China Hongqiao Group Ltd. (1378) 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 Hongqiao Group Ltd.

Xingfa Aluminium Holdings Ltd.

PanAsialum Holdings Co. Ltd.

Why is China Hongqiao Group Ltd. ?

High Management Efficiency with a high ROCE of 18.65%

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 18.65%

With ROE of 28.29%, it has a Attractive valuation with a 3.17 Price to Book Value

Over the past year, while the stock has generated a return of 102.60%, its profits have risen by 45.8% ; the PEG ratio of the company is 0.2

Consistent Returns over the last 3 years

Along with generating 102.60% returns in the last 1 year, the stock has outperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to China Hongqiao Group Ltd. should be less than 10%
Overall Portfolio exposure to Non - Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Non - Ferrous Metals)

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

Is China Hongqiao Group Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

China Hongqiao Group Ltd.

-100.0%

2.76

47.11%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.02%

EBIT Growth (5y)

27.70%

EBIT to Interest (avg)

5.96

Debt to EBITDA (avg)

0.99

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

0.85

Tax Ratio

26.58%

Dividend Payout Ratio

63.81%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

18.65%

ROE (avg)

18.03%

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

3.17

EV to EBIT

9.62

EV to EBITDA

8.22

EV to Capital Employed

2.78

EV to Sales

2.33

PEG Ratio

0.24

Dividend Yield

0.02%

ROCE (Latest)

28.92%

ROE (Latest)

28.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 77,010.66 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 140.87%

RAW MATERIAL COST(Y)

Fallen by -15.43% (YoY

CASH AND EQV(HY)

Highest at HKD 69,488.29 MM

DEBT-EQUITY RATIO (HY)

Lowest at 7.65 %

DIVIDEND PER SHARE(HY)

Highest at HKD 9.72

-3What is not working for the Company

INTEREST(Q)

Highest at HKD 2,407.51 MM

Here's what is working for China Hongqiao Group Ltd.

Operating Cash Flow

Highest at HKD 77,010.66 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Cash and Eqv

Highest at HKD 69,488.29 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 7.65 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at HKD 9.72

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Dividend Payout Ratio

Highest at 140.87%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -15.43% (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 China Hongqiao Group Ltd.

Interest

Highest at HKD 2,407.51 MM

in the last five periods and Increased by 74.54% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)