Guangdong Hongxing Industrial Co., Ltd. () 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 Hongxing Industrial Co., Ltd.

Why is Guangdong Hongxing Industrial Co., Ltd. ?

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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 13.96% and Operating profit at -20.56% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.72% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 13.96% and Operating profit at -20.56% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At CNY 2.45 MM has Grown at 161.41%
ROCE(HY) Lowest at 1.74%

With ROE of 1.72%, it has a very expensive valuation with a 0.60 Price to Book Value

Over the past year, while the stock has generated a return of -3.73%, its profits have fallen by -37.2%

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 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, Medium Return

Absolute

Risk Adjusted

Volatility

Guangdong Hongxing Industrial Co., Ltd.

-7.08%

0.39

50.35%

China Shanghai Composite

16.78%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.96%

EBIT Growth (5y)

-20.56%

EBIT to Interest (avg)

76.54

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

1.24

Tax Ratio

35.18%

Dividend Payout Ratio

73.30%

Pledged Shares

Institutional Holding

ROCE (avg)

13.39%

ROE (avg)

7.72%

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

0.60

EV to EBIT

17.32

EV to EBITDA

9.94

EV to Capital Employed

0.58

EV to Sales

0.40

PEG Ratio

Dividend Yield

ROCE (Latest)

3.37%

ROE (Latest)

1.72%

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

No Trend

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

9What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 16.87 times

RAW MATERIAL COST(Y)

Fallen by -6.32% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 31.4 MM

NET PROFIT(Q)

Highest at CNY 22.44 MM

EPS(Q)

Highest at CNY 0.17

-10What is not working for the Company

INTEREST(HY)

At CNY 2.45 MM has Grown at 161.41%

ROCE(HY)

Lowest at 1.74%

Here's what is working for Guangdong Hongxing Industrial Co., Ltd.

Debtors Turnover Ratio

Highest at 16.87 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit

Highest at CNY 31.4 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 22.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.17

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -6.32% (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 Hongxing Industrial Co., Ltd.

Interest

At CNY 2.45 MM has Grown at 161.41%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)