Hefei Fengle Seed Co., Ltd. (000713) 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

Hefei Fengle Seed Co., Ltd.

Why is Hefei Fengle Seed Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.76%

The company has been able to generate a Return on Capital Employed (avg) of 1.76% 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 2.30% and Operating profit at -22.06% over the last 5 years

The company has declared negative results in Jan 70 after 2 consecutive negative quarters

RAW MATERIAL COST(Y) Grown by 32.7% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 2.52 times
NET SALES(Q) Lowest at CNY 375.28 MM

With ROE of 3.01%, it has a very expensive valuation with a 2.14 Price to Book Value

Over the past year, while the stock has generated a return of -8.49%, its profits have risen by 324.5% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.49% 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 Chemicals & Petrochemicals)

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

Is Hefei Fengle Seed Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hefei Fengle Seed Co., Ltd.

-10.35%

0.35

27.56%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.30%

EBIT Growth (5y)

-22.06%

EBIT to Interest (avg)

11.23

Debt to EBITDA (avg)

0.63

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

1.33

Tax Ratio

3.27%

Dividend Payout Ratio

17.57%

Pledged Shares

Institutional Holding

ROCE (avg)

1.76%

ROE (avg)

3.90%

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

2.14

EV to EBIT

112.23

EV to EBITDA

32.52

EV to Capital Employed

2.05

EV to Sales

1.60

PEG Ratio

0.22

Dividend Yield

0.29%

ROCE (Latest)

1.83%

ROE (Latest)

3.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 679.55 MM

-31What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 32.7% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.52 times

NET SALES(Q)

Lowest at CNY 375.28 MM

INTEREST(Q)

Highest at CNY 1.89 MM

OPERATING PROFIT(Q)

Lowest at CNY -70 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -18.65 %

PRE-TAX PROFIT(Q)

Lowest at CNY -67.46 MM

NET PROFIT(Q)

Lowest at CNY -62.69 MM

EPS(Q)

Lowest at CNY -0.1

Here's what is working for Hefei Fengle Seed Co., Ltd.

Cash and Eqv

Highest at CNY 679.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Hefei Fengle Seed Co., Ltd.

Interest

At CNY 1.89 MM has Grown at 100.84%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 375.28 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 1.89 MM

in the last five periods and Increased by 100.84% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -70 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -18.65 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -67.46 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -26.12%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -62.69 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -28.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 2.52 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 32.7% (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