Guangdong Haomei New Material Co., Ltd. (002988) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guangdong Haomei New Material Co., Ltd.

Why is Guangdong Haomei New Material Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 19.22% and Operating profit at 10.17% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.54% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 19.22% and Operating profit at 10.17% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At CNY 56.49 MM has Grown at 20.59%
OPERATING CASH FLOW(Y) Lowest at CNY 203.47 MM
NET PROFIT(HY) At CNY 78.96 MM has Grown at -31.79%

With ROE of 6.47%, it has a very expensive valuation with a 3.68 Price to Book Value

Over the past year, while the stock has generated a return of 80.34%, its profits have fallen by -25.4%
At the current price, the company has a high dividend yield of 0.9

Real-Time Research Report

Verdict Report

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 Non - Ferrous Metals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Guangdong Haomei New Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Haomei New Material Co., Ltd.

72.4%

3.25

47.23%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.22%

EBIT Growth (5y)

10.17%

EBIT to Interest (avg)

2.19

Debt to EBITDA (avg)

8.06

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

1.19

Tax Ratio

11.43%

Dividend Payout Ratio

47.50%

Pledged Shares

Institutional Holding

ROCE (avg)

4.16%

ROE (avg)

5.54%

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

3.68

EV to EBIT

47.08

EV to EBITDA

30.19

EV to Capital Employed

2.44

EV to Sales

1.75

PEG Ratio

Dividend Yield

0.95%

ROCE (Latest)

5.18%

ROE (Latest)

6.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 82.41 %

INVENTORY TURNOVER RATIO(HY)

Highest at 9.01%

-19What is not working for the Company

INTEREST(HY)

At CNY 56.49 MM has Grown at 20.59%

OPERATING CASH FLOW(Y)

Lowest at CNY 203.47 MM

NET PROFIT(HY)

At CNY 78.96 MM has Grown at -31.79%

INTEREST COVERAGE RATIO(Q)

Lowest at 231.34

OPERATING PROFIT MARGIN(Q)

Lowest at 4.01 %

OPERATING PROFIT(Q)

Lowest at CNY 66.8 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 49.82 MM

Here's what is working for Guangdong Haomei New Material Co., Ltd.

Debt-Equity Ratio

Lowest at 82.41 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 9.01%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Guangdong Haomei New Material Co., Ltd.

Interest

At CNY 56.49 MM has Grown at 20.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 203.47 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 231.34

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 4.01 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 78.96 MM has Grown at -31.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 66.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 49.82 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)