Why is Haohua Chemical Science & Technology Corp. Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 25.56% and Operating profit at 24.60% over the last 5 years
2
Positive results in Sep 25
- NET SALES(9M) At CNY 12,301.11 MM has Grown at 20.52%
- RAW MATERIAL COST(Y) Fallen by -36.57% (YoY)
- CASH AND EQV(HY) Highest at CNY 7,265.21 MM
3
With ROE of 8.40%, it has a fair valuation with a 2.20 Price to Book Value
- Over the past year, while the stock has generated a return of 35.27%, 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 0.7
4
Market Beating Performance
- The stock has generated a return of 35.27% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%
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, Medium Return
Absolute
Risk Adjusted
Volatility
Haohua Chemical Science & Technology Corp. Ltd.
11.55%
0.76
33.43%
China Shanghai Composite
15.17%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
25.56%
EBIT Growth (5y)
24.60%
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)
0.70
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
26
Industry P/E
Price to Book Value
2.20
EV to EBIT
54.53
EV to EBITDA
18.51
EV to Capital Employed
2.12
EV to Sales
2.18
PEG Ratio
0.24
Dividend Yield
0.68%
ROCE (Latest)
3.88%
ROE (Latest)
8.40%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
13What is working for the Company
NET SALES(9M)
At CNY 12,301.11 MM has Grown at 20.52%
RAW MATERIAL COST(Y)
Fallen by -36.57% (YoY
CASH AND EQV(HY)
Highest at CNY 7,265.21 MM
PRE-TAX PROFIT(Q)
Highest at CNY 604.24 MM
NET PROFIT(Q)
Highest at CNY 587.2 MM
EPS(Q)
Highest at CNY 0.46
-5What is not working for the Company
NET SALES(Q)
At CNY 4,540.91 MM has Fallen at -32.71%
INTEREST(Q)
At CNY 22.28 MM has Grown at 80.31%
Here's what is working for Haohua Chemical Science & Technology Corp. Ltd.
Pre-Tax Profit
Highest at CNY 604.24 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
At CNY 604.24 MM has Grown at 71.64%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 587.2 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.46
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Cash and Eqv
Highest at CNY 7,265.21 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -36.57% (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.
Net Sales
At CNY 4,540.91 MM has Fallen at -32.71%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Interest
At CNY 22.28 MM has Grown at 80.31%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)






