Hongli Zhihui Group Co (SZSE:300219) Interest Coverage: 8.89 (As of Jun. 2026) — 41% Below Median

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SZSE:300219 Hongli Zhihui Group Co Ltd SZSE:300219
76 GF Score
Price ¥7.03
GF Value ¥8.24
Valuation Modestly Undervalued
! 6 Warning Signs
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What is Hongli Zhihui Group Co Interest Coverage?

Hongli Zhihui Group Co SZSE:300219 -0.57% 76 Interest Coverage is 8.89 as of Jun. 2026, which is 41% below its 10-year median of 15.04. GuruFocus rates SZSE:300219 with a GF Score™ of 76/100 and a GF Value™ of ¥8.24 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,671 Hardware companies, Hongli Zhihui Group Co ranks worse than 57.27% 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. Hongli Zhihui Group Co's Operating Income for the three months ended in Jun. 2026 was ¥49 Mil. Hongli Zhihui Group Co's Interest Expense for the three months ended in Jun. 2026 was ¥-6 Mil. Hongli Zhihui Group Co's interest coverage for the quarter that ended in Jun. 2026 was 8.89. The higher the ratio, the stronger the company's financial strength is.

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

SZSE:300219' s Interest Coverage Range Over the Past 10 Years
Min: 8.26   Med: 15.04   Max: 27.08
Current: 10.85


SZSE:300219's Interest Coverage is ranked worse than
57.27% of 1671 companies
in the Hardware industry
Industry Median: 15.23 vs SZSE:300219: 10.85

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


Hongli Zhihui Group Co  (SZSE:300219) 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 .


Hongli Zhihui Group Co Interest Coverage Related Terms


Hongli Zhihui Group Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Hongli Zhihui Group 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.

Hongli Zhihui Group Co Interest Coverage Chart

Hongli Zhihui Group 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 17.05 14.29 11.69 8.26 8.70

Hongli Zhihui Group Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 4.61 9.47 21.36 3.69 8.89

SZSE:300219 vs APH, GLW, TEL: Interest Coverage Comparison

For the Electronic Components subindustry, Hongli Zhihui Group 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.


Hongli Zhihui Group Co Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Hongli Zhihui Group Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hongli Zhihui Group Co's Interest Coverage falls into.


SZSE:300219
76GF Score
Hongli Zhihui Group Co Ltd SZSE:300219
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hongli Zhihui Group 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.

Hongli Zhihui Group 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, Hongli Zhihui Group Co's Interest Expense was ¥-22 Mil. Its Operating Income was ¥190 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥427 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*189.614/-21.806
=8.70

Hongli Zhihui Group Co's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Hongli Zhihui Group Co's Interest Expense was ¥-6 Mil. Its Operating Income was ¥49 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥364 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*49.175/-5.529
=8.89

* 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 8.89 mean?
Hongli Zhihui Group Co (SZSE:300219) has a Interest Coverage of 8.89 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hongli Zhihui Group Co and its competitors. This is 41% below median its historical median of 15.04. Over the past decade, Hongli Zhihui Group Co's Interest Coverage has ranged from 8.26 to 27.08. According to the industry distribution chart, Hongli Zhihui Group Co ranks #957 out of 1671 companies in the Hardware industry, placing it in the top 57.3%.
Is Hongli Zhihui Group Co's Interest Coverage too high?
Hongli Zhihui Group Co's current Interest Coverage of 8.89 is 41% below median its 10-year median of 15.04. Over the past 10 years, this metric has ranged from a low of 8.26 to a high of 27.08. The Hardware industry median Interest Coverage is 15.23. Hongli Zhihui Group Co's value of 8.89 is 41.6% below this industry median. Based on the distribution chart, Hongli Zhihui Group Co ranks #957 out of 1671 companies in the Hardware industry, which is below the industry midpoint. Overall, Hongli Zhihui Group Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hongli Zhihui Group Co's Interest Coverage compare to APH and GLW?
According to the Hardware industry distribution chart, Hongli Zhihui Group Co ranks #957 out of 1671 companies for Interest Coverage. This places Hongli Zhihui Group Co in the lower half of its industry. The industry median Interest Coverage is 15.23. Hongli Zhihui Group Co's value of 8.89 is 41.6% below this benchmark. Historically, Hongli Zhihui Group Co's own Interest Coverage has ranged from 8.26 to 27.08 over the past decade. While the company's 10-year median is 15.04 vs. the industry median of 15.23, Hongli Zhihui Group Co 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 15.23, based on 1,671 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. Hongli Zhihui Group Co's current Interest Coverage of 8.89 is 41.6% 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 Hongli Zhihui Group Co and its competitors. For the Hardware industry, the median Interest Coverage is 15.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongli Zhihui Group Co's current Interest Coverage is 8.89, which is 41% below median its own 10-year median of 15.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongli Zhihui Group Co stock overvalued right now?
Based on GuruFocus' analysis, Hongli Zhihui Group Co (SZSE:300219) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥8.24, compared to a current price of ¥7.03 — trading 14.7% below its estimated fair value. The current Interest Coverage is 8.89, which is 41% below median its 10-year median of 15.04 and 41.6% below the Hardware industry median of 15.23. Hongli Zhihui Group Co's overall GF Score™ is 76/100 with 6 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 Hongli Zhihui Group Co (SZSE:300219), the current Interest Coverage is 8.89 as of Jun. 2026. 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 Hongli Zhihui Group Co (SZSE:300219) Overvalued in 2026?

Based on GuruFocus' analysis, Hongli Zhihui Group Co stock appears to be undervalued. The current stock price of ¥7.03 is trading 14.7% below its estimated GF Value™ of ¥8.24. GuruFocus considers Hongli Zhihui Group Co to be Modestly Undervalued.

Key valuation signals for SZSE:300219:

  • Interest Coverage: 8.89 (41% below median its 10-year median of 15.04)
  • GF Value™: ¥8.24 vs. price of ¥7.03 (14.7% below fair value)
  • GF Score™: 76/100 with 6 warning signs
  • Industry Position: 41.6% below the Hardware median (#957 of 1671)

No single metric tells the full story. See the SZSE:300219 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hongli Zhihui Group Co Business Description

Address West Dongfeng Highway, Auto City Huadu, Guangzhou City, CHN, 510800
Hongli Zhihui Group Co Ltd is engaged in the production and development of SMD LEDs, COB LEDs, High Power LEDs, Automotive LEDs, UV LEDs, LAMP LEDs, and Infrared LEDs. Its products are widely used in applied in general lighting, TV backlight, 3C, automotive lighting, display and other fields.
76GF Score

Get the complete analysis for SZSE:300219

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

¥7.03
Price
¥8.24
GF Value