Dongguan Huali Industries Co., Ltd. (603038) 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

Dongguan Huali Industries Co., Ltd.

Why is Dongguan Huali Industries Co., Ltd. ?

With a growth in Net Profit of 161.6%, the company declared Very Positive results in Sep 25

INVENTORY TURNOVER RATIO(HY) Highest at 5.9 times
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -41.27% (YoY)

With ROE of 3.53%, it has a very expensive valuation with a 3.36 Price to Book Value

Over the past year, while the stock has generated a return of 9.22%, its profits have risen by 414.8% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dongguan Huali Industries Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Dongguan Huali Industries Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Dongguan Huali Industries Co., Ltd.

8.39%

2.49

45.37%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.52%

EBIT Growth (5y)

10.14%

EBIT to Interest (avg)

2.81

Debt to EBITDA (avg)

1.68

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.53

Tax Ratio

4.24%

Dividend Payout Ratio

62.19%

Pledged Shares

Institutional Holding

ROCE (avg)

1.88%

ROE (avg)

2.27%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.07

EV to EBIT

36.62

EV to EBITDA

21.06

EV to Capital Employed

1.83

EV to Sales

2.45

PEG Ratio

0.24

Dividend Yield

0.31%

ROCE (Latest)

5.00%

ROE (Latest)

7.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

27What is working for the Company

NET SALES(9M)

At CNY 1,066.44 MM has Grown at 19.27%

ROCE(HY)

Highest at 5.94%

RAW MATERIAL COST(Y)

Fallen by -57.44% (YoY

OPERATING PROFIT(Q)

Highest at CNY 63.21 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.96 %

PRE-TAX PROFIT(Q)

Highest at CNY 101.13 MM

NET PROFIT(Q)

Highest at CNY 67.38 MM

EPS(Q)

Highest at CNY 0.26

-13What is not working for the Company

INTEREST(HY)

At CNY 16.11 MM has Grown at 46.43%

OPERATING CASH FLOW(Y)

Lowest at CNY 125 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.77 times

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.4 times

Here's what is working for Dongguan Huali Industries Co., Ltd.

Pre-Tax Profit

At CNY 101.13 MM has Grown at 1,563.46%

over average net sales of the previous four periods of CNY 6.08 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 67.38 MM has Grown at 978.68%

over average net sales of the previous four periods of CNY 6.25 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,066.44 MM has Grown at 19.27%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 63.21 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 17.96 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 101.13 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 67.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.26

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -57.44% (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 Dongguan Huali Industries Co., Ltd.

Interest

At CNY 16.11 MM has Grown at 46.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 2.77 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at CNY 125 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 4.4 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 0.44 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income