ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Be Friends Holding Ltd. ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 56.27% 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
2
With ROE of 16.68%, it has a Very Expensive valuation with a 1.69 Price to Book Value
- Over the past year, while the stock has generated a return of -27.23%, its profits have risen by 26.3% ; the PEG ratio of the company is 0.4
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -27.23% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods
Real-Time Research ReportHow 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.
-28.5%
-0.96
52.61%
Hang Seng Hong Kong
-4.77%
-0.26
18.70%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
56.27%
EBIT Growth (5y)
30.53%
EBIT to Interest (avg)
11.54
Debt to EBITDA (avg)
0.18
Net Debt to Equity (avg)
0.15
Sales to Capital Employed (avg)
1.95
Tax Ratio
26.22%
Dividend Payout Ratio
70.13%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
33.72%
ROE (avg)
10.31%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.69
EV to EBIT
6.01
EV to EBITDA
4.57
EV to Capital Employed
2.46
EV to Sales
0.42
PEG Ratio
0.39
Dividend Yield
2.70%
ROCE (Latest)
40.95%
ROE (Latest)
16.68%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
OPERATING CASH FLOW(Y)
Highest at HKD 486.58 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 2,865.23 times
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
CASH AND EQV(HY)
Highest at HKD 549.52 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -61.44 %
DEBTORS TURNOVER RATIO(HY)
Highest at 8.06 times
NET SALES(Q)
At HKD 878.41 MM has Grown at 32.14%
OPERATING PROFIT(Q)
Highest at HKD 136.46 MM
OPERATING PROFIT MARGIN(Q)
Highest at 15.54 %
PRE-TAX PROFIT(Q)
Highest at HKD 129.25 MM
NET PROFIT(Q)
Highest at HKD 101.8 MM
EPS(Q)
Highest at HKD 0.07
-3What is not working for the Company
INTEREST(HY)
At HKD 2.43 MM has Grown at 27.61%
RAW MATERIAL COST(Y)
Grown by 22.14% (YoY
Here's what is working for Be Friends Holding Ltd.
Operating Cash Flow
Highest at HKD 486.58 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (HKD MM)
Inventory Turnover Ratio
Highest at 2,865.23 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
At HKD 878.41 MM has Grown at 32.14%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (HKD MM)
Operating Profit
Highest at HKD 136.46 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (HKD MM)
Operating Profit Margin
Highest at 15.54 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at HKD 129.25 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (HKD MM)
Pre-Tax Profit
At HKD 129.25 MM has Grown at 71.17%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (HKD MM)
Net Profit
Highest at HKD 101.8 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (HKD MM)
Net Profit
At HKD 101.8 MM has Grown at 64.36%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (HKD MM)
EPS
Highest at HKD 0.07
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (HKD)
Cash and Eqv
Highest at HKD 549.52 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -61.44 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 8.06 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Be Friends Holding Ltd.
Interest
At HKD 2.43 MM has Grown at 27.61%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (HKD MM)
Raw Material Cost
Grown by 22.14% (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
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