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. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -6.47% and Operating profit at -195.49% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
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 -6.47% and Operating profit at -195.49% over the last 5 years

With a growth in Net Profit of 196.06%, the company declared Outstanding results in Sep 25

The company has declared positive results in Jan 70 after 10 consecutive negative quarters
OPERATING CASH FLOW(Y) Highest at CNY 76.68 MM
NET SALES(HY) Higher at CNY 269.32 MM
OPERATING PROFIT MARGIN(Q) Highest at 16.8 %

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 0.00%, its profits have fallen by -755.6%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hengfeng Information Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hengfeng Information Technology Co., Ltd.

-4.34%

1.10

58.54%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.47%

EBIT Growth (5y)

-195.49%

EBIT to Interest (avg)

9.83

Debt to EBITDA (avg)

4.29

Net Debt to Equity (avg)

0.81

Sales to Capital Employed (avg)

0.38

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

4.98

EV to EBIT

-44.72

EV to EBITDA

-76.72

EV to Capital Employed

3.17

EV to Sales

7.40

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.09%

ROE (Latest)

-13.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (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

31What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 76.68 MM

NET SALES(HY)

Higher at CNY 269.32 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.8 %

PRE-TAX PROFIT(Q)

Highest at CNY 8.53 MM

NET PROFIT(Q)

Highest at CNY 7.97 MM

EPS(Q)

Highest at CNY 0.05

-11What is not working for the Company

INTEREST(HY)

At CNY 9.67 MM has Grown at 24.4%

NET SALES(Q)

At CNY 74.56 MM has Fallen at -23.15%

RAW MATERIAL COST(Y)

Grown by 16.29% (YoY

Here's what is working for Hengfeng Information Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 76.68 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)

Pre-Tax Profit

At CNY 8.53 MM has Grown at 144.97%

over average net sales of the previous four periods of CNY -18.97 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 7.97 MM has Grown at 150.11%

over average net sales of the previous four periods of CNY -15.91 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Profit Margin

Highest at 16.8 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 8.53 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 7.97 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

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

Interest

At CNY 9.67 MM has Grown at 24.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 74.56 MM has Fallen at -23.15%

over average net sales of the previous four periods of CNY 97.02 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Raw Material Cost

Grown by 16.29% (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