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

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 18.67% and Operating profit at 13.54% 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 18.67% and Operating profit at 13.54% over the last 5 years

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

INTEREST COVERAGE RATIO(Q) Lowest at 219.77
INTEREST(Q) Highest at CNY 29.39 MM
OPERATING PROFIT(Q) Lowest at CNY 64.58 MM

With ROE of 6.47%, it has a very expensive valuation with a 3.64 Price to Book Value

Over the past year, while the stock has generated a return of 15.82%, its profits have fallen by -25.4%
At the current price, the company has a high dividend yield of 0.4

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.

15.82%

1.69

46.91%

China Shanghai Composite

17.07%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.67%

EBIT Growth (5y)

13.54%

EBIT to Interest (avg)

2.19

Debt to EBITDA (avg)

8.06

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

1.21

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

3.64

EV to EBIT

46.71

EV to EBITDA

29.95

EV to Capital Employed

2.42

EV to Sales

1.74

PEG Ratio

Dividend Yield

0.37%

ROCE (Latest)

5.18%

ROE (Latest)

6.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

7What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 9.03 times

RAW MATERIAL COST(Y)

Fallen by -5.88% (YoY

NET SALES(Q)

Highest at CNY 1,997.01 MM

PRE-TAX PROFIT(Q)

Highest at CNY 55.5 MM

NET PROFIT(Q)

Highest at CNY 51.41 MM

EPS(Q)

Highest at CNY 0.21

-14What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 219.77

INTEREST(Q)

Highest at CNY 29.39 MM

OPERATING PROFIT(Q)

Lowest at CNY 64.58 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.23 %

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

Inventory Turnover Ratio

Highest at 9.03 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CNY 1,997.01 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 55.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 51.41 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.21

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -5.88% (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 Guangdong Haomei New Material Co., Ltd.

Interest

At CNY 29.39 MM has Grown at 10.4%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 219.77

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 29.39 MM

in the last five periods and Increased by 10.4% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 64.58 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at CNY 0.37 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income