Is Hongli Group Inc. (HLP) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 12.2% / 30% | 1.2% / 30% | 8.2% / 30% | 1.25% / 5% | ✓ HALAL |
| DJIM | 12.2% / 33% | 1.2% / 33% | 8.2% / 33% | 1.25% / 5% | ✓ HALAL |
| MSCI | 14.4% / 33% | 1.4% / 33% | 9.7% / 33% | 1.25% / 5% | ✓ HALAL |
| S&P | 12.2% / 33% | 1.2% / 33% | 8.2% / 33% | 1.25% / 5% | ✓ HALAL |
| FTSE | 14.4% / 33% | 1.4% / 33% | 9.7% / 50% | 1.25% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 32.9% | |
| Operating Margin | 13.4% | |
| Net Margin | 6.0% | |
| Return on Equity (ROE) | 2.7% | |
| Return on Assets (ROA) | 1.7% |
Cash Flow & Balance Sheet
| Operating Cash Flow | -$414,034 |
| Free Cash Flow | -$446,540 |
| Total Debt | $9M |
| Debt-to-Equity | 17.1 |
| Current Ratio | 1.1 |
| Total Assets | $65M |
Price & Trading
| Last Close | $0.96 |
| 50-Day MA | $0.99 |
| 200-Day MA | $1.05 |
| Avg Volume | 109K |
| Beta | 0.7 |
|
52-Week Range
$0.61
| |
About Hongli Group Inc. (HLP)
Hongli Group Inc., together with its subsidiaries, manufactures and sells customized metal profiles in the People's Republic of China and internationally. The company offers cold roll formed steel profile products in various forms and shapes, such as angles, bows, beams, brackets, channels, cross-members, flanges, hats, panels, plates, posts, rails, stakes, and tracks. It serves mining and excavation, construction, agriculture, and transportation industries. The company was incorporated in 2021 and is headquartered in Weifang, the People's Republic of China. Hongli Group Inc. is a subsidiary of Hongli Development Limited.
Purification Calculator
As a halal stock with 1.25% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Hongli Group Inc. (HLP) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Hongli Group Inc. 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 Hongli Group Inc.'s debt ratio?
Hongli Group Inc.'s debt ratio is 12.2% 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 14.4%.
Does Hongli Group Inc. require dividend purification?
Yes, Hongli Group Inc. has an impermissible income ratio of 1.25%, which means 1.25% 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 Hongli Group Inc.'s key financial metrics?
Hongli Group Inc. has a market capitalization of $72M, trailing P/E ratio of 19.6, and revenue of $14M. The company maintains a gross margin of 32.9% and a net margin of 6.0%. Return on equity stands at 2.7%.
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.