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

• Market Cap: HK$147.68M
• Dividend Yield: N/A
• Average Volume (3M): 76.03K
• Price to Earnings (P/E): 444.4
• Beta (1Y): 0.19
• Revenue Growth: 5.65%
• EPS Growth: N/A
• Country: HK
• Employees: 638
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.02
• Shares Outstanding: 369,200,000
• 10 Day Avg. Volume: 102,600
• 30 Day Avg. Volume: 76,033
• PEG Ratio: -3.38
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 1.62
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$0.43 ▲(8.50% Upside)

Ngai Hing Hong Co. Ltd. demonstrates strong revenue growth and cash flow generation, which are positive indicators. However, the stock's high P/E ratio suggests overvaluation, and technical indicators point to overbought conditions, which could lead to a price correction. The lack of dividend yield further impacts its attractiveness.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates a positive trajectory and expanding market presence, which is a durable factor for long-term success.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility and supports reinvestment in growth opportunities, ensuring long-term business sustainability.

Operational Efficiency

Improved operational efficiency suggests better cost management and resource utilization, contributing to sustained profitability over time.

Negative Factors

Profitability Challenges

Low profitability margins indicate challenges in converting revenue into profit, which may hinder long-term financial performance and shareholder returns.

Shareholder Returns

Limited returns on equity suggest that the company is not effectively generating returns for shareholders, which could impact investor confidence and long-term investment appeal.

Leverage Concerns

Moderate leverage, while manageable, requires careful monitoring to avoid financial strain and ensure the company maintains its financial stability over time.

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

Company Description

Ngai Hing Hong Co. Ltd. (1047) is a leading manufacturer and distributor of plastic products in Hong Kong. The company operates primarily in the plastics sector, focusing on producing high-quality plastic products for various applications, including packaging, construction, and consumer goods. Ngai Hing Hong is known for its commitment to innovation and sustainability, offering a wide range of products that cater to both local and international markets.

How the Company Makes Money

Ngai Hing Hong Co. Ltd. generates revenue through multiple streams, primarily by manufacturing and selling plastic products to businesses across different sectors. The company's core revenue comes from its production lines that cater to diverse industries, including packaging and construction. Additionally, Ngai Hing Hong engages in trading activities which supplement its income by importing and exporting plastic raw materials and finished goods. Strategic partnerships with suppliers and distributors enhance its market reach, while the company's focus on research and development allows it to introduce new products, driving sales growth. The company's ability to adapt to market demands and regulations related to sustainability also positions it favorably to capture emerging opportunities in environmentally-friendly plastic solutions.

Ngai Hing Hong Co. Ltd. Financial Statement Overview

Summary

Ngai Hing Hong Co. Ltd. is experiencing strong revenue growth and improved cash flow generation, which are positive indicators for future performance. However, the company faces challenges in profitability and shareholder returns, as evidenced by low net profit margins and return on equity. The balance sheet shows moderate leverage, which should be monitored to ensure financial stability.

Income Statement

Ngai Hing Hong Co. Ltd. has shown a strong revenue growth rate of 32.39% in the latest year, indicating a positive trajectory. However, the net profit margin is extremely low at 0.03%, suggesting profitability challenges. The gross profit margin is stable at 16.20%, and EBIT and EBITDA margins have improved, reflecting operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio of 0.83 indicates moderate leverage, which is manageable but slightly increasing. Return on equity is very low at 0.07%, pointing to limited returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

There is a significant improvement in free cash flow growth at 653.36%, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio of 0.17 indicates that cash flow is supporting earnings, although the free cash flow to net income ratio of 0.80 suggests room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.35B	1.28B	1.18B	1.74B	1.97B
Gross Profit	218.49M	218.49M	199.26M	147.70M	303.13M	347.22M
EBITDA	52.62M	44.61M	39.37M	-11.66M	121.81M	155.23M
Net Income	339.00K	339.00K	-18.04M	-52.01M	56.60M	89.86M
Balance Sheet
Total Assets	1.07B	1.07B	1.02B	991.27M	1.23B	1.10B
Cash, Cash Equivalents and Short-Term Investments	193.16M	193.16M	104.23M	150.64M	178.93M	206.58M
Total Debt	408.80M	408.80M	392.29M	348.85M	406.04M	328.51M
Total Liabilities	540.55M	540.55M	497.59M	454.76M	568.61M	482.01M
Stockholders Equity	495.25M	495.25M	497.13M	511.35M	625.26M	588.42M
Cash Flow
Free Cash Flow	72.00M	72.00M	-56.63M	73.75M	-58.89M	146.63M
Operating Cash Flow	89.58M	89.58M	-45.36M	83.52M	-40.86M	162.11M
Investing Cash Flow	-6.41M	-6.41M	-17.71M	-9.58M	-18.03M	-15.45M
Financing Cash Flow	6.29M	6.29M	16.67M	-91.07M	31.31M	-74.28M

Ngai Hing Hong Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.34, and above the 200-day MA of 0.32, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 60.80 is Neutral, neither overbought nor oversold. The STOCH value of 56.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
0408	69 Neutral	HK$1.07B	8.26	3.36%	7.89%	-5.37%	25.20%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0301	56 Neutral	HK$630.42M	-18.13	-14.53%	―	0.35%	-153.95%
1047	54 Neutral	HK$147.68M	444.44	0.07%	―	5.65%	―
0701	49 Neutral	HK$375.03M	-3.73	-8.05%	―	-24.13%	-27.54%
1932	48 Neutral	HK$130.00M	-2.09	-15.93%	―	-25.21%	12.04%
0377	48 Neutral	HK$74.47M	-0.06	―	―	-15.10%	31.07%

Ngai Hing Hong Co. Ltd. Corporate Events

Ngai Hing Hong Co. Ltd. Updates Audit Committee Terms

Ngai Hing Hong Co. Ltd. has updated its Audit Committee Terms of Reference, which outlines the committee’s structure, membership, meeting protocols, and responsibilities. The updated terms emphasize the committee’s role in overseeing the company’s financial reporting, risk management, internal control systems, and relationships with auditors and employees. This update signifies the company’s commitment to maintaining robust governance and transparency in its financial operations, potentially enhancing stakeholder confidence.

Ngai Hing Hong Updates Nomination Committee Terms

Ngai Hing Hong Co. Ltd. has updated the terms of reference for its Nomination Committee as of June 30, 2025. This update outlines the committee’s constitution, membership, meeting protocols, authority, duties, and reporting procedures. The revision aims to enhance governance and ensure clarity in the committee’s operations, potentially impacting the company’s internal processes and stakeholder engagement.

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.