Hongcheng Environmental Technology Co., Ltd. () 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

Beijing Enterprises Urban Resources Group Ltd.

Hongcheng Environmental Technology Co., Ltd.

TIL Enviro Ltd.

Capital Environment Holdings Ltd.

Kangda International Environmental Co., Ltd.

Dongjiang Environmental Co. Ltd.

Weigang Environmental Technology Holding Group Ltd.

New Universe Environmental Group Ltd.

ELL Environmental Holdings Ltd.

Futian Holdings Ltd.

Man Shing Global Holdings Ltd.

Why is Hongcheng Environmental Technology Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 0%

The company is Net-Debt Free

With ROE of 2.06%, it has a Very Expensive valuation with a 2.75 Price to Book Value

Over the past year, while the stock has generated a return of 49.47%, its profits have fallen by -19%

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 Miscellaneous)

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

Is Hongcheng Environmental Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hongcheng Environmental Technology Co., Ltd.

49.47%

2.29

40.10%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.00%

EBIT Growth (5y)

0.00%

EBIT to Interest (avg)

0.48

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

12.87

Tax Ratio

5.14%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

134

Industry P/E

Price to Book Value

2.75

EV to EBIT

549.44

EV to EBITDA

165.05

EV to Capital Employed

2.56

EV to Sales

14.09

PEG Ratio

Dividend Yield

ROCE (Latest)

0.47%

ROE (Latest)

2.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

15What is working for the Company

ROCE(HY)

Highest at 15.31%

INVENTORY TURNOVER RATIO(HY)

Highest at 7.59 times

NET SALES(Q)

Highest at HKD 208.04 MM

RAW MATERIAL COST(Y)

Fallen by -25.73% (YoY

CASH AND EQV(HY)

Highest at HKD 210.11 MM

OPERATING PROFIT(Q)

Highest at HKD 98.64 MM

PRE-TAX PROFIT(Q)

Highest at HKD 73.57 MM

NET PROFIT(Q)

Highest at HKD 57.03 MM

EPS(Q)

Highest at HKD 0.06

-4What is not working for the Company

INTEREST(HY)

At HKD 3.63 MM has Grown at 57.67%

DEBT-EQUITY RATIO (HY)

Highest at 28.24 %

Here's what is working for Hongcheng Environmental Technology Co., Ltd.

Net Sales

Highest at HKD 208.04 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Inventory Turnover Ratio

Highest at 7.59 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At HKD 208.04 MM has Grown at 48.89%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Operating Profit

Highest at HKD 98.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Pre-Tax Profit

Highest at HKD 73.57 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 57.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 0.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Cash and Eqv

Highest at HKD 210.11 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -25.73% (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

Depreciation

Highest at HKD 19.3 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Here's what is not working for Hongcheng Environmental Technology Co., Ltd.

Interest

At HKD 3.63 MM has Grown at 57.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Debt-Equity Ratio

Highest at 28.24 %

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