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Hollysys CEO retains majority stake amid privatization move

EditorNatashya Angelica
Published 2024-05-22, 01:12 p/m
HOLI
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BEIJING - Hollysys Automation (NASDAQ:HOLI) Technologies Ltd. (NASDAQ: HOLI), a prominent provider of automation control system solutions, disclosed today that its CEO, Dr. Changli Wang, has sold a portion of his company shares for personal financial planning purposes.

Despite the sale, Dr. Wang retains approximately 80% of his initial holdings and has stated he does not plan to sell additional shares before the completion of the company's going private transaction with Ascendent Capital Partners (ACP).

The transaction, which was announced earlier, is progressing with the management, including Dr. Wang, working towards satisfying the closing conditions as per the merger agreement. The recent sale by Dr. Wang is reported to be a personal financial decision and is not expected to impact the ongoing privatization process or the company's operational plans.

Hollysys, established in 1993 and headquartered in China, operates across various countries and regions in Asia. The company is recognized for its proprietary technology and industry expertise, offering comprehensive solutions in industrial automation and rail transportation. Hollysys' services range from hardware and software to enterprise management and cloud-based applications, focusing on enhancing operational safety, reliability, efficiency, and intelligence for its customers.

The company has a significant presence in markets including power, petrochemical, high-speed rail, and urban rail sectors, boasting over 45,000 projects for roughly 23,000 clients as of June 30, 2023. Hollysys' leadership position in these industries is a testament to its continuous innovation and technical prowess.

This information is based on a press release statement from Hollysys Automation Technologies Ltd. and reflects the company's current expectations and projections about future events. The actual future results of the company may differ due to various risks and uncertainties, as described in their filings with the Securities and Exchange Commission.

InvestingPro Insights

Amidst the backdrop of Hollysys Automation Technologies Ltd.'s (NASDAQ: HOLI) ongoing privatization process, the company's financial health and stock performance metrics provide a broader context for investors. According to InvestingPro data, Hollysys boasts a solid market capitalization of 1380M USD, reflecting the company's substantial presence in the automation control system industry.

InvestingPro Tips highlight that Hollysys is currently trading at a low earnings multiple with a P/E ratio of 18.21 and an adjusted P/E ratio for the last twelve months as of Q3 2024 at 18.32, suggesting a potentially undervalued stock in comparison to earnings.

Moreover, the company holds more cash than debt on its balance sheet, providing financial stability and resilience. This is particularly relevant as the company navigates through its privatization process with Ascendent Capital Partners.

The company's revenue growth has been steady, with a 3.6% increase in the last twelve months as of Q3 2024, indicating a consistent upward trajectory in its financial performance. Hollysys also maintains a healthy gross profit margin of 31.07%, which underscores the company's operational efficiency and ability to manage costs effectively.

Investors interested in a deeper dive into Hollysys' financial landscape can access additional InvestingPro Tips, which include insights such as the company's low revenue valuation multiple and the prediction by analysts that the company will remain profitable this year. For those seeking to leverage these insights, InvestingPro offers a total of 10 additional tips for Hollysys, available at https://www.investing.com/pro/HOLI. To enhance the value of their investment research, readers can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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