Heng Hup Holdings Ltd. (1891) AI Stock Analysis

• Market Cap: HK$134.00M
• Dividend Yield: N/A
• Average Volume (3M): 692.27K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.13
• Revenue Growth: 26.29%
• EPS Growth: 200.69%
• Country: HK
• Employees: 371
• Sector: Industrials
• Sector Strength: 79
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.03
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 603,200
• 30 Day Avg. Volume: 692,266
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is driven by strong valuation and positive technical indicators, which are slightly offset by liquidity challenges in the financial performance. The stock's low P/E ratio and bullish technical momentum are significant strengths, while the need for improved cash flow management is a notable risk.

Heng Hup Holdings Ltd. Business Overview & Revenue Model

Company Description

Heng Hup Holdings Limited, an investment holding company, operates as a scrap ferrous metal trader in Malaysia and internationally. The company purchases scrap ferrous metals from various sources, and processes and sells them to steel mills. It trades in scrap ferrous metals, used batteries, waste paper, and other scraps. The company is also involved in the rerolling, processing, and trading of scrap metal; dealing with recycle paper and its related products; and provides e-commerce in waste commodity. It also serves lead smelting plants and paper mills. The company was founded in 1996 and is headquartered in Shah Alam, Malaysia. Heng Hup Holdings Limited is a subsidiary of 5S Holdings (BVI) Limited.

How the Company Makes Money

Heng Hup Holdings Ltd. generates revenue through the collection, processing, and sale of scrap metals. The company sources scrap metals from various suppliers, including industrial and commercial businesses, which it then processes to meet specific quality standards. The processed metals are sold to steel mills and other customers in need of raw materials for their production processes. The company benefits from its ability to efficiently collect and process large volumes of scrap metal, which allows it to leverage economies of scale. Additionally, Heng Hup Holdings may engage in partnerships or collaborations with suppliers and customers to ensure a steady supply of materials and a consistent demand for its processed metals. External factors such as fluctuations in global metal prices and demand for recycled materials can significantly impact the company's revenue streams.

Heng Hup Holdings Ltd. Financial Statement Overview

Summary

Strong revenue growth and improved profitability are evident, with a significant increase in net profit margin. The balance sheet is stable, showing improved leverage metrics. However, liquidity constraints are highlighted in the cash flow statement, needing attention for sustainable 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: Neutral
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 0.13 is below the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.12, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 38.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1891	74 Outperform	HK$134.00M	3.07	11.22%	―	26.29%	200.69%
Sector *	64 Neutral	$10.82B	16.31	8.85%	2.03%	2.58%	-16.43%
MI8	―	€36.20M	―	-5.00%	―	―	―
GZT	―	€182.65M	5.48	7.82%	―	―	―
0255	62 Neutral	HK$991.73M	148.11	0.40%	5.59%	-4.52%	―
0929	61 Neutral	HK$473.51M	45.45	0.57%	―	1.48%	12.50%
0976	―	HK$690.22M	―	-0.24%	―	―	―

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.