Hongbaoli Group Corp. Ltd. (002165) 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

Hongbaoli Group Corp. Ltd.

Why is Hongbaoli Group Corp. Ltd. ?

Poor Management Efficiency with a low ROCE of 2.03%

The company has been able to generate a Return on Capital Employed (avg) of 2.03% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 4.93% and Operating profit at -29.53% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 2.68% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.93% and Operating profit at -29.53% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 164.6 MM
NET PROFIT(9M) At CNY 35.94 MM has Grown at -20.78%

With ROE of 2.06%, it has a very expensive valuation with a 3.13 Price to Book Value

Over the past year, while the stock has generated a return of 71.03%, its profits have fallen by -30.3%
At the current price, the company has a high dividend yield of 0.4

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 Specialty Chemicals)

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

Is Hongbaoli Group Corp. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hongbaoli Group Corp. Ltd.

64.42%

2.83

69.93%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.93%

EBIT Growth (5y)

-29.53%

EBIT to Interest (avg)

0.75

Debt to EBITDA (avg)

11.00

Net Debt to Equity (avg)

0.90

Sales to Capital Employed (avg)

0.53

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

87.94%

Pledged Shares

Institutional Holding

ROCE (avg)

2.03%

ROE (avg)

2.68%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

152

Industry P/E

Price to Book Value

3.13

EV to EBIT

547.67

EV to EBITDA

73.78

EV to Capital Employed

2.24

EV to Sales

2.90

PEG Ratio

Dividend Yield

0.37%

ROCE (Latest)

0.41%

ROE (Latest)

2.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

DEBTORS TURNOVER RATIO(HY)

Highest at 3.58 times

PRE-TAX PROFIT(Q)

At CNY 17.51 MM has Grown at 148.61%

RAW MATERIAL COST(Y)

Fallen by -36.43% (YoY

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 164.6 MM

NET PROFIT(9M)

At CNY 35.94 MM has Grown at -20.78%

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

Pre-Tax Profit

At CNY 17.51 MM has Grown at 148.61%

over average net sales of the previous four periods of CNY 7.04 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Highest at 3.58 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -36.43% (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 Hongbaoli Group Corp. Ltd.

Operating Cash Flow

Lowest at CNY 164.6 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Profit

At CNY 35.94 MM has Grown at -20.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)