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Honghua Group

DB:4HB
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
4HB
DB
HK$1B
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Honghua Group Limited, an investment holding company, engages in the research, design, manufacture, setting, and sale of land rigs, related parts, and components. The last earnings update was 7 days ago. More info.


Add to Portfolio Compare Print
  • Honghua Group has significant price volatility in the past 3 months.
4HB Share Price and Events
7 Day Returns
12.5%
DB:4HB
8.1%
Europe Energy Services
-0.6%
DE Market
1 Year Returns
-71.5%
DB:4HB
-57.2%
Europe Energy Services
-20.9%
DE Market
4HB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Honghua Group (4HB) 12.5% -44.4% -61.5% -71.5% -75.8% -82.4%
Europe Energy Services 8.1% -27.8% -50.1% -57.2% -65.6% -87.6%
DE Market -0.6% -16.6% -26% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • 4HB underperformed the Energy Services industry which returned -57.2% over the past year.
  • 4HB underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
4HB
Industry
5yr Volatility vs Market

4HB Value

 Is Honghua Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Honghua Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Honghua Group.

DB:4HB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.3%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:4HB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.3%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.912 (1 + (1- 25%) (347.67%))
2.533
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (2 * 6.33%)
12.27%

Discounted Cash Flow Calculation for DB:4HB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Honghua Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:4HB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 12.27%)
2020 510.00 Analyst x1 454.26
2021 93.00 Analyst x1 73.78
2022 186.00 Analyst x1 131.44
2023 105.53 Est @ -43.26% 66.42
2024 73.45 Est @ -30.4% 41.18
2025 57.73 Est @ -21.4% 28.83
2026 49.02 Est @ -15.1% 21.80
2027 43.78 Est @ -10.68% 17.34
2028 40.45 Est @ -7.6% 14.28
2029 38.26 Est @ -5.43% 12.02
Present value of next 10 years cash flows CN¥861.00
DB:4HB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥38.26 × (1 + -0.39%) ÷ (12.27% – -0.39%)
CN¥301.00
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥301.00 ÷ (1 + 12.27%)10
CN¥94.61
DB:4HB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥861.00 + CN¥94.61
CN¥955.61
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥955.61 / 5,183.23
CN¥0.18
DB:4HB Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:196)
1.093
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥0.18 x 1.093
HK$0.2
Non-primary Listing Adjustment Factor 1 share in DB:4HB represents 0.09x of SEHK:196
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.09x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 0.20 x 0.09
€0.02
Value per share (EUR) From above. €0.02
Current discount Discount to share price of €0.02
= -1 x (€0.02 - €0.02) / €0.02
-24%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Honghua Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Honghua Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Honghua Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:4HB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CNY CN¥0.02
SEHK:196 Share Price ** SEHK (2020-04-06) in HKD HK$0.25
SEHK:196 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.915 CN¥0.23
Europe Energy Services Industry PE Ratio Median Figure of 31 Publicly-Listed Energy Services Companies 8.85x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Honghua Group.

DB:4HB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:196 Share Price ÷ EPS (both in CNY)

= 0.23 ÷ 0.02

11.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Honghua Group is overvalued based on earnings compared to the Europe Energy Services industry average.
  • Honghua Group is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Honghua Group's expected growth come at a high price?
Raw Data
DB:4HB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
24%per year
Europe Energy Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Energy Services Companies 0.51x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

DB:4HB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.26x ÷ 24%

0.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Honghua Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Honghua Group's assets?
Raw Data
DB:4HB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CNY CN¥0.81
SEHK:196 Share Price * SEHK (2020-04-06) in HKD HK$0.25
SEHK:196 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.915 CN¥0.23
Europe Energy Services Industry PB Ratio Median Figure of 70 Publicly-Listed Energy Services Companies 0.4x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:4HB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:196 Share Price ÷ Book Value per Share (both in CNY)

= 0.23 ÷ 0.81

0.28x

* Primary Listing of Honghua Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Honghua Group is good value based on assets compared to the Europe Energy Services industry average.
X
Value checks
We assess Honghua Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
  5. Honghua Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

4HB Future Performance

 How is Honghua Group expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Honghua Group expected to grow at an attractive rate?
  • Honghua Group's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Honghua Group's earnings growth is expected to exceed the Germany market average.
  • Honghua Group's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:4HB Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:4HB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 24%
DB:4HB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 6.9%
Europe Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 21.1%
Europe Energy Services Industry Revenue Growth Rate Market Cap Weighted Average -0.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:4HB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:4HB Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 4,453 464 185 2
2021-12-31 5,674 559 240 6
2020-12-31 3,990 655 146 3
2020-04-06
DB:4HB Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-12-31 4,426 107
2019-09-30 4,766 188
2019-06-30 5,107 179 269
2019-03-31 4,656 321 182
2018-12-31 4,205 463 95
2018-09-30 3,413 -47
2018-06-30 2,622 -76 -188
2018-03-31 2,399 175 -297
2017-12-31 2,176 427 -405
2017-06-30 1,553 466 -579
2017-03-31 1,850 263 -539

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Honghua Group's earnings are expected to grow significantly at over 20% yearly.
  • Honghua Group's revenue is expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:4HB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Honghua Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:4HB Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.03 0.04 0.03 2.00
2021-12-31 0.05 0.08 0.03 4.00
2020-12-31 0.03 0.03 0.02 3.00
2020-04-06
DB:4HB Past Financials Data
Date (Data in CNY Millions) EPS *
2019-12-31 0.02
2019-09-30 0.04
2019-06-30 0.05
2019-03-31 0.03
2018-12-31 0.02
2018-09-30 -0.01
2018-06-30 -0.04
2018-03-31 -0.06
2017-12-31 -0.09
2017-06-30 -0.16
2017-03-31 -0.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Honghua Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Honghua Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Honghua Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

4HB Past Performance

  How has Honghua Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Honghua Group's growth in the last year to its industry (Energy Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Honghua Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Honghua Group's 1-year earnings growth is less than its 5-year average (12.7% vs 26.7%)
  • Honghua Group's earnings growth has exceeded the Europe Energy Services industry average in the past year (12.7% vs 0.7%).
Earnings and Revenue History
Honghua Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Honghua Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:4HB Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 4,425.69 107.47 860.76
2019-09-30 4,766.30 188.46 899.47
2019-06-30 5,106.92 269.44 938.17
2019-03-31 4,656.04 182.40 887.55
2018-12-31 4,205.16 95.35 836.92
2018-09-30 3,413.37 -46.52 779.82
2018-06-30 2,621.57 -188.38 722.71
2018-03-31 2,398.71 -296.68 736.92
2017-12-31 2,175.86 -404.98 751.12
2017-06-30 1,552.67 -578.89 920.80
2017-03-31 1,850.13 -539.40 939.80
2016-12-31 2,147.59 -499.91 958.80
2016-09-30 2,814.99 -541.46 978.06
2016-06-30 3,286.37 -473.23 917.34
2016-03-31 3,752.81 -362.72 987.06
2015-12-31 4,219.25 -252.21 1,056.78
2015-09-30 5,210.86 -195.02 1,188.76
2015-06-30 6,202.47 -137.83 1,320.74
2015-03-31 7,007.50 -23.02 1,323.38
2014-12-31 7,812.54 91.79 1,326.03
2014-09-30 8,606.08 294.90 1,261.75
2014-06-30 9,399.63 498.02 1,197.47
2014-03-31 8,723.37 517.82 1,158.52
2013-12-31 8,047.11 537.62 1,119.56
2013-09-30 6,816.29 548.38 1,111.99
2013-06-30 5,585.47 559.14 1,104.42

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Honghua Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Honghua Group used its assets less efficiently than the Europe Energy Services industry average last year based on Return on Assets.
  • Honghua Group has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Honghua Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Honghua Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

4HB Health

 How is Honghua Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Honghua Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Honghua Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Honghua Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Honghua Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Honghua Group Company Filings, last reported 3 months ago.

DB:4HB Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 4,480.38 4,009.37 1,010.12
2019-09-30 4,480.38 4,009.37 1,010.12
2019-06-30 4,395.02 3,712.97 678.82
2019-03-31 4,395.02 3,712.97 678.82
2018-12-31 4,318.91 3,120.45 779.38
2018-09-30 4,318.91 3,120.45 779.38
2018-06-30 4,105.84 3,253.83 603.13
2018-03-31 4,105.84 3,253.83 603.13
2017-12-31 4,177.65 3,316.02 1,100.29
2017-06-30 5,091.27 4,042.52 1,868.83
2017-03-31 5,091.27 4,042.52 1,868.83
2016-12-31 4,083.45 4,299.05 559.36
2016-09-30 4,083.45 4,299.05 559.36
2016-06-30 4,535.40 4,467.99 788.49
2016-03-31 4,535.40 4,467.99 788.49
2015-12-31 4,774.19 4,664.43 1,289.11
2015-09-30 4,774.19 4,664.43 1,289.11
2015-06-30 4,927.93 4,681.78 1,065.83
2015-03-31 4,927.93 4,681.78 1,065.83
2014-12-31 4,963.77 5,127.05 1,777.84
2014-09-30 4,963.77 5,127.05 1,777.84
2014-06-30 5,042.25 4,989.01 1,739.52
2014-03-31 5,042.25 4,989.01 1,739.52
2013-12-31 4,958.65 4,731.50 2,087.23
2013-09-30 4,958.65 4,731.50 2,087.23
2013-06-30 4,630.26 4,132.37 1,446.58
  • Honghua Group's level of debt (89.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (103.2% vs 89.5% today).
  • Debt is not well covered by operating cash flow (4.5%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Honghua Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Honghua Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

4HB Dividends

 What is Honghua Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Honghua Group dividends. Estimated to be 2.41% next year.
If you bought €2,000 of Honghua Group shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Honghua Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Honghua Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:4HB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Europe Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 6.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 315 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:4HB Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.01 2.00
2020-12-31 0.01 2.00
2020-04-06
DB:4HB Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2015-09-21 0.000 0.000
2015-08-19 0.000 0.000
2015-04-21 0.000 0.000
2015-03-26 0.000 0.000
2014-04-15 0.047 4.289
2014-03-19 0.048 3.067
2013-03-19 0.047 2.299
2012-04-17 0.032 2.407
2012-03-20 0.032 3.419
2010-09-15 0.000 0.000
2010-08-30 0.000 0.000
2010-04-29 0.000 0.000
2010-04-13 0.000 0.000
2009-04-14 0.053 3.858

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Honghua Group has not reported any payouts.
  • Unable to verify if Honghua Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Honghua Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Honghua Group has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (6.8x coverage).
X
Income/ dividend checks
We assess Honghua Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Honghua Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Honghua Group has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

4HB Management

 What is the CEO of Honghua Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mi Zhang
COMPENSATION CN¥1,817,000
AGE 62
CEO Bio

Mr. Mi Zhang serves as the President of Honghua Group Limited and has been its Executive Director since June 2007. Mr. Zhang is responsible for the development of the ZJ70LC drilling rig, which was one of the major ultra-deep drilling rigs used in China. He has been the Chairman and Chief Executive Officer of Honghua Holdings Limited since September 8, 2009. He is also responsible for the development of the digitally-controlled VFD rig (DBS), the first of its kind in China. He has been an Executive Director of Shanghai Honghua Offshore Oil & Gas Equipment Co., Ltd. since September 9, 2009. He has been Chairman and General Manager of Honghua (China) Investment Co, Ltd. since January 14, 2010. He served as General Manager of Honghua Company since December 31, 1997. He served as Company Director of HH Egyptian since April 26, 2007. He has been the Chairman of Honghua Offshore Oil & Gas Equipment (Jiangsu) Co., Ltd. since June 8, 2009. He has been the Chairman of Honghua America, LLC since October 11, 2004. He serves as the Chairman of the Board at Sichuan Honghua Petroleum Equipment Co., Ltd. and has been its Director since December 31, 1997. He served as the Chairman of Honghua Group Limited from June 2007 to March 29, 2017. Mr. Zhang served as the Chairman of Honghua America since October 11, 2004, Honghua International since January 13, 2004 and Honghua Company since December 31, 1997. He has been Vice Chairman of Honghua Group Limited since March 29, 2017. He serves as Member of Concert Group at Honghua Group Limited. He has been a Member of the Board of Directors at Honghua Holdings Limited since August 18, 2006. He has been a Director of Sichuan Honghua International Co., Ltd. since January 13, 2004. He has been a Director of Honghua Oil & Gas Engineering Services Co. Ltd. since April 14, 2009. He has been a Director of Egyptian Petroleum HH Rigs Manufacturing CO. S.A.E since April 26, 2007. He has been a Director of Gansu Hongteng Oil & Gas Equipment since December 28, 2011. He served as an Executive Director of Honghua America since October 11, 2004, Honghua International since January 13, 2004 and Honghua Company since December 31, 1997. He served as an Asia Harbour Director since August 18, 2006. In 2005, Mr. Zhang was awarded the Sichuan Province Prize for Outstanding Talent in Innovation , by the Sichuan Provincial Party Committee and the Sichuan Provincial People’s Government. In 2007, he was granted the May 1 Labor Medal of Sichuan Province by the Sichuan Provincial Federation of Trade Unions in 2007. Mr. Zhang was rewarded as Leading Entrepreneur of Foreign Trading and Export Enterprises in Sichuan for 2009. In 2015, he was rewarded as a national model worker. He has been receiving special subsidies granted by the State Council of the PRC government since February 2007, for his significant contribution to the development of machinery engineering in the PRC. He is particularly involved in enhancing its technological innovation. He graduated from the Sichuan Petroleum Administration Vocational University in 1982, with a Diploma in Machinery Manufacture, Design and Equipment. He graduated from the Party Institute of Sichuan Provincial Committee Correspondence College in 1998, with a degree in Economics and Management. In 2004, Mr. Zhang then obtained a senior engineer qualification granted by the Committee for Evaluation of Senior Technical Positions of the China National Petroleum Corp.

CEO Compensation
  • Mi's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Mi's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Honghua Group management team in years:

4.3
Average Tenure
51.5
Average Age
  • The tenure for the Honghua Group management team is about average.
Management Team

Liliang Jin

TITLE
Chairman
COMPENSATION
CN¥818K
AGE
53

Mi Zhang

TITLE
Vice-Chairman
COMPENSATION
CN¥2M
AGE
62

Jie Ren

TITLE
Senior VP & Executive Director
COMPENSATION
CN¥1M
AGE
52
TENURE
4.3 yrs

Xiufang Xu

TITLE
Chief Financial Officer
AGE
47
TENURE
3.1 yrs

Xiaohong Di

TITLE
Senior Administration Director
TENURE
1.6 yrs

Wenmin Zhuang

TITLE
Joint Company Secretary and President of Legal & Securities Department
AGE
38
TENURE
4.3 yrs

Chuan Xu

TITLE
Human Resources Director
AGE
53
TENURE
3.3 yrs

Hai Yuan

TITLE
Financial Controller
AGE
41
TENURE
5.1 yrs

Mei Yi Lee

TITLE
Joint Company Secretary
AGE
51
TENURE
4.8 yrs
Board of Directors Tenure

Average tenure and age of the Honghua Group board of directors in years:

3.1
Average Tenure
54.5
Average Age
  • The tenure for the Honghua Group board of directors is about average.
Board of Directors

Liliang Jin

TITLE
Chairman
COMPENSATION
CN¥818K
AGE
53
TENURE
1.7 yrs

Mi Zhang

TITLE
Vice-Chairman
COMPENSATION
CN¥2M
AGE
62
TENURE
3.1 yrs

Jie Ren

TITLE
Senior VP & Executive Director
COMPENSATION
CN¥1M
AGE
52
TENURE
12.3 yrs

Xiaofeng Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥211K
AGE
56
TENURE
12.3 yrs

Bin Wei

TITLE
Independent Non-Executive Director
AGE
50
TENURE
0.7 yrs

Guoming Chen

TITLE
Independent Non Executive Director
COMPENSATION
CN¥110K
AGE
56
TENURE
12.3 yrs

Guangrong Han

TITLE
Non-Executive Director
AGE
57
TENURE
3.1 yrs

Wenle Chen

TITLE
Non-Executive Director
AGE
39
TENURE
3.1 yrs

Mei Su

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥110K
AGE
50
TENURE
3.1 yrs

Chiu Kwok Poon

TITLE
Independent Non-Executive Director
AGE
57
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
10. Apr 19 Sell Mowbray Worldwide Limited Company 08. Apr 19 08. Apr 19 -1,000,000 €0.09 €-87,166
10. Apr 19 Sell Mowbray Worldwide Limited Company 09. Apr 19 09. Apr 19 -1,000,000 €0.09 €-85,497
X
Management checks
We assess Honghua Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Honghua Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

4HB News

Simply Wall St News

4HB Company Info

Description

Honghua Group Limited, an investment holding company, engages in the research, design, manufacture, setting, and sale of land rigs, related parts, and components. The company also provides technical support and drilling engineering services. It operates through Land Drilling Rigs; Parts and Components and Others; and Oil and Gas Engineering Services segments. The company designs and manufactures land drilling equipment, including land drilling rigs, top drives, electric fracturing, and mud pumps, as well as assembles rig electrical equipment includes VFD, SCR, MCC, and lighting systems; well site circuitry and drilling motors. It also offers various oil and gas engineering services, including well drilling services, directional drilling service, and seismic services for CNOOC, SHELL, MOGE, PTTEP, NOBEL, etc. In addition, the company manufactures mud tanks, solid control equipment, drill floor tools, mud manifolds, and personnel camps. Further, it engages in panels of drilling rigs and trades in drilling rigs and related parts. The company operates in the People’s Republic of China, the Americas, the Middle East, Europe, and Africa, as well as Central, South, and South East Asia. Honghua Group Limited was founded in 1997 and is headquartered in Chengdu, the People’s Republic of China.

Details
Name: Honghua Group Limited
4HB
Exchange: DB
Founded: 1997
HK$154,921,114
5,183,233,600
Website: http://www.hh-gltd.com
Address: Honghua Group Limited
Information Park,
99 East Road,
Chengdu,
Sichuan Province, 610036,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 196 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 07. Mar 2008
OTCPK HGHU.F Ordinary Shares Pink Sheets LLC US USD 07. Mar 2008
DB 4HB Ordinary Shares Deutsche Boerse AG DE EUR 07. Mar 2008
Number of employees
Current staff
Staff numbers
3,795
Honghua Group employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 22:24
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/03/30
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.