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. ?

With a growth in Net Profit of 7222.49%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 6,232.64 MM
ROCE(HY) Highest at 8.82%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 11.25%, it has a fair valuation with a 1.76 Price to Book Value

Over the past year, while the stock has generated a return of 157.55%, its profits have risen by 822.4% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0.4

Market Beating performance in long term as well as near term

Along with generating 157.55% 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 buy?

Overall Portfolio exposure to Hengyi Petrochemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Hengyi Petrochemical Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hengyi Petrochemical Co., Ltd.

157.55%

2.36

50.94%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.40%

EBIT Growth (5y)

0.94%

EBIT to Interest (avg)

1.27

Debt to EBITDA (avg)

10.15

Net Debt to Equity (avg)

2.50

Sales to Capital Employed (avg)

1.32

Tax Ratio

14.88%

Dividend Payout Ratio

63.86%

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

Industry P/E

Price to Book Value

1.76

EV to EBIT

20.59

EV to EBITDA

14.14

EV to Capital Employed

1.23

EV to Sales

0.94

PEG Ratio

0.02

Dividend Yield

0.39%

ROCE (Latest)

5.95%

ROE (Latest)

11.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

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

32What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 6,232.64 MM

ROCE(HY)

Highest at 8.82%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -342.64% (YoY

NET SALES(Q)

Highest at CNY 29,893.82 MM

OPERATING PROFIT(Q)

Highest at CNY 3,249.29 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.87 %

PRE-TAX PROFIT(Q)

Highest at CNY 2,608.97 MM

NET PROFIT(Q)

Highest at CNY 1,888.55 MM

EPS(Q)

Highest at CNY 0.54

-3What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.34 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 15.07 times

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

Pre-Tax Profit

At CNY 2,608.97 MM has Grown at 2,189.02%

over average net sales of the previous four periods of CNY 113.98 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1,888.55 MM has Grown at 2,304.68%

over average net sales of the previous four periods of CNY 78.54 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 6,232.64 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 29,893.82 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 3,249.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 10.87 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 2,608.97 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1,888.55 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.54

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -342.64% (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.

Inventory Turnover Ratio

Lowest at 6.34 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 15.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio