Hongbo Co. Ltd. (002229) 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

Hongbo Co. Ltd.

Why is Hongbo Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of -5.30% and Operating profit at -307.69% over the last 5 years

With a fall in Net Sales of -86.99%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
PRE-TAX PROFIT(Q) At CNY -31.96 MM has Fallen at -130.69%
NET PROFIT(Q) At CNY -31.7 MM has Fallen at -137.47%
OPERATING CASH FLOW(Y) Lowest at CNY -172.34 MM

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 -38.65%, its profits have fallen by -45.1%

Below par performance in long term as well as near term

Along with generating -38.65% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Media & Entertainment)

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

Is Hongbo Co. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hongbo Co. Ltd.

-41.06%

-0.41

54.70%

China Shanghai Composite

0.9%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.30%

EBIT Growth (5y)

-307.69%

EBIT to Interest (avg)

-2.89

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.43

Tax Ratio

9.77%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.10%

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

4.70

EV to EBIT

-22.05

EV to EBITDA

-30.29

EV to Capital Employed

5.01

EV to Sales

11.68

PEG Ratio

Dividend Yield

ROCE (Latest)

-22.74%

ROE (Latest)

-20.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Mildly 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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -255.08% (YoY

OPERATING PROFIT(Q)

Highest at CNY -0.94 MM

OPERATING PROFIT MARGIN(Q)

Highest at -0.95 %

PRE-TAX PROFIT(Q)

Highest at CNY -22.22 MM

NET PROFIT(Q)

At CNY -19.79 MM has Grown at 53.25%

-20What is not working for the Company

NET PROFIT(HY)

At CNY -51.48 MM has Grown at -221.82%

INTEREST(HY)

At CNY 14.61 MM has Grown at 14.25%

OPERATING CASH FLOW(Y)

Lowest at CNY -76.33 MM

CASH AND EQV(HY)

Lowest at CNY 839.91 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.55 times

NET SALES(Q)

Fallen at -10.71%

Here's what is working for Hongbo Co. Ltd.

Operating Profit

Highest at CNY -0.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at -0.95 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY -22.22 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -19.79 MM has Grown at 53.25%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -255.08% (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

Here's what is not working for Hongbo Co. Ltd.

Interest

At CNY 14.61 MM has Grown at 14.25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -76.33 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Fallen at -10.71%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 839.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 1.55 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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