Fujian Highton Development 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

Fujian Highton Development Co., Ltd.

Why is Fujian Highton Development Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 57.78% and Operating profit at 22.77% over the last 5 years

The company has declared negative results in Mar'2025 after 4 consecutive positive quarters

NET PROFIT(HY) At CNY 185.19 MM has Grown at -42.09%
INTEREST COVERAGE RATIO(Q) Lowest at 746.95
DEBT-EQUITY RATIO (HY) Highest at 31.86 %

With ROE of 9.43%, it has a attractive valuation with a 1.97 Price to Book Value

Over the past year, while the stock has generated a return of 75.32%, its profits have risen by 38.7% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 0.2

Market Beating Performance

The stock has generated a return of 75.32% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Fujian Highton Development Co., Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

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

Is Fujian Highton Development Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Fujian Highton Development Co., Ltd.

76.61%

1.21

48.28%

China Shanghai Composite

16.95%

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)

35.56%

EBIT Growth (5y)

2.26%

EBIT to Interest (avg)

11.07

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.71

Tax Ratio

2.55%

Dividend Payout Ratio

13.25%

Pledged Shares

Institutional Holding

ROCE (avg)

18.76%

ROE (avg)

11.69%

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

0.89

EV to EBIT

6.17

EV to EBITDA

3.49

EV to Capital Employed

0.90

EV to Sales

0.88

PEG Ratio

0.44

Dividend Yield

0.43%

ROCE (Latest)

14.53%

ROE (Latest)

13.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

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

28What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,503.8 MM

NET PROFIT(Q)

At CNY 210.39 MM has Grown at 212.21%

ROCE(HY)

Highest at 13.77%

NET SALES(Q)

At CNY 1,343.34 MM has Grown at 66.69%

PRE-TAX PROFIT(Q)

At CNY 210.89 MM has Grown at 202.57%

RAW MATERIAL COST(Y)

Fallen by -55.82% (YoY

-11What is not working for the Company

INTEREST(HY)

At CNY 59.45 MM has Grown at 59.11%

INVENTORY TURNOVER RATIO(HY)

Lowest at 26.37 times

OPERATING PROFIT MARGIN(Q)

Lowest at 17.09 %

Here's what is working for Fujian Highton Development Co., Ltd.

Net Profit

At CNY 210.39 MM has Grown at 212.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 1,503.8 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 (CNY MM)

Net Sales

At CNY 1,343.34 MM has Grown at 66.69%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 210.89 MM has Grown at 202.57%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -55.82% (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 Fujian Highton Development Co., Ltd.

Interest

At CNY 59.45 MM has Grown at 59.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 17.09 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 26.37 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio