HCR Co., Ltd. (688500) 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

HCR Co., Ltd.

Why is HCR Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 9.53%

The company has been able to generate a Return on Capital Employed (avg) of 9.53% 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 9.39% and Operating profit at -185.55% over the last 5 years

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 69.74%, its profits have risen by 71.5%

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 Computers - Software & Consulting)

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

Is HCR Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

HCR Co., Ltd.

76.98%

1.04

66.70%

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)

9.39%

EBIT Growth (5y)

-185.55%

EBIT to Interest (avg)

-44.63

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.89

Sales to Capital Employed (avg)

0.62

Tax Ratio

54.06%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.53%

ROE (avg)

1.33%

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

8.01

EV to EBIT

-56.17

EV to EBITDA

-73.71

EV to Capital Employed

61.78

EV to Sales

10.85

PEG Ratio

Dividend Yield

ROCE (Latest)

-109.99%

ROE (Latest)

-7.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

12What is working for the Company

NET SALES(HY)

At CNY 236.74 MM has Grown at 18.89%

ROCE(HY)

Highest at -4.88%

INVENTORY TURNOVER RATIO(HY)

Highest at 21.18 times

DEBT-EQUITY RATIO (HY)

Lowest at -92.2 %

PRE-TAX PROFIT(Q)

At CNY -11.87 MM has Grown at 64.98%

NET PROFIT(Q)

At CNY -12.67 MM has Grown at 51.96%

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 7.87 MM

RAW MATERIAL COST(Y)

Grown by 11.56% (YoY

Here's what is working for HCR Co., Ltd.

Net Sales

At CNY 236.74 MM has Grown at 18.89%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 21.18 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Pre-Tax Profit

At CNY -11.87 MM has Grown at 64.98%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -12.67 MM has Grown at 51.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -92.2 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for HCR Co., Ltd.

Operating Cash Flow

Lowest at CNY 7.87 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Raw Material Cost

Grown by 11.56% (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