HLA Group Corp. Ltd. (600398) 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

HLA Group Corp. Ltd.

Why is HLA Group Corp. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.23% and Operating profit at 1.11% over the last 5 years

With a fall in Net Sales of -25.02%, the company declared Very Negative results in Sep 25

NET SALES(Q) At CNY 4,033.35 MM has Fallen at -23.58%
INTEREST COVERAGE RATIO(Q) Lowest at 1,231.61
PRE-TAX PROFIT(Q) At CNY 361.84 MM has Fallen at -47.2%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.44% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to HLA Group Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is HLA Group Corp. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

HLA Group Corp. Ltd.

-22.73%

-1.04

28.82%

China Shanghai Composite

16.78%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.45%

EBIT Growth (5y)

-2.18%

EBIT to Interest (avg)

19.94

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

1.07

Tax Ratio

20.33%

Dividend Payout Ratio

90.91%

Pledged Shares

Institutional Holding

ROCE (avg)

37.25%

ROE (avg)

14.50%

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

1.44

EV to EBIT

7.90

EV to EBITDA

5.30

EV to Capital Employed

1.68

EV to Sales

0.95

PEG Ratio

Dividend Yield

ROCE (Latest)

21.22%

ROE (Latest)

11.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.14% (YoY

NET SALES(Q)

Highest at CNY 6,661.14 MM

PRE-TAX PROFIT(Q)

Highest at CNY 1,163.5 MM

NET PROFIT(Q)

Highest at CNY 951.62 MM

EPS(Q)

Highest at CNY 0.2

-4What is not working for the Company

ROCE(HY)

Lowest at 11.72%

INTEREST(Q)

At CNY 14.33 MM has Grown at 31.13%

Here's what is working for HLA Group Corp. Ltd.

Net Sales

Highest at CNY 6,661.14 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 6,661.14 MM has Grown at 23.21%

over average net sales of the previous four periods of CNY 5,406.41 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 1,163.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 1,163.5 MM has Grown at 62.84%

over average net sales of the previous four periods of CNY 714.52 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 951.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 951.62 MM has Grown at 72.54%

over average net sales of the previous four periods of CNY 551.52 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by 0.14% (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 HLA Group Corp. Ltd.

Interest

At CNY 14.33 MM has Grown at 31.13%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)