Honghua Group Ltd
HKEX:196

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Honghua Group Ltd
HKEX:196
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Price: 0.188 HKD 0.53% Market Closed
Market Cap: HK$1.7B

EV/FCFF

4.2
Current
70%
More Expensive
vs 3-y average of 2.5

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
4.2
=
Enterprise Value
HK$3.3B
/
Free Cash Flow to Firm
¥674.8m

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
4.2
=
Enterprise Value
HK$3.3B
/
Free Cash Flow to Firm
¥674.8m

Valuation Scenarios

Honghua Group Ltd is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (2.5), the stock would be worth HK$0.11 (41% downside from current price).

Statistics
Positive Scenarios
2/3
Maximum Downside
-41%
Maximum Upside
+586%
Average Upside
365%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 4.2 HK$0.19
0%
3-Year Average 2.5 HK$0.11
-41%
Industry Average 27.3 HK$1.22
+551%
Country Average 28.8 HK$1.29
+586%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
CN
Honghua Group Ltd
HKEX:196
1.7B HKD 4.2 39.1
US
Schlumberger NV
NYSE:SLB
83.3B USD 18.5 25
US
Baker Hughes Co
NASDAQ:BKR
68.3B USD 30.1 21.9
US
Halliburton Co
NYSE:HAL
34.9B USD 23.8 22.7
LU
Tenaris SA
MIL:TEN
27.2B EUR 14.9 16.7
UK
TechnipFMC PLC
NYSE:FTI
30.8B USD 20.7 32
CN
Yantai Jereh Oilfield Services Group Co Ltd
SZSE:002353
130.3B CNY 56 46.5
UK
Subsea 7 SA
OSE:SUBC
97.4B NOK 8.3 24.9
IT
Saipem SpA
MIL:SPM
8.9B EUR 7.2 18.4
FR
Technip Energies NV
PAR:TE
7.1B EUR 7.8 17.6
US
Weatherford International PLC
NASDAQ:WFRD
7.7B USD 17.4 16.6

Market Distribution

Lower than 93% of companies in China
Percentile
7th
Based on 4 731 companies
7th percentile
4.2
Low
0 — 14.5
Typical Range
14.5 — 57
High
57 —
Distribution Statistics
China
Min 0
30th Percentile 14.5
Median 28.8
70th Percentile 57
Max 307 555.7

Honghua Group Ltd
Glance View

Market Cap
1.7B HKD
Industry
N/A

Honghua Group Ltd. is an investment holding company, which engages in manufacturing drilling rigs and oil and gas exploitation equipment; and providing drilling services. The company is headquartered in Chengdu, Sichuan. The company went IPO on 2008-03-07. The firm operates through four segments. Land Drilling Rigs segment is engaged in the manufacture and sales of land drilling rigs. Offshore Drilling Rigs segment is engaged in the manufacture and sales of offshore drilling rigs and related parts and components. Parts, Components and Others segment is engaged in the manufacture, sales and trading of parts and components of petroleum equipment. Oil and Gas Engineering Services is engaged in the provision of oil and gas engineering services.

Intrinsic Value
0.546 HKD
Undervaluation 66%
Intrinsic Value
Price HK$0.188
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