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China Electronics Huada Technology Co (HKSE:00085) Net-Net Working Capital : HK$0.22 (As of Dec. 2023)


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What is China Electronics Huada Technology Co Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

China Electronics Huada Technology Co's Net-Net Working Capital for the quarter that ended in Dec. 2023 was HK$0.22.

The industry rank for China Electronics Huada Technology Co's Net-Net Working Capital or its related term are showing as below:

HKSE:00085's Price-to-Net-Net-Working-Capital is ranked better than
63.5% of 526 companies
in the Semiconductors industry
Industry Median: 8.56 vs HKSE:00085: 6.18

China Electronics Huada Technology Co Net-Net Working Capital Historical Data

The historical data trend for China Electronics Huada Technology Co's Net-Net Working Capital 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.

* Premium members only.

China Electronics Huada Technology Co Net-Net Working Capital Chart

China Electronics Huada Technology Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.66 0.17 0.04 0.23 0.22

China Electronics Huada Technology Co Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Net-Net Working Capital 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 0.04 0.04 0.23 0.34 0.22

Competitive Comparison of China Electronics Huada Technology Co's Net-Net Working Capital

For the Semiconductors subindustry, China Electronics Huada Technology Co's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Electronics Huada Technology Co's Price-to-Net-Net-Working-Capital Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, China Electronics Huada Technology Co's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where China Electronics Huada Technology Co's Price-to-Net-Net-Working-Capital falls into.



China Electronics Huada Technology Co Net-Net Working Capital Calculation

China Electronics Huada Technology Co's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1791.676+0.75 * 574.285+0.5 * 848.621-2180.565
-0-27.663)/2029.87
=0.22

China Electronics Huada Technology Co's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2023 is calculated as

Net-Net Working Capital(Q: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1791.676+0.75 * 574.285+0.5 * 848.621-2180.565
-0-27.663)/2029.87
=0.22

* 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.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


China Electronics Huada Technology Co  (HKSE:00085) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


China Electronics Huada Technology Co Net-Net Working Capital Related Terms

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China Electronics Huada Technology Co (HKSE:00085) Business Description

Traded in Other Exchanges
N/A
Address
26 Harbour Road, Room 3403, 34th Floor, China Resources Building, Wanchai, Hong Kong, HKG
China Electronics Huada Technology Co Ltd is engaged in the design and sale of integrated circuit chips. The company has only one reportable segment named as Sale of integrated circuit products. The products of the company are mainly used in smart cards, RFID, and wireless communication network. It derives the majority of its revenues from the PRC.
Executives
Huada Semiconductor Co., Ltd 2201 Interest of corporation controlled by you
China Electronics Corporation (bvi) Holdings Company Limited 2101 Beneficial owner
Zhong Guo Dian Zi Xin Xi Chan Ye Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Zhong Guo Dian Zi You Xian Gong Si 2201 Interest of corporation controlled by you

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