Hangzhou Huawang New Material Technology Co., Ltd. () 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 Huawang New Material Technology Co., Ltd.

Why is Hangzhou Huawang New Material Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.35% and Operating profit at -14.86% over the last 5 years

With a fall in Net Sales of -11.71%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 3 consecutive quarters
ROCE(HY) Lowest at 6.89%
INTEREST(Q) At CNY 1.41 MM has Grown at 30.62%
INTEREST COVERAGE RATIO(Q) Lowest at 2,809.48

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.27% 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 hold?

Overall Portfolio exposure to Hangzhou Huawang New Material Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hangzhou Huawang New Material Technology Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hangzhou Huawang New Material Technology Co., Ltd.

-13.7%

-0.96

32.36%

China Shanghai Composite

23.86%

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)

7.35%

EBIT Growth (5y)

-14.86%

EBIT to Interest (avg)

91.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.71

Tax Ratio

4.48%

Dividend Payout Ratio

89.80%

Pledged Shares

Institutional Holding

ROCE (avg)

15.85%

ROE (avg)

12.80%

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

1.48

EV to EBIT

23.06

EV to EBITDA

15.89

EV to Capital Employed

1.63

EV to Sales

1.41

PEG Ratio

Dividend Yield

5.94%

ROCE (Latest)

7.08%

ROE (Latest)

6.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bearish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 826.2 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -41.43% (YoY

CASH AND EQV(HY)

Highest at CNY 4,818.59 MM

DEBT-EQUITY RATIO (HY)

Lowest at -29 %

-17What is not working for the Company

NET PROFIT(9M)

At CNY 168.09 MM has Grown at -31.53%

INTEREST(HY)

At CNY 4.14 MM has Grown at 5.94%

ROCE(HY)

Lowest at 6.37%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.49 times

NET SALES(Q)

Lowest at CNY 726.08 MM

OPERATING PROFIT(Q)

Lowest at CNY 71.7 MM

Here's what is working for Hangzhou Huawang New Material Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 826.2 MM

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 4,818.59 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -29 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -41.43% (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 Huawang New Material Technology Co., Ltd.

Net Profit

At CNY 168.09 MM has Grown at -31.53%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 4.14 MM has Grown at 5.94%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 726.08 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -14.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 71.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 3.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio