Hangzhou First Applied Material Co., Ltd. (603806) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hangzhou First Applied Material Co., Ltd.

Why is Hangzhou First Applied Material Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 19.23% and Operating profit at -4.71% over the last 5 years

With a fall in Net Sales of -20.29%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 4 consecutive quarters
NET PROFIT(HY) At CNY 450.66 MM has Grown at -52.1%
ROCE(HY) Lowest at 7.34%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.28%

With ROE of 5.37%, it has a expensive valuation with a 2.55 Price to Book Value

Over the past year, while the stock has generated a return of -20.06%, its profits have fallen by -55.4%
At the current price, the company has a high dividend yield of 1.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.06% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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 Electronics & Appliances)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hangzhou First Applied Material Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hangzhou First Applied Material Co., Ltd.

-20.06%

-0.65

32.80%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.23%

EBIT Growth (5y)

-4.71%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

1.04

Tax Ratio

10.77%

Dividend Payout Ratio

51.81%

Pledged Shares

Institutional Holding

ROCE (avg)

15.92%

ROE (avg)

13.45%

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

2.55

EV to EBIT

43.34

EV to EBITDA

28.40

EV to Capital Employed

2.82

EV to Sales

2.32

PEG Ratio

Dividend Yield

1.69%

ROCE (Latest)

6.50%

ROE (Latest)

5.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

OPERATING CASH FLOW(Y)

Highest at CNY 4,024.49 MM

CASH AND EQV(HY)

Highest at CNY 14,754.3 MM

DEBT-EQUITY RATIO (HY)

Lowest at -21.23 %

-28What is not working for the Company

NET PROFIT(HY)

At CNY 450.66 MM has Grown at -52.1%

ROCE(HY)

Lowest at 7.34%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.28%

INTEREST(Q)

At CNY 11.27 MM has Grown at inf%

RAW MATERIAL COST(Y)

Grown by 12.66% (YoY

NET SALES(Q)

Lowest at CNY 3,614.67 MM

PRE-TAX PROFIT(Q)

Fallen at -27.9%

Here's what is working for Hangzhou First Applied Material Co., Ltd.

Operating Cash Flow

Highest at CNY 4,024.49 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)

Cash and Eqv

Highest at CNY 14,754.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -21.23 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Hangzhou First Applied Material Co., Ltd.

Net Profit

At CNY 450.66 MM has Grown at -52.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 3,614.67 MM has Fallen at -31.81%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 11.27 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 2.28% and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 3,614.67 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Fallen at -27.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 12.66% (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