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Hangzhou Huaguang Advanced Welding Materials Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Industrial Manufacturing
  • ISIN: CNE1000043T0
  • SHG: 688379
CNY
61.27
-2.9 (-4.52%)

Sep 24

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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. ?

1
Poor Management Efficiency with a low ROCE of 11.05%
  • The company has been able to generate a Return on Capital Employed (avg) of 11.05% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 25.07% and Operating profit at -15.61% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 6.51% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 25.07% and Operating profit at -15.61% over the last 5 years
4
Positive results in Jun 26
  • INVENTORY TURNOVER RATIO(HY) Highest at 3.37 times
  • DEBTORS TURNOVER RATIO(HY) Highest at 2.96 times
  • INTEREST COVERAGE RATIO(Q) Highest at 635.35
5
With ROE of 9.33%, it has a expensive valuation with a 5.55 Price to Book Value
  • Over the past year, while the stock has generated a return of 17.29%, its profits have fallen by -22.3%
  • At the current price, the company has a high dividend yield of 0.2
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Hangzhou Huaguang Advanced Welding Materials Co., Ltd. should be less than 10%
  2. 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.
28.99%
4.31
73.60%
China Shanghai Composite
0.9%
0.22
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
25.07%
EBIT Growth (5y)
-15.61%
EBIT to Interest (avg)
2.32
Debt to EBITDA (avg)
8.02
Net Debt to Equity (avg)
0.94
Sales to Capital Employed (avg)
0.87
Tax Ratio
5.71%
Dividend Payout Ratio
28.35%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.02%
ROE (avg)
6.51%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
60
Industry P/E
Price to Book Value
5.55
EV to EBIT
55.06
EV to EBITDA
46.11
EV to Capital Employed
3.02
EV to Sales
3.14
PEG Ratio
NA
Dividend Yield
0.17%
ROCE (Latest)
5.48%
ROE (Latest)
9.33%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

29What is working for the Company
INVENTORY TURNOVER RATIO(HY)

Highest at 3.37 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.96 times

INTEREST COVERAGE RATIO(Q)

Highest at 635.35

OPERATING PROFIT(Q)

Highest at CNY 84.23 MM

PRE-TAX PROFIT(Q)

Highest at CNY 58.21 MM

RAW MATERIAL COST(Y)

Fallen by -0.82% (YoY

CASH AND EQV(HY)

Highest at CNY 1,060 MM

NET SALES(Q)

Highest at CNY 1,230.59 MM

NET PROFIT(Q)

Highest at CNY 53.84 MM

EPS(Q)

Highest at CNY 0.6

-15What is not working for the Company
INTEREST(HY)

At CNY 28.86 MM has Grown at 43.41%

OPERATING CASH FLOW(Y)

Lowest at CNY -486.58 MM

NET PROFIT(HY)

At CNY 91.69 MM has Grown at -25.58%

DEBT-EQUITY RATIO (HY)

Highest at 131.72 %

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

Net Sales
At CNY 1,230.59 MM has Grown at 61.46%
over average net sales of the previous four periods of CNY 762.16 MM
MOJO Watch
Near term sales trend is very positive

Net Sales (CNY MM)

Interest Coverage Ratio
Highest at 635.35
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit
Highest at CNY 84.23 MM and Grown
In each period in the last five periods
MOJO Watch
Near term Operating Profit trend is quite positive

Operating Profit (CNY MM)

Pre-Tax Profit
Highest at CNY 58.21 MM and Grown
In each period in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio
Highest at 3.37 times and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio
Highest at 2.96 times and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales
Highest at CNY 1,230.59 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit
At CNY 58.21 MM has Grown at 67.44%
over average net sales of the previous four periods of CNY 34.77 MM
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit
Highest at CNY 53.84 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit
At CNY 53.84 MM has Grown at 64.52%
over average net sales of the previous four periods of CNY 32.73 MM
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS
Highest at CNY 0.6
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv
Highest at CNY 1,060 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost
Fallen by -0.82% (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 28.86 MM has Grown at 43.41%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow
Lowest at CNY -486.58 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)

Debt-Equity Ratio
Highest at 131.72 % 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

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