Why is Focus Hotmelt Co., Ltd. ?
1
The company has declared positive results in Mar'2025 after 2 consecutive negative quarters
- OPERATING CASH FLOW(Y) Highest at CNY 195.55 MM
- RAW MATERIAL COST(Y) Fallen by -8.46% (YoY)
- OPERATING PROFIT(Q) Highest at CNY 41.81 MM
2
With ROE of 6.32%, it has a very attractive valuation with a 0.51 Price to Book Value
- Over the past year, while the stock has generated a return of 60.51%, its profits have fallen by -18.2%
3
Market Beating Performance
- The stock has generated a return of 60.51% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%
How much should you buy?
- Overall Portfolio exposure to Focus Hotmelt Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Other Industrial Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Focus Hotmelt Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Focus Hotmelt Co., Ltd.
61.13%
1.06
47.87%
China Shanghai Composite
12.95%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
18.26%
EBIT Growth (5y)
5.98%
EBIT to Interest (avg)
84.03
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.33
Sales to Capital Employed (avg)
1.12
Tax Ratio
12.89%
Dividend Payout Ratio
101.49%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.85%
ROE (avg)
6.54%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.51
EV to EBIT
2.36
EV to EBITDA
1.81
EV to Capital Employed
0.25
EV to Sales
0.13
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
10.57%
ROE (Latest)
6.32%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 195.55 MM
RAW MATERIAL COST(Y)
Fallen by -8.46% (YoY
OPERATING PROFIT(Q)
Highest at CNY 41.81 MM
OPERATING PROFIT MARGIN(Q)
Highest at 8.33 %
PRE-TAX PROFIT(Q)
Highest at CNY 45.22 MM
NET PROFIT(Q)
Highest at CNY 35.35 MM
EPS(Q)
Highest at CNY 0.45
-14What is not working for the Company
INTEREST(HY)
At CNY 2.38 MM has Grown at 61,563.34%
NET PROFIT(HY)
At CNY 46.5 MM has Grown at -22.4%
Here's what is working for Focus Hotmelt Co., Ltd.
Operating Cash Flow
Highest at CNY 195.55 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Operating Profit
Highest at CNY 41.81 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Operating Profit Margin
Highest at 8.33 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CNY 45.22 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 35.35 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.45
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Raw Material Cost
Fallen by -8.46% (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 Focus Hotmelt Co., Ltd.
Interest
At CNY 2.38 MM has Grown at 61,563.34%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)






