Why is Haohua Chemical Science & Technology Corp. Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 30.75% and Operating profit at 21.93% over the last 5 years
2
Positive results in Mar 25
- NET SALES(Q) At CNY 3,126.71 MM has Grown at 95.43%
- PRE-TAX PROFIT(Q) At CNY 197.31 MM has Grown at inf%
- RAW MATERIAL COST(Y) Fallen by 1.18% (YoY)
3
With ROE of 8.40%, it has a attractive valuation with a 1.80 Price to Book Value
- Over the past year, while the stock has generated a return of -2.42%, its profits have risen by 110.6% ; the PEG ratio of the company is 0.2
- At the current price, the company has a high dividend yield of 0.8
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -2.42% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Haohua Chemical Science & Technology Corp. Ltd. should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Haohua Chemical Science & Technology Corp. Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Haohua Chemical Science & Technology Corp. Ltd.
-100.0%
0.05
30.68%
China Shanghai Composite
15.19%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
30.75%
EBIT Growth (5y)
21.93%
EBIT to Interest (avg)
15.70
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0.02
Sales to Capital Employed (avg)
0.72
Tax Ratio
9.89%
Dividend Payout Ratio
30.01%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5,051.37%
ROE (avg)
13,499.74%
Valuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
1.79
EV to EBIT
44.86
EV to EBITDA
15.23
EV to Capital Employed
1.74
EV to Sales
1.79
PEG Ratio
0.19
Dividend Yield
0.83%
ROCE (Latest)
3.88%
ROE (Latest)
8.40%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
16What is working for the Company
NET SALES(Q)
At CNY 3,126.71 MM has Grown at 95.43%
PRE-TAX PROFIT(Q)
At CNY 197.31 MM has Grown at inf%
RAW MATERIAL COST(Y)
Fallen by 1.18% (YoY
-9What is not working for the Company
INTEREST(HY)
At CNY 40.75 MM has Grown at 548.57%
EPS(Q)
Lowest at CNY 0.14
Here's what is working for Haohua Chemical Science & Technology Corp. Ltd.
Net Sales
At CNY 3,126.71 MM has Grown at 95.43%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely positive
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 197.31 MM has Grown at inf%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Raw Material Cost
Fallen by 1.18% (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 Haohua Chemical Science & Technology Corp. Ltd.
Interest
At CNY 40.75 MM has Grown at 548.57%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
EPS
Lowest at CNY 0.14
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)






