China Huajun Group Ltd. (377) 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

Q P Group Holdings Ltd.

Lee & Man Paper Manufacturing Ltd.

China Sunshine Paper Holdings Co. Ltd.

Vanov Holdings Co., Ltd.

China Huajun Group Ltd.

Champion Alliance International Holdings Ltd.

Integrated Waste Solutions Group Holdings Ltd.

C&D Newin Paper & Pulp Corp. Ltd.

Why is China Huajun Group Ltd. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -19.34% and Operating profit at -3.54% over the last 5 years
The company has a negative book value of Rs 8,859.59 crore
INTEREST(HY) At HKD 472.72 MM has Grown at 41.11%
DEBT-EQUITY RATIO (HY) Highest at -44.66 %
RAW MATERIAL COST(Y) Grown by 5,350% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 52.38%, its profits have risen by 45.5%

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 Paper, Forest & Jute Products)

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

Is China Huajun Group Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Huajun Group Ltd.

52.38%

-0.03

85.32%

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)

-19.34%

EBIT Growth (5y)

-3.54%

EBIT to Interest (avg)

-0.58

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.65

Sales to Capital Employed (avg)

-0.09

Tax Ratio

0.08%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-0.01

EV to EBIT

-17.65

EV to EBITDA

-23.41

EV to Capital Employed

-1.60

EV to Sales

4.14

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

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

5What is working for the Company

NET PROFIT(HY)

Higher at HKD -673.41 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.05 times

NET SALES(Q)

At HKD 740.04 MM has Grown at 26.46%

EPS(Q)

Highest at HKD 2.67

-9What is not working for the Company

INTEREST(HY)

At HKD 472.72 MM has Grown at 41.11%

DEBT-EQUITY RATIO (HY)

Highest at -44.66 %

RAW MATERIAL COST(Y)

Grown by 5,350% (YoY

CASH AND EQV(HY)

Lowest at HKD 47.26 MM

OPERATING PROFIT(Q)

Lowest at HKD -1,055.92 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -142.68 %

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

Net Profit

Higher at HKD -673.41 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (HKD MM)

Net Sales

At HKD 740.04 MM has Grown at 26.46%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

EPS

Highest at HKD 2.67

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Inventory Turnover Ratio

Highest at 2.05 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for China Huajun Group Ltd.

Interest

At HKD 472.72 MM has Grown at 41.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Debt-Equity Ratio

Highest at -44.66 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit

Lowest at HKD -1,055.92 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at -142.68 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at HKD 47.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 5,350% (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

Non Operating Income

Highest at HKD 4.01 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income