Hebei Huatong Wires & Cables Group Co., Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hebei Huatong Wires & Cables Group Co., Ltd.

Why is Hebei Huatong Wires & Cables Group Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 12.15% and Operating profit at 13.64% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 9.89% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.15% and Operating profit at 13.64% over the last 5 years

Negative results in Mar 25

INTEREST(HY) At CNY 68.49 MM has Grown at 84.4%
NET PROFIT(Q) At CNY 40.51 MM has Fallen at -55.31%
OPERATING CASH FLOW(Y) Lowest at CNY -126.26 MM

With ROE of 8.03%, it has a fair valuation with a 2.46 Price to Book Value

Over the past year, while the stock has generated a return of 209.35%, its profits have fallen by -27.1%
At the current price, the company has a high dividend yield of 0.3

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 Industrial Manufacturing)

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

Is Hebei Huatong Wires & Cables Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hebei Huatong Wires & Cables Group Co., Ltd.

209.35%

4.43

53.45%

China Shanghai Composite

12.36%

0.86

14.45%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.15%

EBIT Growth (5y)

13.64%

EBIT to Interest (avg)

5.33

Debt to EBITDA (avg)

2.91

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

1.06

Tax Ratio

18.67%

Dividend Payout Ratio

10.16%

Pledged Shares

Institutional Holding

ROCE (avg)

9.33%

ROE (avg)

9.89%

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

2.46

EV to EBIT

29.61

EV to EBITDA

22.02

EV to Capital Employed

1.77

EV to Sales

1.60

PEG Ratio

Dividend Yield

0.26%

ROCE (Latest)

5.99%

ROE (Latest)

8.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

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

3What is working for the Company

NET SALES(9M)

At CNY 4,829.83 MM has Grown at 22.95%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.26%

-27What is not working for the Company

INTEREST(HY)

At CNY 68.49 MM has Grown at 84.4%

NET PROFIT(Q)

At CNY 40.51 MM has Fallen at -55.31%

OPERATING CASH FLOW(Y)

Lowest at CNY -126.26 MM

ROCE(HY)

Lowest at 8.84%

PRE-TAX PROFIT(Q)

At CNY 57.87 MM has Fallen at -46.06%

RAW MATERIAL COST(Y)

Grown by 8.93% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 82.25 %

Here's what is working for Hebei Huatong Wires & Cables Group Co., Ltd.

Net Sales

At CNY 4,829.83 MM has Grown at 22.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 3.26%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Hebei Huatong Wires & Cables Group Co., Ltd.

Interest

At CNY 68.49 MM has Grown at 84.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 40.51 MM has Fallen at -55.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 57.87 MM has Fallen at -46.06%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -126.26 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Profit

Lowest at CNY 40.51 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 82.25 %

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 8.93% (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