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)

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 14.83% and Operating profit at -217.83% 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 2.30% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.83% and Operating profit at -217.83% over the last 5 years

With ROE of 7.25%, it has a expensive valuation with a 2.45 Price to Book Value

Over the past year, while the stock has generated a return of 12.70%, its profits have risen by 255.1% ; the PEG ratio of the company is 0.1

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.

12.7%

1.64

44.05%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.83%

EBIT Growth (5y)

-217.83%

EBIT to Interest (avg)

-1.27

Debt to EBITDA (avg)

15.64

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

0.59

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

Industry P/E

Price to Book Value

2.45

EV to EBIT

605.40

EV to EBITDA

38.55

EV to Capital Employed

1.99

EV to Sales

2.60

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

0.33%

ROE (Latest)

7.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

5What is working for the Company

NET SALES(9M)

At CNY 862.38 MM has Grown at 18.75%

INVENTORY TURNOVER RATIO(HY)

Highest at 3.33 times

DEBT-EQUITY RATIO (HY)

Lowest at 19.42 %

-20What is not working for the Company

NET PROFIT(Q)

At CNY -2.53 MM has Fallen at -186.72%

RAW MATERIAL COST(Y)

Grown by 32.75% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -6.31 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.29 %

PRE-TAX PROFIT(Q)

Lowest at CNY -4.59 MM

Here's what is working for Guangdong Huafeng New Energy Technology Co., Ltd.

Inventory Turnover Ratio

Highest at 3.33 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At CNY 862.38 MM has Grown at 18.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at 19.42 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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

Pre-Tax Profit

At CNY -4.59 MM has Fallen at -240.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -2.53 MM has Fallen at -186.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -6.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -4.59 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 32.75% (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