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

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 4.11% and Operating profit at -188.17% over the last 5 years

Flat results in Sep 25

NET SALES(HY) At CNY 268.9 MM has Grown at -15.97%
ROCE(HY) Lowest at 1.05%
DEBT-EQUITY RATIO (HY) Highest at -7.12 %

With ROE of 1.24%, it has a fair valuation with a 1.10 Price to Book Value

Over the past year, while the stock has generated a return of 22.87%, its profits have fallen by -65.6%
At the current price, the company has a high dividend yield of 0.4

Market Beating performance in long term as well as near term

Along with generating 22.87% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hongda High-Tech Holding Co., Ltd.

19.29%

1.98

35.68%

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)

4.11%

EBIT Growth (5y)

-188.17%

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

1.10

EV to EBIT

-105.42

EV to EBITDA

109.08

EV to Capital Employed

1.14

EV to Sales

2.84

PEG Ratio

Dividend Yield

0.38%

ROCE (Latest)

-1.08%

ROE (Latest)

1.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 159.92 MM

PRE-TAX PROFIT(Q)

At CNY 18.5 MM has Grown at 477.86%

NET PROFIT(Q)

At CNY 18.43 MM has Grown at 177.87%

RAW MATERIAL COST(Y)

Fallen by -7% (YoY

-10What is not working for the Company

NET SALES(HY)

At CNY 268.9 MM has Grown at -15.97%

ROCE(HY)

Lowest at 1.05%

DEBT-EQUITY RATIO (HY)

Highest at -7.12 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.37 times

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

Pre-Tax Profit

At CNY 18.5 MM has Grown at 477.86%

over average net sales of the previous four periods of CNY 3.2 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 159.92 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 18.43 MM has Grown at 177.87%

over average net sales of the previous four periods of CNY 6.63 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -7% (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 268.9 MM has Grown at -15.97%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at -7.12 %

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

Inventory Turnover Ratio

Lowest at 3.37 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 0.37 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income