Is Happy City Holdings Ltd (HCHL) Halal?
Shariah Screening — 5 Standards
Based on financial data from August 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 22.4% / 30% | 18.1% / 30% | 0.2% / 30% | 0.27% / 5% | ✓ HALAL |
| DJIM | 22.4% / 33% | 18.1% / 33% | 0.2% / 33% | 0.27% / 5% | ✓ HALAL |
| MSCI | 56.8% / 33% | 46.0% / 33% | 0.6% / 33% | 0.27% / 5% | ✗ NOT HALAL |
| S&P | 22.4% / 33% | 18.1% / 33% | 0.2% / 33% | 0.27% / 5% | ✓ HALAL |
| FTSE | 56.8% / 33% | 46.0% / 33% | 0.6% / 50% | 0.27% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 12.6% | |
| Operating Margin | -101.6% | |
| Net Margin | -35.7% | |
| Return on Equity (ROE) | -173.0% | |
| Return on Assets (ROA) | -19.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | -$1M |
| Free Cash Flow | -$2M |
| Total Debt | $5M |
| Debt-to-Equity | 208.1 |
| Current Ratio | 0.8 |
| Total Assets | $8M |
Price & Trading
| Last Close | $1.49 |
| 50-Day MA | $1.57 |
| 200-Day MA | $3.16 |
| Avg Volume | 770K |
|
52-Week Range
$0.80
| |
About Happy City Holdings Ltd (HCHL)
Happy City Holdings Limited, through its subsidiaries, engages in the operation of hotpot restaurants providing food and beverage to customers in Hong Kong. It operates Thai and Japanese hotpot restaurants under the Thai Pot and Gyu! Gyu! Shabu Shabu brand names. The company was incorporated in 2024 and is headquartered in Kwai Chung, Hong Kong. Happy City Holdings Limited is a subsidiary of Happy City Group Limited.
Purification Calculator
As a halal stock with 0.27% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Happy City Holdings Ltd (HCHL) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Happy City Holdings Ltd is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Happy City Holdings Ltd's debt ratio?
Happy City Holdings Ltd's debt ratio is 22.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 56.8%.
Does Happy City Holdings Ltd require dividend purification?
Yes, Happy City Holdings Ltd has an impermissible income ratio of 0.27%, which means 0.27% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Happy City Holdings Ltd's key financial metrics?
Happy City Holdings Ltd has a market capitalization of $44M, and revenue of $7M. The company maintains a gross margin of 12.6% and a net margin of -35.7%. Return on equity stands at -173.0%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.