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.
152.69%
0.76
33.43%
China Shanghai Composite
18.97%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
25.43%
EBIT Growth (5y)
30.90%
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)
0.62
Tax Ratio
9.89%
Dividend Payout Ratio
35.01%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5,051.37%
ROE (avg)
13,499.74%
Valuation Key Factors 
Factor
Value
P/E Ratio
30
Industry P/E
Price to Book Value
2.90
EV to EBIT
34.90
EV to EBITDA
21.07
EV to Capital Employed
2.85
EV to Sales
3.06
PEG Ratio
0.55
Dividend Yield
0.48%
ROCE (Latest)
8.16%
ROE (Latest)
9.77%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
No Trend
Bullish
Technical Movement
14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 1,550.41 MM
PRE-TAX PROFIT(Q)
At CNY 435.15 MM has Grown at 120.54%
RAW MATERIAL COST(Y)
Fallen by -14.85% (YoY
NET SALES(Q)
At CNY 4,230.98 MM has Grown at 34.02%
NET PROFIT(Q)
At CNY 308.24 MM has Grown at 67.04%
-4What is not working for the Company
INTEREST(Q)
At CNY 15.67 MM has Grown at 68.62%
OPERATING PROFIT(Q)
Lowest at CNY 407.07 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 9.62 %
Here's what is working for Haohua Chemical Science & Technology Corp. Ltd.
Operating Cash Flow
Highest at CNY 1,550.41 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Pre-Tax Profit
At CNY 435.15 MM has Grown at 120.54%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Sales
At CNY 4,230.98 MM has Grown at 34.02%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Profit
At CNY 308.24 MM has Grown at 67.04%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Raw Material Cost
Fallen by -14.85% (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 15.67 MM has Grown at 68.62%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit
Lowest at CNY 407.07 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 9.62 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales






