Hebei Hengshui Laobaigan Liquor Co., Ltd. (600559) 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

Hebei Hengshui Laobaigan Liquor Co., Ltd.

Why is Hebei Hengshui Laobaigan Liquor Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.42% and Operating profit at 12.61% over the last 5 years

With a fall in Net Sales of -35.4%, the company declared Very Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY -202.03 MM
ROCE(HY) Lowest at 12.21%
RAW MATERIAL COST(Y) Grown by 6.62% (YoY)

With ROE of 15.49%, it has a expensive valuation with a 3.02 Price to Book Value

Over the past year, while the stock has generated a return of -18.42%, its profits have risen by 7.4% ; the PEG ratio of the company is 2.4
At the current price, the company has a high dividend yield of 3.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.42% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Beverages)

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

Is Hebei Hengshui Laobaigan Liquor Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hebei Hengshui Laobaigan Liquor Co., Ltd.

-23.78%

-1.33

22.63%

China Shanghai Composite

23.12%

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)

4.42%

EBIT Growth (5y)

12.61%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.45

Sales to Capital Employed (avg)

0.97

Tax Ratio

25.63%

Dividend Payout Ratio

42.55%

Pledged Shares

Institutional Holding

ROCE (avg)

26.67%

ROE (avg)

12.97%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.59

EV to EBIT

15.38

EV to EBITDA

13.08

EV to Capital Employed

3.36

EV to Sales

2.60

PEG Ratio

Dividend Yield

3.68%

ROCE (Latest)

21.83%

ROE (Latest)

11.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

2What is working for the Company

NET SALES(Q)

At CNY 1,220.17 MM has Grown at 18.42%

PRE-TAX PROFIT(Q)

At CNY 223.09 MM has Grown at 56.94%

-24What is not working for the Company

NET PROFIT(HY)

At CNY 194.6 MM has Grown at -49.3%

OPERATING CASH FLOW(Y)

Lowest at CNY -89.39 MM

NET SALES(HY)

At CNY 2,011.56 MM has Grown at -17.48%

ROCE(HY)

Lowest at 8.1%

DEBT-EQUITY RATIO (HY)

Highest at -24.56 %

CASH AND EQV(HY)

Lowest at CNY 2,338.87 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.43 times

Here's what is working for Hebei Hengshui Laobaigan Liquor Co., Ltd.

Net Sales

At CNY 1,220.17 MM has Grown at 18.42%

over average net sales of the previous four periods of CNY 1,030.37 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 223.09 MM has Grown at 56.94%

over average net sales of the previous four periods of CNY 142.15 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Here's what is not working for Hebei Hengshui Laobaigan Liquor Co., Ltd.

Net Profit

At CNY 194.6 MM has Grown at -49.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -89.39 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -24.56 % and Grown

In each half year 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

Cash and Eqv

Lowest at CNY 2,338.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0.43 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio