Hengdian Entertainment Co., Ltd. (603103) 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

Hengdian Entertainment Co., Ltd.

Why is Hengdian Entertainment Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 9.62%

The company has been able to generate a Return on Capital Employed (avg) of 9.62% 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 15.90% and Operating profit at 17.64% over the last 5 years

The company has declared positive results in Mar'2025 after 3 consecutive negative quarters

OPERATING CASH FLOW(Y) Highest at CNY 665.96 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 2,333.33%
RAW MATERIAL COST(Y) Fallen by -169.53% (YoY)

With ROE of 1.27%, it has a very expensive valuation with a 7.37 Price to Book Value

Over the past year, while the stock has generated a return of 80.93%, its profits have fallen by -87.7%
At the current price, the company has a high dividend yield of 0.8

Market Beating performance in long term as well as near term

Along with generating 80.93% returns in the last 1 year, the stock has outperformed 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 Media & Entertainment)

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

Is Hengdian Entertainment Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hengdian Entertainment Co., Ltd.

48.83%

1.14

57.27%

China Shanghai Composite

20.96%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.15%

EBIT Growth (5y)

18.26%

EBIT to Interest (avg)

-9.46

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.65

Sales to Capital Employed (avg)

1.34

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.62%

ROE (avg)

3.39%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

12.01

EV to EBIT

91.26

EV to EBITDA

24.56

EV to Capital Employed

55.46

EV to Sales

6.04

PEG Ratio

0.35

Dividend Yield

0.60%

ROCE (Latest)

60.77%

ROE (Latest)

12.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 2,518.23 MM

DEBT-EQUITY RATIO (HY)

Lowest at 10.09 %

-20What is not working for the Company

NET SALES(HY)

At CNY 984.58 MM has Grown at -35.56%

NET PROFIT(HY)

At CNY -6.67 MM has Grown at -102.91%

ROCE(HY)

Lowest at -10.29%

RAW MATERIAL COST(Y)

Grown by 60.99% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 19.47 times

Here's what is working for Hengdian Entertainment Co., Ltd.

Cash and Eqv

Highest at CNY 2,518.23 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 10.09 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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

Net Sales

At CNY 984.58 MM has Grown at -35.56%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Profit

At CNY -6.67 MM has Grown at -102.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 19.47 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 60.99% (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

Non Operating Income

Highest at CNY 0.42 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income