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Hongli Group, Inc. (HLP)
NASDAQ:HLP
US Market
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Hongli Group, Inc. (HLP) AI Stock Analysis

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HLP

Hongli Group, Inc.

(NASDAQ:HLP)

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Neutral 54 (OpenAI - Gpt-5.6Sol)
Rating:54Neutral
Price Target:
$1.50
▲(18.11% Upside)
Action:Reiterated
Date:07/10/26
The score is driven primarily by improving but still cyclical financial performance (2025 earnings/revenue recovery and manageable leverage) offset by weak cash-flow consistency and rising debt. Technicals add risk due to overbought readings and a longer-term downtrend (below the 200-day average). Valuation is also a headwind given the high P/E and no dividend yield provided.
Positive Factors
Revenue and Earnings Recovery
The return to positive earnings and renewed revenue growth indicates improved operating demand after the 2024 downturn. If sustained, this recovery can strengthen the company’s earnings base and support reinvestment across its steel-profile manufacturing operations.
Negative Factors
Highly Cyclical Earnings
The wide earnings swings show that profitability remains exposed to the steel cycle and changing demand conditions. This reduces confidence that the 2025 recovery represents a durable margin improvement rather than a cyclical rebound.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Earnings Recovery
The return to positive earnings and renewed revenue growth indicates improved operating demand after the 2024 downturn. If sustained, this recovery can strengthen the company’s earnings base and support reinvestment across its steel-profile manufacturing operations.
Read all positive factors

Hongli Group, Inc. (HLP) vs. SPDR S&P 500 ETF (SPY)

Hongli Group, Inc. Business Overview & Revenue Model

Company Description
Hongli Group Inc., through its affiliated entities, specializes in the engineering, tailoring, production, and distribution of cold roll-formed steel profiles. These precision components are utilized in a variety of machinery and equipment, with a...

Hongli Group, Inc. Financial Statement Overview

Summary
Financials show a rebound but remain volatile. Profitability returned in 2025 with solid revenue growth (+17.1% vs. 2024), and leverage is generally manageable with a stronger equity base. However, cash generation has been inconsistent (negative operating/free cash flow in 2024 and sharp swings historically), and debt rose sharply in 2025, increasing risk if conditions soften.
Income Statement
64
Positive
Balance Sheet
78
Positive
Cash Flow
46
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue19.60M14.11M16.00M20.28M21.71M
Gross Profit6.38M4.52M5.25M7.01M7.65M
EBITDA3.24M-463.81K2.62M4.31M4.66M
Net Income1.94M-1.88M864.72K2.93M3.20M
Balance Sheet
Total Assets72.19M65.01M32.13M36.16M21.85M
Cash, Cash Equivalents and Short-Term Investments1.89M909.72K815.67K2.09M484.39K
Total Debt11.52M9.38M9.11M16.53M6.48M
Total Liabilities14.36M11.52M11.02M22.69M10.36M
Stockholders Equity57.83M53.49M21.11M13.47M11.49M
Cash Flow
Free Cash Flow660.82K-446.54K21.13K-7.04M134.98K
Operating Cash Flow878.27K-414.03K884.92K2.49M1.14M
Investing Cash Flow-1.26M-33.31M-2.25M-11.67M-3.05M
Financing Cash Flow1.26M33.51M382.09K10.84M983.36K

Hongli Group, Inc. Risk Analysis

Hongli Group, Inc. disclosed 86 risk factors in its most recent earnings report. Hongli Group, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Hongli Group, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$304.60M11.6818.07%0.45%61.80%214.07%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
54
Neutral
$94.92M48.683.43%38.96%
50
Neutral
$139.20M-33.62-5.25%-34.20%-59.08%
45
Neutral
$11.92M-4.50-3.47%-12.79%-406.58%
42
Neutral
$19.86M-0.80-15.63%-66.17%-135.27%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HLP
Hongli Group, Inc.
1.29
0.57
79.42%
FRD
Friedman Industries
44.84
25.95
137.32%
ACNT
Ascent Industries
15.80
3.86
32.33%
ZKIN
Zk International Group Co
1.15
-0.78
-40.41%
HUDI
Huadi International Group
0.84
-0.49
-36.69%

Hongli Group, Inc. Corporate Events

Hongli Group Regains Compliance with Nasdaq Minimum Bid Price Rule
Aug 12, 2026
Hongli Group Inc., a cold roll formed steel profile manufacturer with extensive operations in China and overseas, announced that it has regained compliance with Nasdaq’s minimum bid price rule for continued listing on the Nasdaq Capital Mark...
Hongli Group Finalizes Dual-Class Share Structure With Amended Cayman Charter
Jul 30, 2026
Hongli Group Inc. reported that its amended and restated memorandum and articles of association have become effective following shareholder approvals granted at an extraordinary general meeting on June 5, 2026. After completing the required filing...
Hongli Group Faces Nasdaq Minimum Bid Price Deficiency, Given 180 Days to Regain Compliance
Jul 9, 2026
On July 2, 2026, Hongli Group Inc. received a notification from Nasdaq that its Class A ordinary shares had traded below the minimum bid price of $1.00 for 30 consecutive business days, putting the company out of compliance with Nasdaq Capital Mar...
Hongli Group Names Li Li to Board and Key Governance Committees
Jun 11, 2026
On June 11, 2026, Hongli Group Inc.’s board appointed Li Li as a director, effective the same day, and named him to the audit, compensation, and nominating and corporate governance committees, chairing the latter. The move brings in a vetera...
Hongli Group Shareholders Approve Comprehensive Capital Restructuring at June 5 EGM
Jun 11, 2026
On June 5, 2026, Hongli Group Inc. shareholders met in an extraordinary general meeting in Shandong, where a quorum representing 43.45 million of 74.74 million ordinary shares approved a sweeping overhaul of the company’s capital structure. ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 10, 2026