Why is Fujian Highton Development Co., Ltd. ?
1
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
2
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 %
3
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
4
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%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Fujian Highton Development Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Fujian Highton Development Co., Ltd.
48.22%
1.21
48.28%
China Shanghai Composite
16.01%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
57.78%
EBIT Growth (5y)
22.77%
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)
0.63
Tax Ratio
2.55%
Dividend Payout Ratio
16.67%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
18.76%
ROE (avg)
11.69%
Valuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
1.97
EV to EBIT
18.90
EV to EBITDA
8.47
EV to Capital Employed
1.88
EV to Sales
2.29
PEG Ratio
0.54
Dividend Yield
0.20%
ROCE (Latest)
9.97%
ROE (Latest)
9.43%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Bullish
Technical Movement
9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 1,040.01 MM
NET SALES(Q)
Highest at CNY 1,208.81 MM
PRE-TAX PROFIT(Q)
Highest at CNY 173.6 MM
-25What is not working for the Company
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 %
RAW MATERIAL COST(Y)
Grown by 18.75% (YoY
INTEREST(Q)
Highest at CNY 25.88 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 15.99 %
Here's what is working for Fujian Highton Development Co., Ltd.
Operating Cash Flow
Highest at CNY 1,040.01 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)
Net Sales
Highest at CNY 1,208.81 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Sales
At CNY 1,208.81 MM has Grown at 34.27%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY 173.6 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Here's what is not working for Fujian Highton Development Co., Ltd.
Interest Coverage Ratio
Lowest at 746.95 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Profit
At CNY 185.19 MM has Grown at -42.09%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest
At CNY 25.88 MM has Grown at 23.47%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debt-Equity Ratio
Highest at 31.86 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Interest
Highest at CNY 25.88 MM
in the last five periods and Increased by 23.47% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit Margin
Lowest at 15.99 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Raw Material Cost
Grown by 18.75% (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






