China Hongbao Holdings Limited Fundamental Analysis
China Hongbao Holdings Limited Fundamental Analysis
China Hongbao Holdings Limited (8316.HK) shows weak financial fundamentals with a PE ratio of 24.20, profit margin of 4.49%, and ROE of -1.40%. The company generates $0.2B 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 -138.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 8316.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent8316.HK demonstrates superior asset utilization.
Valuation Score
Excellent8316.HK trades at attractive valuation levels.
Growth Score
Weak8316.HK faces weak or negative growth trends.
Financial Health Score
Excellent8316.HK maintains a strong and stable balance sheet.
Profitability Score
Weak8316.HK struggles to sustain strong margins.
Key Financial Metrics
Is 8316.HK Expensive or Cheap?
P/E Ratio
8316.HK trades at 24.20 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 8316.HK's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values China Hongbao Holdings Limited at 20.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -30.60 times EBITDA. This is generally considered low.
How Well Does 8316.HK Make Money?
Net Profit Margin
For every $100 in sales, China Hongbao Holdings Limited keeps $4.49 as profit after all expenses.
Operating Margin
Core operations generate -4.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.40 in profit for every $100 of shareholder equity.
ROA
China Hongbao Holdings Limited generates $14.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Hongbao Holdings Limited generates limited operating cash flow of $9.09M, signaling weaker underlying cash strength.
Free Cash Flow
China Hongbao Holdings Limited produces free cash flow of $9.07M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.01 in free cash annually.
FCF Yield
8316.HK converts 4.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
20.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.40
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
-0.78
vs 25 benchmark
How 8316.HK Stacks Against Its Sector Peers
| Metric | 8316.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.20 | 30.09 | Better (Cheaper) |
| ROE | -139.65% | 1166.00% | Weak |
| Net Margin | 4.49% | -20823.00% (disorted) | Weak |
| Debt/Equity | 0.05 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 1.19 | 24.25 | Neutral |
| ROA | 14.49% | -1313615.00% (disorted) | Strong |
8316.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China Hongbao Holdings Limited'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: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure