Binhai Investment Co (HKSE:02886) Interest Coverage: 4.80 (As of Dec. 2025) — 40% Above Median

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HKSE:02886 Binhai Investment Co Ltd HKSE:02886
79 GF Score
Price HK$1.07
GF Value HK$1.27
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Binhai Investment Co Interest Coverage?

Binhai Investment Co HKSE:02886 79 Interest Coverage is 4.80 as of Dec. 2025, which is 40% above its 10-year median of 3.44. GuruFocus rates HKSE:02886 with a GF Score™ of 79/100 and a GF Value™ of HK$1.27 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 450 Utilities - Regulated companies, Binhai Investment Co ranks better than 53.78% 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. Binhai Investment Co's Operating Income for the six months ended in Dec. 2025 was HK$146 Mil. Binhai Investment Co's Interest Expense for the six months ended in Dec. 2025 was HK$-31 Mil. Binhai Investment Co's interest coverage for the quarter that ended in Dec. 2025 was 4.80. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Binhai Investment Co's Interest Coverage or its related term are showing as below:

HKSE:02886' s Interest Coverage Range Over the Past 10 Years
Min: 2.49   Med: 3.44   Max: 5.71
Current: 4.28


HKSE:02886's Interest Coverage is ranked better than
53.78% of 450 companies
in the Utilities - Regulated industry
Industry Median: 3.8 vs HKSE:02886: 4.28

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


Binhai Investment Co  (HKSE:02886) 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 .


Binhai Investment Co Interest Coverage Related Terms


Binhai Investment Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Binhai Investment Co'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.

Binhai Investment Co Interest Coverage Chart

Binhai Investment Co 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 5.37 3.72 2.94 2.91 4.28

Binhai Investment Co 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 2.32 3.04 2.75 3.94 4.80

HKSE:02886 vs ATO, NI: Interest Coverage Comparison

For the Utilities - Regulated Gas subindustry, Binhai Investment Co'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.


Binhai Investment Co Interest Coverage vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Binhai Investment Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Binhai Investment Co's Interest Coverage falls into.


HKSE:02886
79GF Score
Binhai Investment Co Ltd HKSE:02886
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Binhai Investment Co 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.

Binhai Investment Co'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, Binhai Investment Co's Interest Expense was HK$-76 Mil. Its Operating Income was HK$327 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,997 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*327.241/-76.425
=4.28

Binhai Investment Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Binhai Investment Co's Interest Expense was HK$-31 Mil. Its Operating Income was HK$146 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,997 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*146.357/-30.504
=4.80

* 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 4.80 mean?
Binhai Investment Co (HKSE:02886) has a Interest Coverage of 4.80 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Binhai Investment Co and its competitors. This is 40% above median its historical median of 3.44. Over the past decade, Binhai Investment Co's Interest Coverage has ranged from 2.49 to 5.71. According to the industry distribution chart, Binhai Investment Co ranks #208 out of 450 companies in the Utilities - Regulated industry, placing it in the top 46.2%.
Is Binhai Investment Co's Interest Coverage too high?
Binhai Investment Co's current Interest Coverage of 4.80 is 40% above median its 10-year median of 3.44. Over the past 10 years, this metric has ranged from a low of 2.49 to a high of 5.71. The Utilities - Regulated industry median Interest Coverage is 3.80. Binhai Investment Co's value of 4.80 is 26.3% above this industry median. Based on the distribution chart, Binhai Investment Co ranks #208 out of 450 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Binhai Investment Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Binhai Investment Co's Interest Coverage compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Binhai Investment Co ranks #208 out of 450 companies for Interest Coverage. This puts Binhai Investment Co in the upper half of its industry. The industry median Interest Coverage is 3.80. Binhai Investment Co's value of 4.80 is 26.3% above this benchmark. Historically, Binhai Investment Co's own Interest Coverage has ranged from 2.49 to 5.71 over the past decade. While the company's 10-year median is 3.44 vs. the industry median of 3.80, Binhai Investment Co has consistently been above 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 an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.80, based on 450 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. Binhai Investment Co's current Interest Coverage of 4.80 is 26.3% above 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 Binhai Investment Co and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Binhai Investment Co's current Interest Coverage is 4.80, which is 40% above median its own 10-year median of 3.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Binhai Investment Co stock overvalued right now?
Based on GuruFocus' analysis, Binhai Investment Co (HKSE:02886) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$1.27, compared to a current price of HK$1.07 — trading 15.7% below its estimated fair value. The current Interest Coverage is 4.80, which is 40% above median its 10-year median of 3.44 and 26.3% above the Utilities - Regulated industry median of 3.80. Binhai Investment Co's overall GF Score™ is 79/100 with 5 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 Binhai Investment Co (HKSE:02886), the current Interest Coverage is 4.80 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 Binhai Investment Co (HKSE:02886) Overvalued in 2026?

Based on GuruFocus' analysis, Binhai Investment Co stock appears to be undervalued. The current stock price of HK$1.07 is trading 15.7% below its estimated GF Value™ of HK$1.27. GuruFocus considers Binhai Investment Co to be Modestly Undervalued.

Key valuation signals for HKSE:02886:

  • Interest Coverage: 4.80 (40% above median its 10-year median of 3.44)
  • GF Value™: HK$1.27 vs. price of HK$1.07 (15.7% below fair value)
  • GF Score™: 79/100 with 5 warning signs
  • Industry Position: 26.3% above the Utilities - Regulated median (#208 of 450)

No single metric tells the full story. See the HKSE:02886 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Binhai Investment Co Business Description

Other Exchanges WS7A:Germany
Address 1 Matheson Street, Causeway Bay, Suites 3205-07, 32nd Floor, Tower Two, Times Square, Hong Kong, HKG
Binhai Investment Co Ltd is an investment holding company engaged in piped natural gas, construction, and gas pipeline installation service, gas passing through service, and sales of bottled natural gas. It derives a majority of its revenue from construction, and gas pipeline installation services in which the group constructs gas pipelines for its clients and connects such pipelines to the group's main gas pipeline networks and charges construction and gas pipeline installation service fees from industrial and commercial customers, property developers and property management companies.
79GF Score

Get the complete analysis for HKSE:02886

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

HK$1.07
Price
HK$1.27
GF Value