Hang Chi Holdings Limited
Hang Chi Holdings Limited Fundamental Analysis
Hang Chi Holdings Limited (8405.HK) shows moderate financial fundamentals with a PE ratio of 11.79, profit margin of 11.08%, and ROE of 11.90%. 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 52.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 8405.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak8405.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent8405.HK trades at attractive valuation levels.
Growth Score
Moderate8405.HK shows steady but slowing expansion.
Financial Health Score
Excellent8405.HK maintains a strong and stable balance sheet.
Profitability Score
Weak8405.HK struggles to sustain strong margins.
Key Financial Metrics
Is 8405.HK Expensive or Cheap?
P/E Ratio
8405.HK trades at 11.79 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 8405.HK's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values Hang Chi Holdings Limited at 1.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.98 times EBITDA. This is generally considered low.
How Well Does 8405.HK Make Money?
Net Profit Margin
For every $100 in sales, Hang Chi Holdings Limited keeps $11.08 as profit after all expenses.
Operating Margin
Core operations generate 11.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.90 in profit for every $100 of shareholder equity.
ROA
Hang Chi Holdings Limited generates $7.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hang Chi Holdings Limited generates strong operating cash flow of $75.61M, reflecting robust business health.
Free Cash Flow
Hang Chi Holdings Limited generates strong free cash flow of $69.48M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.17 in free cash annually.
FCF Yield
8405.HK converts 25.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 8405.HK Stacks Against Its Sector Peers
| Metric | 8405.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.79 | 28.45 | Better (Cheaper) |
| ROE | 11.90% | 763.00% | Weak |
| Net Margin | 11.08% | -45265.00% (disorted) | Strong |
| Debt/Equity | 0.42 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.20 | 2795.60 | Neutral |
| ROA | 7.85% | -16588.00% (disorted) | Weak |
8405.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hang Chi 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: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation