Neo-Neon Holdings (HKSE:01868) Interest Coverage: 6.91 (As of Dec. 2025) — 43% Below Median

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HKSE:01868 Neo-Neon Holdings Ltd HKSE:01868
38 GF Score
Price HK$0.19
GF Value HK$0.37
Valuation Possible Value Trap
! 2 Warning Signs
View Full Analysis

What is Neo-Neon Holdings Interest Coverage?

Neo-Neon Holdings HKSE:01868 38 Interest Coverage is 6.91 as of Dec. 2025, which is 43% below its 10-year median of 12.23. GuruFocus rates HKSE:01868 with a GF Score™ of 38/100 and a GF Value™ of HK$0.37 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 291 Furnishings, Fixtures & Appliances companies, Neo-Neon Holdings ranks worse than 343642.27% on this metric.

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. Neo-Neon Holdings's Operating Income for the six months ended in Dec. 2025 was HK$7.8 Mil. Neo-Neon Holdings's Interest Expense for the six months ended in Dec. 2025 was HK$-1.1 Mil. Neo-Neon Holdings's interest coverage for the quarter that ended in Dec. 2025 was 6.91. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Neo-Neon Holdings's Interest Coverage or its related term are showing as below:


HKSE:01868's Interest Coverage is not ranked *
in the Furnishings, Fixtures & Appliances industry.
Industry Median: 10.86
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Neo-Neon Holdings  (HKSE:01868) 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 .


Neo-Neon Holdings Interest Coverage Related Terms


Neo-Neon Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for Neo-Neon Holdings's Interest Coverage can be seen below:

* 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.

Neo-Neon Holdings Interest Coverage Chart

Neo-Neon Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 12.81 0.00 0.00 0.00

Neo-Neon Holdings Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 2.60 0.00 6.91

HKSE:01868 vs SN, SGI, MHK: Interest Coverage Comparison

For the Furnishings, Fixtures & Appliances subindustry, Neo-Neon 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.


Neo-Neon Holdings Interest Coverage vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Neo-Neon Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Neo-Neon Holdings's Interest Coverage falls into.


HKSE:01868
38GF Score
Neo-Neon Holdings Ltd HKSE:01868
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Neo-Neon 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Neo-Neon Holdings's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Neo-Neon Holdings's Interest Expense was HK$-1.8 Mil. Its Operating Income was HK$-22.6 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$54.3 Mil.

Neo-Neon Holdings did not have earnings to cover the interest expense.

Neo-Neon Holdings's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Neo-Neon Holdings's Interest Expense was HK$-1.1 Mil. Its Operating Income was HK$7.8 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$54.3 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*7.784/-1.126
=6.91

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 6.91 mean?
Neo-Neon Holdings (HKSE:01868) has a Interest Coverage of 6.91 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Neo-Neon Holdings and its competitors. This is 43% below median its historical median of 12.23. According to the industry distribution chart, Neo-Neon Holdings ranks #999999 out of 291 companies in the Furnishings, Fixtures & Appliances industry.
Is Neo-Neon Holdings' Interest Coverage too high?
Neo-Neon Holdings' current Interest Coverage of 6.91 is 43% below median its 10-year median of 12.23. The Furnishings, Fixtures & Appliances industry median Interest Coverage is 10.86. Neo-Neon Holdings' value of 6.91 is 36.4% below this industry median. Based on the distribution chart, Neo-Neon Holdings ranks #999999 out of 291 companies in the Furnishings, Fixtures & Appliances industry, which is in the bottom quartile relative to peers. Overall, Neo-Neon Holdings has a GF Score™ of 38/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Neo-Neon Holdings' Interest Coverage compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Neo-Neon Holdings ranks #999999 out of 291 companies for Interest Coverage. This places Neo-Neon Holdings in the lower half of its industry. The industry median Interest Coverage is 10.86. Neo-Neon Holdings' value of 6.91 is 36.4% below this benchmark. While the company's 10-year median is 12.23 vs. the industry median of 10.86, Neo-Neon 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 Furnishings, Fixtures & Appliances company?
The median Interest Coverage among Furnishings, Fixtures & Appliances companies is 10.86, based on 291 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. Neo-Neon Holdings's current Interest Coverage of 6.91 is 36.4% 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 Neo-Neon Holdings and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Interest Coverage is 10.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neo-Neon Holdings's current Interest Coverage is 6.91, which is 43% below median its own 10-year median of 12.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neo-Neon Holdings stock overvalued right now?
Based on GuruFocus' analysis, Neo-Neon Holdings (HKSE:01868) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.37, compared to a current price of HK$0.19 — trading 49.7% below its estimated fair value. The current Interest Coverage is 6.91, which is 43% below median its 10-year median of 12.23 and 36.4% below the Furnishings, Fixtures & Appliances industry median of 10.86. Neo-Neon Holdings' overall GF Score™ is 38/100 with 2 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 Neo-Neon Holdings (HKSE:01868), the current Interest Coverage is 6.91 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 Neo-Neon Holdings (HKSE:01868) Overvalued in 2026?

Based on GuruFocus' analysis, Neo-Neon Holdings stock appears to be undervalued. The current stock price of HK$0.19 is trading 49.7% below its estimated GF Value™ of HK$0.37. GuruFocus considers Neo-Neon Holdings to be Possible Value Trap.

Key valuation signals for HKSE:01868:

  • Interest Coverage: 6.91 (43% below median its 10-year median of 12.23)
  • GF Value™: HK$0.37 vs. price of HK$0.19 (49.7% below fair value)
  • GF Score™: 38/100 with 2 warning signs
  • Industry Position: 36.4% below the Furnishings, Fixtures & Appliances median (#999999 of 291)

No single metric tells the full story. See the HKSE:01868 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Neo-Neon Holdings Business Description

Other Exchanges 911868:Taiwan
Address 118 Connaught Road West, Unit 3405, 34th Floor, Hong Kong, HKG
Neo-Neon Holdings Ltd is a manufacturer and distributor of LED decorative lighting products. The company's product portfolio is divided into LED decorative lighting, Commercial lighting, Professional lighting, Professional architectural lighting, Industrial lighting, Landscape lighting, and other products. Its segments include the PRC lighting segment, which consists of research and development, manufacture of lighting products in China, and distribution of lighting products in China and overseas; and the USA lighting segment consists of the provision of lighting solutions and trading of lighting products in the USA. Its geographical segments include North America, which generates the vast majority of the company's revenue; Europe; Asia; and Other continents.
38GF Score

Get the complete analysis for HKSE:01868

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.19
Price
HK$0.37
GF Value