China Hongguang Holdings (HKSE:08646) Interest Coverage: 40.44 (As of Dec. 2025) — 308% Above Median

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HKSE:08646 China Hongguang Holdings Ltd HKSE:08646
48 GF Score
Price HK$0.20
GF Value HK$0.18
Valuation Modestly Overvalued
! 2 Warning Signs
View Full Analysis

What is China Hongguang Holdings Interest Coverage?

China Hongguang Holdings HKSE:08646 -1.92% 48 Interest Coverage is 40.44 as of Dec. 2025, which is 308% above its 10-year median of 9.90. GuruFocus rates HKSE:08646 with a GF Score™ of 48/100 and a GF Value™ of HK$0.18 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,360 Construction companies, China Hongguang Holdings ranks better than 69.12% 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. China Hongguang Holdings's Operating Income for the six months ended in Dec. 2025 was HK$56.3 Mil. China Hongguang Holdings's Interest Expense for the six months ended in Dec. 2025 was HK$-1.4 Mil. China Hongguang Holdings's interest coverage for the quarter that ended in Dec. 2025 was 40.44. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:08646' s Interest Coverage Range Over the Past 10 Years
Min: 6.42   Med: 9.9   Max: 21.71
Current: 21.71


HKSE:08646's Interest Coverage is ranked better than
69.12% of 1360 companies
in the Construction industry
Industry Median: 7.97 vs HKSE:08646: 21.71

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


China Hongguang Holdings  (HKSE:08646) 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 .


China Hongguang Holdings Interest Coverage Related Terms


China Hongguang Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for China Hongguang 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.

China Hongguang Holdings Interest Coverage Chart

China Hongguang Holdings Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 14.88 9.88 9.90 6.64 21.64

China Hongguang Holdings Semi-Annual Data
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 12.28 5.96 7.41 9.08 40.44

HKSE:08646 vs TT, JCI, CARR: Interest Coverage Comparison

For the Building Products & Equipment subindustry, China Hongguang 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.


China Hongguang Holdings Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, China Hongguang Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China Hongguang Holdings's Interest Coverage falls into.


HKSE:08646
48GF Score
China Hongguang Holdings Ltd HKSE:08646
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China Hongguang 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.

China Hongguang 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, China Hongguang Holdings's Interest Expense was HK$-3.5 Mil. Its Operating Income was HK$75.2 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.1 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*75.201/-3.475
=21.64

China Hongguang Holdings's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, China Hongguang Holdings's Interest Expense was HK$-1.4 Mil. Its Operating Income was HK$56.3 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.1 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*56.286/-1.392
=40.44

* 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 40.44 mean?
China Hongguang Holdings (HKSE:08646) has a Interest Coverage of 40.44 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Hongguang Holdings and its competitors. This is 308% above median its historical median of 9.90. Over the past decade, China Hongguang Holdings' Interest Coverage has ranged from 6.42 to 21.71. According to the industry distribution chart, China Hongguang Holdings ranks #420 out of 1360 companies in the Construction industry, placing it in the top 30.9%.
Is China Hongguang Holdings' Interest Coverage too high?
China Hongguang Holdings' current Interest Coverage of 40.44 is 308% above median its 10-year median of 9.90. Over the past 10 years, this metric has ranged from a low of 6.42 to a high of 21.71. The Construction industry median Interest Coverage is 7.97. China Hongguang Holdings' value of 40.44 is 407.4% above this industry median. Based on the distribution chart, China Hongguang Holdings ranks #420 out of 1360 companies in the Construction industry, which is above the industry midpoint. Overall, China Hongguang Holdings has a GF Score™ of 48/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Hongguang Holdings' Interest Coverage compare to TT and JCI?
According to the Construction industry distribution chart, China Hongguang Holdings ranks #420 out of 1360 companies for Interest Coverage. This puts China Hongguang Holdings in the upper half of its industry. The industry median Interest Coverage is 7.97. China Hongguang Holdings' value of 40.44 is 407.4% above this benchmark. Historically, China Hongguang Holdings' own Interest Coverage has ranged from 6.42 to 21.71 over the past decade. While the company's 10-year median is 9.90 vs. the industry median of 7.97, China Hongguang Holdings 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 a Construction company?
The median Interest Coverage among Construction companies is 7.97, based on 1,360 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. China Hongguang Holdings's current Interest Coverage of 40.44 is 407.4% 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 China Hongguang Holdings and its competitors. For the Construction industry, the median Interest Coverage is 7.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Hongguang Holdings's current Interest Coverage is 40.44, which is 308% above median its own 10-year median of 9.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Hongguang Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Hongguang Holdings (HKSE:08646) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.18, compared to a current price of HK$0.20 — trading 13.3% above its estimated fair value. The current Interest Coverage is 40.44, which is 308% above median its 10-year median of 9.90 and 407.4% above the Construction industry median of 7.97. China Hongguang Holdings' overall GF Score™ is 48/100 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 China Hongguang Holdings (HKSE:08646), the current Interest Coverage is 40.44 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 China Hongguang Holdings (HKSE:08646) Overvalued in 2026?

Based on GuruFocus' analysis, China Hongguang Holdings stock appears to be overvalued. The current stock price of HK$0.20 is trading 13.3% above its estimated GF Value™ of HK$0.18. GuruFocus considers China Hongguang Holdings to be Modestly Overvalued.

Key valuation signals for HKSE:08646:

  • Interest Coverage: 40.44 (308% above median its 10-year median of 9.90)
  • GF Value™: HK$0.18 vs. price of HK$0.20 (13.3% above fair value)
  • GF Score™: 48/100 with 2 warning signs
  • Industry Position: 407.4% above the Construction median (#420 of 1360)

No single metric tells the full story. See the HKSE:08646 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


China Hongguang Holdings Business Description

Address Eastside of Middle of Rongchi Road, Xianqiao, Rongcheng, Guangdong Province, Jieyang, CHN
China Hongguang Holdings Ltd is principally engaged in the manufacture and sale of glass products in the People's Republic of China. The Group operates in Southern China and, leveraging its technological advancements, particularly in coating technologies, has been actively transforming its business. Its coated glass products, including ITO conductive glass manufactured through fully automated magnetron sputtering production lines, are increasingly applied in the broader optoelectronic sector, such as mobile consumer electronics, display technologies, optical lenses, and automotive applications. The Group generates revenue from the PRC.
48GF Score

Get the complete analysis for HKSE:08646

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

HK$0.20
Price
HK$0.18
GF Value