Zhonggan Communication (Group) Holdings (HKSE:02545) Interest Coverage: 2.71 (As of Dec. 2025) — 32% Below Median

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HKSE:02545 Zhonggan Communication (Group) Holdings Ltd HKSE:02545
12 GF Score
Price HK$0.43
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What is Zhonggan Communication (Group) Holdings Interest Coverage?

Zhonggan Communication (Group) Holdings HKSE:02545 12 Interest Coverage is 2.71 as of Dec. 2025, which is 32% below its 10-year median of 3.99. GuruFocus rates HKSE:02545 with a GF Score™ of 12/100. The stock has 9 warning signs investors should review. Among 286 Telecommunication Services companies, Zhonggan Communication (Group) Holdings ranks worse than 76.22% 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. Zhonggan Communication (Group) Holdings's Operating Income for the six months ended in Dec. 2025 was HK$33.8 Mil. Zhonggan Communication (Group) Holdings's Interest Expense for the six months ended in Dec. 2025 was HK$-12.5 Mil. Zhonggan Communication (Group) Holdings's interest coverage for the quarter that ended in Dec. 2025 was 2.71. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Zhonggan Communication (Group) Holdings Ltd interest coverage is 2.13, which is low.

The historical rank and industry rank for Zhonggan Communication (Group) Holdings's Interest Coverage or its related term are showing as below:

HKSE:02545' s Interest Coverage Range Over the Past 10 Years
Min: 2.12   Med: 3.99   Max: 5.09
Current: 2.13


HKSE:02545's Interest Coverage is ranked worse than
76.22% of 286 companies
in the Telecommunication Services industry
Industry Median: 4.835 vs HKSE:02545: 2.13

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


Zhonggan Communication (Group) Holdings  (HKSE:02545) 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 .


Zhonggan Communication (Group) Holdings Interest Coverage Related Terms


Zhonggan Communication (Group) Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for Zhonggan Communication (Group) 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.

Zhonggan Communication (Group) Holdings Interest Coverage Chart

Zhonggan Communication (Group) Holdings Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
4.67 3.99 5.09 3.61 2.12

Zhonggan Communication (Group) Holdings Semi-Annual Data
Dec21 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial 7.26 3.26 3.97 1.39 2.71

HKSE:02545 vs VZ, TMUS, T: Interest Coverage Comparison

For the Telecom Services subindustry, Zhonggan Communication (Group) 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.


Zhonggan Communication (Group) Holdings Interest Coverage vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Zhonggan Communication (Group) Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Zhonggan Communication (Group) Holdings's Interest Coverage falls into.


HKSE:02545
12GF Score
Zhonggan Communication (Group) Holdings Ltd HKSE:02545
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Zhonggan Communication (Group) 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.

Zhonggan Communication (Group) 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, Zhonggan Communication (Group) Holdings's Interest Expense was HK$-22.5 Mil. Its Operating Income was HK$47.7 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*47.715/-22.49
=2.12

Zhonggan Communication (Group) Holdings's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Zhonggan Communication (Group) Holdings's Interest Expense was HK$-12.5 Mil. Its Operating Income was HK$33.8 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*33.836/-12.497
=2.71

* 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 2.71 mean?
Zhonggan Communication (Group) Holdings (HKSE:02545) has a Interest Coverage of 2.71 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Zhonggan Communication (Group) Holdings and its competitors. This is 32% below median its historical median of 3.99. Over the past decade, Zhonggan Communication (Group) Holdings' Interest Coverage has ranged from 2.12 to 5.09. According to the industry distribution chart, Zhonggan Communication (Group) Holdings ranks #218 out of 286 companies in the Telecommunication Services industry, placing it in the top 76.2%.
Is Zhonggan Communication (Group) Holdings' Interest Coverage too high?
Zhonggan Communication (Group) Holdings' current Interest Coverage of 2.71 is 32% below median its 10-year median of 3.99. Over the past 10 years, this metric has ranged from a low of 2.12 to a high of 5.09. The Telecommunication Services industry median Interest Coverage is 4.84. Zhonggan Communication (Group) Holdings' value of 2.71 is 44% below this industry median. Based on the distribution chart, Zhonggan Communication (Group) Holdings ranks #218 out of 286 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Zhonggan Communication (Group) Holdings has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Zhonggan Communication (Group) Holdings' Interest Coverage compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Zhonggan Communication (Group) Holdings ranks #218 out of 286 companies for Interest Coverage. This places Zhonggan Communication (Group) Holdings in the lower half of its industry. The industry median Interest Coverage is 4.84. Zhonggan Communication (Group) Holdings' value of 2.71 is 44% below this benchmark. Historically, Zhonggan Communication (Group) Holdings' own Interest Coverage has ranged from 2.12 to 5.09 over the past decade. While the company's 10-year median is 3.99 vs. the industry median of 4.84, Zhonggan Communication (Group) 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.84, based on 286 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. Zhonggan Communication (Group) Holdings's current Interest Coverage of 2.71 is 44% 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 Zhonggan Communication (Group) Holdings and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhonggan Communication (Group) Holdings's current Interest Coverage is 2.71, which is 32% below median its own 10-year median of 3.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhonggan Communication (Group) Holdings stock overvalued right now?
Zhonggan Communication (Group) Holdings (HKSE:02545) has a current Interest Coverage of 2.71. The current Interest Coverage is 2.71, which is 32% below median its 10-year median of 3.99 and 44% below the Telecommunication Services industry median of 4.84. Zhonggan Communication (Group) Holdings' overall GF Score™ is 12/100 with 9 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 Zhonggan Communication (Group) Holdings (HKSE:02545), the current Interest Coverage is 2.71 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.

Zhonggan Communication (Group) Holdings Business Description

Address 2799 Tianxiang Avenue, Room 101, Block 99, Nanchang Jiahai Industrial Park, Jiangxi Province, Nanchang High-tech Industrial Development Zone, Nanchang, CHN
Zhonggan Communication (Group) Holdings Ltd is an integrated service provider and software developer in China. It focuses on the provision of Telecommunications Infrastructure Services and Digitalisation Solution Services. Telecommunications Infrastructure Services comprises infrastructure Construction Services and Infrastructure Maintenance Services. Digitalisation Solution Services comprise Integrated Solution Services, System Maintenance Services, and Software Solution Services. Key revenue is generated from Telecommunications Infrastructure Services.
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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