Huationg Global

anyone holding this stock can kindly share your view on this?  This might be a very good stock to invest in..with no debt at all..n recently giving out 0.003 dividends..well is just the 1st year of listing.. So u can't expect to give high dividend. 

This stock has been growing strongly since being of the year..it has clinched 28.5M for the 1st quarter of the year for the public sector project n 19.5M for 2nd quarter of the year N recently 81.3M civil engineering contract including works of terminal 5 n Sengkang hospital.

Interest-bearing loans and borrowings amounting to S$24,224,000 (2014:
S$17,697,000) are secured by corporate guarantee provided by the Company and
mortgages over the two properties.

Obligations under finance leases amounting to S$41,473,000 (2014: S$33,393,000)
are secured by the Group's leased plant and equipment with carrying amount of
S$49,282,000 (2014: S$49,252,000).

- Source: Huationg HY 2015

Any1 looking at this stock?

Looks interesting when its FCF is about 10 mil and market cap is 17mil. Its business are mainly in infrastructural projects such as Earthworks for T5 and downtown line.

However, the downside is that it is highly geared at 70% and has a negative current assets.

<vested@0.114>

(17-04-2016, 07:40 PM)CY09 Wrote: Any1 looking at this stock?

Looks interesting when its FCF is about 10 mil and market cap is 17mil. Its business are mainly in infrastructural projects such as Earthworks for T5 and downtown line.

However, the downside is that it is highly geared at 70% and has a negative current assets.

<vested@0.114>

Hi CY09,

I have noticed it too.  
Fundamentally, it seems to be a company with consistent profitability, looking at its audited financial statements for last 5 years (included in the IPO prospectus)

What was amazing was its share price crash in late March from $0.20+.
A search i did showed OKH's Bon Ween Foong subscribed to 7m shares at IPO  (https://huationg.listedcompany.com/.../20141208_175417_41B_BFXWZQ7EUM3O5...)

As we all know, Bon's OKH shares were also force sold in late March. 

Could Huationg's sell-down be caused by a force-sale of Bon's shares?
Could this be a case of a fundamentally strong company being unjustly sold down?

vested a little to try my luck.  :-)   

Profitability grew from $2.8m to $5.0m in its latest HY17 result. This is higher than the full year profit of $4m it achieved for FY16:

http://infopub.sgx.com/FileOpen/HTG-Ann_...eID=466133

Currently, Huationg Global has a market cap of $21m, which gives it a forward FY17 p/e of between 2-4, depending on how well it performs in the next half.

The danger here is that its current assets barely meets its current liabilities. It also has a debt/equity of 1.32. But this risk can be mitigated if it can continue to find work for its assets. So far, it has been profitable since listing and amid this period of industry decline.

Lower GPM, higher debts, and slightly lower profit. But FCF was higher.

Huationg could have maintained its dividend -- which would have amounted to 10% of profit -- but does not intend pay any for FY18. The move is puzzling, since share price will fall, which makes a successful SEHK secondary listing less likely.

https://links.sgx.com/FileOpen/HGL-Ann-F...eID=546047