Focus Hotmelt Co., Ltd. () 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

Focus Hotmelt Co., Ltd.

Why is Focus Hotmelt Co., Ltd. ?

With a growth in Net Profit of 531.22%, the company declared Outstanding results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 781.35 MM
ROCE(HY) Highest at 9.65%
OPERATING PROFIT(Q) Highest at CNY 71.6 MM

With ROE of 6.32%, it has a very attractive valuation with a 2.99 Price to Book Value

Over the past year, while the stock has generated a return of 63.03%, its profits have fallen by -18.2%

Market Beating Performance

The stock has generated a return of 63.03% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.01%

Real-Time Research Report

Verdict Report

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.

63.03%

0.96

50.05%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.57%

EBIT Growth (5y)

18.82%

EBIT to Interest (avg)

84.03

Debt to EBITDA (avg)

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

Institutional Holding

ROCE (avg)

11.85%

ROE (avg)

6.54%

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

2.99

EV to EBIT

38.29

EV to EBITDA

29.34

EV to Capital Employed

4.05

EV to Sales

2.05

PEG Ratio

Dividend Yield

ROCE (Latest)

10.57%

ROE (Latest)

6.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

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

30What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 781.35 MM

ROCE(HY)

Highest at 9.65%

OPERATING PROFIT(Q)

Highest at CNY 71.6 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.13 %

PRE-TAX PROFIT(Q)

Highest at CNY 69.46 MM

NET PROFIT(Q)

Highest at CNY 60.91 MM

RAW MATERIAL COST(Y)

Fallen by -139.06% (YoY

EPS(Q)

Highest at CNY 0.75

-10What is not working for the Company

INTEREST(HY)

At CNY 1.6 MM has Grown at 782.29%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.27 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.44 times

Here's what is working for Focus Hotmelt Co., Ltd.

Pre-Tax Profit

At CNY 69.46 MM has Grown at 767.62%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 60.91 MM has Grown at 533.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Profit

Highest at CNY 71.6 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 13.13 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 69.46 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 60.91 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 781.35 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

EPS

Highest at CNY 0.75

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -139.06% (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 1.6 MM has Grown at 782.29%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 6.27 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.44 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio