Hengli Petrochemical Co., Ltd. (600346) 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

Hengli Petrochemical Co., Ltd.

Why is Hengli Petrochemical Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.50%

Poor long term growth as Net Sales has grown by an annual rate of 10.63% and Operating profit at -14.29% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 3 consecutive quarters

NET SALES(HY) At CNY 98,093.36 MM has Grown at -17.88%
INTEREST COVERAGE RATIO(Q) Lowest at 384.71
DEBTORS TURNOVER RATIO(HY) Lowest at 28.83 times

With ROE of 8.99%, it has a very attractive valuation with a 1.89 Price to Book Value

Over the past year, while the stock has generated a return of 65.00%, its profits have fallen by -28.2%
At the current price, the company has a high dividend yield of 3.1

Market Beating performance in long term as well as near term

Along with generating 65.00% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hengli Petrochemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

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

Is Hengli Petrochemical Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Hengli Petrochemical Co., Ltd.

35.88%

2.45

33.87%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.63%

EBIT Growth (5y)

-14.29%

EBIT to Interest (avg)

3.16

Debt to EBITDA (avg)

6.46

Net Debt to Equity (avg)

2.21

Sales to Capital Employed (avg)

0.97

Tax Ratio

20.26%

Dividend Payout Ratio

44.97%

Pledged Shares

Institutional Holding

ROCE (avg)

8.50%

ROE (avg)

15.69%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.89

EV to EBIT

27.82

EV to EBITDA

12.13

EV to Capital Employed

1.28

EV to Sales

1.16

PEG Ratio

Dividend Yield

3.12%

ROCE (Latest)

4.60%

ROE (Latest)

8.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by -136.71% (YoY

CASH AND EQV(HY)

Highest at CNY 75,424.39 MM

DEBT-EQUITY RATIO (HY)

Lowest at 203.21 %

PRE-TAX PROFIT(Q)

Highest at CNY 2,819.24 MM

NET PROFIT(Q)

Highest at CNY 2,117.23 MM

-11What is not working for the Company

NET SALES(HY)

At CNY 98,093.36 MM has Grown at -17.88%

INTEREST COVERAGE RATIO(Q)

Lowest at 384.71

DEBTORS TURNOVER RATIO(HY)

Lowest at 28.83 times

OPERATING PROFIT(Q)

Lowest at CNY 3,525.01 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.59 %

Here's what is working for Hengli Petrochemical Co., Ltd.

Pre-Tax Profit

Highest at CNY 2,819.24 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 2,819.24 MM has Grown at 59.23%

over average net sales of the previous four periods of CNY 1,770.55 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 2,117.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 75,424.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 203.21 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -136.71% (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 Hengli Petrochemical Co., Ltd.

Net Sales

At CNY 98,093.36 MM has Grown at -17.88%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 384.71

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 3,525.01 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 28.83 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio