Fufeng Group Ltd. (546) 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

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Fufeng Group Ltd.

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Why is Fufeng Group Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

The company is Net-Debt Free

Negative results in Dec 25

INTEREST(HY) At HKD 136.79 MM has Grown at 23.99%
ROCE(HY) Lowest at 12.92%
INTEREST COVERAGE RATIO(Q) Lowest at 913.36

With ROE of 12.54%, it has a Attractive valuation with a 0.55 Price to Book Value

Over the past year, while the stock has generated a return of -28.61%, its profits have risen by 9% ; the PEG ratio of the company is 0.5

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Below par performance in long term as well as near term

Along with generating -28.61% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fufeng Group Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

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

Is Fufeng Group Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Fufeng Group Ltd.

-28.61%

-0.41

42.76%

Hang Seng Hong Kong

0.26%

0.01

20.12%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.01%

EBIT Growth (5y)

21.66%

EBIT to Interest (avg)

10.60

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

1.07

Tax Ratio

17.73%

Dividend Payout Ratio

32.91%

Pledged Shares

Institutional Holding

ROCE (avg)

17.81%

ROE (avg)

14.39%

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

0.55

EV to EBIT

4.64

EV to EBITDA

2.87

EV to Capital Employed

0.52

EV to Sales

0.35

PEG Ratio

0.46

Dividend Yield

0.09%

ROCE (Latest)

11.21%

ROE (Latest)

12.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 7,316.29 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 36.38%

CASH AND EQV(HY)

Highest at HKD 21,714.95 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 16.61 times

-15What is not working for the Company

INTEREST(HY)

At HKD 136.79 MM has Grown at 23.99%

ROCE(HY)

Lowest at 12.92%

INTEREST COVERAGE RATIO(Q)

Lowest at 913.36

RAW MATERIAL COST(Y)

Grown by 28.38% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -5.73 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.11 times

DIVIDEND PER SHARE(HY)

Lowest at HKD 16.61

OPERATING PROFIT(Q)

Lowest at HKD 1,249.36 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.2 %

PRE-TAX PROFIT(Q)

Lowest at HKD 985.44 MM

NET PROFIT(Q)

Lowest at HKD 794.5 MM

EPS(Q)

Lowest at HKD 0.29

Here's what is working for Fufeng Group Ltd.

Operating Cash Flow

Highest at HKD 7,316.29 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Cash and Eqv

Highest at HKD 21,714.95 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 16.61 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 36.38%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at HKD 708.19 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Here's what is not working for Fufeng Group Ltd.

Interest Coverage Ratio

Lowest at 913.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At HKD 136.79 MM has Grown at 23.99%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Operating Profit

Lowest at HKD 1,249.36 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 8.2 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 985.44 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 794.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.29

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Debt-Equity Ratio

Highest at -5.73 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 3.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at HKD 16.61

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (HKD)

Raw Material Cost

Grown by 28.38% (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

Non Operating Income

Highest at HKD 0.64 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income