Hengbao Co., Ltd. (002104) 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

Hengbao Co., Ltd.

Why is Hengbao Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.88%

The company has been able to generate a Return on Capital Employed (avg) of 5.88% signifying low profitability per unit of total capital (equity and debt)

With a fall in Net Sales of -49%, the company declared Very Negative results in Mar 26

INTEREST(HY) At CNY 0.22 MM has Grown at 78.69%
OPERATING CASH FLOW(Y) Lowest at CNY 153.18 MM
ROCE(HY) Lowest at 0.65%

With ROE of 0.21%, it has a very expensive valuation with a 3.18 Price to Book Value

Over the past year, while the stock has generated a return of -48.45%, its profits have fallen by -95%
At the current price, the company has a high dividend yield of 0.7

Below par performance in long term as well as near term

Along with generating -48.45% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Other Electrical Equipment)

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

Is Hengbao Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hengbao Co., Ltd.

-49.77%

1.72

55.67%

China Shanghai Composite

3.0%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-12.09%

EBIT Growth (5y)

13.85%

EBIT to Interest (avg)

31.79

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

0.44

Tax Ratio

34.72%

Dividend Payout Ratio

40.05%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

5.88%

ROE (avg)

4.25%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

1648

Industry P/E

Price to Book Value

3.42

EV to EBIT

-5014.95

EV to EBITDA

231.08

EV to Capital Employed

6.42

EV to Sales

8.21

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.13%

ROE (Latest)

0.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-43What is not working for the Company

INTEREST(HY)

At CNY 0.21 MM has Grown at 1,983.53%

OPERATING CASH FLOW(Y)

Lowest at CNY 26.9 MM

ROCE(HY)

Lowest at -1.06%

RAW MATERIAL COST(Y)

Grown by 52.72% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -56.47 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.95 times

NET SALES(Q)

Fallen at -10.82%

OPERATING PROFIT(Q)

Lowest at CNY -19.17 MM

PRE-TAX PROFIT(Q)

Lowest at CNY -24.52 MM

NET PROFIT(Q)

Lowest at CNY -25.49 MM

EPS(Q)

Lowest at CNY -0.04

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

Interest

At CNY 0.21 MM has Grown at 1,983.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -24.52 MM has Fallen at -1,029.98%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -25.49 MM has Fallen at -437.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 26.9 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)

Net Sales

Fallen at -10.82%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -19.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY -24.52 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -25.49 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -56.47 %

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

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.95 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 52.72% (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

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