ScoreWhy is Hangzhou Huaguang Advanced Welding Materials Co., Ltd. ?
1
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 23.53% and Operating profit at -24.38% 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 6.51% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 23.53% and Operating profit at -24.38% over the last 5 years
3
The company declared very positive results in Mar'25 after flat results in Dec'24
- OPERATING CASH FLOW(Y) Highest at CNY -46.34 MM
- NET SALES(HY) At CNY 1,239.81 MM has Grown at 22.96%
- RAW MATERIAL COST(Y) Fallen by -2.5% (YoY)
4
With ROE of 14.44%, it has a fair valuation with a 3.96 Price to Book Value
- Over the past year, while the stock has generated a return of 122.08%, its profits have risen by 193.7% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 0.6
Real-Time Research ReportHow 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 Industrial Manufacturing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hangzhou Huaguang Advanced Welding Materials Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hangzhou Huaguang Advanced Welding Materials Co., Ltd.
164.09%
4.85
66.00%
China Shanghai Composite
21.43%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
25.07%
EBIT Growth (5y)
-15.61%
EBIT to Interest (avg)
8.99
Debt to EBITDA (avg)
6.45
Net Debt to Equity (avg)
0.94
Sales to Capital Employed (avg)
0.87
Tax Ratio
9.68%
Dividend Payout Ratio
28.35%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.05%
ROE (avg)
6.51%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.12
EV to EBIT
19.18
EV to EBITDA
16.06
EV to Capital Employed
1.05
EV to Sales
1.09
PEG Ratio
NA
Dividend Yield
0.85%
ROCE (Latest)
5.48%
ROE (Latest)
9.33%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
OPERATING PROFIT(Q)
Highest at CNY 59.23 MM
RAW MATERIAL COST(Y)
Fallen by -24.63% (YoY
CASH AND EQV(HY)
Highest at CNY 680.18 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 2.79 times
DEBTORS TURNOVER RATIO(HY)
Highest at 2.92 times
NET SALES(Q)
Highest at CNY 1,078.66 MM
-18What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY -553.13 MM
NET PROFIT(HY)
At CNY 68.47 MM has Grown at -29.74%
DEBT-EQUITY RATIO
(HY)
Highest at 125.85 %
INTEREST(Q)
Highest at CNY 15.6 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 5.49 %
Here's what is working for Hangzhou Huaguang Advanced Welding Materials Co., Ltd.
Net Sales
At CNY 1,078.66 MM has Grown at 68.81%
over average net sales of the previous four periods of CNY 638.97 MMMOJO Watch
Near term sales trend is extremely positive
Net Sales (CNY MM)
Operating Profit
Highest at CNY 59.23 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (CNY MM)
Net Sales
Highest at CNY 1,078.66 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Cash and Eqv
Highest at CNY 680.18 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 2.79 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 2.92 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -24.63% (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 Hangzhou Huaguang Advanced Welding Materials Co., Ltd.
Operating Cash Flow
Lowest at CNY -553.13 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest
At CNY 15.6 MM has Grown at 46.38%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Profit
At CNY 68.47 MM has Grown at -29.74%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Interest
Highest at CNY 15.6 MM
in the last five periods and Increased by 46.38% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit Margin
Lowest at 5.49 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debt-Equity Ratio
Highest at 125.85 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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