Hongda High-Tech Holding Co., Ltd. (002144) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hongda High-Tech Holding Co., Ltd.

Why is Hongda High-Tech Holding Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.74%

The company has been able to generate a Return on Capital Employed (avg) of 1.74% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 4.09% and Operating profit at -180.67% over the last 5 years

Flat results in Mar 25

NET PROFIT(HY) At CNY -20.02 MM has Grown at -167.91%
NET SALES(Q) At CNY 120.91 MM has Fallen at -20.98%
ROCE(HY) Lowest at 1.36%

With ROE of 1.24%, it has a fair valuation with a 0.80 Price to Book Value

Over the past year, while the stock has generated a return of 29.53%, its profits have fallen by -65.6%
At the current price, the company has a high dividend yield of 0.5

Market Beating Performance

The stock has generated a return of 29.53% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hongda High-Tech Holding Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hongda High-Tech Holding Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Hongda High-Tech Holding Co., Ltd.

18.57%

1.74

33.52%

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)

4.09%

EBIT Growth (5y)

-180.67%

EBIT to Interest (avg)

17.13

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.27

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

31.63%

Pledged Shares

Institutional Holding

ROCE (avg)

1.74%

ROE (avg)

3.98%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.80

EV to EBIT

-65.95

EV to EBITDA

68.24

EV to Capital Employed

0.71

EV to Sales

1.78

PEG Ratio

Dividend Yield

0.52%

ROCE (Latest)

-1.08%

ROE (Latest)

1.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 189.24 MM

PRE-TAX PROFIT(Q)

At CNY 16.22 MM has Grown at 410.58%

NET PROFIT(Q)

At CNY 17.57 MM has Grown at 151.49%

RAW MATERIAL COST(Y)

Fallen by -11.57% (YoY

-14What is not working for the Company

NET PROFIT(HY)

At CNY -20.02 MM has Grown at -167.91%

NET SALES(Q)

At CNY 120.91 MM has Fallen at -20.98%

ROCE(HY)

Lowest at 1.36%

CASH AND EQV(HY)

Lowest at CNY 633.64 MM

Here's what is working for Hongda High-Tech Holding Co., Ltd.

Pre-Tax Profit

At CNY 16.22 MM has Grown at 410.58%

over average net sales of the previous four periods of CNY 3.18 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 189.24 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

At CNY 17.57 MM has Grown at 151.49%

over average net sales of the previous four periods of CNY 6.99 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -11.57% (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 Hongda High-Tech Holding Co., Ltd.

Net Sales

At CNY 120.91 MM has Fallen at -20.98%

over average net sales of the previous four periods of CNY 153.02 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 633.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents