HG Technologies Co., Ltd. (300847) 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

HG Technologies Co., Ltd.

Why is HG Technologies Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.16% and Operating profit at 3.79% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 101.37 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 5.5 times
OPERATING PROFIT(Q) Lowest at CNY 27.02 MM

With ROE of 7.70%, it has a very expensive valuation with a 1.42 Price to Book Value

Over the past year, while the stock has generated a return of -19.54%, its profits have fallen by -8.2%
At the current price, the company has a high dividend yield of 0.8

Below par performance in long term as well as near term

Along with generating -19.54% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 HG Technologies Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

HG Technologies Co., Ltd.

-21.4%

-0.16

38.62%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.16%

EBIT Growth (5y)

3.79%

EBIT to Interest (avg)

90.13

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

0.82

Tax Ratio

11.24%

Dividend Payout Ratio

30.01%

Pledged Shares

Institutional Holding

ROCE (avg)

15.31%

ROE (avg)

8.71%

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

1.42

EV to EBIT

12.21

EV to EBITDA

9.57

EV to Capital Employed

1.77

EV to Sales

1.24

PEG Ratio

Dividend Yield

0.81%

ROCE (Latest)

14.52%

ROE (Latest)

7.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly 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

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 153,783.3

RAW MATERIAL COST(Y)

Fallen by -5.68% (YoY

CASH AND EQV(HY)

Highest at CNY 1,381.68 MM

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 101.37 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.5 times

OPERATING PROFIT(Q)

Lowest at CNY 27.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.38 %

PRE-TAX PROFIT(Q)

Lowest at CNY 30.55 MM

NET PROFIT(Q)

Lowest at CNY 25.64 MM

EPS(Q)

Lowest at CNY 0.09

Here's what is working for HG Technologies Co., Ltd.

Interest Coverage Ratio

Highest at 153,783.3 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Cash and Eqv

Highest at CNY 1,381.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -5.68% (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 HG Technologies Co., Ltd.

Operating Cash Flow

Lowest at CNY 101.37 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 27.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 30.55 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 25.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 5.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio