ScoreWhy is Hand Enterprise Solutions Co., Ltd. ?
1
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)
2
Poor long term growth as Net Sales has grown by an annual rate of 6.25% and Operating profit at 8.60% over the last 5 years
3
Flat results in Mar 26
- INTEREST(HY) At CNY 6.05 MM has Grown at 14.79%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,261.34
- OPERATING PROFIT(Q) Lowest at CNY 32.76 MM
4
With ROE of 4.21%, it has a fair valuation with a 3.02 Price to Book Value
- Over the past year, while the stock has generated a return of 8.52%, its profits have risen by 36% ; the PEG ratio of the company is 5
- At the current price, the company has a high dividend yield of 0.1
5
Underperformed the market in the last 1 year
- The stock has generated a return of 8.52% in the last 1 year, much lower than market (China Shanghai Composite) returns of 21.43%
Real-Time Research ReportHow 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.
4.96%
2.91
64.28%
China Shanghai Composite
21.43%
1.55
13.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.25%
EBIT Growth (5y)
8.60%
EBIT to Interest (avg)
1.34
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.21
Sales to Capital Employed (avg)
0.56
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
6.52%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.08%
ROE (avg)
4.45%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
72
Industry P/E
Price to Book Value
3.02
EV to EBIT
79.14
EV to EBITDA
47.28
EV to Capital Employed
3.63
EV to Sales
4.60
PEG Ratio
4.96
Dividend Yield
0.07%
ROCE (Latest)
4.59%
ROE (Latest)
4.21%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 408.47 MM
NET PROFIT(HY)
At CNY 118.72 MM has Grown at 45.28%
ROCE(HY)
Highest at 4.23%
DEBT-EQUITY RATIO
(HY)
Lowest at -23.09 %
RAW MATERIAL COST(Y)
Fallen by -23.98% (YoY
CASH AND EQV(HY)
Highest at CNY 3,847.6 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 9.82 times
-11What is not working for the Company
INTEREST(HY)
At CNY 6.05 MM has Grown at 14.79%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,261.34
OPERATING PROFIT(Q)
Lowest at CNY 32.76 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 4.15 %
PRE-TAX PROFIT(Q)
Lowest at CNY 31.7 MM
NET PROFIT(Q)
At CNY 37.34 MM has Fallen at -34.05%
Here's what is working for Hand Enterprise Solutions Co., Ltd.
Operating Cash Flow
Highest at CNY 408.47 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Lowest at -23.09 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Cash and Eqv
Highest at CNY 3,847.6 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 9.82 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -23.98% (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
At CNY 6.05 MM has Grown at 14.79%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 1,261.34
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At CNY 31.7 MM has Fallen at -47.8%
over average net sales of the previous four periods of CNY 60.73 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Operating Profit
Lowest at CNY 32.76 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 4.15 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY 31.7 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 37.34 MM has Fallen at -34.05%
over average net sales of the previous four periods of CNY 56.62 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
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