Is HIGHWAY HOLDINGS LTD (HIHO) Halal?

NASDAQ Industrials Hong Kong $4M
✗ NOT HALAL
Confidence: 90/100
HIGHWAY HOLDINGS LTD (HIHO) is Not Halal under AAOIFI Standard 21. While the debt ratio of 19.2% is acceptable, the cash and interest-bearing securities ratio of 141.4% exceeds the 30% threshold. HIGHWAY HOLDINGS LTD operates in the Industrials sector.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 19.2%
/ 30%
141.4%
/ 30%
24.2%
/ 30%
2.74%
/ 5%
✗ NOT HALAL
DJIM 19.2%
/ 33%
141.4%
/ 33%
24.2%
/ 33%
2.74%
/ 5%
✗ NOT HALAL
MSCI 8.5%
/ 33%
62.5%
/ 33%
10.7%
/ 33%
2.74%
/ 5%
✗ NOT HALAL
S&P 19.2%
/ 33%
141.4%
/ 33%
24.2%
/ 33%
2.74%
/ 5%
✗ NOT HALAL
FTSE 8.5%
/ 33%
62.5%
/ 33%
10.7%
/ 50%
2.74%
/ 5%
✗ NOT HALAL

Financial Highlights

EPS
$-0.17
Dividend Yield
1667.0%
P/B Ratio
0.6
EV/EBITDA
0.7
EV: -$1M
Revenue
$7M
Growth: -40.5%
Beta
0.5
Low volatility
Current Ratio
4.3

Profitability

Gross Margin 26.6%
Operating Margin -42.4%
Net Margin -13.8%
Return on Equity (ROE) -12.3%
Return on Assets (ROA) -12.5%

Cash Flow & Balance Sheet

Operating Cash Flow-$360,000
Free Cash Flow-$461,000
Total Debt$810,000
Debt-to-Equity5.4
Current Ratio4.3
Total Assets$10M

Price & Trading

Last Close$0.78
50-Day MA$0.92
200-Day MA$1.38
Avg Volume226K
Beta0.5
52-Week Range
$0.76
$2.21

About HIGHWAY HOLDINGS LTD (HIHO)

CEO
Mr. Roland Walter Kohl
Sector
Industrials
Industry
Metal Fabrication
Country
Hong Kong
Exchange
NASDAQ
Market Cap
$4M
Currency
USD

Highway Holdings Limited, together with its subsidiaries, manufactures and sells metal, plastic, electric, and electronic parts and components, subassemblies, and finished products in Hong Kong, China, Europe, and North America. The company operates through two segments, Metal Stamping and Mechanical Original Equipment Manufacturer (OEM), and Electric OEM. Its products are used in the manufacture of products, such as photocopiers, laser printers, print cartridges, electrical connectors, electrical circuits, vacuum cleaners, LED power supplies, stepping motors, pumps for dishwashers, and other washing machine components. The company also provides assistance in the design and development of the tooling used in the metal and plastic manufacturing process; manufacturing services, including metal stamping, screen printing, plastic injection molding, pad printing, and electronic assembly of printed circuit boards; and engineering services. In addition, it engages in the trade of plastic injection products; and manufacture and assembly of metal, plastics, mold and electronic products, and automation equipment. The company offers its products to OEMs and contract manufacturers. Highway Holdings Limited was incorporated in 1990 and is headquartered in Sheung Shui, Hong Kong.

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Frequently Asked Questions

Is HIGHWAY HOLDINGS LTD (HIHO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), HIGHWAY HOLDINGS LTD is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is HIGHWAY HOLDINGS LTD's debt ratio?

HIGHWAY HOLDINGS LTD's debt ratio is 19.2% 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 8.5%.

What are HIGHWAY HOLDINGS LTD's key financial metrics?

HIGHWAY HOLDINGS LTD has a market capitalization of $4M, and revenue of $7M. The company maintains a gross margin of 26.6% and a net margin of -13.8%. Return on equity stands at -12.3%.

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.