Why is Hengong Precision Equipment 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 18.20% and Operating profit at 4.76% 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 5.50% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 18.20% and Operating profit at 4.76% over the last 5 years
3
The company has declared Negative results for the last 3 consecutive quarters
- PRE-TAX PROFIT(Q) At CNY 7.89 MM has Fallen at -55.26%
- NET PROFIT(Q) At CNY 9.55 MM has Fallen at -64.62%
4
Below par performance in long term as well as near term
- Along with generating -36.89% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Ferrous Metals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hengong Precision Equipment Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hengong Precision Equipment Co., Ltd.
-100.0%
1.69
67.84%
China Shanghai Composite
16.01%
1.03
14.98%
Quality key factors
Factor
Value
Sales Growth (5y)
18.20%
EBIT Growth (5y)
4.76%
EBIT to Interest (avg)
5.23
Debt to EBITDA (avg)
5.90
Net Debt to Equity (avg)
0.48
Sales to Capital Employed (avg)
0.42
Tax Ratio
6.29%
Dividend Payout Ratio
63.08%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.10%
ROE (avg)
5.50%
Valuation Key Factors 
Factor
Value
P/E Ratio
118
Industry P/E
Price to Book Value
4.30
EV to EBIT
-1072.39
EV to EBITDA
102.79
EV to Capital Employed
3.60
EV to Sales
6.86
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-0.34%
ROE (Latest)
3.65%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
3What is working for the Company
NET PROFIT(HY)
Higher at CNY 54.25 MM
-6What is not working for the Company
PRE-TAX PROFIT(Q)
At CNY 7.89 MM has Fallen at -55.26%
NET PROFIT(Q)
At CNY 9.55 MM has Fallen at -64.62%
Here's what is not working for Hengong Precision Equipment Co., Ltd.
Pre-Tax Profit
At CNY 7.89 MM has Fallen at -55.26%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 9.55 MM has Fallen at -64.62%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)






