Honghua Group Limited (0196.HK) — Stock Score Summary

Honghua Group Limited (0196.HK) has a MoatMap StockRank of 7/100 based on Quality (31/100), Value (37/100), and Momentum (19/100) factor scores. The current signal is STRONG SELL. An oilfield equipment manufacturer that is highly cyclical and has historically generated poor returns on capital, making it a poor fit for a quality-focused portfolio.

Honghua Group Limited is a leading manufacturer of land-based drilling rigs and oilfield equipment, as well as a provider of oil and gas engineering services. The company is one of the largest exporters of drilling rigs globally, with a strong market presence in North America, the Middle East, and Russia. Backed by state-owned Dongfang Electric Corporation, it operates as a vertically integrated player in the global energy equipment sector.

Key Financial Metrics

Price$0.02
Market Cap$198M
Price/Book0.39
Return on Equity1.1%
Return on Invested Capital3.2%
Debt/Equity135.59
Gross Margin12.5%
Operating Margin2.9%
Revenue Growth1.2%
Free Cash Flow$-8M

Honghua Group Limited operates in the Oil & Gas Equipment & Services industry, part of the Energy sector (China).

Frequently Asked Questions

What is Honghua Group Limited’s (0196.HK) StockRank?
MoatMap’s StockRank for Honghua Group Limited (0196.HK) is 7/100, with a Strong Sell signal. It is a composite of Quality (31), Value (37), and Momentum (19) factor ranks across MoatMap’s 19,000+ stock universe.
Does Honghua Group Limited have an economic moat?
Honghua Group Limited (0196.HK) has a Quality factor score of 31/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Honghua Group Limited a buy, hold, or sell?
MoatMap’s current signal for Honghua Group Limited (0196.HK) is Strong Sell, based on a StockRank of 7/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Honghua Group Limited in?
Honghua Group Limited (0196.HK) operates in the Energy sector, specifically the Oil & Gas Equipment & Services industry (China).
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