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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Newborn Town, Inc.

IGG, Inc.

Zengame Technology Holding Ltd.

Be Friends Holding Ltd.

China Youzan Ltd.

Homeland Interactive Technology Ltd.

Sinohealth Holdings Ltd.

Archosaur Games, Inc.

Qingci Games, Inc.

Intellicentrics Global Holdings Ltd.

CMGE Technology Group Ltd.

Why is Be Friends Holding Ltd. ?

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 57.51% 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 10.31% signifying low profitability per unit of shareholders funds

The company declared negative results in Dec'24 after positive results in Jun'24

INTEREST COVERAGE RATIO(Q) Lowest at 420.31
RAW MATERIAL COST(Y) Grown by 8.56% (YoY)
INTEREST(Q) Highest at HKD 10.1 MM

With ROE of 17.55%, it has a Very Expensive valuation with a 3.02 Price to Book Value

Over the past year, while the stock has generated a return of 16.33%, its profits have fallen by -29.7%

Underperformed the market in the last 1 year

The stock has generated a return of 16.33% in the last 1 year, much lower than market (Hang Seng Hong Kong) returns of 26.67%

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.

15.15%

-0.42

55.29%

Hang Seng Hong Kong

27.36%

1.03

25.88%

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)

1.61

Tax Ratio

29.70%

Dividend Payout Ratio

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

3.02

EV to EBIT

13.74

EV to EBITDA

9.71

EV to Capital Employed

2.75

EV to Sales

1.04

PEG Ratio

Dividend Yield

ROCE (Latest)

20.01%

ROE (Latest)

17.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

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

Not enough Data to analyse Financial Trend

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

Operating Cash Flow

Highest at HKD 172.15 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 10.64% 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

Depreciation

Highest at HKD 32.38 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 32.38 MM has Grown at 212.94%

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.

Interest Coverage Ratio

Lowest at 420.31

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At HKD -0.76 MM has Fallen at -101.09%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (HKD MM)

Interest

Highest at HKD 10.1 MM

in the last five periods and Increased by 161.77% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Operating Profit Margin

Lowest at 6.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD -0.76 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD -3.65 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Net Profit

Fallen at -105.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD -0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Raw Material Cost

Grown by 8.56% (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