Hengdeli Holdings Ltd. (3389) 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

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Hengdeli Holdings Ltd.

Ernest Borel Holdings Ltd.

National Electronics Holdings Ltd.

Winox Holdings Ltd.

Affluent Partners Holdings Ltd.

Why is Hengdeli Holdings Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 0.39%

Poor long term growth as Net Sales has grown by an annual rate of -15.01% and Operating profit at 2.09% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -25.70

The company declared negative results in Dec'24 after flat results in Jun'24

OPERATING CASH FLOW(Y) Lowest at HKD 96.46 MM
ROCE(HY) Lowest at -2.04%
RAW MATERIAL COST(Y) Grown by 42.84% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 14.88%, its profits have fallen by -238.5%

Underperformed the market in the last 1 year

The stock has generated a return of 14.88% in the last 1 year, much lower than market (Hang Seng Hong Kong) returns of 26.67%

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 Gems, Jewellery And Watches)

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

Is Hengdeli Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hengdeli Holdings Ltd.

2.96%

0.10

54.89%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-15.01%

EBIT Growth (5y)

2.09%

EBIT to Interest (avg)

-25.70

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.33

Tax Ratio

12.53%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.39%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.17

EV to EBIT

5.45

EV to EBITDA

9.87

EV to Capital Employed

-0.39

EV to Sales

-0.95

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-1.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Bearish

OBV

No Trend

Mildly 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

Not enough Data to analyse Financial Trend

Here's what is working for Hengdeli Holdings Ltd.

Depreciation

Highest at HKD 36.79 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Here's what is not working for Hengdeli Holdings Ltd.

Pre-Tax Profit

At HKD -65.78 MM has Fallen at -334.29%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (HKD MM)

Net Profit

At HKD -79.57 MM has Fallen at -365.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (HKD MM)

Operating Cash Flow

Lowest at HKD 96.46 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 (HKD MM)

Net Sales

Lowest at HKD 502.48 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Net Sales

Fallen at -37.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Operating Profit

Lowest at HKD -50.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at -10.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD -65.78 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD -79.57 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD -0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Raw Material Cost

Grown by 42.84% (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