Hillstone Networks Co., Ltd. (688030) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hillstone Networks Co., Ltd.

Why is Hillstone Networks Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.14%

The company has been able to generate a Return on Capital Employed (avg) of 0.14% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 9.00% and Operating profit at -295.28% over the last 5 years

Flat results in Mar 25

NET SALES(Q) At CNY 155.57 MM has Fallen at -36.82%
PRE-TAX PROFIT(Q) At CNY -74.87 MM has Fallen at -102.31%
NET PROFIT(Q) At CNY -74.41 MM has Fallen at -109.13%

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 10.37%, its profits have risen by 32.3%

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 Telecom - Equipment & Accessories)

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

Is Hillstone Networks Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hillstone Networks Co., Ltd.

10.37%

1.59

46.90%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.00%

EBIT Growth (5y)

-295.28%

EBIT to Interest (avg)

-9.71

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.58

Tax Ratio

5.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.14%

ROE (avg)

1.87%

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

2.25

EV to EBIT

-15.31

EV to EBITDA

-26.19

EV to Capital Employed

1.78

EV to Sales

2.36

PEG Ratio

Dividend Yield

ROCE (Latest)

-11.63%

ROE (Latest)

-16.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

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

7What is working for the Company

NET SALES(HY)

At CNY 444.37 MM has Grown at 29.33%

NET PROFIT(HY)

Higher at CNY -140.15 MM

RAW MATERIAL COST(Y)

Fallen by -9.31% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.47%

-21What is not working for the Company

NET SALES(Q)

At CNY 155.57 MM has Fallen at -36.82%

PRE-TAX PROFIT(Q)

At CNY -74.87 MM has Fallen at -102.31%

NET PROFIT(Q)

At CNY -74.41 MM has Fallen at -109.13%

DEBT-EQUITY RATIO (HY)

Highest at 57.56 %

CASH AND EQV(HY)

Lowest at CNY 512.6 MM

INTEREST(Q)

Highest at CNY 6.14 MM

Here's what is working for Hillstone Networks Co., Ltd.

Inventory Turnover Ratio

Highest at 4.47%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -9.31% (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 Hillstone Networks Co., Ltd.

Net Sales

At CNY 155.57 MM has Fallen at -36.82%

over average net sales of the previous four periods of CNY 246.23 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -74.87 MM has Fallen at -102.31%

over average net sales of the previous four periods of CNY -37.01 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -74.41 MM has Fallen at -109.13%

over average net sales of the previous four periods of CNY -35.58 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 6.14 MM has Grown at 21.41%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 57.56 % 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

Interest

Highest at CNY 6.14 MM

in the last five periods and Increased by 21.41% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 512.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents