Daqing Huake Co., Ltd. (000985) 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

Daqing Huake Co., Ltd.

Why is Daqing Huake Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.81%

The company has been able to generate a Return on Capital Employed (avg) of 2.81% 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 0.23% and Operating profit at -153.90% over the last 5 years

Flat results in Mar 26

NET PROFIT(9M) At CNY 4.02 MM has Grown at -71.09%
INTEREST(9M) At CNY 0.01 MM has Grown at inf%
OPERATING CASH FLOW(Y) Lowest at CNY 64.37 MM

With ROE of 0.97%, it has a very expensive valuation with a 3.53 Price to Book Value

Over the past year, while the stock has generated a return of -20.39%, its profits have fallen by -67.3%
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 -20.39% 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 Chemicals & Petrochemicals)

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

Is Daqing Huake Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Daqing Huake Co., Ltd.

-15.69%

0.60

36.08%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.23%

EBIT Growth (5y)

-153.90%

EBIT to Interest (avg)

6.71

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.56

Sales to Capital Employed (avg)

3.18

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

45.38%

Pledged Shares

Institutional Holding

ROCE (avg)

2.81%

ROE (avg)

3.11%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

362

Industry P/E

Price to Book Value

3.53

EV to EBIT

-1779.83

EV to EBITDA

73.10

EV to Capital Employed

7.59

EV to Sales

1.00

PEG Ratio

Dividend Yield

0.39%

ROCE (Latest)

-0.39%

ROE (Latest)

0.97%

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

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

11What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 7.54 MM has Grown at 169.48%

NET PROFIT(Q)

At CNY 5.66 MM has Grown at 204.68%

RAW MATERIAL COST(Y)

Fallen by -6.13% (YoY

CASH AND EQV(HY)

Highest at CNY 711.73 MM

-16What is not working for the Company

NET PROFIT(9M)

At CNY 4.02 MM has Grown at -71.09%

INTEREST(9M)

At CNY 0.01 MM has Grown at inf%

OPERATING CASH FLOW(Y)

Lowest at CNY 64.37 MM

NET SALES(HY)

At CNY 854.74 MM has Grown at -11.53%

DEBTORS TURNOVER RATIO(HY)

Lowest at 551 times

Here's what is working for Daqing Huake Co., Ltd.

Pre-Tax Profit

At CNY 7.54 MM has Grown at 169.48%

over average net sales of the previous four periods of CNY 2.8 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 5.66 MM has Grown at 204.68%

over average net sales of the previous four periods of CNY 1.86 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 711.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -6.13% (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 Daqing Huake Co., Ltd.

Interest

At CNY 0.01 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 64.37 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 854.74 MM has Grown at -11.53%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 551 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio