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

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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 14.14% and Operating profit at -328.15% over the last 5 years

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 17.30%, its profits have fallen by -277.3%

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, High Return

Absolute

Risk Adjusted

Volatility

Hongbo Co. Ltd.

2.79%

0.43

62.31%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.14%

EBIT Growth (5y)

-328.15%

EBIT to Interest (avg)

-1.70

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.36

Tax Ratio

11.72%

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

6.66

EV to EBIT

-135.68

EV to EBITDA

249.48

EV to Capital Employed

7.17

EV to Sales

8.27

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.29%

ROE (Latest)

-13.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

28What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -86.1% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.28%

NET SALES(Q)

Highest at CNY 674.84 MM

OPERATING PROFIT(Q)

Highest at CNY 109.35 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.2 %

PRE-TAX PROFIT(Q)

Highest at CNY 104.14 MM

NET PROFIT(Q)

Highest at CNY 84.58 MM

EPS(Q)

Highest at CNY 0.17

-19What is not working for the Company

NET PROFIT(HY)

At CNY -111.23 MM has Grown at -112.52%

INTEREST(HY)

At CNY 21.2 MM has Grown at 65.32%

ROCE(HY)

Lowest at -12.83%

CASH AND EQV(HY)

Lowest at CNY 1,301.36 MM

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

Net Sales

At CNY 674.84 MM has Grown at 342.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 104.14 MM has Grown at 765.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 84.58 MM has Grown at 437.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 674.84 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 109.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 16.2 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 104.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 84.58 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.17

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 3.28%

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 -86.1% (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 21.2 MM has Grown at 65.32%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 1,301.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents