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

• Market Cap: HK$116.30M
• Dividend Yield: N/A
• Average Volume (3M): 76.03K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.20
• Revenue Growth: 5.65%
• EPS Growth: N/A
• Country: HK
• Employees: 638
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): <0.01
• 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$0.32 ▼(-13.24% Downside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

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

Free Cash Flow Growth

Free cash flow surged (653.36%) with operating cash flow supporting earnings (OCF/net income 0.17; FCF/net income 0.80). Durable cash generation strengthens the firm's ability to fund capex, R&D, or repay debt, reducing reliance on external financing and enabling strategic investments over the medium term.

Revenue Growth

A 32.39% revenue increase demonstrates meaningful demand traction across its manufacturing and trading lines. Sustained top-line growth supports scale economies, broadens market reach in packaging, construction and export channels, and provides a platform to improve margins and fund product innovation.

Margin Stability & Efficiency

Stable gross margin (16.20%) alongside improving EBIT/EBITDA margins signals operational efficiency gains and better cost management. If sustained, these dynamics allow the company to convert incremental revenue into higher operating cash flow, supporting reinvestment and resilience to cost swings.

Negative Factors

Very Low Net Margin

A net margin of 0.03% leaves virtually no bottom-line buffer against raw material inflation, pricing pressure, or one-off charges. Despite revenue growth, such thin profitability constrains retained earnings, limits internal funding for growth or dividends, and increases earnings vulnerability long term.

Weak Return on Equity

ROE of 0.07% indicates the company generates almost no return on shareholders' capital. This weak capital efficiency hampers long-term shareholder value creation, forces reliance on external funding for large investments, and raises questions about management's ability to deploy capital profitably.

Moderate Leverage

A debt-to-equity ratio around 0.83—noted as slightly increasing—means leverage is moderate but material. Coupled with negligible net profits and low ROE, this reduces financial flexibility, increases interest-service vulnerability in downturns, and can limit funding capacity for strategic initiatives without raising costs.

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

Company Description

Ngai Hing Hong Company Limited, an investment holding company, manufactures and trades in plastic materials, pigments, colorants, compounded plastic resins, engineering plastics, and biodegradable plastics in Hong Kong and China. The company operates through Trading, Colorants, Engineering Plastics, and Others segments. It is also involved in property holding activities. The company was founded in 1970 and is headquartered in Sha Tin, Hong Kong. Ngai Hing Hong Company Limited is a subsidiary of Good Benefit Limited.

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

Ngai Hing Hong Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1047, the sentiment is Negative. The current price of 0.37 is above the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.35, and above the 200-day MA of 0.33, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.18 is Neutral, neither overbought nor oversold. The STOCH value of 6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.15B	3.38	3.36%	7.85%	-5.37%	25.20%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0301	56 Neutral	HK$724.51M	-12.72	-14.53%	―	0.35%	-153.95%
1047	54 Neutral	HK$116.30M	15.57	0.07%	―	5.65%	―
1932	50 Neutral	HK$255.00M	-1.48	-15.93%	―	-25.21%	12.04%
0701	49 Neutral	HK$335.05M	-2.79	-8.05%	―	-24.13%	-27.54%
0377	48 Neutral	HK$58.47M	-0.06	―	―	-15.10%	31.07%

Ngai Hing Hong Co. Ltd. Corporate Events

Ngai Hing Hong Swings Back to Profit on Higher Margins and Lower Finance Costs

Ngai Hing Hong Company Limited reported interim unaudited results for the six months ended 31 December 2025, showing revenue of HK$687.9 million, down slightly from HK$705.1 million a year earlier, while gross profit improved to HK$114.0 million from HK$109.1 million. The group’s operating profit rose to HK$16.6 million from HK$12.6 million, and net profit attributable to equity holders reached HK$2.4 million, reversing a loss of HK$6.8 million in the prior period as lower finance costs and tighter cost control bolstered profitability despite modest top-line pressure.

Basic and diluted earnings per share recovered to HK0.66 cent from a loss of HK1.84 cents, indicating a return to the black for shareholders. The turnaround, driven by improved margins, reduced administrative expenses and a sharp drop in finance costs, signals stabilising operations for the plastics materials group and may support investor confidence as the company navigates a challenging demand environment.

The most recent analyst rating on (HK:1047) stock is a Hold with a HK$0.33 price target. To see the full list of analyst forecasts on Ngai Hing Hong Co. Ltd. stock, see the HK:1047 Stock Forecast page.

Ngai Hing Hong Signals Return to Profit Amid Global Headwinds

Ngai Hing Hong Company Limited has issued a positive profit alert, indicating it expects to post at least HK$1 million in profit attributable to equity holders for the six months ended 31 December 2025, reversing a HK$6.8 million loss a year earlier. The turnaround comes despite a challenging global environment marked by U.S. tariff impacts, accelerated supply-chain restructuring and cautious end-market demand.

Management attributes the improved performance mainly to higher overall gross profit and margin, driven by sharpening focus on core businesses and reinforcing fundamentals, as well as reduced interest expenses amid a downward trend in market interest rates. The company cautioned that the figures are based on unaudited management accounts and advised shareholders and potential investors to trade its shares carefully ahead of the scheduled interim results release on 26 February 2026.

The most recent analyst rating on (HK:1047) stock is a Hold with a HK$0.33 price target. To see the full list of analyst forecasts on Ngai Hing Hong Co. Ltd. stock, see the HK:1047 Stock Forecast page.

Ngai Hing Hong Sets February Board Meeting to Review Interim Results and Dividend

Ngai Hing Hong Company Limited has scheduled a board meeting for 26 February 2026 in Hong Kong to review and approve the group’s interim results for the six months ended 31 December 2025. The board will also consider whether to declare an interim dividend for shareholders, signalling that capital return policy is on the agenda alongside earnings disclosure.

The timing of the meeting indicates the company is preparing to update the market on its mid-year financial performance, a key data point for assessing operating momentum and sector positioning. Any decision on an interim dividend will be closely watched by investors for clues on cash flow strength, management’s confidence in near-term prospects, and the group’s broader capital allocation priorities.

The most recent analyst rating on (HK:1047) stock is a Hold with a HK$0.33 price target. To see the full list of analyst forecasts on Ngai Hing Hong Co. Ltd. stock, see the HK:1047 Stock Forecast page.