ScoreWhy 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 18.10% 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 18.10% and Operating profit at 4.76% over the last 5 years
3
The company has declared Negative results for the last 3 consecutive quarters
- INTEREST(HY) At CNY 11.28 MM has Grown at 43.13%
- PRE-TAX PROFIT(Q) At CNY 7.6 MM has Fallen at -77.17%
- DEBT-EQUITY RATIO (HY) Highest at 48.69 %
Real-Time Research ReportHow 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.
88.03%
1.53
76.48%
China Shanghai Composite
15.19%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
18.10%
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)
0.47
Tax Ratio
6.29%
Dividend Payout Ratio
63.08%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.10%
ROE (avg)
5.50%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
30
Industry P/E
Price to Book Value
1.11
EV to EBIT
-324.24
EV to EBITDA
31.08
EV to Capital Employed
1.09
EV to Sales
2.07
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-0.34%
ROE (Latest)
3.65%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Dow Theory
No Trend
No Trend
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 1.6% (YoY
-23What is not working for the Company
INTEREST(HY)
At CNY 11.28 MM has Grown at 43.13%
PRE-TAX PROFIT(Q)
At CNY 7.6 MM has Fallen at -77.17%
DEBT-EQUITY RATIO
(HY)
Highest at 48.69 %
NET PROFIT(Q)
Fallen at -37.72%
Here's what is working for Hengong Precision Equipment Co., Ltd.
Raw Material Cost
Fallen by 1.6% (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 Hengong Precision Equipment Co., Ltd.
Interest
At CNY 11.28 MM has Grown at 43.13%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Pre-Tax Profit
At CNY 7.6 MM has Fallen at -77.17%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
Fallen at -37.72%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Debt-Equity Ratio
Highest at 48.69 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income
Highest at CNY 0.59 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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