Honghua Group Ltd
HKEX:196

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Honghua Group Ltd
HKEX:196
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Price: 0.187 HKD -1.58% Market Closed
Market Cap: HK$1.7B

P/OCF

2
Current
6%
Cheaper
vs 3-y average of 2.2

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
2
=
Market Cap
HK$1.8B
/
Operating Cash Flow
¥731.7m

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
2
=
Market Cap
HK$1.8B
/
Operating Cash Flow
¥731.7m

Valuation Scenarios

Honghua Group Ltd is trading below its 3-year average

If P/OCF returns to its 3-Year Average (2.2), the stock would be worth HK$0.2 (6% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-12%
Maximum Upside
+1 236%
Average Upside
506%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 2 HK$0.19
0%
3-Year Average 2.2 HK$0.2
+6%
5-Year Average 1.8 HK$0.16
-12%
Industry Average 27.2 HK$2.5
+1 236%
Country Average 18.3 HK$1.67
+795%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
CN
Honghua Group Ltd
HKEX:196
1.7B HKD 2 38.9
US
Schlumberger NV
NYSE:SLB
83.2B USD 12.8 24.9
US
Baker Hughes Co
NASDAQ:BKR
67.1B USD 19 21.9
US
Halliburton Co
NYSE:HAL
34.1B USD 12.3 22.4
LU
Tenaris SA
MIL:TEN
27.2B EUR 12.6 16.9
UK
TechnipFMC PLC
NYSE:FTI
30.2B USD 17.3 31.8
CN
Yantai Jereh Oilfield Services Group Co Ltd
SZSE:002353
128B CNY 42 45.7
UK
Subsea 7 SA
OSE:SUBC
97.4B NOK 6.9 24.7
IT
Saipem SpA
MIL:SPM
8.9B EUR 5.9 18.7
FR
Technip Energies NV
PAR:TE
7.1B EUR 10.7 19.5
US
Weatherford International PLC
NASDAQ:WFRD
7.9B USD 11.6 16.8

Market Distribution

Lower than 95% of companies in China
Percentile
5th
Based on 6 232 companies
5th percentile
2
Low
0.2 — 9.8
Typical Range
9.8 — 36.5
High
36.5 —
Distribution Statistics
China
Min 0.2
30th Percentile 9.8
Median 18.3
70th Percentile 36.5
Max 266 666.7

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$0.187
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