Hangcha Group Co., Ltd. (603298) 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

Hangcha Group Co., Ltd.

Why is Hangcha Group Co., Ltd. ?

With ROE of 20.81%, it has a attractive valuation with a 3.44 Price to Book Value

Over the past year, while the stock has generated a return of 26.37%, its profits have risen by 8.8% ; the PEG ratio of the company is 1.9
At the current price, the company has a high dividend yield of 1.3

Majority shareholders : FIIs

Market Beating performance in long term as well as near term

Along with generating 26.37% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Hangcha Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Hangcha Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hangcha Group Co., Ltd.

16.22%

0.93

37.98%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.39%

EBIT Growth (5y)

21.73%

EBIT to Interest (avg)

48.98

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.47

Tax Ratio

12.41%

Dividend Payout Ratio

32.39%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

21.38%

ROE (avg)

18.66%

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

3.44

EV to EBIT

18.96

EV to EBITDA

15.54

EV to Capital Employed

3.90

EV to Sales

2.08

PEG Ratio

1.88

Dividend Yield

1.25%

ROCE (Latest)

20.54%

ROE (Latest)

20.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

DIVIDEND PAYOUT RATIO(Y)

Highest at 41.48%

RAW MATERIAL COST(Y)

Fallen by -7.14% (YoY

CASH AND EQV(HY)

Highest at CNY 7,495.63 MM

DIVIDEND PER SHARE(HY)

Highest at CNY 4.79

PRE-TAX PROFIT(Q)

Highest at CNY 614.38 MM

-10What is not working for the Company

ROCE(HY)

Lowest at 20.87%

INTEREST(Q)

At CNY 12.15 MM has Grown at 143.71%

DEBT-EQUITY RATIO (HY)

Highest at -11.74 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.79 times

Here's what is working for Hangcha Group Co., Ltd.

Pre-Tax Profit

Highest at CNY 614.38 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 7,495.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at CNY 4.79

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 41.48%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -7.14% (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 Hangcha Group Co., Ltd.

Interest

At CNY 12.15 MM has Grown at 143.71%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -11.74 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 4.79 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio