Hilong Holding Ltd. (1623) AI Stock Analysis

• Market Cap: €293.48M
• Dividend Yield: N/A
• Average Volume (3M): 6.37M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.19
• Revenue Growth: 7.69%
• EPS Growth: -81.72%
• Country: HK
• Employees: 3,254
• Sector: Energy
• Sector Strength: 51
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.01
• Shares Outstanding: 1,696,438,600
• 10 Day Avg. Volume: 5,296,717
• 30 Day Avg. Volume: 6,373,945
• PEG Ratio: -0.11
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.43
• 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: 59 Neutral
• Price Target: ―

Hilong Holding Ltd.'s overall stock score reflects its mixed financial performance, with growth in revenue but declining profitability and uncertain cash flow visibility. While the stock's valuation suggests potential undervaluation, technical stability offers little insight into future price movement, and the absence of earnings call data limits further analysis.

Hilong Holding Ltd. Business Overview & Revenue Model

Company Description

Hilong Holding Limited, an investment holding company, provides oil field equipment and services worldwide. The company operates through Oilfield Equipment Manufacturing and Services, Line Pipe Technology and Services, Oilfield Services, and Offshore Engineering Services segments. The Oilfield Equipment Manufacturing and Services segment produces and sells oilfield equipment; and offers oil country tubular goods (OCTG) coating services. The Line Pipe Technology and Services segment provides services related to oil and gas pipeline; and produces coating materials for anticorrosive and anti-friction purposes. The Oilfield Services segment offers well drilling services; integrated comprehensive services; and OCTG trading and related services to oil and gas producers. The Offshore Engineering Services segment provides offshore engineering and design services. The company is also involved in the manufacture, trading, and distribution of oil and gas equipment; the manufacture and distribution of hardbanding materials and special steel; the research and development related to technology of manufacturing oil and gas equipment, as well as coating services; the research, inspection, and repairment of oil and gas equipment; and the provision of offshore oilfield services. Hilong Holding Limited was founded in 2002 and is headquartered in Shanghai, the People's Republic of China. Hilong Holding Limited is a subsidiary of Hilong Group Limited.

How the Company Makes Money

Hilong Holding Ltd. generates revenue through multiple streams, primarily driven by its manufacturing and services divisions. The company manufactures and sells oilfield equipment such as drill pipes and line pipes, which are essential for oil and gas extraction and transportation. Additionally, Hilong provides oilfield services, including drilling, well completion, and pipeline engineering, which are critical in maximizing the efficiency and safety of oil and gas operations. Revenue is further augmented through strategic partnerships and contracts with major oil and gas companies worldwide, allowing Hilong to expand its market reach and enhance its service offerings.

Hilong Holding Ltd. Financial Statement Overview

Summary

Hilong Holding Ltd. presents a mixed financial profile with revenue growth but declining profitability and cash flow visibility. The balance sheet shows moderate leverage, yet the drop in return on equity and lack of cash flow data raise concerns about financial stability.

Income Statement

The company shows moderate revenue growth with a 9.8% increase from 2023 to 2024. However, the net profit margin decreased significantly to 0.6% in 2024 from 3.5% in 2023, indicating reduced profitability. The EBIT margin also decreased to 8.0% from 10.2%, reflecting tighter operational efficiencies.

Balance Sheet

The debt-to-equity ratio stands at 0.83, indicating a moderate level of leverage. The equity ratio is 40.4%, showing a stable equity position. However, the return on equity dropped to 0.9% from 4.5% the previous year, suggesting weaker returns for shareholders.

Cash Flow

The absence of reported cash flow data for 2024 limits the visibility into the company's cash flow health. In 2023, free cash flow was negative, indicating potential liquidity challenges. The reliance on previous data shows fluctuating cash flow performance.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.67B	4.25B	3.74B	2.92B	2.62B
Gross Profit	1.12B	915.47M	1.07B	898.32M	693.98M
EBITDA	665.60M	825.86M	819.81M	703.15M	404.84M
Net Income	28.27M	148.66M	140.98M	44.25M	-298.70M
Balance Sheet
Total Assets	8.08B	7.96B	7.80B	7.07B	7.37B
Cash, Cash Equivalents and Short-Term Investments	934.21M	958.78M	832.54M	761.70M	810.47M
Total Debt	2.71B	2.89B	3.13B	3.06B	3.15B
Total Liabilities	4.82B	4.63B	4.45B	4.03B	4.25B
Stockholders Equity	3.26B	3.34B	3.32B	3.02B	3.07B
Cash Flow
Free Cash Flow	0.00	-41.21M	417.07M	312.51M	-42.22M
Operating Cash Flow	0.00	219.72M	556.15M	453.81M	20.53M
Investing Cash Flow	0.00	286.36M	-103.10M	-23.55M	-24.75M
Financing Cash Flow	0.00	-495.47M	-320.97M	-492.44M	-56.62M

Hilong Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$15.31B	9.88	6.83%	5.21%	4.41%	-68.95%
1623	59 Neutral	€293.48M	9.56	0.86%	―	7.69%	-81.72%
ATONF	―	$527.63M	19.77	7.26%	1.41%	―	―
SHANF	―	$558.57M	―	-45.09%	―	―	―
GSG	―	€24.37M	―	-9.22%	―	―	―
2178	56 Neutral	HK$122.59M	―	-9.89%	―	-6.39%	75.82%
1921	41 Neutral	HK$8.24B	1,816.33	-5.55%	0.73%	-16.30%	-156.80%

Hilong Holding Ltd. Corporate Events

Hilong Holding Limited Announces 2025 Annual General Meeting

Hilong Holding Limited has announced its 2025 Annual General Meeting scheduled for June 20, 2025, in Shanghai, China. Key agenda items include the re-election of directors, approval of financial statements, and a resolution to authorize share repurchases up to 10% of the company’s issued shares. This meeting is significant as it addresses corporate governance and strategic financial decisions, potentially impacting shareholder value and company operations.

Hilong Holding Ltd. Addresses Internal Control and Compliance Issues

Hilong Holding Ltd., a company incorporated in the Cayman Islands, has provided a supplemental announcement regarding its continuing connected transactions and internal control review. The company has faced non-compliance issues related to reporting connected transactions, which were identified during an internal audit. As part of remedial actions, Hilong engaged an independent consultant to enhance its internal controls, focusing on corporate governance and financial reporting. The company aims to address these issues to comply with stock exchange requirements and improve its operational transparency.

Hilong Holding Limited Provides Quarterly Update on Resumption Status

Hilong Holding Limited has announced a quarterly update on its resumption status and continued suspension of trading. Despite the suspension, the company continues its business operations as usual. The company has conducted an independent investigation into certain transactions, published its outstanding financial results, and is addressing queries from the Stock Exchange to meet the resumption guidance and resume trading.

Hilong Holding Reports 2024 Annual Results with Profit Decline

Hilong Holding Limited reported its annual results for the year ended December 31, 2024, showing a 9.8% increase in revenue to approximately RMB4,668.3 million and a 22.5% rise in gross profit to RMB1,121.8 million. However, the company’s profit for the year significantly decreased by 82.4% to RMB30.1 million compared to the previous year, attributed to increased expenses and impairment losses. The Board decided not to recommend any dividend for the year, and trading remains suspended, which could impact stakeholders’ confidence.

Hilong Holding Limited Announces Board Meeting Date Amid Continued Trading Suspension

Hilong Holding Limited, a company incorporated in the Cayman Islands, has announced the date for its board meeting, which is set for March 28, 2025. The meeting will focus on considering and approving the annual results for the year ended December 31, 2024. Additionally, the company has stated that the suspension of trading in its shares, which began on April 2, 2024, will continue until further notice. Stakeholders are advised to exercise caution when dealing with the company’s securities.

Hilong Holding Limited Maintains Trading Suspension Amid Director Legal Proceedings

Hilong Holding Limited announced that trading in its shares on the Hong Kong Stock Exchange remains suspended. The announcement follows disciplinary actions involving Dr. Fan Ren Da Anthony, a non-executive director, related to his past role in another company, Hong Kong Resources Holdings. Despite ongoing legal proceedings, the board believes Dr. Fan’s ability to serve as a director is not compromised. The company advises shareholders and potential investors to exercise caution.

Hilong Holding Ltd. Addresses Compliance and Reporting Oversights in Connected Transactions

Hilong Holding Ltd. has announced a series of continuing connected transactions following the reclassification of Technomash from a subsidiary to a connected entity. This transition necessitated compliance with Chapter 14A of the Listing Rules, which the company initially overlooked, resulting in a delayed disclosure of the Drill Pipe Supply Agreement. Additionally, the company has consolidated MTC’s financial statements into its group accounts, affecting its transactions with Technomash and Pipeline Surgut. The termination of the MTC Transaction Agreements, which exceeded the 5% threshold for connected transactions, highlights an oversight in obtaining necessary shareholder approvals, impacting the company’s compliance and reporting obligations.