2022 representing a change of 4.85%. This indicates an accumulated profits.

  Total Debt: Total Debt decreased to 4,506 million in 2023 from 5,014 million in 2022 representing a change of -10.12%. This indicates a reduction in overall debt burden.

• 📉 Negative Indicators

  Short Term Investments: Short Term Investments decreased to 27 million in 2023 from 121 million in 2022 representing a change of -78.11%. This indicates a decrease in short-term investment holdings.

• Quarterly Balance Sheet

Note: The years below are fiscal years in accounting.

	2024Q2	2023Q4	Q/Q change %
0000000000
total assets	12770703000	12519539000	2.01
total liabilities	9147998000	8937777000	2.35
total equity	3622705000	3581762000	1.14
cash and cash equivalents	961252000	777660000	23.61
short term investments	43850000	26539000	65.23
long term investments	125169000	124536000	0.51
total current assets	8420673000	8066225000	4.39
total non current assets	4350030000	4453314000	-2.32
total current liabilities	7008975000	6762104000	3.65
total non current liabilities	2139023000	2175673000	-1.68
common stock	823804000	823804000	0.00
retained earnings	-1685315000	-2172084000	22.41
total debt	4867845999	4506118000	8.03

Overall Score of Quarterly Balance Sheet

0.67 out of 1

Detailed Analysis

• 📈 Positive Indicators

  Total Assets: Total Assets increased to 12,771 million in 2024Q2 from 12,520 million in 2023Q4 representing a change of 2.01%. Suggesting a growth in asset holdings.

  Total Equity: Total Equity increased to 3,623 million in 2024Q2 from 3,582 million in 2023Q4 representing a change of 1.14%. This indicates an increase in shareholders' equity.

  Cash And Cash Equivalents: Cash And Cash Equivalents increased to 961 million in 2024Q2 from 778 million in 2023Q4 representing a change of 23.61%. This indicates an increase in available liquid assets.

  Short Term Investments: Short Term Investments increased to 44 million in 2024Q2 from 27 million in 2023Q4 representing a change of 65.23%. This indicates an increase in short-term investment holdings.

  Total Current Assets: Total Current Assets increased to 8,421 million in 2024Q2 from 8,066 million in 2023Q4 representing a change of 4.39%. This indicates a better liquidity position.

  Retained Earnings: Retained Earnings increased to -1,685 million in 2024Q2 from -2,172 million in 2023Q4 representing a change of 22.41%. This indicates an accumulated profits.

• 📉 Negative Indicators

  Total Liabilities: Total Liabilities increased to 9,148 million in 2024Q2 from 8,938 million in 2023Q4 representing a change of 2.35%. This indicates an increase in overall liabilities.

  Total Current Liabilities: Total Current Liabilities increased to 7,009 million in 2024Q2 from 6,762 million in 2023Q4 representing a change of 3.65%. This indicates a higher short-term debt burden.

  Total Debt: Total Debt increased to 4,868 million in 2024Q2 from 4,506 million in 2023Q4 representing a change of 8.03%. This indicates an increase in overall debt burden.

Cashflow Statements ⓘ

• Annual Cashflow Statement

Note: The years below are fiscal years in accounting.

	2023	2022	Y/Y change %
0000000000
net change in cash	210272000	-102416000	305.31
operating cash flow	62044000	-226010000	127.45
free cash flow	-162030000	-320082000	49.38
capital expenditure	-224074000	-94072000	-138.19
depreciation and amortization	324780000	334000000	-2.76
deferred income tax	0	0	NaN
stock based compensation	0	0	NaN
accounts payables	0	1465609000	-100.00
inventory	-376321000	154453000	-343.65
acquisitions net	0	6741000	-100.00
investments in property plant and equipment	-114169000	-94072000	-21.36
net cash used for investing activites	-51425000	71439000	-171.98
debt repayment	-398124000	239679000	-266.11
common stock issued	814614000	0	NaN
common stock repurchased	0	0	NaN
dividends paid	0	0	NaN
net cash used provided by financing activities	195356000	25262000	673.32
cash at end of period	811273000	601001000	34.99
accounts receivables	-62976000	-1465609000	95.70
cash at beginning of period	601001000	703417000	-14.56

Overall Score of Annual Cashflow Statement

0.83 out of 1

Detailed Analysis

• 📈 Positive Indicators

  Net Change in Cash: Net Change in Cash increased to 210 million in 2023 from -102 million in 2022 representing a change of 305.31%. Indicating an increased ability to generate cash from the company's operations or its cash flow position.

  Operating Cash Flow: Operating Cash Flow increased to 62 million in 2023 from -226 million in 2022 representing a change of 127.45%. This indicates that the company generated more cash from its core business operations.

  Free Cash Flow: Free Cash Flow increased to -162 million in 2023 from -320 million in 2022 representing a change of 49.38%. This indicates an increase in cash generated after accounting for capital expenditures.

  Capital Expenditure: Capital Expenditure decreased to -224 million in 2023 from -94 million in 2022 representing a change of -138.19%. This indicates a possible improved efficiency or a shift in the company's strategic priorities.

  Accounts Payables: The absolute value of Accounts Payables decreased to 0 million in 2023 from 1,466 million in 2022 representing a change of -100.0%. This indicates that the company has reduced its outstanding obligations to its suppliers.

• 📉 Negative Indicators

  Accounts Receivables: Accounts Receivables increased to -63 in 2023 from -1,466 million in 2022 representing a change of 95.7%. This suggests that the company is less capable of collecting payments from its customers.

• Quarterly Cashflow Statement

Note: The years below are fiscal years in accounting.

	2024Q2	2023Q4	Q/Q change %
0000000000
operating cash flow	40302000	-18701000	315.51
free cash flow	-54712000	-118168000	53.70
capital expenditure	-95014000	-99467000	4.48
depreciation and amortization	124340000	181100000	-31.34
deferred income tax	0	0	NaN
stock based compensation	0	0	NaN
accounts receivables	0	-62976000	100.00
accounts payables	0	0	NaN
inventory	0	-376321000	100.00
acquisitions net	0	0	NaN
investments in property plant and equipment	-95014000	-99467000	4.48
net cash used for investing activites	-45209000	29298000	-254.31
debt repayment	248618000	0	NaN
common stock issued	0	0	NaN
common stock repurchased	0	0	NaN
dividends paid	0	0	NaN
net cash used provided by financing activities	137620000	18143000	658.53
net change in cash	961252000	0	NaN
cash at end of period	961252000	790403000	21.62
cash at beginning of period	0	790403000	-100.00

Overall Score of Quarterly Cashflow Statement

0.6 out of 1

Detailed Analysis

• 📈 Positive Indicators

  Net Change in Cash: Net Change in Cash increased to 961 million in 2024Q2 from 0 million in 2023Q4 representing a change of nan%. Indicating an increased ability to generate cash from the company's operations or its cash flow position.

  Operating Cash Flow: Operating Cash Flow increased to 40 million in 2024Q2 from -19 million in 2023Q4 representing a change of 315.51%. This indicates that the company generated more cash from its core business operations.

  Free Cash Flow: Free Cash Flow increased to -55 million in 2024Q2 from -118 million in 2023Q4 representing a change of 53.7%. This indicates an increase in cash generated after accounting for capital expenditures.

• 📉 Negative Indicators

  Capital Expenditure: Capital Expenditure increased to -95 million in 2024Q2 from -99 million in 2023Q4 representing a change of 4.48%. This indicates an increase in the cash outflow required for acquiring or improving long-term assets.

  Accounts Receivables: Accounts Receivables increased to 0 in 2024Q2 from -63 million in 2023Q4 representing a change of 100.0%. This suggests that the company is less capable of collecting payments from its customers.

Earnings Transcripts ⓘ

No earnings transcripts available.

Earnings Per Share (EPS) ⓘ

Analyst Stock Recommendations ⓘ

Discover detailed analyst recommendations for stocks, including categories such as Buy, Hold, Sell, Strong Buy, and Strong Sell. These insights are based on thorough analysis of financial and market factors. The consensus is calculated by assigning a numerical score to each recommendation. These scores are then weighted and averaged over a specified period to provide a comprehensive view of the stock's outlook, with the final score determining the overall consensus.

Financial Ratios ⓘ

• Annual Financial Ratios

	2023-12-31	2022-12-31	Y/Y change %
FY
calendar year	2023	2022	NaN
revenue per share	0.78	0.85	-7.25
net income per share	-0.06	-0.12	53.09
operating cash flow per share	0.01	-0.04	120.82
free cash flow per share	-0.02	-0.06	61.60
cash per share	0.12	0.14	-15.54
book value per share	0.51	0.6	-14.94
tangible book value per share	0.5	0.49	1.49
shareholders equity per share	0.48	0.56	-13.39
interest debt per share	0.68	0.99	-31.45
market cap	670471348.06	1117421077.52	-40.00
enterprise value	4398929348.06	5530008077.52	-20.45
pe ratio	-1.73	-1.79	2.98
price to sales ratio	0.12	0.25	-50.93
pocfratio	10.81	-4.94	318.57
pfcf ratio	-4.14	-3.49	-18.53
pb ratio	0.2	0.38	-47.45
ptb ratio	0.2	0.38	-47.45
ev to sales	0.8	1.24	-34.95
enterprise value over ebitda	33.96	-55.38	161.33
ev to operating cash flow	70.9	-24.47	389.77
ev to free cash flow	-27.15	-17.28	-57.14
earnings yield	-0.58	-0.56	-3.07
free cash flow yield	-0.24	-0.29	15.63
debt to equity	1.33	1.69	-21.29
debt to assets	0.36	0.41	-11.54
net debt to ebitda	28.78	-44.19	165.14
current ratio	1.19	0.94	26.71
interest coverage	-0.93	-0.47	-96.60
income quality	-0.15	0.36	-141.73
dividend yield	0	0	NaN
payout ratio	0	0	NaN
sales general and administrative to revenue	0.08	0.08	-2.43
research and ddevelopement to revenue	0.02	0.03	-25.61
intangibles to total assets	0.01	0.05	-82.66
capex to operating cash flow	3.61	-0.42	967.68
capex to revenue	0.04	0.02	94.80
capex to depreciation	0.69	0.28	144.96
stock based compensation to revenue	0	0	NaN
graham number	0.78	1.22	-36.26
roic	-0.03	-0.01	-109.37
return on tangible assets	-0.03	-0.05	41.58
graham net net	-0.6	-0.7	13.74
working capital	1304121000	-490616000	365.81
tangible asset value	3476814000	2598431000	33.80
net current asset value	-871552000	-1242041000	29.83
invested capital	4324437000	2776727000	55.74
average receivables	4671956500	4225399000	10.57
average payables	3169115500	2796844500	13.31
average inventory	1635660500	1656979000	-1.29
days sales outstanding	270.49	431.2	-37.27
days payables outstanding	232.33	290.76	-20.10
days of inventory on hand	131.75	135.53	-2.79
receivables turnover	1.35	0.85	59.42
payables turnover	1.57	1.26	25.15
inventory turnover	2.77	2.69	2.87
roe	-0.11	-0.21	45.84
capex per share	0.03	0.02	80.67

• Negative

  ROE: Return on Equity (ROE) increased to -0.11 on 2023-12-31 from -0.21 on 2022-12-31, representing a change of 45.84%. However, ROE is <= 5%, suggesting that the company has not been generating high returns for its shareholders.

• Positive

  PE Ratio: Price-to-Earnings (P/E) Ratio increased to -1.73 on 2023-12-31 from -1.79 on 2022-12-31, representing a change of 2.98%. Indicating an increase in the relative valuation of the company's stock.

  Current Ratio: Current Ratio increased to 1.19 on 2023-12-31 from 0.94 on 2022-12-31, representing a change of 26.71%. The current ratio has been increasing, suggesting an increase in the company's short-term liquidity. Also, it's above 1, indicating the ability to cover short-term obligations.

• Debt-to-Equity Ratio:

• Quarterly Financial Ratios

	2024-06-30 Q2	2023-12-31 Q4	Q/Q change %
0196.HK
calendar year	2024	2023	NaN
revenue per share	0.31	0.34	-10.28
net income per share	0.0	-0.03	101.00
operating cash flow per share	0.0	-0.0	307.48
free cash flow per share	-0.01	-0.01	55.42
cash per share	0.11	0.09	20.33
book value per share	0.4	0.41	-2.62
tangible book value per share	0.4	0.33	23.95
shareholders equity per share	0.38	0.39	-2.42
interest debt per share	0.54	0.52	4.00
market cap	736109793.25	831534423.77	-11.48
enterprise value	4642703792.25	4559992423.77	1.81
pe ratio	76.08	-0.89	8604.95
price to sales ratio	0.27	0.28	-5.01
pocfratio	18.26	-44.46	141.08
pfcf ratio	-13.45	-7.04	-91.20
pb ratio	0.21	0.25	-12.66
ptb ratio	0.21	0.25	-12.66
ev to sales	1.67	1.53	9.25
enterprise value over ebitda	23.23	-75.82	130.63
ev to operating cash flow	115.2	-243.84	147.24
ev to free cash flow	-84.86	-38.59	-119.90
earnings yield	0.0	-0.28	101.18
free cash flow yield	-0.07	-0.14	47.70
debt to equity	1.42	1.33	6.58
debt to assets	0.38	0.36	5.90
net debt to ebitda	19.54	-61.99	131.53
current ratio	1.2	1.19	0.72
interest coverage	0	0	NaN
income quality	16.66	0.08	20604.82
dividend yield	0	0	NaN
payout ratio	0	0	NaN
sales general and administrative to revenue	0.05	0.1	-53.94
research and ddevelopement to revenue	0.02	0.03	-17.15
intangibles to total assets	0	0.06	-100.00
capex to operating cash flow	2.36	-5.32	144.32
capex to revenue	0.03	0.03	2.50
capex to depreciation	0.76	0.55	39.13
stock based compensation to revenue	0	0	NaN
graham number	0.05	0.49	-90.11
roic	-0.0	-0.02	91.16
return on tangible assets	0.0	-0.02	100.96
graham net net	-0.46	-0.49	6.02
working capital	1411698000	1304121000	8.25
tangible asset value	3622705000	2813813000	28.75
net current asset value	-727325000	-871552000	16.55
invested capital	4215718000	4695586000	-10.22
average receivables	None	None	NaN
average payables	None	None	NaN
average inventory	None	None	NaN
days sales outstanding	138.8	122.55	13.26
days payables outstanding	111.06	109.11	1.79
days of inventory on hand	60.43	61.87	-2.34
receivables turnover	0.65	0.73	-11.71
payables turnover	0.81	0.82	-1.75
inventory turnover	1.49	1.45	2.39
roe	0.0	-0.07	101.03
capex per share	0.01	0.01	-8.03

• Negative

  ROE: Return on Equity (ROE) increased to 0.00 on 2024-06-30 Q2 from -0.07 on 2023-12-31 Q4, representing a change of 101.03%. However, ROE is <= 5%, suggesting that the company has not been generating high returns for its shareholders.

• Positive

  PE Ratio: Price-to-Earnings (P/E) Ratio increased to 76.08 on 2024-06-30 Q2 from -0.89 on 2023-12-31 Q4, representing a change of 8604.95%. Indicating an increase in the relative valuation of the company's stock.

  Current Ratio: Current Ratio increased to 1.20 on 2024-06-30 Q2 from 1.19 on 2023-12-31 Q4, representing a change of 0.72%. The current ratio has been increasing, suggesting an increase in the company's short-term liquidity. Also, it's above 1, indicating the ability to cover short-term obligations.

• Debt-to-Equity Ratio:

Growth Rates ⓘ

• Annual Growth

• Quarterly Growth

Intrinsic Value (Discounted Cash Flow) ⓘ

None