Be Friends Holding Ltd. (1450) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Newborn Town, Inc.

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Be Friends Holding Ltd.

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Archosaur Games, Inc.

Qingci Games, Inc.

Intellicentrics Global Holdings Ltd.

CMGE Technology Group Ltd.

Why is Be Friends Holding Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 57.51% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 10.31% signifying low profitability per unit of shareholders funds

With ROE of 8.68%, it has a Very Expensive valuation with a 2.16 Price to Book Value

Over the past year, while the stock has generated a return of NA, its profits have fallen by -69.4%

Real-Time Research Report

Verdict Report

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 Software Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Be Friends Holding Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Be Friends Holding Ltd.

0.0%

-0.80

48.25%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

57.51%

EBIT Growth (5y)

21.68%

EBIT to Interest (avg)

1.80

Debt to EBITDA (avg)

2.18

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

1.82

Tax Ratio

29.70%

Dividend Payout Ratio

70.13%

Pledged Shares

Institutional Holding

ROCE (avg)

13.30%

ROE (avg)

10.31%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.16

EV to EBIT

13.50

EV to EBITDA

8.16

EV to Capital Employed

3.04

EV to Sales

0.70

PEG Ratio

Dividend Yield

ROCE (Latest)

22.48%

ROE (Latest)

8.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 367.59 MM

PRE-TAX PROFIT(Q)

At HKD 63.49 MM has Grown at 8,484.37%

NET PROFIT(Q)

At HKD 40.26 MM has Grown at 1,201.49%

INVENTORY TURNOVER RATIO(HY)

Highest at 33.04 times

DIVIDEND PAYOUT RATIO(Y)

Highest at 193.05%

CASH AND EQV(HY)

Highest at HKD 401.39 MM

DEBT-EQUITY RATIO (HY)

Lowest at -50.22 %

DEBTORS TURNOVER RATIO(HY)

Highest at 6.63 times

DIVIDEND PER SHARE(HY)

Highest at HKD 6.63

NET SALES(Q)

Highest at HKD 949.88 MM

-1What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 24.23% (YoY

Here's what is working for Be Friends Holding Ltd.

Pre-Tax Profit

At HKD 63.49 MM has Grown at 8,484.37%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 40.26 MM has Grown at 1,201.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Operating Cash Flow

Highest at HKD 367.59 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Inventory Turnover Ratio

Highest at 33.04 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at HKD 949.88 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Net Sales

At HKD 949.88 MM has Grown at 39.33%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Cash and Eqv

Highest at HKD 401.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -50.22 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 6.63 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at HKD 6.63

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Dividend Payout Ratio

Highest at 193.05%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

At HKD 22.89 MM has Grown at 76.45%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Be Friends Holding Ltd.

Raw Material Cost

Grown by 24.23% (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