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 8 consecutive quarters

ROCE(HY) Lowest at 4.4%
INTEREST COVERAGE RATIO(Q) Lowest at 165.85
RAW MATERIAL COST(Y) Grown by 6.9% (YoY)

With ROE of 6.15%, it has a very expensive valuation with a 8.00 Price to Book Value

Over the past year, while the stock has generated a return of 79.06%, its profits have fallen by -18.6%

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.

79.06%

1.28

78.14%

China Shanghai Composite

17.07%

1.14

14.96%

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

20.62%

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

130

Industry P/E

Price to Book Value

8.00

EV to EBIT

123.81

EV to EBITDA

76.14

EV to Capital Employed

7.05

EV to Sales

16.40

PEG Ratio

Dividend Yield

ROCE (Latest)

5.70%

ROE (Latest)

6.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 61.45 MM

-39What is not working for the Company

ROCE(HY)

Lowest at 4.4%

INTEREST COVERAGE RATIO(Q)

Lowest at 165.85

RAW MATERIAL COST(Y)

Grown by 6.9% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 19.34 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.17 times

INTEREST(Q)

Highest at CNY 1.78 MM

OPERATING PROFIT(Q)

Lowest at CNY 2.95 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.89 %

PRE-TAX PROFIT(Q)

Lowest at CNY 1.33 MM

NET PROFIT(Q)

Lowest at CNY 0.94 MM

EPS(Q)

Lowest at CNY 0.01

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

Operating Cash Flow

Highest at CNY 61.45 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)

Here's what is not working for Hengerda New Materials (Fujian) Co., Ltd.

Pre-Tax Profit

At CNY 1.33 MM has Fallen at -94.98%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 0.94 MM has Fallen at -95.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.78 MM has Grown at 78.07%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 165.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 1.78 MM

in the last five periods and Increased by 78.07% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 2.95 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 1.33 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 0.94 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 19.34 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1.17 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 6.9% (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