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 -30.30%, its profits have fallen by -95%
At the current price, the company has a high dividend yield of 0.7

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 21.43% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -30.30% returns

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.

-37.0%

2.01

57.18%

China Shanghai Composite

21.43%

1.55

13.83%

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)

18.43

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

0.44

Tax Ratio

5.70%

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

1533

Industry P/E

Price to Book Value

3.18

EV to EBIT

-4598.02

EV to EBITDA

211.87

EV to Capital Employed

5.88

EV to Sales

7.52

PEG Ratio

Dividend Yield

0.71%

ROCE (Latest)

-0.13%

ROE (Latest)

0.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

-39What is not working for the Company

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%

RAW MATERIAL COST(Y)

Grown by 17.66% (YoY

NET SALES(Q)

Lowest at CNY 126.3 MM

OPERATING PROFIT(Q)

Lowest at CNY -24.39 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -19.31 %

PRE-TAX PROFIT(Q)

Lowest at CNY -23.95 MM

NET PROFIT(Q)

Lowest at CNY -24.64 MM

EPS(Q)

Lowest at CNY -0.03

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

Interest

At CNY 0.22 MM has Grown at 78.69%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 126.3 MM has Fallen at -49%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -23.95 MM has Fallen at -190.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -24.64 MM has Fallen at -215.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 153.18 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 126.3 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -24.39 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -19.31 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -23.95 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 -24.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 17.66% (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