Why is Hefei Fengle Seed Co., Ltd. ?
1
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)
2
Poor long term growth as Net Sales has grown by an annual rate of 2.39% and Operating profit at -10.17% over the last 5 years
3
The company has declared negative results in Jan 70 after 2 consecutive negative quarters
- NET SALES(9M) At CNY 2,137.88 MM has Grown at -11.24%
- DEBT-EQUITY RATIO (HY) Highest at 6.67 %
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.06%
4
With ROE of 3.01%, it has a very expensive valuation with a 2.15 Price to Book Value
- Over the past year, while the stock has generated a return of -12.08%, 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
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -12.08% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
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, Medium Return
Absolute
Risk Adjusted
Volatility
Hefei Fengle Seed Co., Ltd.
-8.7%
0.60
32.71%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
2.39%
EBIT Growth (5y)
-10.17%
EBIT to Interest (avg)
11.23
Debt to EBITDA (avg)
0.63
Net Debt to Equity (avg)
0.05
Sales to Capital Employed (avg)
1.36
Tax Ratio
3.27%
Dividend Payout Ratio
17.57%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.76%
ROE (avg)
3.90%
Valuation Key Factors 
Factor
Value
P/E Ratio
71
Industry P/E
Price to Book Value
2.15
EV to EBIT
112.38
EV to EBITDA
32.56
EV to Capital Employed
2.06
EV to Sales
1.60
PEG Ratio
0.22
Dividend Yield
0.29%
ROCE (Latest)
1.83%
ROE (Latest)
3.01%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Movement
26What is working for the Company
NET PROFIT(HY)
Higher at CNY 130.3 MM
ROCE(HY)
Highest at 3.71%
RAW MATERIAL COST(Y)
Fallen by -17.12% (YoY
-10What is not working for the Company
NET SALES(9M)
At CNY 2,137.88 MM has Grown at -11.24%
DEBT-EQUITY RATIO
(HY)
Highest at 6.67 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.06%
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.58%
Here's what is working for Hefei Fengle Seed Co., Ltd.
Net Profit
At CNY 130.3 MM has Grown at 143.84%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Profit
At CNY 130.3 MM has Grown at 143.84%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Profit
Higher at CNY 130.3 MM
than preceding 12 month period ended Mar 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Net Profit
Higher at CNY 130.3 MM
than preceding 12 month period ended Mar 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Raw Material Cost
Fallen by -17.12% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Raw Material Cost
Fallen by -17.12% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Hefei Fengle Seed Co., Ltd.
Net Sales
At CNY 2,137.88 MM has Grown at -11.24%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Net Sales
At CNY 2,137.88 MM has Grown at -11.24%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Debt-Equity Ratio
Highest at 6.67 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debt-Equity Ratio
Highest at 6.67 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 3.06%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Inventory Turnover Ratio
Lowest at 3.06%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 7.58%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Debtors Turnover Ratio
Lowest at 7.58%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






