Hangzhou Huaguang Advanced Welding Materials Co., Ltd. (688379) 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 Huaguang Advanced Welding Materials Co., Ltd.

Why is Hangzhou Huaguang Advanced Welding Materials 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 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

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

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)

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 Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hangzhou Huaguang Advanced Welding Materials 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 Huaguang Advanced Welding Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hangzhou Huaguang Advanced Welding Materials Co., Ltd.

75.72%

4.85

66.00%

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)

23.53%

EBIT Growth (5y)

-24.38%

EBIT to Interest (avg)

8.99

Debt to EBITDA (avg)

6.45

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

0.85

Tax Ratio

9.68%

Dividend Payout Ratio

29.38%

Pledged Shares

Institutional Holding

ROCE (avg)

11.05%

ROE (avg)

6.51%

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

3.96

EV to EBIT

57.30

EV to EBITDA

40.71

EV to Capital Employed

2.42

EV to Sales

2.47

PEG Ratio

0.14

Dividend Yield

0.56%

ROCE (Latest)

4.22%

ROE (Latest)

14.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

14What is working for the Company

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

NET PROFIT(9M)

Higher at CNY 157.87 MM

CASH AND EQV(HY)

Highest at CNY 361.27 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.79 times

-6What is not working for the Company

INTEREST(Q)

At CNY 10.06 MM has Grown at 11.11%

DEBT-EQUITY RATIO (HY)

Highest at 101.32 %

Here's what is working for Hangzhou Huaguang Advanced Welding Materials Co., Ltd.

Net Profit

At CNY 157.87 MM has Grown at 100.68%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY -46.34 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)

Net Sales

At CNY 1,239.81 MM has Grown at 22.96%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 361.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.79 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at CNY 157.87 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -2.5% (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.

Interest

At CNY 10.06 MM has Grown at 11.11%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 101.32 %

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