Hua Hong Semiconductor Limited Fundamental Analysis (HKSE: 1347.HK)
Hua Hong Semiconductor Limited Fundamental Analysis (HKSE: 1347.HK)
Hua Hong Semiconductor Limited (HKSE: 1347.HK) shows weak financial fundamentals with a PE ratio of 265.40, profit margin of 3.77%, and ROE of 1.53%. The company generates $2.7B in annual revenue with strong year-over-year growth of 19.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 1347.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1347.HK struggles to generate sufficient returns from assets.
Valuation Score
Weak1347.HK trades at a premium to fair value.
Growth Score
Moderate1347.HK shows steady but slowing expansion.
Financial Health Score
Excellent1347.HK maintains a strong and stable balance sheet.
Profitability Score
Weak1347.HK struggles to sustain strong margins.
Key Financial Metrics
Is 1347.HK Expensive or Cheap?
P/E Ratio
1347.HK trades at 265.40 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 1347.HK's PEG of 8.32 indicates potential overvaluation.
Price to Book
The market values Hua Hong Semiconductor Limited at 3.75 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 46.81 times EBITDA. This signals the market has high growth expectations.
How Well Does 1347.HK Make Money?
Net Profit Margin
For every $100 in sales, Hua Hong Semiconductor Limited keeps $3.77 as profit after all expenses.
Operating Margin
Core operations generate -2.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.53 in profit for every $100 of shareholder equity.
ROA
Hua Hong Semiconductor Limited generates $0.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hua Hong Semiconductor Limited generates strong operating cash flow of $998.20M, reflecting robust business health.
Free Cash Flow
Hua Hong Semiconductor Limited generates weak or negative free cash flow of $-1.19B, restricting financial flexibility.
FCF Per Share
Each share generates $-0.69 in free cash annually.
FCF Yield
1347.HK converts -4.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
265.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How 1347.HK Stacks Against Its Sector Peers
| Metric | 1347.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 265.40 | 34.60 | Worse (Expensive) |
| ROE | 1.53% | 758.00% | Weak |
| Net Margin | 3.77% | -3155.00% (disorted) | Weak |
| Debt/Equity | 0.59 | 0.59 | Neutral |
| Current Ratio | 2.02 | 6.17 | Strong Liquidity |
| ROA | 0.66% | 316.00% | Weak |
1347.HK outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hua Hong Semiconductor Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
89.20%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-60.07%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
116.66%
Industry Style: Growth, Innovation, High Beta
High Growth