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 hold?

Overall Portfolio exposure to Hengdian Entertainment Co., Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hengdian Entertainment Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hengdian Entertainment Co., Ltd.

71.3%

1.14

57.27%

China Shanghai Composite

15.17%

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)

15.90%

EBIT Growth (5y)

17.64%

EBIT to Interest (avg)

-9.46

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.65

Sales to Capital Employed (avg)

1.31

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

581

Industry P/E

Price to Book Value

7.37

EV to EBIT

272.12

EV to EBITDA

18.91

EV to Capital Employed

24.56

EV to Sales

4.35

PEG Ratio

Dividend Yield

0.75%

ROCE (Latest)

9.02%

ROE (Latest)

1.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

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

12What is working for the Company

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

NET PROFIT(9M)

Higher at CNY 206 MM

CASH AND EQV(HY)

Highest at CNY 2,520.49 MM

DEBT-EQUITY RATIO (HY)

Lowest at 20.89 %

DIVIDEND PER SHARE(HY)

Highest at CNY 8.83

-3What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -2.09 MM has Fallen at -119.05%

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

Net Profit

At CNY 206 MM has Grown at 1,084.8%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 665.96 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 2,520.49 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 20.89 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at CNY 8.83

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Net Profit

Higher at CNY 206 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Dividend Payout Ratio

Highest at 2,333.33%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -169.53% (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 Hengdian Entertainment Co., Ltd.

Pre-Tax Profit

At CNY -2.09 MM has Fallen at -119.05%

over average net sales of the previous four periods of CNY 10.95 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)