Hilong Holding Ltd. (1623) AI Stock Analysis

• Market Cap: €339.29M
• Dividend Yield: N/A
• Average Volume (3M): 5.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -2.11%
• EPS Growth: -779.00%
• Country: HK
• Employees: 3,254
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.01
• Shares Outstanding: 1,696,438,600
• 10 Day Avg. Volume: 5,262,200
• 30 Day Avg. Volume: 5,436,103
• PEG Ratio: -0.07
• Price to Book (P/B): 0.06
• Price to Sales (P/S): 0.04
• P/FCF Ratio: 1.26
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$0.18 ▼(-12.38% Downside)

The overall stock score is primarily influenced by the company's mixed financial performance, with moderate revenue growth but declining profitability and cash flow concerns. Technical analysis indicates a bearish trend, and valuation metrics are weak with a negative P/E ratio and no dividend yield.

Positive Factors

Revenue Streams

Hilong's diverse revenue streams and strong partnerships provide a stable financial base, supporting long-term growth and market resilience.

Market Position

As a leading provider in its industry, Hilong benefits from a strong market position, which can drive sustained demand for its products and services.

Product Diversification

Hilong's diversified operations across multiple segments reduce dependency on any single product line, enhancing business stability and adaptability.

Negative Factors

Profitability Decline

The significant decline in net profit margin indicates challenges in maintaining profitability, which could affect long-term financial health.

Cash Flow Challenges

Negative free cash flow suggests potential liquidity issues, which may constrain the company's ability to invest in growth opportunities.

Return on Equity

The decline in return on equity reflects weaker shareholder returns, potentially impacting investor confidence and long-term capital attraction.

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 key streams, primarily from the sale of drilling tools and equipment to oil and gas companies engaged in exploration and production activities. The company also earns income from providing oilfield services, which include drilling, maintenance, and logistical support. Significant partnerships with major oil and gas companies enhance its market position and contribute to stable revenue flows. Additionally, Hilong benefits from long-term contracts and relationships that provide consistent business opportunities, particularly in regions with ongoing energy development projects.

Hilong Holding Ltd. Financial Statement Overview

Summary

Hilong Holding Ltd. shows moderate revenue growth but declining profitability with a significant drop in net profit margin and EBIT margin. The balance sheet indicates moderate leverage, but the return on equity has decreased. The lack of current cash flow data and previous negative free cash flow raise concerns about liquidity.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.53B	4.67B	4.25B	3.74B	2.92B	2.62B
Gross Profit	944.91M	1.12B	915.47M	1.07B	898.32M	693.98M
EBITDA	494.63M	665.60M	825.86M	819.81M	675.11M	404.84M
Net Income	-341.96M	28.27M	148.66M	140.98M	44.25M	-298.70M
Balance Sheet
Total Assets	7.58B	8.08B	7.96B	7.80B	7.07B	7.37B
Cash, Cash Equivalents and Short-Term Investments	740.18M	934.21M	958.78M	869.65M	818.06M	875.17M
Total Debt	2.50B	2.71B	2.89B	3.13B	3.06B	3.15B
Total Liabilities	4.63B	4.82B	4.63B	4.45B	4.03B	4.25B
Stockholders Equity	2.95B	3.26B	3.34B	3.32B	3.02B	3.07B
Cash Flow
Free Cash Flow	0.00	143.22M	-41.21M	417.07M	312.51M	-42.22M
Operating Cash Flow	0.00	421.56M	219.72M	556.15M	453.81M	20.53M
Investing Cash Flow	0.00	-193.63M	286.36M	-103.10M	-23.55M	-24.75M
Financing Cash Flow	0.00	-378.26M	-495.47M	-320.97M	-492.44M	-56.62M

Hilong Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.21
• 50DMA: Negative
• 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:1623, the sentiment is Positive. The current price of 0.21 is above the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.22, and above the 200-day MA of 0.16, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.10 is Neutral, neither overbought nor oversold. The STOCH value of 59.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1623.

Hilong Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3337	67 Neutral	$3.08B	9.15	8.78%	3.37%	10.16%	49.48%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
1623	48 Neutral	€339.29M	-0.92	-11.09%	―	-2.11%	-779.00%
1921	48 Neutral	HK$9.31B	―	-1.68%	―	4.66%	-432.65%
2178	48 Neutral	HK$89.79M	-3.08	-16.54%	―	-36.59%	48.63%
1080	43 Neutral	€348.69M	-7.50	-10.68%	―	0.97%	33.70%
0568	40 Neutral	$5.29B	―	-20.65%	―	17.21%	59.09%

Hilong Holding Ltd. Corporate Events

Hilong Holding Updates on Action Plan to Address Auditor’s Disclaimer

Hilong Holding Limited has provided an update on its action plan to address the auditor’s disclaimer of opinion. The company is negotiating with noteholders to restructure its 2024 Notes and has received court approval to adjourn the hearing to January 2026. Additionally, Hilong has approved the sale of a vessel for $100 million, with a significant portion of proceeds allocated to reducing liabilities. The company is also exploring new financing sources, reducing bank borrowings, and implementing cost-cutting measures to strengthen cash flow and manage receivables more effectively.

Hilong Holding Approves US$100 Million Vessel Sale

Hilong Holding Limited announced that during its 2025 third extraordinary general meeting, a resolution was passed approving the sale of a vessel to PT CAKRA BUANA RESOURCES ENERGI TBK for US$100 million. This decision, supported by an overwhelming majority of shareholders, reflects the company’s strategic move to streamline operations and potentially reallocate resources, which could impact its market positioning and stakeholder interests positively.

Hilong Holding Limited Announces $100 Million Vessel Sale

Hilong Holding Limited has announced the convening of its 2025 third extraordinary general meeting to discuss and approve the sale of a vessel by Hilong Shipping Holding Limited to PT CAKRA BUANA RESOURCES ENERGI TBK for $100 million. This transaction is significant for Hilong Holding Limited as it reflects strategic asset management and could potentially impact its financial standing and stakeholder interests.

Hilong Holding Announces Closure of Register for Upcoming EGM

Hilong Holding Limited has announced the closure of its register of members from October 13 to October 16, 2025, to determine shareholder eligibility for attending and voting at the upcoming Extraordinary General Meeting (EGM). This closure is part of the company’s procedural steps related to a previously announced disposal and the delay in dispatching the related circular. The closure of the register is a critical step in ensuring that only eligible shareholders can participate in the EGM, which may have implications for the company’s governance and shareholder engagement.

Hilong Holding Ltd. Announces Further Delay in Circular Dispatch

Hilong Holding Limited, a company incorporated in the Cayman Islands, has announced a further delay in the dispatch of a circular related to a very substantial disposal involving the sale of a vessel. Initially expected by September 15, 2025, the circular will now be dispatched by September 25, 2025, due to additional time needed for preparation. This delay may impact stakeholders awaiting detailed information on the transaction and the associated extraordinary general meeting.