ScoreWhy is Guangdong HEC Technology Holding Co., Ltd. ?
1
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)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 10.74% and Operating profit at 44.83% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 4.51% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 10.74% and Operating profit at 44.83% over the last 5 years
4
Flat results in Jun 26
- INTEREST(HY) At CNY 253.96 MM has Grown at 21.93%
- NET PROFIT(HY) At CNY 342.1 MM has Grown at -35.83%
- ROCE(HY) Lowest at 0.52%
5
With ROE of 8.22%, it has a very expensive valuation with a 10.39 Price to Book Value
- Over the past year, while the stock has generated a return of 28.54%, its profits have risen by 43.2% ; the PEG ratio of the company is 2.9
Real-Time Research ReportHow 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 HEC Technology Holding Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Guangdong HEC Technology Holding Co., Ltd.
29.72%
4.42
67.91%
China Shanghai Composite
0.9%
0.22
14.72%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.74%
EBIT Growth (5y)
44.83%
EBIT to Interest (avg)
1.81
Debt to EBITDA (avg)
7.01
Net Debt to Equity (avg)
0.98
Sales to Capital Employed (avg)
0.55
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.35%
ROE (avg)
4.51%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
126
Industry P/E
Price to Book Value
10.39
EV to EBIT
100.79
EV to EBITDA
66.01
EV to Capital Employed
5.49
EV to Sales
7.20
PEG Ratio
2.93
Dividend Yield
NA
ROCE (Latest)
5.44%
ROE (Latest)
8.22%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 3,674.87 MM
NET SALES(Q)
Highest at CNY 5,126.89 MM
RAW MATERIAL COST(Y)
Fallen by -0.17% (YoY
CASH AND EQV(HY)
Highest at CNY 13,326.42 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 7.04 times
-17What is not working for the Company
INTEREST(HY)
At CNY 253.96 MM has Grown at 21.93%
NET PROFIT(HY)
At CNY 342.1 MM has Grown at -35.83%
ROCE(HY)
Lowest at 0.52%
DEBT-EQUITY RATIO
(HY)
Highest at 147.71 %
Here's what is working for Guangdong HEC Technology Holding Co., Ltd.
Operating Cash Flow
Highest at CNY 3,674.87 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 5,126.89 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Net Sales
At CNY 5,126.89 MM has Grown at 29.5%
over average net sales of the previous four periods of CNY 3,959.12 MMMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Cash and Eqv
Highest at CNY 13,326.42 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 7.04 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -0.17% (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 253.96 MM has Grown at 21.93%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Profit
At CNY 342.1 MM has Grown at -35.83%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Debt-Equity Ratio
Highest at 147.71 %
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
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