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 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 Footwear)

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Harson Trading (China) Co., Ltd.

-7.08%

2.41

54.05%

China Shanghai Composite

21.43%

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)

10.07%

EBIT Growth (5y)

9.88%

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)

1.09

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

1.98

EV to EBIT

-50.26

EV to EBITDA

36.85

EV to Capital Employed

1.80

EV to Sales

0.97

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.58%

ROE (Latest)

-3.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

Bullish

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

21What is working for the Company

NET SALES(HY)

At CNY 788.38 MM has Grown at 29.54%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.51 times

PRE-TAX PROFIT(Q)

Highest at CNY 36.42 MM

NET PROFIT(Q)

Highest at CNY 17.26 MM

EPS(Q)

Highest at CNY 0.08

-10What is not working for the Company

INTEREST(HY)

At CNY 9.97 MM has Grown at 183.04%

CASH AND EQV(HY)

Lowest at CNY 457.9 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.05 times

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

Net Profit

At CNY 17.26 MM has Grown at 208.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 788.38 MM has Grown at 29.54%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 36.42 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 36.42 MM has Grown at 51.68%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 17.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 2.51 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 9.97 MM has Grown at 183.04%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 457.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 3.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio