Hezong Science & Technology Co., Ltd. (300477) 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

Hezong Science & Technology Co., Ltd.

Why is Hezong Science & Technology Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 2.14% and Operating profit at -252.10% 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 10 consecutive quarters

NET SALES(Q) At CNY 373.78 MM has Fallen at -47.79%
PRE-TAX PROFIT(Q) At CNY -120.5 MM has Fallen at -52.97%
ROCE(HY) Lowest at -44.54%

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 -11.00%, its profits have fallen by -51.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.00% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Electronics & Appliances)

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

Is Hezong Science & Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hezong Science & Technology Co., Ltd.

-27.5%

0.10

69.76%

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)

2.14%

EBIT Growth (5y)

-252.10%

EBIT to Interest (avg)

-2.81

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

2.24

Sales to Capital Employed (avg)

0.54

Tax Ratio

21.58%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.62%

ROE (avg)

1.47%

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

1.97

EV to EBIT

-4.56

EV to EBITDA

-5.82

EV to Capital Employed

1.28

EV to Sales

2.42

PEG Ratio

Dividend Yield

ROCE (Latest)

-28.00%

ROE (Latest)

-127.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 296.53 MM

NET PROFIT(HY)

Higher at CNY -103.36 MM

-23What is not working for the Company

NET SALES(Q)

At CNY 373.78 MM has Fallen at -47.79%

PRE-TAX PROFIT(Q)

At CNY -120.5 MM has Fallen at -52.97%

ROCE(HY)

Lowest at -44.54%

INTEREST(Q)

At CNY 24 MM has Grown at 63.97%

RAW MATERIAL COST(Y)

Grown by 635.14% (YoY

CASH AND EQV(HY)

Lowest at CNY 254.33 MM

DEBT-EQUITY RATIO (HY)

Highest at 240.4 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.12 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.28 times

Here's what is working for Hezong Science & Technology Co., Ltd.

Net Profit

Higher at CNY -103.36 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 296.53 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Hezong Science & Technology Co., Ltd.

Net Sales

At CNY 373.78 MM has Fallen at -47.79%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -120.5 MM has Fallen at -52.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 24 MM has Grown at 63.97%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 254.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 240.4 %

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

Inventory Turnover Ratio

Lowest at 3.12 times

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 1.28 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 635.14% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales