Hengyi Petrochemical Co., Ltd. (000703) 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

Hengyi Petrochemical Co., Ltd.

Why is Hengyi Petrochemical Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.71%

Poor long term growth as Net Sales has grown by an annual rate of 7.78% and Operating profit at -19.70% 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 PROFIT(Q) At CNY -11.46 MM has Fallen at -136.8%
NET SALES(HY) At CNY 56,608.29 MM has Grown at -10.21%
DEBT-EQUITY RATIO (HY) Highest at 272.79 %

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 109.15%, its profits have fallen by -132.6%
At the current price, the company has a high dividend yield of 0.7

Real-Time Research Report

Verdict Report

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 Garments & Apparels)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hengyi Petrochemical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hengyi Petrochemical Co., Ltd.

106.06%

1.88

43.39%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.78%

EBIT Growth (5y)

-19.70%

EBIT to Interest (avg)

1.27

Debt to EBITDA (avg)

10.15

Net Debt to Equity (avg)

2.50

Sales to Capital Employed (avg)

1.36

Tax Ratio

14.88%

Dividend Payout Ratio

71.43%

Pledged Shares

Institutional Holding

ROCE (avg)

3.71%

ROE (avg)

6.75%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.05

EV to EBIT

43.40

EV to EBITDA

16.28

EV to Capital Employed

1.01

EV to Sales

0.73

PEG Ratio

Dividend Yield

0.74%

ROCE (Latest)

2.34%

ROE (Latest)

-1.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

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

9What is working for the Company

NET PROFIT(HY)

Higher at CNY 163.57 MM

PRE-TAX PROFIT(Q)

At CNY 23.38 MM has Grown at 119.71%

RAW MATERIAL COST(Y)

Fallen by -37.92% (YoY

-14What is not working for the Company

NET PROFIT(Q)

At CNY -11.46 MM has Fallen at -136.8%

NET SALES(HY)

At CNY 56,608.29 MM has Grown at -10.21%

DEBT-EQUITY RATIO (HY)

Highest at 272.79 %

INTEREST COVERAGE RATIO(Q)

Lowest at 118.08

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.23 times

OPERATING PROFIT(Q)

Lowest at CNY 673.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.41 %

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

Pre-Tax Profit

At CNY 23.38 MM has Grown at 119.71%

over average net sales of the previous four periods of CNY -118.63 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -37.92% (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 Hengyi Petrochemical Co., Ltd.

Net Profit

At CNY -11.46 MM has Fallen at -136.8%

over average net sales of the previous four periods of CNY 31.14 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 118.08

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 56,608.29 MM has Grown at -10.21%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 272.79 % and Grown

In each half year 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

Operating Profit

Lowest at CNY 673.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 7.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio