Hengerda New Materials (Fujian) Co., Ltd. () 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

Hengerda New Materials (Fujian) Co., Ltd.

Why is Hengerda New Materials (Fujian) Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 17.73% and Operating profit at 1.71% over the last 5 years

The company has declared Negative results for the last 12 consecutive quarters

INTEREST(HY) At CNY 2.95 MM has Grown at 51.9%
ROCE(HY) Lowest at 2.61%
NET PROFIT(Q) Fallen at -28.47%

With ROE of 4.30%, it has a very expensive valuation with a 6.19 Price to Book Value

Over the past year, while the stock has generated a return of -30.66%, its profits have fallen by -44.8%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 20.96% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -30.66% 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 Industrial Products)

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

Is Hengerda New Materials (Fujian) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hengerda New Materials (Fujian) Co., Ltd.

-30.66%

1.89

59.92%

China Shanghai Composite

20.96%

1.56

13.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.73%

EBIT Growth (5y)

1.71%

EBIT to Interest (avg)

71.81

Debt to EBITDA (avg)

0.27

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.41

Tax Ratio

11.01%

Dividend Payout Ratio

101.61%

Pledged Shares

Institutional Holding

ROCE (avg)

9.42%

ROE (avg)

8.21%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

144

Industry P/E

Price to Book Value

6.19

EV to EBIT

135.57

EV to EBITDA

81.00

EV to Capital Employed

5.35

EV to Sales

12.51

PEG Ratio

Dividend Yield

ROCE (Latest)

3.94%

ROE (Latest)

4.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 126.12 MM

RAW MATERIAL COST(Y)

Fallen by -4.01% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.36 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.76 times

-19What is not working for the Company

INTEREST(HY)

At CNY 2.95 MM has Grown at 51.9%

ROCE(HY)

Lowest at 2.61%

NET PROFIT(Q)

Fallen at -28.47%

Here's what is working for Hengerda New Materials (Fujian) Co., Ltd.

Operating Cash Flow

Highest at CNY 126.12 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 1.36 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.76 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.01% (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 Hengerda New Materials (Fujian) Co., Ltd.

Interest

At CNY 2.95 MM has Grown at 51.9%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

Fallen at -28.47%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)