Why is Hithink RoyalFlush Information Network Co., Ltd. ?
1
With a growth in Net Profit of 112.58%, the company declared Outstanding results in Mar 26
- The company has declared positive results for the last 6 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at CNY 4,311.15 MM
- ROCE(HY) Highest at 49.6%
- DEBT-EQUITY RATIO (HY) Lowest at -229.33 %
2
With ROE of 47.79%, it has a attractive valuation with a 9.18 Price to Book Value
- Over the past year, while the stock has generated a return of 25.13%, its profits have risen by 81.6% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 1.6
3
Market Beating performance in long term as well as near term
- Along with generating 25.13% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
How much should you buy?
- Overall Portfolio exposure to Hithink RoyalFlush Information Network Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hithink RoyalFlush Information Network Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hithink RoyalFlush Information Network Co., Ltd.
25.13%
2.34
56.15%
China Shanghai Composite
19.22%
1.40
13.75%
Quality key factors
Factor
Value
Sales Growth (5y)
16.24%
EBIT Growth (5y)
15.97%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-1.16
Sales to Capital Employed (avg)
0.62
Tax Ratio
7.32%
Dividend Payout Ratio
87.22%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
29.80%
Valuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
9.18
EV to EBIT
14.09
EV to EBITDA
13.86
EV to Capital Employed
-5.33
EV to Sales
7.60
PEG Ratio
0.33
Dividend Yield
1.57%
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
47.79%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Bullish
Technical Movement
28What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 4,311.15 MM
ROCE(HY)
Highest at 49.6%
DEBT-EQUITY RATIO
(HY)
Lowest at -229.33 %
PRE-TAX PROFIT(Q)
At CNY 276.59 MM has Grown at 109.02%
NET PROFIT(Q)
At CNY 255.94 MM has Grown at 112.58%
RAW MATERIAL COST(Y)
Fallen by -4.08% (YoY
CASH AND EQV(HY)
Highest at CNY 30,065.47 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 75.56 times
NET SALES(Q)
At CNY 1,053.49 MM has Grown at 40.81%
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Hithink RoyalFlush Information Network Co., Ltd.
Operating Cash Flow
Highest at CNY 4,311.15 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Pre-Tax Profit
At CNY 276.59 MM has Grown at 109.02%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 255.94 MM has Grown at 112.58%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Debt-Equity Ratio
Lowest at -229.33 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales
At CNY 1,053.49 MM has Grown at 40.81%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Cash and Eqv
Highest at CNY 30,065.47 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 75.56 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -4.08% (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






