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

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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 7.38% and Operating profit at 16.31% over the last 5 years

With ROE of 1.27%, it has a very expensive valuation with a 7.43 Price to Book Value

Over the past year, while the stock has generated a return of 7.80%, its profits have fallen by -87.7%
At the current price, the company has a high dividend yield of 0.7

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, Medium Return

Absolute

Risk Adjusted

Volatility

Hengdian Entertainment Co., Ltd.

7.8%

0.24

52.25%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.38%

EBIT Growth (5y)

16.31%

EBIT to Interest (avg)

-9.46

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.65

Sales to Capital Employed (avg)

1.23

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

586

Industry P/E

Price to Book Value

7.43

EV to EBIT

274.77

EV to EBITDA

19.10

EV to Capital Employed

24.80

EV to Sales

4.40

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

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

25What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 347.5 MM has Grown at 2,423.39%

INVENTORY TURNOVER RATIO(HY)

Highest at 24.76%

RAW MATERIAL COST(Y)

Fallen by -21.39% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 29.36 %

NET SALES(Q)

Highest at CNY 1,124.51 MM

OPERATING PROFIT(Q)

Highest at CNY 350.15 MM

NET PROFIT(Q)

Highest at CNY 342.82 MM

EPS(Q)

Highest at CNY 0.54

-6What is not working for the Company

NET PROFIT(9M)

At CNY 158.02 MM has Grown at -41.84%

OPERATING CASH FLOW(Y)

Lowest at CNY 478.05 MM

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

Net Sales

At CNY 1,124.51 MM has Grown at 137.68%

over average net sales of the previous four periods of CNY 473.13 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 347.5 MM has Grown at 2,423.39%

over average net sales of the previous four periods of CNY -14.96 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 342.82 MM has Grown at 1,522.85%

over average net sales of the previous four periods of CNY -24.09 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 24.76% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CNY 1,124.51 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 350.15 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 347.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 342.82 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.54

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at 29.36 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -21.39% (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.

Operating Cash Flow

Lowest at CNY 478.05 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)