Befar Group Co., Ltd. (601678) 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

Befar Group Co., Ltd.

Why is Befar Group Co., 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 17.76% and Operating profit at -34.71% 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 7.92% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 17.76% and Operating profit at -34.71% over the last 5 years

The company declared positive results in Mar'25 after very negative results in Dec'24

OPERATING CASH FLOW(Y) Highest at CNY 1,539.9 MM
INVENTORY TURNOVER RATIO(HY) Highest at 15.17%
DEBTORS TURNOVER RATIO(HY) Highest at 16.59%

With ROE of 1.93%, it has a fair valuation with a 0.73 Price to Book Value

Over the past year, while the stock has generated a return of 7.35%, its profits have fallen by -37%
At the current price, the company has a high dividend yield of 1.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Befar Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Befar Group Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Befar Group Co., Ltd.

-100.0%

0.61

31.00%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.76%

EBIT Growth (5y)

-34.71%

EBIT to Interest (avg)

6.62

Debt to EBITDA (avg)

3.83

Net Debt to Equity (avg)

0.63

Sales to Capital Employed (avg)

0.46

Tax Ratio

31.64%

Dividend Payout Ratio

37.56%

Pledged Shares

Institutional Holding

ROCE (avg)

9.15%

ROE (avg)

7.92%

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

0.73

EV to EBIT

294.62

EV to EBITDA

15.15

EV to Capital Employed

0.84

EV to Sales

1.26

PEG Ratio

Dividend Yield

1.23%

ROCE (Latest)

0.29%

ROE (Latest)

1.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Bullish

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,539.9 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 15.17%

DEBTORS TURNOVER RATIO(HY)

Highest at 16.59%

NET SALES(Q)

Highest at CNY 3,756.15 MM

PRE-TAX PROFIT(Q)

Highest at CNY 101.08 MM

NET PROFIT(Q)

Highest at CNY 100.07 MM

-14What is not working for the Company

INTEREST(HY)

At CNY 181.35 MM has Grown at 52.58%

NET PROFIT(9M)

At CNY 209.1 MM has Grown at -20.4%

ROCE(HY)

Lowest at 2.5%

RAW MATERIAL COST(Y)

Grown by 42.26% (YoY

Here's what is working for Befar Group Co., Ltd.

Pre-Tax Profit

At CNY 101.08 MM has Grown at 225.29%

over average net sales of the previous four periods of CNY -80.68 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 3,756.15 MM has Grown at 48.32%

over average net sales of the previous four periods of CNY 2,532.4 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 1,539.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 3,756.15 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 101.08 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 100.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 100.07 MM has Grown at 87.03%

over average net sales of the previous four periods of CNY 53.5 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 15.17%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 16.59%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Befar Group Co., Ltd.

Interest

At CNY 181.35 MM has Grown at 52.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 42.26% (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