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BHCC Holding (HKSE:01552) Financial Strength : 5 (As of Jun. 2024)


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What is BHCC Holding Financial Strength?

BHCC Holding has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

BHCC Holding's Interest Coverage for the quarter that ended in Jun. 2024 was 18.29. BHCC Holding's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.38. As of today, BHCC Holding's Altman Z-Score is 2.66.


Competitive Comparison of BHCC Holding's Financial Strength

For the Engineering & Construction subindustry, BHCC Holding's Financial Strength, along with its competitors' market caps and Financial Strength 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.


BHCC Holding's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, BHCC Holding's Financial Strength distribution charts can be found below:

* The bar in red indicates where BHCC Holding's Financial Strength falls into.


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BHCC Holding Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

BHCC Holding's Interest Expense for the months ended in Jun. 2024 was HK$-1 Mil. Its Operating Income for the months ended in Jun. 2024 was HK$26 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was HK$426 Mil.

BHCC Holding's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage=-1*Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*26.417/-1.444
=18.29

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

BHCC Holding's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(15.121 + 425.895) / 1166.062
=0.38

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

BHCC Holding has a Z-score of 2.66, indicating it is in Grey Zones. This implies that BHCC Holding is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.66 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


BHCC Holding  (HKSE:01552) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

BHCC Holding has the Financial Strength Rank of 5.


BHCC Holding Financial Strength Related Terms

Thank you for viewing the detailed overview of BHCC Holding's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


BHCC Holding Business Description

Traded in Other Exchanges
N/A
Address
No. 1 Tampines North Drive 3, No. 08-01, BHCC Space, Singapore, SGP, 528499
BHCC Holding Ltd is engaged as the main contractor in the provision of building and construction works in Singapore. It provides construction services for various types of buildings including educational institutions, and residential, commercial, and industrial buildings in both the public and private sectors. It operates in three segments: Building and construction works, Operation of temporary dormitories, and Property investment out of which the Building and construction works segment act as a key revenue driver for the firm.
Executives
Chao Jie 2202 Interest of your spouse
Huada Developments Limited 2101 Beneficial owner
Yang Xinping 2201 Interest of corporation controlled by you
Eagle Soar Global Limited 2101 Beneficial owner
Han Yuying 2201 Interest of corporation controlled by you
Liu Hai 2202 Interest of your spouse
Wai Tian Holdings Limited 2101 Beneficial owner
Zhan Lixiong 2201 Interest of corporation controlled by you
Zheng Dan 2202 Interest of your spouse

BHCC Holding Headlines

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