Harson Trading (China) Co., Ltd. (603958) 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

Harson Trading (China) Co., Ltd.

Why is Harson Trading (China) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.13%

The company has been able to generate a Return on Capital Employed (avg) of 0.13% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 6.88% and Operating profit at 8.17% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At CNY 6.94 MM has Grown at 18,198.11%
RAW MATERIAL COST(Y) Grown by 39.21% (YoY)
CASH AND EQV(HY) Lowest at CNY 382.4 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 24.87%, its profits have fallen by -1017%

Market Beating performance in long term as well as near term

Along with generating 24.87% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Harson Trading (China) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

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

Is Harson Trading (China) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Harson Trading (China) Co., Ltd.

23.9%

2.41

54.05%

China Shanghai Composite

15.17%

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)

6.88%

EBIT Growth (5y)

8.17%

EBIT to Interest (avg)

-58.85

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

1.01

Tax Ratio

85.84%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.13%

ROE (avg)

0.60%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.86

EV to EBIT

-72.48

EV to EBITDA

-2542.27

EV to Capital Employed

4.18

EV to Sales

3.27

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.76%

ROE (Latest)

-10.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

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

26What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 24.9 MM

NET PROFIT(HY)

Higher at CNY -24.36 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.17 times

NET SALES(Q)

Highest at CNY 358.43 MM

-13What is not working for the Company

INTEREST(HY)

At CNY 6.94 MM has Grown at 18,198.11%

RAW MATERIAL COST(Y)

Grown by 39.21% (YoY

CASH AND EQV(HY)

Lowest at CNY 382.4 MM

DEBT-EQUITY RATIO (HY)

Highest at 32.74 %

Here's what is working for Harson Trading (China) Co., Ltd.

Net Sales

At CNY 358.43 MM has Grown at 140.71%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 24.9 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

Higher at CNY -24.36 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Net Profit

At CNY -24.36 MM has Grown at 46.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 358.43 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 2.17 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Harson Trading (China) Co., Ltd.

Interest

At CNY 6.94 MM has Grown at 18,198.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 382.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 32.74 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 39.21% (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