ScoreWhy is Guangdong Hongxing Industrial Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 13.39%
- The company has been able to generate a Return on Capital Employed (avg) of 13.39% signifying low profitability per unit of total capital (equity and debt)
2
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 16.91% and Operating profit at -24.11% 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 7.72% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 16.91% and Operating profit at -24.11% over the last 5 years
4
The company has declared negative results for the last 4 consecutive quarters
- The company has declared negative results in Jun 24 after 4 consecutive negative quarters
- INTEREST(9M) At CNY 1.14 MM has Grown at 99.16%
- PRE-TAX PROFIT(Q) At CNY 29.21 MM has Fallen at -66.68%
- NET PROFIT(Q) At CNY 20.62 MM has Fallen at -68.13%
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 Footwear)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Guangdong Hongxing Industrial Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Guangdong Hongxing Industrial Co., Ltd.
4.6%
1.87
57.24%
China Shanghai Composite
12.36%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.91%
EBIT Growth (5y)
-24.11%
EBIT to Interest (avg)
76.54
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.08
Sales to Capital Employed (avg)
1.19
Tax Ratio
35.18%
Dividend Payout Ratio
32.26%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.39%
ROE (avg)
7.72%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
0.58
EV to EBIT
15.39
EV to EBITDA
8.14
EV to Capital Employed
0.55
EV to Sales
0.36
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.55%
ROE (Latest)
2.25%
TechnicalsTechnical 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
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-23What is not working for the Company
INTEREST(9M)
At CNY 1.14 MM has Grown at 99.16%
PRE-TAX PROFIT(Q)
At CNY 29.21 MM has Fallen at -66.68%
NET PROFIT(Q)
At CNY 20.62 MM has Fallen at -68.13%
RAW MATERIAL COST(Y)
Grown by 5.46% (YoY
Here's what is not working for Guangdong Hongxing Industrial Co., Ltd.
Interest
At CNY 0.94 MM has Grown at 64.25%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Pre-Tax Profit
At CNY 29.21 MM has Fallen at -66.68%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 20.62 MM has Fallen at -68.13%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Raw Material Cost
Grown by 5.46% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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