Hangzhou Chuhuan Science & Technology Co., Ltd. () 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

Hangzhou Chuhuan Science & Technology Co., Ltd.

Why is Hangzhou Chuhuan Science & Technology Co., Ltd. ?

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 -17.68% and Operating profit at -49.54% 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 11.44% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -17.68% and Operating profit at -49.54% over the last 5 years

The company has declared Negative results for the last 11 consecutive quarters

INTEREST(HY) At CNY 0.25 MM has Grown at 21.07%
NET SALES(9M) At CNY 229.57 MM has Grown at -15.56%
DEBT-EQUITY RATIO (HY) Highest at -8.83 %

With ROE of 2.90%, it has a attractive valuation with a 0.57 Price to Book Value

Over the past year, while the stock has generated a return of 36.63%, its profits have fallen by -33.4%

Market Beating Performance

The stock has generated a return of 36.63% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.45%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hangzhou Chuhuan Science & Technology 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 Hangzhou Chuhuan Science & Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hangzhou Chuhuan Science & Technology Co., Ltd.

40.1%

0.75

47.64%

China Shanghai Composite

15.45%

1.03

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-17.68%

EBIT Growth (5y)

-49.54%

EBIT to Interest (avg)

47.50

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.47

Tax Ratio

8.68%

Dividend Payout Ratio

42.28%

Pledged Shares

Institutional Holding

ROCE (avg)

12.37%

ROE (avg)

11.44%

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

0.57

EV to EBIT

45.93

EV to EBITDA

18.82

EV to Capital Employed

0.51

EV to Sales

1.12

PEG Ratio

Dividend Yield

ROCE (Latest)

1.11%

ROE (Latest)

2.90%

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

Bullish

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

6What is working for the Company

NET SALES(Q)

At CNY 112.98 MM has Grown at 43.05%

PRE-TAX PROFIT(Q)

At CNY 7.49 MM has Grown at 138.85%

NET PROFIT(Q)

At CNY 6.41 MM has Grown at 121.44%

-14What is not working for the Company

INTEREST(HY)

At CNY 0.25 MM has Grown at 21.07%

NET SALES(9M)

At CNY 229.57 MM has Grown at -15.56%

DEBT-EQUITY RATIO (HY)

Highest at -8.83 %

RAW MATERIAL COST(Y)

Grown by 8.82% (YoY

Here's what is working for Hangzhou Chuhuan Science & Technology Co., Ltd.

Net Sales

At CNY 112.98 MM has Grown at 43.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 7.49 MM has Grown at 138.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.41 MM has Grown at 121.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Here's what is not working for Hangzhou Chuhuan Science & Technology Co., Ltd.

Interest

At CNY 0.25 MM has Grown at 21.07%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -8.83 % and Grown

In each half year 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

Raw Material Cost

Grown by 8.82% (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