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Hilong Holding Ltd. (HK:1623)
:1623

Hilong Holding Ltd. (1623) AI Stock Analysis

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HK

Hilong Holding Ltd.

(Frankfurt:1623)

Rating:59Neutral
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. (1623) vs. iShares MSCI Hong Kong ETF (EWH)

Hilong Holding Ltd. Business Overview & Revenue Model

Company DescriptionHilong Holding Ltd. (1623) is a leading integrated oilfield equipment and services provider, primarily serving the energy sectors. The company specializes in the manufacturing and supply of drill pipes and line pipes, as well as providing oilfield services such as drilling, well completion, and pipeline engineering services. Hilong operates globally, leveraging its expertise and technological innovation to meet the diverse needs of its clients in the oil and gas industry.
How the Company Makes MoneyHilong 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
65
Positive
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
60
Neutral
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.67B4.25B3.74B2.92B2.62B
Gross Profit1.12B915.47M1.07B898.32M693.98M
EBITDA665.60M825.86M819.81M703.15M404.84M
Net Income28.27M148.66M140.98M44.25M-298.70M
Balance Sheet
Total Assets8.08B7.96B7.80B7.07B7.37B
Cash, Cash Equivalents and Short-Term Investments934.21M958.78M832.54M761.70M810.47M
Total Debt2.71B2.89B3.13B3.06B3.15B
Total Liabilities4.82B4.63B4.45B4.03B4.25B
Stockholders Equity3.26B3.34B3.32B3.02B3.07B
Cash Flow
Free Cash Flow0.00-41.21M417.07M312.51M-42.22M
Operating Cash Flow0.00219.72M556.15M453.81M20.53M
Investing Cash Flow0.00286.36M-103.10M-23.55M-24.75M
Financing Cash Flow0.00-495.47M-320.97M-492.44M-56.62M

Hilong Holding Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$2.79T5.559.72%5.89%-3.41%-0.73%
77
Outperform
HK$71.83B10.9713.65%7.38%-5.28%-13.15%
60
Neutral
HK$3.23B9.775.13%4.88%-1.30%-38.13%
59
Neutral
€191.70M6.24
7.69%-81.72%
59
Neutral
HK$16.47B30.601.07%-26.43%
59
Neutral
HK$46.61B11.409.94%6.81%1.39%-21.74%
57
Neutral
HK$84.34B3.62-2.08%4.89%-4.66%-42.32%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1623
Hilong Holding Ltd.
0.11
0.00
0.00%
HK:1600
Tian Lun Gas Holdings Limited
3.27
-0.06
-1.80%
HK:1030
Seazen Group Ltd.
2.31
1.03
80.47%
HK:1193
China Resources Gas Group
20.55
-7.81
-27.54%
HK:2688
ENN Energy Holdings
64.35
4.01
6.64%
HK:1398
Industrial and Commercial Bank of China
6.13
2.05
50.21%

Hilong Holding Ltd. Corporate Events

Hilong Holding Limited Announces 2025 Annual General Meeting
Apr 29, 2025

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
Mar 31, 2025

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
Mar 31, 2025

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
Mar 30, 2025

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
Mar 18, 2025

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
Mar 17, 2025

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
Feb 21, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 07, 2025