$HighPeak Energy (HPK.US)$Revenue has maintained rapid growt...

In the first three quarters of 2022, revenue continued to grow 3 times to 500 million, and operating profit increased 5 times to 300 million. Interestingly, after so many years of development, interest expenses soared to 29 million dollars in the first 3 quarters, accounting for 10% of operating profit, which is a bit out of common sense. Net profit reached 170 million yuan.

The balance ratio increased slightly to 32.5%, and increased further to 46.1% in Q3 2022.

The balance sheet shows that accounts receivable and inventory growth are relatively normal, but fixed assets have increased rapidly, with 1.89 billion fixed assets out of 2.04 billion assets. Long-term loans of 560 million yuan, accounting for 51% of net assets of 1.1 billion yuan, should have been due to the increase in corporate loans due to investment in fixed assets, which has led to a significant increase in interest expenses.

Over the past five years, the operating amount of cash flow has continued to be significantly lower than the net investment amount. It is still in the investment period. It mainly relies on debt issuance to solve the cash flow problem.

Currently, the price-earnings ratio is 55.4, and the price-earnings ratio is TTM 17, which is not very attractive yet.