Why is Anhui Hwasu Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 4.45%
- The company has been able to generate a Return on Capital Employed (avg) of 4.45% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of -3.83% and Operating profit at -181.19% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 3.75% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -3.83% and Operating profit at -181.19% over the last 5 years
4
The company has declared Negative results for the last 4 consecutive quarters
- NET PROFIT(9M) At CNY -345.77 MM has Grown at -357.78%
- RAW MATERIAL COST(Y) Grown by 39.76% (YoY)
- DEBTORS TURNOVER RATIO(HY) Lowest at 16.98%
5
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -12.94%, its profits have fallen by -449.5%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Anhui Hwasu Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Anhui Hwasu Co., Ltd.
-13.84%
0.00
31.30%
China Shanghai Composite
15.44%
1.01
14.52%
Quality key factors
Factor
Value
Sales Growth (5y)
-3.83%
EBIT Growth (5y)
-181.19%
EBIT to Interest (avg)
-83.52
Debt to EBITDA (avg)
14.11
Net Debt to Equity (avg)
0.21
Sales to Capital Employed (avg)
0.72
Tax Ratio
0.32%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.45%
ROE (avg)
3.75%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.41
EV to EBIT
-23.35
EV to EBITDA
35.68
EV to Capital Employed
1.35
EV to Sales
2.00
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-5.78%
ROE (Latest)
-6.77%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Sideways
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 502.2 MM
NET PROFIT(HY)
Higher at CNY -128.67 MM
-20What is not working for the Company
NET PROFIT(9M)
At CNY -345.77 MM has Grown at -357.78%
RAW MATERIAL COST(Y)
Grown by 39.76% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 16.98%
NET SALES(Q)
Fallen at -11.8%
INTEREST(Q)
Highest at CNY 2.16 MM
Here's what is working for Anhui Hwasu Co., Ltd.
Net Profit
Higher at CNY -128.67 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Operating Cash Flow
Highest at CNY 502.2 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Here's what is not working for Anhui Hwasu Co., Ltd.
Interest
At CNY 2.16 MM has Grown at 95.26%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Sales
Fallen at -11.8%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Interest
Highest at CNY 2.16 MM
in the last five periods and Increased by 95.26% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debtors Turnover Ratio
Lowest at 16.98%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 39.76% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






