Last Updated: 07 Nov 2024
Executive Summary
Highest Performances Holdings Inc. (HPH) is a Chinese investment advisory firm with a market capitalization of $209.98 million. Despite a challenging operating environment, the company has recently reported a quarterly revenue growth of -0.48% YoY to $81.59 million. However, it continues to face profitability issues, with an EBITDA of -$44.71 million and a diluted EPS of -$0.10. The stock is currently trading at $0.34, below its 52-week high of $10.06.
Company Overview
HPH is headquartered in Guangzhou, China, and provides a range of financial services, including asset management, investment advisory, and wealth management. The company has a global presence with offices in Hong Kong, Singapore, and London.
Fundamental Analysis
Revenue: HPH's revenue has been declining in recent quarters, with a TTM revenue of $81.59 million. This decline is primarily due to the challenging economic conditions in China.
Profitability: The company has been struggling with profitability, with an EBITDA of -$44.71 million and a net income loss of -$26.98 million for the latest quarter. This is largely due to high operating expenses.
Valuation: HPH's stock is currently trading at a price-to-sales ratio of 2.574 and a price-to-book ratio of 0.988. These ratios suggest that the stock may be undervalued compared to its peers.
Technical Analysis
Trend: HPH's stock has been in a downtrend since reaching its 52-week high of $10.06 in May 2021. The stock has recently found support at the $0.321 level.
Moving Averages: The stock is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend.
Support and Resistance: The stock has strong support at the $0.321 level and resistance at the $0.50 level.
Short Term Outlook
Based on the technical analysis, HPH's stock is likely to continue its downtrend in the short term. The stock is currently trading below its moving averages and has failed to break above the $0.50 resistance level.
Long Term Outlook
The long-term outlook for HPH is uncertain. The company faces significant challenges, including declining revenue and profitability. However, the stock may be undervalued based on its valuation ratios. If the company can improve its financial performance, the stock could potentially rebound in the long term.
Analyst Recommendations
Analysts are currently neutral on HPH's stock. No strong buy or sell recommendations have been issued recently.
