Heng Hup Holdings Ltd. (1891) AI Stock Analysis

• Market Cap: HK$117.00M
• Dividend Yield: N/A
• Average Volume (3M): 260.87K
• Price to Earnings (P/E): 2.7
• Beta (1Y): 0.20
• Revenue Growth: 26.29%
• EPS Growth: 200.69%
• Country: HK
• Employees: 371
• Sector: Industrials
• Sector Strength: 89
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.03
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 199,200
• 30 Day Avg. Volume: 260,866
• PEG Ratio: 0.12
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.55
• 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: 72 Outperform
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall score reflects strong valuation and solid financial performance, particularly in profitability and leverage. However, liquidity issues in cash flow management pose a risk. Technical indicators suggest moderate positive momentum, supporting a generally positive outlook.

Heng Hup Holdings Ltd. Business Overview & Revenue Model

Company Description

Heng Hup Holdings Ltd. (1891) is a company engaged in the recycling and trading of scrap materials, primarily focusing on ferrous and non-ferrous metals. The company operates within the recycling industry, providing services that include sourcing, processing, and selling recycled metal products to various industries. Heng Hup Holdings Ltd. plays a crucial role in the circular economy by converting waste materials into valuable resources for manufacturing and industrial use.

How the Company Makes Money

Heng Hup Holdings Ltd. generates revenue through the collection, processing, and sale of recycled scrap metals. The company sources ferrous and non-ferrous scrap metals from industrial and commercial suppliers, which are then processed at their facilities to meet specific quality standards. Once processed, these recycled metals are sold to manufacturers and other industrial clients who use them as raw materials for production. Key revenue streams include the sale of processed metals, with prices influenced by market demand, metal types, and quality. The company's earnings are also enhanced by strategic partnerships with suppliers and buyers, ensuring a consistent supply chain and customer base.

Heng Hup Holdings Ltd. Financial Statement Overview

Summary

Heng Hup Holdings Ltd. showcases strong revenue growth and improved profitability, reflecting positive business momentum. The balance sheet is stable with improved leverage metrics, but the cash flow statement highlights liquidity challenges that need addressing. Overall, the company's financial position is solid, with opportunities for enhancing cash flow management to support future growth.

Income Statement

The company has demonstrated healthy revenue growth with a 26.73% increase from 2023 to 2024. The gross profit margin improved to 7.38% in 2024, up from 5.72% in 2023, indicating better cost management. Net profit margin also increased significantly to 1.49% in 2024 compared to 0.63% in 2023. EBIT and EBITDA margins showed improvement, highlighting enhanced operating efficiency. Overall, the income statement reflects positive growth and improved profitability.

Balance Sheet

The balance sheet shows a stable equity base with stockholders' equity increasing to $238.44M in 2024. The debt-to-equity ratio improved to 0.38, down from 0.50 in 2023, indicating a reduction in leverage. The equity ratio stands at 62.67%, reflecting a strong equity position. Return on equity improved to 10.68% in 2024 from 4.00% in 2023, showcasing better utilization of equity. Overall, the balance sheet indicates financial stability with manageable leverage.

Cash Flow

Cash flow analysis shows challenges with free cash flow and operating cash flow being zero in 2024, indicating potential liquidity constraints. The lack of positive cash flow from operations is a concern, despite improvements in profitability. Prior years also show negative free cash flow, highlighting the need for better cash management. The cash flow statement requires attention to ensure sustainable operations and growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.35B	1.40B	1.42B	868.31M
Gross Profit	125.96M	77.08M	52.33M	77.57M	48.99M
EBITDA	45.15M	26.54M	13.55M	42.03M	17.46M
Net Income	25.46M	8.54M	1.48M	25.48M	8.39M
Balance Sheet
Total Assets	380.35M	382.11M	278.46M	280.02M	228.78M
Cash, Cash Equivalents and Short-Term Investments	51.32M	24.85M	25.22M	26.35M	25.08M
Total Debt	89.53M	107.46M	54.19M	34.62M	21.49M
Total Liabilities	145.69M	169.52M	74.68M	73.25M	44.53M
Stockholders Equity	238.44M	213.30M	204.76M	206.84M	184.25M
Cash Flow
Free Cash Flow	55.20M	-49.87M	-10.78M	-6.01M	-16.83M
Operating Cash Flow	67.39M	-39.02M	6.78M	-2.15M	-11.27M
Investing Cash Flow	-13.20M	-10.79M	-16.79M	-2.60M	1.90M
Financing Cash Flow	-28.69M	44.30M	9.06M	6.12M	6.16M

Heng Hup Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1891, the sentiment is Positive. The current price of 0.11 is above the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.11, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.13 is Neutral, neither overbought nor oversold. The STOCH value of 63.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1891.

Heng Hup Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0838	76 Outperform	€1.26B	5.22	7.82%	11.89%	1.85%	2.72%
1891	72 Outperform	HK$117.00M	2.68	11.22%	―	26.29%	200.69%
0255	62 Neutral	HK$865.40M	―	-0.79%	14.49%	7.17%	81.17%
Sector *	58 Neutral	HK$13.95B	4.43	-3.01%	7.31%	3.67%	-54.16%
0822	55 Neutral	€335.16M	―	-5.00%	―	15.54%	-115.72%
0929	52 Neutral	HK$431.42M	40.59	0.58%	―	12.38%	87.04%

Heng Hup Holdings Ltd. Corporate Events

Heng Hup Holdings Passes All Resolutions at AGM

Heng Hup Holdings Limited, a company incorporated in the Cayman Islands, held its Annual General Meeting (AGM) on June 14, 2025, where all proposed resolutions were passed. The resolutions included adopting the company’s financial statements, re-electing directors, authorizing the board to fix directors’ remuneration, re-appointing PricewaterhouseCoopers as auditors, and granting the board a mandate to issue additional shares. The overwhelming approval of these resolutions indicates strong shareholder support for the company’s current management and strategic direction.

Heng Hup Holdings Announces Virtual AGM for Key Resolutions

Heng Hup Holdings Limited has announced its upcoming annual general meeting, scheduled to be held virtually on June 14, 2025. The meeting will address several key resolutions, including the adoption of the audited financial statements for the year ending December 31, 2024, the re-election of three executive directors, the authorization of the board to set director remuneration, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, shareholders will consider a resolution to authorize the board to issue new shares, with certain limitations, during a specified period. This meeting is significant for stakeholders as it will determine the company’s governance and financial strategies moving forward.