Guangdong Huafeng New Energy Technology Co., Ltd. (002806) 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 Huafeng New Energy Technology Co., Ltd.

Why is Guangdong Huafeng New Energy Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.83%

The company has been able to generate a Return on Capital Employed (avg) of 0.83% 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 19.33% and Operating profit at 10.17% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.30% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 19.33% and Operating profit at 10.17% over the last 5 years

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

PRE-TAX PROFIT(Q) At CNY -16.7 MM has Fallen at -472.8%
NET PROFIT(Q) At CNY -15.89 MM has Fallen at -418.36%
RAW MATERIAL COST(Y) Grown by 27.83% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 40.75%, its profits have fallen by -158.5%

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 Huafeng New Energy Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Huafeng New Energy Technology Co., Ltd.

40.75%

3.43

49.28%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.33%

EBIT Growth (5y)

10.17%

EBIT to Interest (avg)

-1.27

Debt to EBITDA (avg)

15.64

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

0.66

Tax Ratio

13.40%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.83%

ROE (avg)

2.30%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.00

EV to EBIT

-29.69

EV to EBITDA

-132.79

EV to Capital Employed

1.00

EV to Sales

1.16

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.36%

ROE (Latest)

-4.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -16.7 MM has Fallen at -472.8%

NET PROFIT(Q)

At CNY -15.89 MM has Fallen at -418.36%

RAW MATERIAL COST(Y)

Grown by 27.83% (YoY

NET SALES(Q)

Lowest at CNY 249.05 MM

OPERATING PROFIT(Q)

Lowest at CNY -15.68 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -6.3 %

Here's what is not working for Guangdong Huafeng New Energy Technology Co., Ltd.

Pre-Tax Profit

At CNY -16.7 MM has Fallen at -472.8%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -15.89 MM has Fallen at -418.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 249.05 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -12.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -15.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -6.3 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 27.83% (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