Chengdu Haoneng Technology Co., Ltd. (603809) 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

Chengdu Haoneng Technology Co., Ltd.

Why is Chengdu Haoneng Technology 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 19.10% and Operating profit at 16.56% 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 10.61% signifying low profitability per unit of shareholders funds

With ROE of 10.53%, it has a very expensive valuation with a 4.35 Price to Book Value

Over the past year, while the stock has generated a return of -0.86%, its profits have risen by 34.8%
At the current price, the company has a high dividend yield of 0.4

Below par performance in long term as well as near term

Along with generating -0.86% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Trading & Distributors)

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

Is Chengdu Haoneng Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chengdu Haoneng Technology Co., Ltd.

-22.97%

1.64

57.36%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.10%

EBIT Growth (5y)

16.56%

EBIT to Interest (avg)

9.10

Debt to EBITDA (avg)

2.78

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

0.44

Tax Ratio

14.80%

Dividend Payout Ratio

24.29%

Pledged Shares

Institutional Holding

ROCE (avg)

8.71%

ROE (avg)

10.61%

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

4.35

EV to EBIT

36.48

EV to EBITDA

21.15

EV to Capital Employed

3.07

EV to Sales

6.57

PEG Ratio

Dividend Yield

0.42%

ROCE (Latest)

8.43%

ROE (Latest)

10.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.27% (YoY

CASH AND EQV(HY)

Highest at CNY 796.59 MM

DEBT-EQUITY RATIO (HY)

Lowest at 55.19 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.88 times

-4What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 595.33

OPERATING PROFIT(Q)

Lowest at CNY 105.97 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.51 %

Here's what is working for Chengdu Haoneng Technology Co., Ltd.

Cash and Eqv

Highest at CNY 796.59 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 55.19 %

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 2.88 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.27% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Chengdu Haoneng Technology Co., Ltd.

Interest Coverage Ratio

Lowest at 595.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 105.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 16.51 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales