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 0.79% and Operating profit at -190.74% over the last 5 years

Flat results in Sep 25

NET PROFIT(HY) At CNY 6.1 MM has Grown at -77.79%
RAW MATERIAL COST(Y) Grown by 51.58% (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 2.06%, its profits have risen by 16.9% ; the PEG ratio of the company is 8.8
At the current price, the company has a high dividend yield of 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 2.06% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.17%

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, High Return

Absolute

Risk Adjusted

Volatility

Daqing Huake Co., Ltd.

11.29%

1.07

37.94%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.79%

EBIT Growth (5y)

-190.74%

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)

3.32

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

43.82%

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

148

Industry P/E

Price to Book Value

3.84

EV to EBIT

571.96

EV to EBITDA

47.90

EV to Capital Employed

8.60

EV to Sales

1.01

PEG Ratio

8.77

Dividend Yield

0.36%

ROCE (Latest)

1.50%

ROE (Latest)

2.59%

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

Mildly Bullish

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

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 43.06 times

DEBTORS TURNOVER RATIO(HY)

Highest at 22,184.64 times

PRE-TAX PROFIT(Q)

At CNY 5.55 MM has Grown at 86.18%

-9What is not working for the Company

NET PROFIT(HY)

At CNY 6.1 MM has Grown at -77.79%

RAW MATERIAL COST(Y)

Grown by 51.58% (YoY

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

Pre-Tax Profit

At CNY 5.55 MM has Grown at 86.18%

over average net sales of the previous four periods of CNY 2.98 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 43.06 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 22,184.64 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Daqing Huake Co., Ltd.

Net Profit

At CNY 6.1 MM has Grown at -77.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 51.58% (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