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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Nanfang Communication Holdings's
Operating Income
for the
six
months ended in Dec. 2025 was HK$18.3 Mil. Nanfang Communication Holdings's Interest Expense for the
six
months ended in Dec. 2025 was HK$-2.2 Mil.
Nanfang Communication Holdings's interest coverage for the quarter that ended in Dec. 2025 was 8.48.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Nanfang Communication Holdings's Interest Coverage or its related term are showing as below:
HKSE:01617'
s Interest Coverage Range Over the Past 10 Years
Min: 3.09 Med: 13.22 Max: 28.07
Current: 3.1
HKSE:01617's Interest Coverage is ranked worse than 83.95% of 1682
companies
in the Hardware industry
Industry Median: 14.71
vs HKSE:01617: 3.10
Nanfang Communication Holdings (HKSE:01617) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Nanfang Communication Holdings Interest Coverage Related Terms
Nanfang Communication Holdings Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Nanfang Communication Holdings Interest Coverage Chart
HKSE:01617 vs CSCO, MSI, HPE: Interest Coverage Comparison
For the Communication Equipment subindustry, Nanfang Communication Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nanfang Communication Holdings Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Nanfang Communication Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nanfang Communication Holdings's Interest Coverage falls into.
Nanfang Communication Holdings Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Nanfang Communication Holdings (HKSE:01617) has a Interest Coverage of 8.48 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nanfang Communication Holdings and its competitors. This is 36% below median its historical median of 13.22. Over the past decade, Nanfang Communication Holdings' Interest Coverage has ranged from 3.09 to 28.07. According to the industry distribution chart, Nanfang Communication Holdings ranks #1412 out of 1682 companies in the Hardware industry, placing it in the top 83.9%.
Is Nanfang Communication Holdings' Interest Coverage too high?
Nanfang Communication Holdings' current Interest Coverage of 8.48 is 36% below median its 10-year median of 13.22. Over the past 10 years, this metric has ranged from a low of 3.09 to a high of 28.07. The Hardware industry median Interest Coverage is 14.71. Nanfang Communication Holdings' value of 8.48 is 42.4% below this industry median. Based on the distribution chart, Nanfang Communication Holdings ranks #1412 out of 1682 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Nanfang Communication Holdings has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nanfang Communication Holdings' Interest Coverage compare to CSCO and MSI?
According to the Hardware industry distribution chart, Nanfang Communication Holdings ranks #1412 out of 1682 companies for Interest Coverage. This places Nanfang Communication Holdings in the lower half of its industry. The industry median Interest Coverage is 14.71. Nanfang Communication Holdings' value of 8.48 is 42.4% below this benchmark. Historically, Nanfang Communication Holdings' own Interest Coverage has ranged from 3.09 to 28.07 over the past decade. While the company's 10-year median is 13.22 vs. the industry median of 14.71, Nanfang Communication Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 14.71, based on 1,682 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nanfang Communication Holdings's current Interest Coverage of 8.48 is 42.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nanfang Communication Holdings and its competitors. For the Hardware industry, the median Interest Coverage is 14.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nanfang Communication Holdings's current Interest Coverage is 8.48, which is 36% below median its own 10-year median of 13.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nanfang Communication Holdings stock overvalued right now?
Based on GuruFocus' analysis, Nanfang Communication Holdings (HKSE:01617) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.08, compared to a current price of HK$0.26 — trading 225% above its estimated fair value. The current Interest Coverage is 8.48, which is 36% below median its 10-year median of 13.22 and 42.4% below the Hardware industry median of 14.71. Nanfang Communication Holdings' overall GF Score™ is 44/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Nanfang Communication Holdings (HKSE:01617), the current Interest Coverage is 8.48 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nanfang Communication Holdings (HKSE:01617) Overvalued in 2026?
Based on GuruFocus' analysis, Nanfang Communication Holdings stock appears to be overvalued.
The current stock price of HK$0.26 is trading 225% above its estimated GF Value™ of HK$0.08.
GuruFocus considers Nanfang Communication Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01617:
Interest Coverage: 8.48 (36% below median its 10-year median of 13.22)
GF Value™: HK$0.08 vs. price of HK$0.26 (225% above fair value)
Industry Position: 42.4% below the Hardware median (#1412 of 1682)
No single metric tells the full story. See the HKSE:01617 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nanfang Communication Holdings Ltd manufactures and supplies a wide range of optical fiber cable components. The products of the company are used in different applications, such as mobile communication networks, internet networks, and fixed telephone networks in the telecommunications industry, and can be installed under different conditions. The company's products include optical fiber cables, layer-stranded optical fiber products, copper-made communication cables and others. The company's operation is principally in the People's Republic of China.
44GF Score
Get the complete analysis for HKSE:01617
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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