Hangzhou Freely Communication Co., Ltd. (603602) 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 Freely Communication Co., Ltd.

Why is Hangzhou Freely Communication Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.50%

The company has been able to generate a Return on Capital Employed (avg) of 2.50% 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 19.78% and Operating profit at 20.76% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -272.2 MM
NET PROFIT(HY) At CNY 16.23 MM has Grown at -28.51%
RAW MATERIAL COST(Y) Grown by 18.81% (YoY)

With ROE of 1.15%, it has a very expensive valuation with a 3.23 Price to Book Value

Over the past year, while the stock has generated a return of -26.75%, its profits have fallen by -74.6%
At the current price, the company has a high dividend yield of 0.3

Below par performance in long term as well as near term

Along with generating -26.75% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Construction)

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

Is Hangzhou Freely Communication Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hangzhou Freely Communication Co., Ltd.

-24.45%

0.55

35.96%

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)

19.78%

EBIT Growth (5y)

20.76%

EBIT to Interest (avg)

1.34

Debt to EBITDA (avg)

1.13

Net Debt to Equity (avg)

0.53

Sales to Capital Employed (avg)

1.09

Tax Ratio

16.47%

Dividend Payout Ratio

53.59%

Pledged Shares

Institutional Holding

ROCE (avg)

2.50%

ROE (avg)

3.07%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

281

Industry P/E

Price to Book Value

3.23

EV to EBIT

89.76

EV to EBITDA

27.12

EV to Capital Employed

2.50

EV to Sales

2.51

PEG Ratio

Dividend Yield

0.30%

ROCE (Latest)

2.79%

ROE (Latest)

1.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

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

3What is working for the Company

NET PROFIT(9M)

Higher at CNY 19.65 MM

NET SALES(Q)

Highest at CNY 517.69 MM

EPS(Q)

Highest at CNY 0.08

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -272.2 MM

NET PROFIT(HY)

At CNY 16.23 MM has Grown at -28.51%

RAW MATERIAL COST(Y)

Grown by 18.81% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.7 times

OPERATING PROFIT(Q)

Lowest at CNY 12.75 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.46 %

Here's what is working for Hangzhou Freely Communication Co., Ltd.

Net Sales

Highest at CNY 517.69 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

EPS

Highest at CNY 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Hangzhou Freely Communication Co., Ltd.

Operating Cash Flow

Lowest at CNY -272.2 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Profit

At CNY 16.23 MM has Grown at -28.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 12.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 1.7 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 18.81% (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