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 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 Paper, Forest & Jute Products)

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

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.

-15.15%

-0.96

32.36%

China Shanghai Composite

16.01%

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)

0.74

Tax Ratio

4.48%

Dividend Payout Ratio

71.81%

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

1.29

EV to EBIT

16.59

EV to EBITDA

11.00

EV to Capital Employed

1.41

EV to Sales

1.16

PEG Ratio

Dividend Yield

4.12%

ROCE (Latest)

8.48%

ROE (Latest)

8.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-37What is not working for the Company

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

RAW MATERIAL COST(Y)

Grown by 14.89% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.09 times

NET SALES(Q)

Fallen at -11.71%

OPERATING PROFIT(Q)

Lowest at CNY 39.62 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.96 %

PRE-TAX PROFIT(Q)

Lowest at CNY 56.26 MM

NET PROFIT(Q)

Lowest at CNY 51.05 MM

EPS(Q)

Lowest at CNY 0.09

Here's what is not working for Hangzhou Huawang New Material Technology Co., Ltd.

Net Profit

At CNY 51.05 MM has Fallen at -52%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.41 MM has Grown at 30.62%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,809.48

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 56.26 MM has Fallen at -45.22%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Sales

Fallen at -11.71%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 39.62 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 56.26 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 51.05 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 2.09 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 14.89% (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