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Stock impact report

Hongli Group Is Back To Profitability, But Should Not Trade At 70x+ Earnings [Seeking Alpha]

Hongli Group Inc. - Ordinary Shares (HLP) 
Company Research Source: Seeking Alpha
Hongli's margins and profitability are decent for its size, but growth has stalled due to cyclical industry headwinds and recent listing-related expenses. Despite recent revenue growth and a return to profitability, Hongli stock trades at an unattractive valuation of 75x earnings, making shares overvalued. Initiate with a Hold rating, as HLP's current market cap is too high to justify investment until a significant price correction occurs. Uladzimir Zuyeu/iStock via Getty Images Hongli Group ( NASDAQ: HLP ) is a Chinese manufacturer of steel profiles, used mostly to build the operator cabs of excavators and agricultural machinery. The company has not grown in years, albeit the cycle might be to This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am Show less Read more
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