Honghua Group (0196) Fair Value & Analysis
Energy · HK · Market cap HK$1.3B
Fair value as of: Aug 2, 2026
From 17 valuation models · updated 8 days ago
Share price −3.8% over the past month.
Below-average quality, and screening another 36% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (HK$0.0900). The favourable scenario is already priced in.
- Weak quality (32/100) and above fair value at the same time, the margin of safety is missing on both counts.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.
How to read this chart
60‑month range HK$0.0710 – HK$0.2950 · fair‑value band HK$0.0600 – HK$0.0900 · the HK$0.1250 price screens above the HK$0.0800 fair value. Dashed = 300-day average. As of Aug 2, 2026.
Analysis
Honghua Group (0196) currently trades at HK$0.1250, while our model-based Fair Value estimate is HK$0.0800, implying the stock looks roughly 36.0% overvalued today. The Quality Score stands at 32/100 (below-average quality), in the Energy sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Honghua Group generated revenue of HK$5.5B at a net margin of 0.7%. Revenue grew 1.2% year over year. It earns a return on equity of 1.1%. Net debt stands at HK$3.9B. Fundamentals as of Aug 2, 2026
Our scenario range runs from HK$0.0600 (bear case) to HK$0.0900 (bull case); at HK$0.1250, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 52% below its 52-week high, currently below its 200-day average. For context, the median of 10 Energy peers we cover trades at -36% fair-value upside, at -36%, 0196 screens cheaper than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 17 models by family
Widest divergence: Asset-Based (HK$0.2600) versus Economic Profit (HK$0.0100). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 30 · Market factors (momentum, volatility) 20
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Honghua Group Limited, an investment holding company, engages in the research, design, manufacture, setting, and sale of land rigs, and related parts and components. The company operates through five segments: Land Drilling Rigs; Parts and Components and Others; Drilling Engineering Services; Fracturing Services; and Offshore Engineering.
Full company description
Honghua Group Limited, an investment holding company, engages in the research, design, manufacture, setting, and sale of land rigs, and related parts and components. The company operates through five segments: Land Drilling Rigs; Parts and Components and Others; Drilling Engineering Services; Fracturing Services; and Offshore Engineering. The company offers drilling rigs equipment, such as smart, polar, desert, fast moving, artificial island, vehicle-mounted/semi-trailer, geothermal drilling rigs, and electric well workover rig, as well as parts and accessories. It also offers fracturing equipment, including all-electric fracturing equipment solutions, and digital electric and hydraulic drive coiled tubing machine. In addition, the company offers photovoltaic solutions for the oil and gas industry; wind power generation service, including planning and demonstration, wind measurement, equipment selection, energy planning and management, construction, commissioning, and operation and maintenance; and gas power generation, as well as energy storage systems. Further, it manufactures panels of drilling rigs, and petroleum power equipment; trades in drilling rigs and related parts; designs and manufactures offshore drilling modules; and provides testing, marketing, technical support and training, drilling engineering services, and after-sales service, such as rig installation, commissioning, and solution. Additionally, it offers digital products for drilling and completion, offshore wind power jackets, specialized ships, and special power equipment. It operates in the People's Republic of China, the Americas, the Middle East, Europe, South Asia and South East Asia, and Africa. Honghua Group Limited was founded in 1997 and is headquartered in Chengdu, the People's Republic of China.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Honghua Group reported revenue of HK$5.5B in FY2025 versus HK$2.9B in FY2021, a compound +16.9%/yr. Reported net income was HK$38.3M in FY2025.
0196 screens 36% overvalued. Compare with SLB N.V →
Peer Group
Oil & Gas Equipment & Services · 191 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Oil & Gas Equipment & Services median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Oil & Gas Equipment & Services stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| SLB N.V SLBN | 836.00 MXN | 533.97 MXN | -36% |
| Baker Hughes Company BKR | $55.95 | $33.55 | -40% |
| TechnipFMC plc FTI | $74.57 | $27.57 | -63% |
| Halliburton Company HAL | $35.22 | $21.50 | -39% |
| Tenaris S.A TS | $57.16 | $45.68 | -20% |
| Yantai Jereh Oilfield Services Group 002353 | ¥138.79 | ¥34.17 | -75% |
| Saipem SpA SPM | €4.20 | €2.72 | -35% |
| Subsea 7 S.A SUBC | kr 319.00 | kr 227.98 | -29% |
| China Oilfield Services Limited 601808 | ¥12.08 | ¥12.64 | +5% |
| Gaztransport & Technigaz SA GTT | €188.10 | €95.01 | -49% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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