China Harzone Industry Corp., Ltd. (300527) 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

China Harzone Industry Corp., Ltd.

Why is China Harzone Industry Corp., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.32%

The company has been able to generate a Return on Capital Employed (avg) of 3.32% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -8.33% and Operating profit at -178.88% over the last 5 years

The company has declared negative results in Mar'2025 after 3 consecutive positive quarters

NET SALES(Q) At CNY 188.71 MM has Fallen at -38.77%
PRE-TAX PROFIT(Q) At CNY 2.07 MM has Fallen at -59.27%
NET PROFIT(Q) At CNY 2.86 MM has Fallen at -54.82%

With ROE of 0.56%, it has a very expensive valuation with a 3.11 Price to Book Value

Over the past year, while the stock has generated a return of -13.63%, its profits have risen by 125.4% ; the PEG ratio of the company is 4.4

Below par performance in long term as well as near term

Along with generating -13.63% 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 Industrial Manufacturing)

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

Is China Harzone Industry Corp., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

China Harzone Industry Corp., Ltd.

-100.0%

0.32

56.49%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.33%

EBIT Growth (5y)

-178.88%

EBIT to Interest (avg)

-0.88

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

0.33

Tax Ratio

100.00%

Dividend Payout Ratio

29.85%

Pledged Shares

Institutional Holding

ROCE (avg)

3.32%

ROE (avg)

1.27%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

555

Industry P/E

Price to Book Value

3.11

EV to EBIT

-355.70

EV to EBITDA

199.23

EV to Capital Employed

4.39

EV to Sales

6.45

PEG Ratio

4.42

Dividend Yield

0.03%

ROCE (Latest)

-1.23%

ROE (Latest)

0.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly 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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 282.57 MM

NET PROFIT(HY)

Higher at CNY 32.73 MM

ROCE(HY)

Highest at 0.43%

-17What is not working for the Company

NET SALES(Q)

At CNY 188.71 MM has Fallen at -38.77%

PRE-TAX PROFIT(Q)

At CNY 2.07 MM has Fallen at -59.27%

NET PROFIT(Q)

At CNY 2.86 MM has Fallen at -54.82%

RAW MATERIAL COST(Y)

Grown by 15.04% (YoY

Here's what is working for China Harzone Industry Corp., Ltd.

Operating Cash Flow

Highest at CNY 282.57 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for China Harzone Industry Corp., Ltd.

Net Sales

At CNY 188.71 MM has Fallen at -38.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 2.07 MM has Fallen at -59.27%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 2.86 MM has Fallen at -54.82%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 15.04% (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