Guangdong HEC Technology Holding Co., Ltd. (600673) 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 HEC Technology Holding Co., Ltd.

Why is Guangdong HEC Technology Holding Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.26%

The company has been able to generate a Return on Capital Employed (avg) of 3.26% signifying low profitability per unit of total capital (equity and debt)

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 3.18% and Operating profit at -3.56% 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 4.51% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.18% and Operating profit at -3.56% over the last 5 years

The company has declared Positive results for the last 4 consecutive quarters

ROCE(HY) Highest at 10.29%
NET SALES(Q) Highest at CNY 3,846.52 MM
RAW MATERIAL COST(Y) Fallen by -75.23% (YoY)

With ROE of 7.50%, it has a expensive valuation with a 7.36 Price to Book Value

Over the past year, while the stock has generated a return of 240.54%, its profits have risen by 3344.3% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong HEC Technology Holding Co., Ltd. should be less than 10%
Overall Portfolio exposure to Non - Ferrous Metals should be less than 30%

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

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

Is Guangdong HEC Technology Holding Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong HEC Technology Holding Co., Ltd.

210.14%

6.89

53.75%

China Shanghai Composite

16.67%

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)

3.18%

EBIT Growth (5y)

-3.56%

EBIT to Interest (avg)

1.31

Debt to EBITDA (avg)

9.02

Net Debt to Equity (avg)

0.98

Sales to Capital Employed (avg)

0.53

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.26%

ROE (avg)

4.51%

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

7.36

EV to EBIT

85.21

EV to EBITDA

48.70

EV to Capital Employed

4.23

EV to Sales

5.96

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

4.96%

ROE (Latest)

7.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

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

24What is working for the Company

ROCE(HY)

Highest at 10.29%

NET SALES(Q)

Highest at CNY 3,846.52 MM

RAW MATERIAL COST(Y)

Fallen by -75.23% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.64 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.07 times

PRE-TAX PROFIT(Q)

Highest at CNY 301.45 MM

NET PROFIT(Q)

Highest at CNY 304.33 MM

-8What is not working for the Company

INTEREST(HY)

At CNY 220.97 MM has Grown at 66.53%

Here's what is working for Guangdong HEC Technology Holding Co., Ltd.

Net Sales

Highest at CNY 3,846.52 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 301.45 MM has Grown at 132.31%

over average net sales of the previous four periods of CNY 129.76 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 301.45 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 304.33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 304.33 MM has Grown at 77.91%

over average net sales of the previous four periods of CNY 171.06 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 6.64 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.07 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -75.23% (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 HEC Technology Holding Co., Ltd.

Interest

At CNY 220.97 MM has Grown at 66.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)