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

• Market Cap: HK$119.99M
• Dividend Yield: N/A
• Average Volume (3M): 132.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 12.01%
• EPS Growth: 82.32%
• Country: HK
• Employees: 638
• Sector: Industrials
• Sector Strength: 90
• Industry: Chemicals - Specialty
• EPS (TTM): -0.02
• Shares Outstanding: 369,200,000
• 10 Day Avg. Volume: 50,000
• 30 Day Avg. Volume: 132,100
• PEG Ratio: -0.32
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.71
• 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: HK$0.50
• Price Target Upside: 56.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: HK$0.50 ▲(56.25%Upside)

The overall stock score is primarily driven by significant financial performance challenges, including declining revenues and profitability issues. Positive technical momentum provides some support, but negative valuation factors, particularly the negative P/E ratio, drag the score down.

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 the sale of its plastic materials and products. The company's key revenue streams include the distribution and trading of plastic resins, which are used as raw materials in manufacturing processes across various industries. Additionally, the company provides custom color matching services and produces colorants, which are specialized products that add value to the base plastic materials. By offering a range of engineering plastics, the company caters to specific industrial needs, further enhancing its revenue potential. Strategic partnerships with raw material suppliers and industrial manufacturers also play a significant role in maintaining the company's market presence and profitability.

Ngai Hing Hong Co. Ltd. Financial Statement Overview

Summary

Ngai Hing Hong Co. Ltd. faces several financial challenges, including declining revenues, profitability issues, and unstable cash flow generation. The company has a moderate debt-to-equity ratio, but declining equity and negative cash flows pose significant risks.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.28B	1.18B	1.74B	1.97B	1.58B
Gross Profit	199.26M	147.70M	303.13M	347.22M	188.73M
EBITDA	39.37M	-11.66M	121.81M	155.23M	42.15M
Net Income	-18.04M	-52.01M	56.60M	89.86M	-6.21M
Balance Sheet
Total Assets	1.02B	991.27M	1.23B	1.10B	994.84M
Cash, Cash Equivalents and Short-Term Investments	104.23M	150.64M	178.93M	206.58M	126.09M
Total Debt	392.29M	348.85M	406.04M	328.51M	372.40M
Total Liabilities	497.59M	454.76M	568.61M	482.01M	504.32M
Stockholders Equity	497.13M	511.35M	625.26M	588.42M	465.32M
Cash Flow
Free Cash Flow	-56.63M	73.75M	-58.89M	146.63M	96.27M
Operating Cash Flow	-45.36M	83.52M	-40.86M	162.11M	112.64M
Investing Cash Flow	-17.71M	-9.58M	-18.03M	-15.45M	-16.41M
Financing Cash Flow	16.67M	-91.07M	31.31M	-74.28M	-61.01M

Ngai Hing Hong Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.32
• 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 0.32 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.31, and above the 200-day MA of 0.32, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 58.97 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
Sector *	58 Neutral	HK$14.11B	4.63	-3.01%	6.76%	3.67%	-54.16%
1047	56 Neutral	HK$119.99M	―	-1.32%	―	12.01%	82.32%
YIPCF	―	$121.88M	10.00	2.51%	12.91%	―	―
0301	56 Neutral	HK$649.23M	―	-8.95%	―	-3.09%	-480.17%
0701	52 Neutral	HK$388.35M	―	-6.09%	―	-30.21%	-12.78%
0377	48 Neutral	HK$71.39M	―		―	-60.57%	53.71%
1932	41 Neutral	HK$152.00M	―	-11.66%	―	-31.49%	28.61%

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.