Beijing Haizhi Technology Group Co., Ltd. Fundamental Analysis (HKSE: 2706.HK)
Beijing Haizhi Technology Group Co., Ltd. Fundamental Analysis (HKSE: 2706.HK)
Beijing Haizhi Technology Group Co., Ltd. (HKSE: 2706.HK) shows weak financial fundamentals with a PE ratio of 217.09, profit margin of -21.08%, and ROE of 1.18%. The company generates $0.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2706.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2706.HK struggles to generate sufficient returns from assets.
Valuation Score
Weak2706.HK trades at a premium to fair value.
Growth Score
Weak2706.HK faces weak or negative growth trends.
Financial Health Score
Excellent2706.HK maintains a strong and stable balance sheet.
Profitability Score
Weak2706.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2706.HK Expensive or Cheap?
P/E Ratio
2706.HK trades at 217.09 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 2706.HK's PEG of 11433513553986848.00 indicates potential overvaluation.
Price to Book
The market values Beijing Haizhi Technology Group Co., Ltd. at 11.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -111.89 times EBITDA. This is generally considered low.
How Well Does 2706.HK Make Money?
Net Profit Margin
For every $100 in sales, Beijing Haizhi Technology Group Co., Ltd. keeps $-21.08 as profit after all expenses.
Operating Margin
Core operations generate -6.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.18 in profit for every $100 of shareholder equity.
ROA
Beijing Haizhi Technology Group Co., Ltd. generates $-9.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Beijing Haizhi Technology Group Co., Ltd. generates limited operating cash flow of $-63.40M, signaling weaker underlying cash strength.
Free Cash Flow
Beijing Haizhi Technology Group Co., Ltd. generates weak or negative free cash flow of $-71.52M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.18 in free cash annually.
FCF Yield
2706.HK converts -0.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
217.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11433513553986848.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
18.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.008
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.18
vs 25 benchmark
ROA
Return on assets percentage
-0.10
vs 25 benchmark
ROCE
Return on capital employed
-0.04
vs 25 benchmark
How 2706.HK Stacks Against Its Sector Peers
| Metric | 2706.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 217.09 | 33.43 | Worse (Expensive) |
| ROE | 118.35% | 794.00% | Weak |
| Net Margin | -21.08% | -3138.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 0.59 | Strong (Low Leverage) |
| Current Ratio | 3.99 | 12.47 | Strong Liquidity |
| ROA | -9.63% | 342.00% | Weak |
2706.HK outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Beijing Haizhi Technology Group Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta