Why is H&R Century Union Corp. ?
1
Poor Management Efficiency with a low ROCE of 1.96%
- The company has been able to generate a Return on Capital Employed (avg) of 1.96% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 20.96% and Operating profit at 11.34% over the last 5 years
3
Negative results in Mar 26
- NET PROFIT(HY) At CNY -246.72 MM has Grown at -36.69%
- ROCE(HY) Lowest at -38.94%
- RAW MATERIAL COST(Y) Grown by 52.73% (YoY)
4
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 -28.90%, its profits have fallen by -12.8%
5
Below par performance in long term as well as near term
- Along with generating -28.90% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Telecom - Equipment & Accessories)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is H&R Century Union Corp. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
H&R Century Union Corp.
-16.87%
0.46
67.31%
China Shanghai Composite
3.0%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
20.96%
EBIT Growth (5y)
11.34%
EBIT to Interest (avg)
-113.38
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.24
Sales to Capital Employed (avg)
0.44
Tax Ratio
26.77%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.96%
ROE (avg)
1.21%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
5.36
EV to EBIT
-13.97
EV to EBITDA
-14.56
EV to Capital Employed
7.35
EV to Sales
5.85
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-52.61%
ROE (Latest)
-47.30%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
7What is working for the Company
NET PROFIT(HY)
Higher at CNY -143.71 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 1.26 times
DEBTORS TURNOVER RATIO(HY)
Highest at 1.87 times
NET SALES(Q)
At CNY 167.84 MM has Grown at 28.79%
-17What is not working for the Company
PRE-TAX PROFIT(Q)
At CNY -103.79 MM has Fallen at -87.49%
ROCE(HY)
Lowest at -56.51%
NET PROFIT(Q)
At CNY -103.79 MM has Fallen at -49.51%
RAW MATERIAL COST(Y)
Grown by 142.95% (YoY
CASH AND EQV(HY)
Lowest at CNY 523.29 MM
Here's what is working for H&R Century Union Corp.
Net Sales
At CNY 167.84 MM has Grown at 28.79%
over average net sales of the previous four periods of CNY 130.33 MMMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Inventory Turnover Ratio
Highest at 1.26 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 1.87 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for H&R Century Union Corp.
Pre-Tax Profit
At CNY -103.79 MM has Fallen at -87.49%
over average net sales of the previous four periods of CNY -55.36 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -103.79 MM has Fallen at -49.51%
over average net sales of the previous four periods of CNY -69.42 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Cash and Eqv
Lowest at CNY 523.29 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 142.95% (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
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