Hengfeng Information Technology Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Computers - Software & Consulting
  • ISIN: CNE100002PZ6
CNY
18.37
-1.24 (-6.32%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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
Hengfeng Information Technology Co., Ltd.
Why is Hengfeng Information Technology Co., Ltd. ?
1
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 -6.71% and Operating profit at -200.54% 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
2
Poor long term growth as Net Sales has grown by an annual rate of -6.71% and Operating profit at -200.54% over the last 5 years
3
The company has declared Negative results for the last 10 consecutive quarters
  • NET SALES(HY) At CNY 109.67 MM has Grown at -23.81%
  • NET PROFIT(HY) At CNY -62.45 MM has Grown at -911.72%
  • OPERATING CASH FLOW(Y) Lowest at CNY -16.85 MM
4
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 17.34%, its profits have fallen by -755.6%
  • At the current price, the company has a high dividend yield of 0
stock-recommendationReal-Time Research Report
Verdict Report
How much should you hold?
  1. Overall Portfolio exposure to Hengfeng Information Technology Co., Ltd. should be less than 10%
  2. 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.
32.73%
1.44
61.67%
China Shanghai Composite
14.77%
1.01
15.10%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
-6.71%
EBIT Growth (5y)
-200.54%
EBIT to Interest (avg)
9.83
Debt to EBITDA (avg)
4.29
Net Debt to Equity (avg)
0.81
Sales to Capital Employed (avg)
0.40
Tax Ratio
13.75%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.16%
ROE (avg)
5.78%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
2.19
EV to EBIT
-23.25
EV to EBITDA
-39.88
EV to Capital Employed
1.65
EV to Sales
3.85
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-7.09%
ROE (Latest)
-13.41%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company
NET SALES(Q)

At CNY 73.31 MM has Grown at 29.59%

PRE-TAX PROFIT(Q)

At CNY -1.13 MM has Grown at 95.69%

NET PROFIT(Q)

Highest at CNY -0.23 MM

EPS(Q)

Highest at CNY -0

-33What is not working for the Company
NET SALES(HY)

At CNY 109.67 MM has Grown at -23.81%

NET PROFIT(HY)

At CNY -62.45 MM has Grown at -911.72%

OPERATING CASH FLOW(Y)

Lowest at CNY -16.85 MM

ROCE(HY)

Lowest at -15.25%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.33%

RAW MATERIAL COST(Y)

Grown by 20.47% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 81.01 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.45%

INTEREST(Q)

Highest at CNY 4.82 MM

Here's what is working for Hengfeng Information Technology Co., Ltd.
Net Sales
At CNY 73.31 MM has Grown at 29.59%
over average net sales of the previous four periods of CNY 56.57 MM
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit
Highest at CNY -1.13 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit
At CNY -1.13 MM has Grown at 95.69%
over average net sales of the previous four periods of CNY -26.18 MM
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit
Highest at CNY -0.23 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit
At CNY -0.23 MM has Grown at 98.93%
over average net sales of the previous four periods of CNY -21.72 MM
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS
Highest at CNY -0
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.
Debtors Turnover Ratio
Lowest at 0.33% and Fallen
In each half year in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow
Lowest at CNY -16.85 MM
in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest
Highest at CNY 4.82 MM
in the last five periods and Increased by 7.53% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio
Highest at 81.01 %
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 1.45%
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 20.47% (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