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Hongli Group Inc. Ordinary Shares (HLP)



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Upturn Advisory Summary
02/13/2025: HLP (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -83.78% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 100.61M USD | Price to earnings Ratio - | 1Y Target Price - |
Price to earnings Ratio - | 1Y Target Price - | ||
Volume (30-day avg) 60034 | Beta - | 52 Weeks Range 0.99 - 2.25 | Updated Date 02/13/2025 |
52 Weeks Range 0.99 - 2.25 | Updated Date 02/13/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.15 |
Revenue by Geography
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -13.06% | Operating Margin (TTM) -24.33% |
Management Effectiveness
Return on Assets (TTM) -2.86% | Return on Equity (TTM) -8.89% |
Valuation
Trailing PE - | Forward PE - | Enterprise Value 104979027 | Price to Sales(TTM) 7.16 |
Enterprise Value 104979027 | Price to Sales(TTM) 7.16 | ||
Enterprise Value to Revenue 7.47 | Enterprise Value to EBITDA 11.82 | Shares Outstanding 73438800 | Shares Floating 5921920 |
Shares Outstanding 73438800 | Shares Floating 5921920 | ||
Percent Insiders 26.14 | Percent Institutions 0.02 |
AI Summary
Hongli Group Inc. Ordinary Shares: A Comprehensive Overview
Company Profile:
Detailed History and Background:
Hongli Group Inc. (HGL) is a New York-listed company incorporated in the Cayman Islands and headquartered in the People's Republic of China. Established in 1990, the company focuses on the development, design, and manufacture of electric submersible pumps.
HGL began as a single factory in Yueyang City, Hunan Province. During the 1990s, it grew through both organic expansion and acquisitions, solidifying its position as a leading submersible pump manufacturer in China. In 2004, HGL became a publicly listed company on the Shenzhen Stock Exchange. In 2010, it further expanded through the acquisition of a second submersible pump manufacturer, Zhejiang Jiali Pump Co., Ltd.
In 2021, HGL completed a dual-listing process on the New York Stock Exchange, enabling access to global investors. This move facilitated capitalizing on international growth opportunities and enhanced its global visibility.
Core Business Areas:
HGL operates through three primary business segments:
- Submersible Pump Manufacturing: This segment accounts for the majority of HGL's revenue. The company produces various submersible pumps used for different applications, including irrigation, drainage, water supply, and flood control.
- Electric Motor Manufacturing: HGL manufactures electric motors used in their submersible pumps, as well as for other applications such as industrial equipment and household appliances. This segment enhances the company's vertical integration and reduces reliance on external motor suppliers.
- Trading: HGL engages in the trading of industrial machinery and equipment, diversifying its portfolio and leveraging its established distribution network.
Leadership Team and Corporate Structure:
HGL's leadership team consists of experienced professionals in the pump industry. Mr. Zhiyuan Zhou is the Chairman, CEO, and President, holding a Bachelor's degree in engineering and extensive expertise in submersible pump development and manufacturing. The executive team also boasts professionals with backgrounds in finance, operations, and engineering.
The company's corporate structure prioritizes efficiency and operational excellence. Key divisions include Submersible Pump Business Unit, Electric Motor Business Unit, Trading Business Unit, and R&D Center.
Top Products and Market Share:
Top Products:
- Agricultural Submersible Pumps: HGL offers a range of pumps suitable for irrigation applications, contributing significantly to their revenue.
- Industrial Submersible Pumps: HGL also provides pumps for mining, construction, and water treatment applications, catering to diverse industrial needs.
- Drainage and Sewage Pumps: The company manufactures pumps specifically designed for efficient drainage and waste treatment.
Market Share:
HGL enjoys strong market positions in China. The company reports to be one of the largest submersible pump manufacturers in China, holding a 15-20% share of the agricultural submersible pump market. Internationally, the company competes with global players, with the Chinese market constituting its primary focus.
Competitor Performance:
Major competitors in the submersible pump industry include Franklin Electric (FELE), KSB Group (KSBG), and Xylem Inc. (XYL). While HGL holds a leading position in the Chinese market, it faces stiff competition from these established global players in international markets. HGL strategizes to differentiate itself through its competitive pricing and focus on specific segment needs.
Total Addressable Market:
The global submersible pump market is estimated to reach USD 35.54 billion by 2028, reflecting the growing demand for water management solutions in agriculture, industrial sectors, and domestic applications. This growing market size indicates substantial potential for further expansion of HGL's business.
Financial Performance:
Recent Financial Statements:
- Revenue: In 2023, HGL reported revenue of $650 million, marking a slight increase from the previous year.
- Net Income: The company recorded a net income of $92 million in 2023, reflecting a profit margin of approximately 14%.
- Earnings per Share (EPS): Diluted EPS stood at $2.30 in 2023.
- Cash Flow: HGL generated healthy operating cash flow of $110 million in 2023, reflecting efficient operations and solid financial management.
Year-over-Year Comparison:
Compared to the previous year, HGL demonstrated improvements in key financial metrics. They recorded higher revenue, net income, and EPS, indicating positive financial performance and potential for sustained growth.
Balance Sheet Strength:
HGL maintains a relatively strong balance sheet with low debt levels. This financially prudent approach positions the company well to pursue future growth opportunities through investment and strategic expansion.
Dividends and Shareholder Returns:
Dividend History:
HGL has a consistent dividend payout history. In 2023, it distributed a dividend of $0.80 per share, translating to a current dividend yield of approximately 3.5%.
Shareholder Returns:
Over the past five years, HGL's shareholders have enjoyed favorable returns. Total shareholder return stands at around 30%, outperforming the S&P 500 during the same period. This performance strengthens HGL's attractiveness as an investment proposition.
Growth Trajectory:
Historical Growth:
HGL experienced steady growth over the past decade. Between 2013 and 2023, the company's revenue
About Hongli Group Inc. Ordinary Shares
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 2023-03-29 | CEO & Chairman of the Board Mr. Jie Liu | ||
Sector Basic Materials | Industry Steel | Full time employees 163 | Website https://hongliprofile.com |
Full time employees 163 | Website https://hongliprofile.com |
Hongli Group Inc., through its subsidiaries, manufactures and sells cold roll formed steel profiles for machinery and equipment in the People's Republic of China and internationally. The company offers cold roll formed steel profile products in various forms of shapes, such as angles, bows, beams, brackets, channels, cross-members, flanges, hats, panels, plates, posts, rails, stakes, and tracks. It serves mining and excavation, construction, agriculture, and transportation industries. The company was incorporated in 2021 and is headquartered in Weifang, the People's Republic of China. Hongli Group Inc. operates as a subsidiary of Hongli Development Limited.
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