HKIT
Quality Rating
Hitek Global Inc. (HKIT), a provider of IT consulting and hardware solutions in China, presents challenges in Shariah compliance primarily due to a high liquidity ratio of 103.88% exceeding all major thresholds and an interest income ratio of 30.64% surpassing the 5% limit across standards. While debt levels are low at 9.06% and business activities in software applications and technology hardware sales are permissible, financial metrics lead to non-compliance under AAOIFI, MSCI, and S&P standards. No non-permissible revenue sources were identified, but purification of 30.64% is required for dividends. Index inclusion research confirms exclusion from all major Shariah indices, classifying the stock as NON_COMPLIANT overall. Investors should monitor improvements in cash management and income sources for potential future compliance.
Purification Required
Significant purification required - exercise caution
Index Inclusion
Not included in any major Shariah indices (S&P, MSCI, FTSE, DJIM)
Key Compliance Considerations
- Liquidity Ratio: 103.88% exceeds 30-33% thresholds across standards
- Interest Income Ratio: 30.64% exceeds 5% limit, requiring significant purification
Debt Ratio
9.1%
Liquidity Ratio
103.9%
Interest Income Ratio
30.6%
Purification
30.64%