HMT (Xiamen) New Technical Materials Co., Ltd. (603306) 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

HMT (Xiamen) New Technical Materials Co., Ltd.

Why is HMT (Xiamen) New Technical Materials Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 22.08% and Operating profit at 9.78% over the last 5 years

INTEREST(HY) At CNY 31.84 MM has Grown at 348.63%
INTEREST COVERAGE RATIO(Q) Lowest at 224.28
OPERATING PROFIT(Q) Lowest at CNY 35.37 MM

With ROE of 8.14%, it has a very expensive valuation with a 5.01 Price to Book Value

Over the past year, while the stock has generated a return of 136.05%, its profits have fallen by -7.8%
At the current price, the company has a high dividend yield of 0.2

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 Garments & Apparels)

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

Is HMT (Xiamen) New Technical Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

HMT (Xiamen) New Technical Materials Co., Ltd.

171.94%

6.53

53.51%

China Shanghai Composite

21.43%

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)

17.98%

EBIT Growth (5y)

-12.14%

EBIT to Interest (avg)

92.32

Debt to EBITDA (avg)

0.28

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.48

Tax Ratio

17.47%

Dividend Payout Ratio

12.75%

Pledged Shares

Institutional Holding

ROCE (avg)

9.74%

ROE (avg)

7.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

296

Industry P/E

Price to Book Value

8.43

EV to EBIT

246.65

EV to EBITDA

108.71

EV to Capital Employed

6.90

EV to Sales

12.19

PEG Ratio

Dividend Yield

0.11%

ROCE (Latest)

2.80%

ROE (Latest)

2.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Bullish

OBV

No Trend

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 6.25 times

-36What is not working for the Company

INTEREST(HY)

At CNY 38.41 MM has Grown at 59.23%

INTEREST COVERAGE RATIO(Q)

Lowest at 37.08

NET PROFIT(Q)

At CNY 11.44 MM has Fallen at -86.87%

ROCE(HY)

Lowest at 4.31%

OPERATING PROFIT(Q)

Lowest at CNY 6.76 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.32 %

PRE-TAX PROFIT(Q)

Lowest at CNY -8.42 MM

RAW MATERIAL COST(Y)

Grown by 15.61% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 26.16 %

NET SALES(Q)

Lowest at CNY 511.88 MM

Here's what is working for HMT (Xiamen) New Technical Materials Co., Ltd.

Inventory Turnover Ratio

Highest at 6.25 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for HMT (Xiamen) New Technical Materials Co., Ltd.

Interest

At CNY 38.41 MM has Grown at 59.23%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 37.08 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY -8.42 MM has Fallen at -109.08%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 11.44 MM has Fallen at -86.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 6.76 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.32 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -8.42 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Sales

Lowest at CNY 511.88 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 26.16 %

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

Raw Material Cost

Grown by 15.61% (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