Ngai Hing Hong Co. Ltd. (1047) AI Stock Analysis

• Market Cap: HK$110.76M
• Dividend Yield: N/A
• Average Volume (3M): 121.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: 12.01%
• EPS Growth: 82.32%
• Country: HK
• Employees: 638
• Sector: Industrials
• Sector Strength: 84
• Industry: Chemicals - Specialty
• EPS (TTM): -0.02
• Shares Outstanding: 369,200,000
• 10 Day Avg. Volume: 206,400
• 30 Day Avg. Volume: 121,266
• PEG Ratio: 0.02
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$0.50 ▲(66.67%Upside)

The overall stock score is primarily driven by financial performance challenges, including declining revenues and negative cash flows, which are major risks. Neutral technical indicators and overvaluation concerns further affect the score.

Ngai Hing Hong Co. Ltd. Business Overview & Revenue Model

Company Description

Ngai Hing Hong Co. Ltd. (1047) is a Hong Kong-based company engaged in the manufacturing and trading of plastic materials. The company operates in three main sectors: Colorants, Engineering Plastics, and Trading. It provides a range of products including color masterbatches, functional masterbatches, and engineering plastics, serving various industries such as electronics, automotive, and packaging.

How the Company Makes Money

Ngai Hing Hong Co. Ltd. generates revenue primarily through the sale of its plastic products, colorants, and additives. The company has established a strong market presence by catering to diverse industrial needs, which helps in maintaining a steady stream of income. Additionally, it engages in trading activities that complement its manufacturing business, thereby enhancing its overall revenue potential. Key revenue streams include the sales of customized plastic solutions to industries requiring specific material properties. Partnerships with suppliers and clients in various sectors also play a significant role in sustaining its business operations and expanding its market reach.

Ngai Hing Hong Co. Ltd. Financial Statement Overview

Summary

Ngai Hing Hong Co. Ltd. faces financial challenges, including declining revenues, profitability issues, and unstable cash flow. Despite a moderate debt-to-equity ratio, declining equity and negative cash flows pose risks. Strategic improvements in revenue growth and cost management are essential.

Income Statement

The company has experienced fluctuating revenue, with a recent decline in total revenue from 2021 to 2024. Gross profit margin has slightly improved recently, but net income has been negative for the past two years, indicating profitability issues. EBIT and EBITDA margins are low, reflecting challenges in operational efficiency.

Balance Sheet

Debt-to-equity ratio is moderate, suggesting a balanced approach to leveraging. However, stockholders' equity has been decreasing, reflecting potential financial fragility. The equity ratio has also decreased over time, indicating increased reliance on liabilities to finance assets.

Cash Flow

Operating cash flow has seen significant volatility, with a negative trend in recent years. Free cash flow has also turned negative, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is unfavorable due to negative net income.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.33B	1.28B	1.18B	1.74B	1.97B	1.58B
	Gross Profit
218.46M	199.26M	147.70M	303.13M	347.22M	188.73M
	EBIT
22.10M	18.10M	-34.24M	96.50M	130.41M	20.40M
	EBITDA
55.41M	39.37M	-11.66M	121.81M	155.23M	42.15M
	Net Income Common Stockholders
-6.43M	-18.04M	-52.01M	56.60M	89.86M	-6.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
170.91M	104.23M	150.64M	178.93M	206.58M	126.09M
	Total Assets
985.06M	1.02B	991.27M	1.23B	1.10B	994.84M
	Total Debt
364.33M	392.29M	348.85M	406.04M	328.51M	372.40M
	Net Debt
193.43M	288.06M	198.21M	227.12M	121.93M	246.30M
	Total Liabilities
488.13M	497.59M	454.76M	568.61M	482.01M	504.32M
	Stockholders Equity
476.39M	497.13M	511.35M	625.26M	588.42M	465.32M
Cash Flow		Free Cash Flow
9.56M	-56.63M	73.75M	-58.89M	146.63M	96.27M
	Operating Cash Flow
24.92M	-45.36M	83.52M	-40.86M	162.11M	112.64M
	Investing Cash Flow
-14.19M	-17.71M	-9.58M	-18.03M	-15.45M	-16.41M
	Financing Cash Flow
27.84M	16.67M	-91.07M	31.31M	-74.28M	-61.01M

Ngai Hing Hong Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1047, the sentiment is Neutral. The current price of 0.3 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.31, and below the 200-day MA of 0.32, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1047.

Ngai Hing Hong Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1308	80 Outperform	€68.04B	8.31	46.88%	11.11%	25.44%	92.86%
1305	63 Neutral	HK$175.78M	3.72	5.30%	―	19.46%	28.24%
1478	62 Neutral	HK$8.70B	28.63	5.64%	10.74%	26.76%	237.96%
Sector *	57 Neutral	$1.32B	4.07	-2.93%	11.10%	3.37%	-51.35%
3818	50 Neutral	HK$2.35B	―	-0.99%	15.20%	-0.16%	-189.58%
1047	46 Neutral	HK$110.76M	―	-1.32%	―	12.01%	82.32%

Ngai Hing Hong Co. Ltd. Corporate Events

Ngai Hing Hong Co. Ltd. Updates on Share Option Scheme

Ngai Hing Hong Co. Ltd. has issued a supplemental announcement to its annual report for the year ending June 30, 2024, detailing its New Share Option Scheme. The scheme, adopted on November 17, 2022, allows for a maximum issuance of 36,920,000 shares, with no options granted to date. The vesting period for options is set at a minimum of 12 months. This announcement does not alter any other information in the annual report, maintaining the company’s operational transparency and commitment to stakeholders.