Hand Enterprise Solutions Co., Ltd. (300170) 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

Hand Enterprise Solutions Co., Ltd.

Why is Hand Enterprise Solutions Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.08%

The company has been able to generate a Return on Capital Employed (avg) of 2.08% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 7.17% and Operating profit at 8.99% over the last 5 years

With a growth in Net Profit of 21.07%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 4 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 405.33 MM
ROCE(HY) Highest at 3.77%
DEBT-EQUITY RATIO (HY) Lowest at -22.46 %

With ROE of 3.57%, it has a fair valuation with a 3.36 Price to Book Value

Over the past year, while the stock has generated a return of 10.07%, its profits have risen by 19184%
At the current price, the company has a high dividend yield of 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hand Enterprise Solutions Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hand Enterprise Solutions Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hand Enterprise Solutions Co., Ltd.

0.62%

3.65

65.12%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.17%

EBIT Growth (5y)

8.99%

EBIT to Interest (avg)

1.34

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.56

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

29.93%

Pledged Shares

Institutional Holding

ROCE (avg)

2.08%

ROE (avg)

4.45%

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

3.36

EV to EBIT

152.84

EV to EBITDA

60.63

EV to Capital Employed

4.01

EV to Sales

5.18

PEG Ratio

Dividend Yield

0.22%

ROCE (Latest)

2.63%

ROE (Latest)

3.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 405.33 MM

ROCE(HY)

Highest at 3.77%

DEBT-EQUITY RATIO (HY)

Lowest at -22.46 %

RAW MATERIAL COST(Y)

Fallen by -21.63% (YoY

CASH AND EQV(HY)

Highest at CNY 3,341.75 MM

NET PROFIT(Q)

Highest at CNY 60.11 MM

EPS(Q)

Highest at CNY 0.06

-3What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,815.25

OPERATING PROFIT MARGIN(Q)

Lowest at 6.94 %

Here's what is working for Hand Enterprise Solutions Co., Ltd.

Operating Cash Flow

Highest at CNY 405.33 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at -22.46 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Net Profit

Highest at CNY 60.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 3,341.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -21.63% (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 Hand Enterprise Solutions Co., Ltd.

Interest Coverage Ratio

Lowest at 1,815.25

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 6.94 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales