Hengfeng Information Technology Co., Ltd. (300605) 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

Hengfeng Information Technology Co., Ltd.

Why is Hengfeng Information Technology Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -3.32% and Operating profit at -181.61% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.78% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -3.32% and Operating profit at -181.61% over the last 5 years

The company has declared negative results in Mar'2026 after 3 consecutive positive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -57.23 MM
PRE-TAX PROFIT(Q) At CNY -12.86 MM has Fallen at -78.55%
NET PROFIT(Q) At CNY -13.8 MM has Fallen at -121.06%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -22.96%, its profits have risen by 52.2%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -22.96% returns in the last 1 year, the stock has also underperformed 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 Computers - Software & Consulting)

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

Is Hengfeng Information Technology Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hengfeng Information Technology Co., Ltd.

-29.71%

0.45

46.87%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.32%

EBIT Growth (5y)

-181.61%

EBIT to Interest (avg)

9.83

Debt to EBITDA (avg)

4.29

Net Debt to Equity (avg)

0.81

Sales to Capital Employed (avg)

0.37

Tax Ratio

13.75%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.16%

ROE (avg)

5.78%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.68

EV to EBIT

-52.98

EV to EBITDA

239.17

EV to Capital Employed

1.35

EV to Sales

2.76

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.55%

ROE (Latest)

-8.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

8What is working for the Company

NET SALES(HY)

At CNY 167.37 MM has Grown at 52.17%

NET PROFIT(HY)

Higher at CNY -49.2 MM

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -57.23 MM

PRE-TAX PROFIT(Q)

At CNY -12.86 MM has Fallen at -78.55%

NET PROFIT(Q)

At CNY -13.8 MM has Fallen at -121.06%

RAW MATERIAL COST(Y)

Grown by 51.65% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 94.76 %

NET SALES(Q)

Lowest at CNY 73.07 MM

INTEREST(Q)

Highest at CNY 5.12 MM

Here's what is not working for Hengfeng Information Technology Co., Ltd.

Net Sales

At CNY 73.07 MM has Fallen at -33.15%

over average net sales of the previous four periods of CNY 109.31 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -12.86 MM has Fallen at -78.55%

over average net sales of the previous four periods of CNY -7.2 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -13.8 MM has Fallen at -121.06%

over average net sales of the previous four periods of CNY -6.24 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -57.23 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 73.07 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 5.12 MM

in the last five periods and Increased by 9.79% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 94.76 %

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

Raw Material Cost

Grown by 51.65% (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