ScoreWhy is Hengli Petrochemical Co., Ltd. ?
1
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
2
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
3
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
4
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 ReportHow 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.
28.06%
2.45
33.87%
China Shanghai Composite
19.22%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.66%
EBIT Growth (5y)
-11.55%
EBIT to Interest (avg)
3.16
Debt to EBITDA (avg)
6.46
Net Debt to Equity (avg)
2.21
Sales to Capital Employed (avg)
0.95
Tax Ratio
20.26%
Dividend Payout Ratio
36.82%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.50%
ROE (avg)
15.69%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.65
EV to EBIT
18.95
EV to EBITDA
10.94
EV to Capital Employed
1.24
EV to Sales
1.27
PEG Ratio
0.65
Dividend Yield
4.94%
ROCE (Latest)
6.52%
ROE (Latest)
11.26%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 27,835.69 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 177.22 %
RAW MATERIAL COST(Y)
Fallen by -111.89% (YoY
CASH AND EQV(HY)
Highest at CNY 69,140.37 MM
PRE-TAX PROFIT(Q)
Highest at CNY 3,401.08 MM
NET PROFIT(Q)
Highest at CNY 2,607.62 MM
EPS(Q)
Highest at CNY 0.56
-18What is not working for the Company
NET SALES(HY)
At CNY 92,830.25 MM has Grown at -18.34%
INTEREST(HY)
At CNY 2,020.63 MM has Grown at 8.25%
DEBTORS TURNOVER RATIO(HY)
Lowest at 24.66 times
INTEREST COVERAGE RATIO(Q)
Lowest at 423.2
INVENTORY TURNOVER RATIO(HY)
Lowest at 5.49 times
OPERATING PROFIT(Q)
Lowest at CNY 3,918.45 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 7.96 %
Here's what is working for Hengli Petrochemical Co., Ltd.
Operating Cash Flow
Highest at CNY 27,835.69 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Lowest at 177.22 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Pre-Tax Profit
Highest at CNY 3,401.08 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 2,607.62 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.56
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Cash and Eqv
Highest at CNY 69,140.37 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -111.89% (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 92,830.25 MM has Grown at -18.34%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Interest Coverage Ratio
Lowest at 423.2
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At CNY 2,020.63 MM has Grown at 8.25%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debtors Turnover Ratio
Lowest at 24.66 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Operating Profit
Lowest at CNY 3,918.45 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 7.96 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Inventory Turnover Ratio
Lowest at 5.49 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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